Savaria's Q2 revenue hit $245.8M, up 8.4%, with adjusted EBITDA margin rising to 21.1%. The accessibility company targets $1.6B revenue by 2030.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Savaria Corp. reported second-quarter revenue of $245.8 million, up 8.4% from a year earlier, and a record adjusted EBITDA of $51.8 million. The accessibility-equipment maker said gross margin reached 39.6%, driving the adjusted EBITDA margin to 21.1% from 20.6% a year ago.
President and CEO Sébastien Bourassa called it the company's best-ever adjusted EBITDA, fueled by growth in North America and Europe. Revenue rose 6.6% organically, with another 1% from foreign exchange and 0.8% from acquisitions. Operating income jumped 34.1% to $35.8 million, giving an operating margin of 14.6% versus 11.8% in the prior-year period. The comparison benefited from the absence of $4.6 million in strategic initiative expenses tied to the Savaria One project, which wrapped up in the first quarter.
Savaria, which makes stairlifts, home elevators, wheelchair lifts, and patient-care equipment, operates plants in seven countries across three continents. Executive Chairman Marcel Bourassa said the manufacturing footprint gives the company flexibility in a shifting geopolitical environment. "We build in 7 countries, on 3 continents and this has given us flexibility to change, and advantageous proximity to key sales regions," he said.
The company continued to reduce debt. Net debt stood at $172.8 million as of June 30, down from $188.5 million at the end of 2025. The ratio of net debt to adjusted EBITDA fell to 0.87x from 1.03x. Savaria generated $69.1 million in cash from operations during the first half, which it used for capital projects, acquisitions, debt repayment, and dividends.
Looking ahead, Savaria said it expects to increase revenue by roughly 12% per year over the next five years, combining organic growth and acquisitions. That would put revenue at about $1.6 billion by 2030. The company said it aims to maintain adjusted EBITDA margins of at least 20%, which would bring adjusted EBITDA per share to approximately $4.25.
On July 1, Savaria closed the acquisition of Vipal S.p.A., an Italian maker of home elevators and commercial lifts. Bourassa said the deal gives the company immediate opportunity in key European markets with code-compliant products. The company's net debt-to-EBITDA ratio of 0.87x leaves room for further investments or acquisitions, he said.
Savaria reports under International Financial Reporting Standards. It uses adjusted EBITDA, adjusted net earnings, and net debt as non-IFRS measures. Reconciliations are included in its management discussion and analysis filed on SEDAR+.
The company will host a conference call with analysts on Aug. 6 at 8:30 a.m. Eastern time.
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