Savaria (SIS) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 results with adjusted EBITDA margin of 21.2% and gross margin of 39.2%, driven by operational improvements, pricing initiatives, and the completion of the Savaria One transformation program.

• Accessibility segment delivered 23.5% EBITDA margin, with strong contributions from North America and Europe; Patient Care margin improved to 18.3%.

• Revenue for Q3 was $224.8 million, up 5.2% year-over-year, with organic growth, FX gains, and acquisition contributions.

• Free cash flow increased 51.5% year-over-year to $20.6 million, supporting debt repayment and future investments.

• Maintained a strong balance sheet with over $290 million in available funds and a reduced debt leverage ratio.

Financial highlights

• Adjusted EBITDA was $47.6 million, marking the sixth consecutive quarter above $40 million and up 13.9% year-over-year.

• Net earnings reached $19.5 million ($0.27 per share), up 74.4% year-over-year.

• Gross margin improved by 220 basis points year-over-year to 39.2%.

• Operating cash flow rose 16% year-over-year to $41.5 million.

• CapEx for Q3 was $5.7 million (2.5% of sales); YTD CapEx at $15.2 million (2.3% of sales).

Outlook and guidance

• Annual revenue guidance remains at approximately $925 million, with adjusted EBITDA margin guidance slightly above 20%.

• Confident in maintaining over 20% EBITDA margin in Q4 and into 2026.

• Growth expected from volume, pricing, new products, acquisitions, and FX benefits.

• Next strategic plan (Savaria One phase two) to be unveiled in April 2026, focused on growth.

• Completion of Savaria One expected to further enhance profitability and operational efficiency.