Savaria (SIS) Q2 2025 earnings summary

Executive summary

• Achieved record adjusted EBITDA margin of 20.6% in Q2, surpassing the 20% target and marking six consecutive strong quarters.

• Net earnings reached $16.3 million, up 43.3% year-over-year, with diluted EPS rising 43.8% to $0.23.

• Revenue grew 2.4% year-over-year to $226.7 million, driven by positive FX and acquisitions, offset by slight organic contraction.

• Gross margin improved by 150 basis points year-over-year to a record 39.0%, reflecting operational efficiencies.

• Transformation program Savaria One and USMCA compliance continue to drive operational improvements and margin expansion.

Financial highlights

• Adjusted EBITDA was $46.7 million, the highest on record, with a margin of 20.6%.

• Operating income rose 18.2% to $26.7 million, with margin improving to 11.8%.

• Gross profit grew 6.6% to $88.5 million, representing 39.0% of revenue.

• Operating cash flow increased 28.4% to $30.3 million; free cash flow after debt and dividends was $9.4 million, up 204%.

• Year-to-date revenue reached $447.0 million, up 3.8%; adjusted EBITDA for six months at $87.4 million, margin 19.6%.

Outlook and guidance

• 2025 revenue guidance maintained at approximately $925 million, with tightened EBITDA margin guidance at 20%.

• Growth expected from volume, pricing, new product launches, and favorable FX in both segments.

• Confident in resuming growth in accessibility and patient care segments, supported by a strong backlog.

• Expectation for gross margins to remain stable or improve slightly through year-end.

• Strategic focus on operational efficiencies, production capacity, and North American manufacturing optimization.