Savaria (SIS) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly results in Q2 2024, with revenue rising 11.6% year-over-year to CAD 221.3 million, driven by 11.5% organic growth and favorable FX, partially offset by divestitures.

• Adjusted EBITDA margin reached a milestone 19%, up 420 bps from Q2 2023, with best-ever adjusted EBITDA per share at CAD 0.59.

• Gross margin improved to 37.5%, up 370 bps year-over-year, reflecting operational efficiencies from Savaria One initiatives.

• Net earnings increased 24.7% to CAD 11 million (CAD 0.15 per diluted share).

• Focus remains on achieving CAD 1 billion in sales and a 20% EBITDA margin by 2025, serving the aging population and driving efficiencies through Savaria One.

Financial highlights

• Revenue for Q2 2024 was CAD 221.3 million, up 11.6% year-over-year, with YTD revenue at CAD 430.8 million, up 5.1%.

• Adjusted EBITDA reached a record CAD 41.9 million (19% margin), up 43.3% year-over-year.

• Gross profit was CAD 83 million (37.5% margin), up 23.6% year-over-year.

• Operating income was CAD 22.6 million (10.2% margin), up 39.3% from Q2 2023.

• Adjusted net earnings were CAD 15.6 million, up 73.7% year-over-year.

Outlook and guidance

• No formal guidance for fiscal 2024; focus remains on 2025 targets of CAD 1 billion revenue and 20% Adjusted EBITDA margin, driven by strong demand and Savaria One program.

• Strategic initiative expenses expected to average CAD 5 million per quarter through early 2025, with total project costs of CAD 40–45 million.

• Evaluating tuck-in acquisitions to offset lost revenue from recent divestitures.

• Future prospects are promising, supported by strong market demand, Savaria One progress, and acquisition opportunities.