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 11.8% growth in North America accessibility, positive FX, organic growth, and the Matot acquisition.

• Adjusted EBITDA reached CAD 40.6 million, a 17.2% increase, with margin improving to 18.5% despite Q1 being seasonally weakest.

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

• Over 350 improvement projects implemented as part of Savaria One transformation initiatives.

• Closed a tuck-in acquisition of Western Elevator and announced a CAD 30 million expansion of the Greenville facility.

Financial highlights

• Gross margin increased 180 basis points to 37.8%, with gross profit up 10.4% to CAD 83.3 million, reflecting operational efficiencies and vertical integration.

• Adjusted EBITDA margin improved 190 basis points year-over-year to 18.5%; trailing 12-month adjusted EBITDA margin at 19%.

• 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.

Outlook and guidance

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

• Management aims for the high end of guidance but remains conservative due to tariff and economic uncertainties.

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

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

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