Record Quarter as Savaria Delivers $16.3M of Net Earnings and Reaches 20.6% Adjusted EBITDA Margin* in Q2 2025

Executive Summary

• Savaria Corporation reported strong financial results for the second quarter of 2025, with revenue increasing 2.4% to $226.7 million and net earnings rising 43.3% to $16.3 million ($0.23 per diluted share) compared to Q2 2024.
• The company achieved its "Savaria One" strategic goal, recording an adjusted EBITDA margin of 20.6% (up 160 bps year-over-year) and a record gross margin of 39.0%.
• Growth was driven by the acquisition of Western Elevator, favorable foreign exchange impacts, and operational efficiencies, despite a slight organic revenue contraction of 0.7%.

Key Details

• Q2 2025 Financial Performance:
  • Revenue: $226.7 million (up 2.4% YoY); Year-to-Date (YTD) revenue was $447.0 million (up 3.8%).
  • Net Earnings: $16.3 million ($0.23 diluted EPS), compared to $11.4 million ($0.16 diluted EPS) in Q2 2024.
  • Gross Profit: $88.5 million (39.0% margin), up from 37.5% in Q2 2024.
  • Operating Income: $26.7 million (11.8% margin), up from 10.2% in Q2 2024.
  • Adjusted EBITDA: $46.7 million ($0.65 per share), up 11.4% from $41.9 million in Q2 2024.
  • Adjusted EBITDA Margin: 20.6%, up 160 basis points from 19.0% in Q2 2024.
• Segment Performance (Q2 2025):
  • Accessibility Segment: Revenue of $176.7 million (up 1.9%); Adjusted EBITDA of $38.8 million with a 21.9% margin.
  • Patient Care Segment: Revenue of $50.1 million (up 4.4%); Adjusted EBITDA of $10.5 million with a 20.9% margin.
• Balance Sheet & Liquidity:
  • Net Debt: $231.2 million as of June 30, 2025.
  • Net Debt to Adjusted EBITDA Ratio: 1.34, improved from 1.63 at December 31, 2024.
  • Available Funds: $275.5 million to support working capital, investments, and growth.
  • Cash from Operations: $61.5 million generated in the period.
• Operational Updates & Acquisitions:
  • Western Elevator: Revenue contribution from this acquisition benefited Q2 results.
  • Divestitures: YTD growth was partially offset by the divestitures of Van-Action and Freedom Motors.
  • Manufacturing: Pivoted home elevator manufacturing for US distribution with a new production line in Greenville, South Carolina.
• Outlook:
  • Fiscal 2025 revenue forecast is approximately $925 million.
  • Fiscal 2025 adjusted EBITDA margin forecast is approximately 20%.
  • Drivers include volume/price increases, new product launches (Luma lift, Matot dumbwaiters), and favorable foreign exchange.

Notable Quotes

• Marcel Bourassa, Executive Chairman: “As a result of our collective, global efforts, we achieved an adjusted EBITDA margin of 20.6%, meeting our Savaria One goal... With available funds of over $275 million, we have the flexibility to invest in additional marketing for new products such as the Luma lift and Matot dumbwaiters, as well as seek out strategic acquisitions, giving us confidence for the remainder of the year and beyond.”
• Sebastien Bourassa, President and CEO: “Our focus on transformation over the past 18 months uncovered many efficiencies from procurement, to pricing, to operations. The gross margin in the second quarter was 39% – our highest ever. Meeting our Savaria One goal for adjusted EBITDA margin in the second quarter is a testament to our employees’ commitment to succeed.”