Savaria (SIS) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 results with revenue of CAD 220.2 million, up 5.2% year-over-year, driven by North American growth, positive FX, organic growth, and acquisitions.

• Adjusted EBITDA reached CAD 40.6 million, a 17% increase, with margin improving to 18.5%.

• Net earnings rose 7.3% to CAD 12.5 million, or CAD 0.17 per diluted share.

• Over 350 Savaria One initiatives implemented, supporting margin and efficiency gains.

• Strategic investments include a new assembly line and a CAD 30 million expansion of the Greenville/South Carolina facility.

Financial highlights

• Gross margin increased by 180 basis points to 37.8%, with gross profit at CAD 83.3 million.

• Operating income grew 19.8% to CAD 21.2 million, representing 9.6% of revenue.

• Operating cash flow rose 18% to CAD 31.3 million; free cash flow after debt and dividends was CAD 10.3 million, up 58%.

• Adjusted net earnings were CAD 16.5 million, or CAD 0.23 per share, up 15% year-over-year.

• Leverage ratio reduced to 1.49 from 1.63 at year-end 2024.

Outlook and guidance

• 2025 guidance maintained: revenue of approximately CAD 925 million and adjusted EBITDA margin of 17%-20%.

• Anticipates 5-8% revenue growth, driven by volume, pricing, new products, and FX, but tempered by macro and tariff risks.

• Aiming for the high end of guidance, but bracket kept wide due to tariff and economic uncertainty.

• Backlog remains strong, supporting positive outlook for future quarters.

• Ongoing supply chain optimization and North American manufacturing footprint review to maintain competitiveness.