Achievement of High Margin
Savaria Corporation achieved a Q2 EBITDA margin of 20.6%, surpassing their 20% target, marking a new high for the company.
Strong Financial Metrics
Gross margin increased by 150 basis points year-over-year to 39%. Operating cash flows were up 28.4%, and net earnings increased to $16.3 million compared to $11.4 million last year.
Positive Cash Flow and Debt Reduction
Free cash flow after debt-related costs and dividends was $9.4 million for the quarter, a 204% increase compared to last year. The company also reduced its leverage ratio to 1.34.
Successful Product Launches
Savaria launched the M-Series ceiling lift, contributing to a strong backlog in Patient Care, and the Luma product, which is expected to drive future growth.
Savaria One Program Impact
The Savaria One initiative continues to drive operational efficiencies, contributing significantly to the improved margins and cash flow.