Savaria (SIS) Q4 2024 earnings summary

Executive summary

• Q4 and full year 2024 results were in line with expectations, with record adjusted EBITDA of $161.2M, up 24% year-over-year, driven by cost improvements from the Savaria One program.

• Revenue reached $867.8M, a 3.7% increase, with organic growth and positive FX impact partially offset by divestitures.

• Patient Care segment delivered its best quarter ever, with 23.1% EBITDA and 20%+ quarterly growth.

• North America achieved 8.4% growth for 2024, while Europe saw a 2.5% contraction; Q4 was flat in North America but strong in earlier quarters.

• The company is well-positioned for future growth, supported by operational improvements and a robust balance sheet.

Financial highlights

• Q4 consolidated revenues reached $223.3 million, up 3% year-over-year, with 0.9% organic growth and 2.1% FX impact.

• Gross profit increased 12.5% to $321.7M, with gross margin up 290 bps to 37.1%; Q4 gross margin was 37.7%, up 340 bps year-over-year.

• Adjusted EBITDA was $42.9 million for Q4 (19.2% margin) and $161.2 million for the year (18.6% margin), up 310 bps over 2023.

• Net earnings for 2024 were $48.5M ($0.68 per diluted share), up from $37.8M ($0.57) in 2023.

• Free cash flow after debt and dividends was $34.9 million for the year, a $43.2 million improvement over 2023.

Outlook and guidance

• 2025 revenue guidance set at $925 million, with adjusted EBITDA margin expected between 17%-20% due to tariff and macroeconomic uncertainties.

• Management remains confident in returning to 20% EBITDA margin, especially in the second half of 2025 or by 2026.

• Growth focus in 2025 will be on organic initiatives, new product launches (e.g., Luma elevator), and operational efficiency.