Continued Margin Enhancements Push Savaria to Reach New Profitability Heights in Q3 2025
LAVAL, Québec, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Savaria Corporation (“Savaria”) (TSX: SIS), one of the global leaders in the accessibility industry, is pleased to announce its results for the third quarter of 2025.
Highlights – Q3 2025 compared to Q3 2024
- Revenue was $224.8M, up $11.1M or 5.2%
- Gross profit was $88.1M, up $9.0M or 11.4%, representing 39.2% of revenue, an increase of 220 bps
- Operating income was $27.7M, up $5.7M or 25.7%, representing 12.3% of revenue
- Net earnings were $19.5M or $0.27 per share on a diluted basis
- Adjusted EBITDA* was $47.6M, up $5.8M or 13.9%, representing $0.66 per share
- Adjusted EBITDA margin* stood at 21.2% up 170 bps
- The ratio of net debt to adjusted EBITDA* stood at 1.19
| Q3 | YTD | |||||||||||||||||
| in thousands of dollars, except percentages and per-share amounts | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||
| Revenue | $ | 224,770 | $ | 213,634 | 5.2 | % | $ | 671,748 | $ | 644,422 | 4.2 | % | ||||||
| Gross profit | $ | 88,124 | $ | 79,120 | 11.4 | % | $ | 259,865 | $ | 237,488 | 9.4 | % | ||||||
| % of revenue | 39.2 | % | 37.0 | % | 220 | bps | 38.7 | % | 36.9 | % | 180 | bps | ||||||
| Operating income | $ | 27,695 | $ | 22,040 | 25.7 | % | $ | 75,645 | $ | 62,365 | 21.3 | % | ||||||
| Net earnings1 | $ | 19,470 | $ | 11,165 | 74.4 | % | $ | 48,265 | $ | 34,177 | 41.2 | % | ||||||
| Diluted net earnings per share 1 | $ | 0.27 | $ | 0.16 | 68.8 | % | $ | 0.67 | $ | 0.48 | 39.6 | % | ||||||
| Adjusted net earnings*1 | $ | 23,452 | $ | 15,179 | 54.5 | % | $ | 60,797 | $ | 45,526 | 33.5 | % | ||||||
| Adjusted net earnings per share*1 | $ | 0.32 | $ | 0.21 | 52.4 | % | $ | 0.84 | $ | 0.64 | 31.3 | % | ||||||
| Adjusted EBITDA* | $ | 47,556 | $ | 41,737 | 13.9 | % | $ | 134,941 | $ | 118,363 | 14.0 | % | ||||||
| Adjusted EBITDA per share* | $ | 0.66 | $ | 0.58 | 13.8 | % | $ | 1.88 | $ | 1.66 | 13.3 | % | ||||||
| % of revenue | 21.2 | % | 19.5 | % | 170 | bps | 20.1 | % | 18.4 | % | 170 | bps | ||||||
*Non-IFRS measures are described and reconciled in sections 3, 6 and 8 of the MD&A.
1 The amounts for 2024 reflect adjustments made for Q3 2024 and YTD, as detailed and explained in Section 7 of the MD&A.
Words from the Executive Chairman and from the President & CEO
“Our Savaria One project has re-shaped Savaria over the past 20 months. We have addressed skill gaps, improved factory layouts and efficiencies, enhanced our inventory management process and collaborated across sites for improved procurement. All-in-all, these many initiatives have brought us above 20% of Adjusted EBITDA, reaching our Savaria One goal as we conclude the successful program at the end of 2025. The associated total expected consulting fees of approximately $17 million in 2025 ($20 million in 2024) will also end, which, based on today’s share count will have an additional positive impact of approximately 17 cents of earnings per share by the end of 2026.” said Marcel Bourassa, Executive Chairman.
“We benefited from strong performance in our Accessibility segment in particular, which delivered 23.5% Adjusted EBITDA. All the work we’ve done with operational improvements helped us achieve a best-ever consolidated gross margin of 39.2%. What we’re really seeing is the wave of returns from our hard work with Savaria One. Even though we’ll officially conclude this transformation program in 2025, it’s not the end of our improvements and future planning. We’ve started to create a true culture of continuous improvement. Another benefit of our good performance is our healthy balance sheet with over $290 million of funds available* and a debt leverage ratio that has declined to 1.19, putting us in a favourable position for future investments or acquisitions. Thank you to our 2,500 employees for their outstanding teamwork,” said Sébastien Bourassa, President and CEO.
Third Quarter Results - Q3 2025 compared to Q3 2024
REVENUE
Revenue reached $224.8M, up $11.1M or 5.2%. The increase was mainly due to organic growth of 1.8% combined with a positive foreign exchange impact of 2.5%. The revenue contribution from the acquisition of Western Elevator Ltd. contributed 0.9% growth.
- Accessibility segment (80% of Q3-25 revenue): Revenue was $180.1M, an increase of $10.3M or 6.1%.
- Patient Care segment (20% of Q3-25 revenue): Revenue was $44.7M, an increase of $0.9M or 1.9%.
OPERATING INCOME
Operating income was $27.7M, up $5.7M or 25.7%, representing an operating margin of 12.3% compared to 10.3% in Q3 2024. The increase was mainly attributable to the additional revenue contribution and higher gross margins while partially offset by increased selling and administrative expenses and other expenses.
ADJUSTED EBITDA
Adjusted EBITDA and adjusted EBITDA margin was $47.6M and 21.2%, respectively, compared to $41.7M and 19.5% for Q3 2024.
- Accessibility segment: Adjusted EBITDA and adjusted EBITDA margin was $42.3M and 23.5%, respectively, compared to $36.2M and 21.3% for Q3 2024.
- Patient Care segment: Adjusted EBITDA and adjusted EBITDA margin stood at $8.2M and 18.3%, respectively, compared to $7.6M and 17.4% for Q3 2024.
LIQUIDITY AND CAPITAL RESOURCES
Savaria generated $41.5M of cash from operations which was primarily used to invest in capital projects, a business acquisition, repay debt and pay interest and dividends.
As at September 30, 2025, the Corporation had a net debt* balance of $211.0M and a ratio of net debt to adjusted EBITDA of 1.19 compared to $262.7M and 1.63 respectively as of December 31, 2024.
Outlook
Savaria’s fiscal 2025 forecast projects revenue of approximately $925M, with an adjusted EBITDA margin slightly above 20%. This revenue forecast is driven by volume and price increases, new product launches, the acquisition of Western Elevator, and favorable foreign exchange effects across the Accessibility and Patient Care segments.
Despite geopolitical uncertainties, the completion of Savaria One positions us well to sustain profitability. Structural improvements have enhanced production capacity, increased operational efficiencies, and generated meaningful cost savings through streamlined procurement.
As one of the global leaders in the accessibility industry with extensive operations in Canada and the United States, Savaria is assessing its supply chain and evaluating and implementing strategies to optimize its North American manufacturing footprint. These efforts aim to maintain competitiveness and ensure continued service for our valued dealer partners.
The above-mentioned outlook is a “forward-looking statement” within the meaning of the securities laws of Canada and subject to the Corporation’s disclosure statement.
Environmental, Social and Governance (“ESG”) Values
The 2024 ESG report can be found under the investor relations section of our website at savaria.com.
Savaria Corporation (savaria.com) is a global leader in the accessibility industry. It provides accessibility solutions for the physically challenged to increase their comfort, their mobility and their independence. Its product line is one of the most comprehensive on the market. Savaria designs, manufactures, distributes and installs accessibility equipment, such as elevators for home and commercial use, stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts and dumbwaiters. In addition, Savaria manufactures and markets a comprehensive selection of pressure management products, medical beds, as well as an extensive line of medical equipment and solutions for the safe movement of patients, such as transfer, lifting and repositioning aids. The Corporation operates a sales network of dealers worldwide and direct sales offices in North America, Europe (UK, Netherlands, Switzerland, Italy, Germany, Poland and Czech Republic) and Australia. Savaria employs approximately 2,500 people globally and its plants are located across Canada, the United States, Mexico, Europe and China.
Compliance with International Financial Reporting Standards (“IFRS”)
The information appearing in this press release has been prepared in accordance with IFRS. However, Savaria uses EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA per share, adjusted net earnings, adjusted net earnings per share, available funds, net debt and ratio of net debt to adjusted EBITDA for analysis purposes to measure its financial performance. These measures have no standardized definitions in accordance with IFRS and are therefore regarded as non-IFRS measures. These measures may therefore not be comparable to similar measures reported by other companies. Additional details for these non-IFRS measures can be found in sections 3, 6 and 8 of Savaria’s MD&A, which is posted on Savaria’s website at savaria.com, and filed with SEDAR+ at sedarplus.ca. Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings is presented in the section below.
Forward-Looking Statements
This press release includes certain statements that are “forward-looking statements” within the meaning of the securities laws of Canada. Any statement in this press release that is not a statement of historical fact may be deemed to be a forward-looking statement. When used in this press release, the words “believe”, “could”, “should”, “intend”, “expect”, “estimate”, “assume” and other similar expressions are generally intended to identify forward-looking statements. It is important to know that the forward-looking statements in this document describe the Corporation’s expectations as at the date hereof, which are not guarantees of future performance of Savaria or its industry, and involve known and unknown risks and uncertainties that may cause Savaria’s or the industry’s outlook, actual results or performance to be materially different from any future results or performance expressed or implied by such statements. The Corporation’s actual results could be materially different from its expectations if known or unknown risks affect its business, or if its estimates or assumptions turn out to be inaccurate.
A change affecting an assumption can also have an impact on other interrelated assumptions, which could increase or diminish the effect of the change. As a result, the Corporation cannot guarantee that any forward-looking statement will materialize and, accordingly, the reader is cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements do not take into account the effect that transactions or special items announced or occurring after the statements are made may have on the Corporation’s business. For example, they do not include the effect of sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made.
Unless otherwise required by applicable securities laws, Savaria disclaims any intention or obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing risks and uncertainties include the risks set forth under “Risks and Uncertainties” in Savaria’s latest Annual MD&A as well as other risks detailed from time to time in reports filed by Savaria with securities regulators in Canada.
Results webcast and conference call on November 6, 2025, at 8:30 a.m. (EST)
Savaria will host a conference call on Thursday, November 6th at 8:30 a.m. Eastern Standard Time with financial analysts to discuss results of the period ended September 30, 2025. Investors and members of the media are invited to participate on a listen-only basis.
Conference call access:
To register: https://register-conf.media-server.com/register/BIa5deb7e632ca4691b82edd90afea730a
Webcast (en): https://edge.media-server.com/mmc/p/tyuqyhhn
Link to the replay of the webcast will be available on the Corporation’s website at savaria.com.
| For further information: | ||
| Sébastien Bourassa President and Chief Executive Officer sb@savaria.com 1.800.661.5112 |
Stephen Reitknecht, CPA Chief Financial Officer sreitknecht@savaria.com 1.800.661.5112 |
facebook.com/savariabettermobility x.com/Mobilityforlife www.savaria.com |
Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings is provided below. Complete financial statements and the management’s report for Q3 2025 will be available shortly on Savaria’s website and on SEDAR+ sedarplus.ca.
Reconciliation of adjusted net earnings*1 and adjusted EBITDA* with net earnings1
| Q3 | YTD | |||||||||||
| in thousands of dollars, except per-share amounts | 2025 | 2024 | 2025 | 2024 | ||||||||
| Net earnings1 | $ | 19,470 | $ | 11,165 | $ | 48,265 | $ | 34,177 | ||||
| Strategic initiatives expenses | 4,672 | 5,413 | 13,949 | 16,059 | ||||||||
| Other expenses (income) | 647 | 47 | 2,811 | (380 | ) | |||||||
| Income tax related to strategic initiatives and other expenses | (1,337 | ) | (1,446 | ) | (4,228 | ) | (4,330 | ) | ||||
| Adjusted net earnings*1 | $ | 23,452 | $ | 15,179 | $ | 60,797 | $ | 45,526 | ||||
| Adjusted net earnings per share*1 | $ | 0.32 | $ | 0.21 | $ | 0.84 | $ | 0.64 | ||||
| Income tax related to strategic initiatives and other expenses | 1,337 | 1,446 | 4,228 | 4,330 | ||||||||
| Income tax expense | 6,034 | 3,964 | 17,013 | 12,122 | ||||||||
| Depreciation of fixed assets | 2,661 | 2,487 | 7,966 | 6,858 | ||||||||
| Depreciation of right-of-use assets | 3,292 | 3,078 | 9,793 | 8,496 | ||||||||
| Amortization of intangible assets | 7,837 | 7,906 | 22,650 | 22,926 | ||||||||
| Net finance costs | 2,191 | 6,911 | 10,367 | 16,066 | ||||||||
| Stock-based compensation | 752 | 766 | 2,127 | 2,039 | ||||||||
| Adjusted EBITDA* | $ | 47,556 | $ | 41,737 | $ | 134,941 | $ | 118,363 | ||||
| Adjusted EBITDA per share* | $ | 0.66 | $ | 0.58 | $ | 1.88 | $ | 1.66 | ||||
| Diluted weighted average number of shares | 72,160,540 | 71,811,980 | 71,956,011 | 71,442,982 | ||||||||
*Non-IFRS measures are described and reconciled in sections 3, 6 and 8 of the MD&A.
1 The amounts for 2024 reflect adjustments made for Q3 2024 and YTD 2024, as detailed and explained in Section 7 of the MD&A.
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