Savaria Corp. Earnings Call Highlights Growth and Strategy

Savaria Corp. ((TSE:SIS)) has held its Q3 earnings call. Read on for the main highlights of the call.

Savaria Corp.’s latest earnings call was characterized by a generally positive sentiment, with the company celebrating several record-breaking metrics and strong segment performances. Despite some challenges, such as slower growth than targeted and changes in management, the overall outlook remains promising with strategic plans for future growth.

Record EBITDA and Gross Margins

Savaria Corp. achieved a milestone with a record 21.2% EBITDA for the first time, while gross margins reached an impressive 39.2%. This success is attributed to operational improvements and effective pricing initiatives, signaling a robust financial health for the company.

Strong Accessibility Segment Performance

The Accessibility segment stood out with an EBITDA margin of 23.5%, driven by significant contributions from North America and Europe. This segment’s performance underscores Savaria’s strength in delivering accessible solutions across key markets.

Increased Free Cash Flow and Decreased Leverage

Savaria reported a 16% increase in free cash flow compared to the previous year, which contributed to a reduced leverage ratio of 1.19, down from 1.63 at the end of 2024. This improvement reflects the company’s effective financial management and strategic debt reduction.

Revenue Growth and Expansion Plans

The company recorded a 5.2% increase in revenue, setting the stage for future expansion. Savaria plans to unveil a new five-year growth-focused strategy in 2026, aiming to capitalize on emerging opportunities and drive sustained growth.

Successful Integration of Western Elevator Acquisition

The acquisition of Western Elevator has been successfully integrated, contributing to revenue growth and increased product purchases from Savaria. This strategic move has strengthened the company’s market position and expanded its product offerings.

Improved EBITDA Margins in Accessibility and Patient Care

Both the Accessibility and Patient Care segments saw improved EBITDA margins, with the former increasing by 220 basis points and the latter by 90 basis points year-over-year. These improvements highlight Savaria’s operational efficiency and market competitiveness.

Below Target Growth

Despite the positive metrics, overall company growth fell below targets, prompting Savaria to initiate measures aimed at driving future organic growth. These initiatives are expected to enhance the company’s growth trajectory in the coming years.

Management Changes in Europe

A significant management change occurred in Europe with the departure of Claire after 20 years. JP Montigny has taken over, bringing new leadership to navigate the European market’s challenges and opportunities.

Challenges in the European Market

The European market faced slower sales in certain areas, although there are now emerging pockets of growth. Savaria remains focused on addressing these challenges and leveraging growth opportunities within the region.

Forward-Looking Guidance

During the Third Quarter 2025 Conference Call, Savaria maintained its annual revenue guidance, projecting approximately $925 million for the year. The company updated its adjusted EBITDA margin guidance to slightly above 20%, reflecting confidence in its strategic initiatives. With a consolidated revenue of $224.8 million for the quarter and a net debt-to-EBITDA ratio of 1.19, Savaria is well-positioned for future investments and acquisitions. The company plans to unveil its new five-year strategy in April 2026, focusing on growth initiatives and continued R&D investments.

In summary, Savaria Corp.’s earnings call conveyed a positive sentiment, with record-breaking financial metrics and strong segment performances. While challenges such as below-target growth and European market difficulties were acknowledged, the company’s strategic plans and forward-looking guidance suggest a promising trajectory for future growth.