Savaria Corp. Q2 2025 Earnings Call Highlights

Savaria Corp. ((TSE:SIS)) has held its Q2 earnings call. Read on for the main highlights of the call.

Savaria Corp. recently held its Q2 2025 earnings call, where the overall sentiment was notably positive. The company celebrated significant achievements, particularly in margin improvement and debt reduction, which underscored a robust financial performance. Despite facing challenges in European markets and slower growth in the Accessibility segment, the strong financial metrics and successful product launches contributed to an optimistic outlook.

Record EBITDA Margin Achievement

Savaria Corp. reported a record-breaking adjusted EBITDA margin of 20.6% for Q2 2025, surpassing their target of 20%. This achievement marks a significant milestone for the company, demonstrating their operational efficiency and financial acumen.

Strong Cash Flow and Debt Reduction

The company experienced a 28.4% increase in operating cash flows compared to the previous year. This financial strength enabled Savaria to reduce its leverage ratio from 1.63 at year-end to 1.34, facilitating a debt repayment of $11 million during the quarter.

Gross Margin Improvement

Savaria’s consolidated gross margin improved by 150 basis points, reaching 39% in Q2. This improvement was largely driven by operational efficiencies under the Savaria One initiative, highlighting the company’s commitment to enhancing profitability.

Successful Launch of New Products

The introduction of the Luma product and the M-Series ceiling lift has been met with strong interest from dealers and customers alike. These new offerings are expected to bolster Savaria’s market position and drive future growth.

Challenges in Europe

Despite overall positive performance, Savaria faced slight negative growth in Europe. This was attributed to government spending cutbacks in the U.K. and changes in subsidies in Italy, which affected sales in the region.

Lower-than-Expected Growth in Accessibility

The Accessibility segment did not grow as robustly as anticipated, a situation attributed to temporary market conditions. However, the company remains optimistic about the segment’s future prospects.

Forward-Looking Guidance

Looking ahead, Savaria Corp. provided guidance for the fiscal year, projecting an EBITDA margin of approximately 20%, consistent with their Q2 performance. Revenue guidance remains steady at around $925 million for the year. The company highlighted key metrics, including a Q2 EBITDA margin of 20.6% and a revenue increase of 2.4% year-over-year. Strategic investments, such as a $30 million project in Greenville to expand Accessibility product manufacturing, are expected to support future growth.

In summary, Savaria Corp.’s Q2 2025 earnings call painted a largely positive picture, with strong financial metrics and successful product launches driving optimism. While challenges in Europe and the Accessibility segment were noted, the company’s strategic initiatives and forward-looking guidance suggest continued growth and resilience in the coming quarters.