Continued Margin Enhancements Push Savaria to Reach New Profitability Heights in Q3 2025

Executive Summary

• Savaria reported Q3 2025 revenue of $224.8 M, up 5.2% YoY, and adjusted EBITDA of $47.6 M, a 13.9% increase.
• Net earnings were $19.5 M ($0.27 per diluted share); net debt fell to $211.0 M, improving the net‑debt/EBITDA ratio to 1.19.
• Management highlighted the completion of the “Savaria One” transformation program and a strong balance sheet supporting future investments or acquisitions.

Key Details

• Revenue: $224.8 M (Q3 2025) vs. $213.6 M (Q3 2024), +5.2% YoY.
• Accessibility segment: $180.1 M (+6.1%).
• Patient Care segment: $44.7 M (+1.9%).
• Gross Profit: $88.1 M, up 11.4% YoY; gross margin 39.2% (↑220 bps).
• Operating Income: $27.7 M, up 25.7% YoY; operating margin 12.3% (vs. 10.3%).
• Adjusted EBITDA: $47.6 M, up 13.9% YoY; adjusted EBITDA margin 21.2% (↑170 bps).
• Accessibility segment Adjusted EBITDA: $42.3 M (23.5% margin).
• Patient Care segment Adjusted EBITDA: $8.2 M (18.3% margin).
• Net Earnings: $19.5 M; diluted EPS $0.27 (↑68.8% YoY).
• Liquidity & Capital Resources:
• Cash from operations Q3 2025: $41.5 M.
• Net debt balance: $211.0 M (down from $262.7 M end‑2024).
• Net‑debt/Adjusted EBITDA ratio: 1.19 (improved from 1.63).
• Outlook FY 2025: Forecast revenue ≈ $925 M; adjusted EBITDA margin expected slightly above 20%. Drivers include volume/price growth, new product launches, acquisition of Western Elevator Ltd., and favorable FX.
• Strategic Updates: Completion of the “Savaria One” transformation program by end‑2025; consulting fees to cease ($17 M in 2025 vs. $20 M in 2024), adding ~C$0.17 EPS benefit by 2026.
• Management Commentary:
• Executive Chairman Marcel Bourassa noted the program’s impact on margins and future earnings per share.
• President & CEO Sébastien Bourassa emphasized strong segment performance, a healthy balance sheet (> $290 M of available funds), and readiness for further investments or acquisitions.

Notable Quotes

• “All‑in‑all, these many initiatives have brought us above 20% of Adjusted EBITDA… the associated consulting fees will end, adding an additional positive impact of approximately 17 cents of earnings per share by the end of 2026.” – Marcel Bourassa, Executive Chairman
• “Another benefit of our good performance is our healthy balance sheet with over $290 million of funds available and a debt leverage ratio that has declined to 1.19… Thank you to our 2,500 employees for their outstanding teamwork.” – Sébastien Bourassa, President & CEO

Result: Material positive news (Quarterly earnings) → Category: News with material‑positive impact.