Q2 2026 Savaria Corp Earnings Call Transcript
Key Points
- Record Q2 revenue of $246 million, up 8.4% with 6.6% organic growth, driven by balanced growth across both accessibility and patient care segments.
- Adjusted EBITDA margin improved to 21.1%, a 50 basis point increase year-over-year, supported by record gross margins of 39.6%.
- Accessibility segment EBITDA margin reached 23.6%, up 170 basis points, benefiting from vertical integration, product mix, and operational efficiencies.
- Strong balance sheet with net debt-to-EBITDA of 0.87x and $333.4 million in available liquidity, providing ample capacity for M&A and growth investments.
- Strategic acquisitions (Baxter and Vipal) are expanding market presence in Texas and Europe, with cross-selling opportunities and complementary dealer networks.
- Continued success of the Savaria 1 program, including new product launches (K2 stairlift, outdoor REL 4000), improved lead times, and a new automated paint line in Greenville.
- Patient care growth remains solid at 7.3% in Q2, with new ceiling lift installations and expanded capacity in the UK and US.
- Patient care segment EBITDA margin declined to 18.4% from 20.9% last year, due to commodity cost inflation (foam, aluminum) and pricing pressures.
- Mid-year price increases in patient care are expected to only partially offset inflation, with margin improvement not anticipated until Q4.
- Higher selling and administrative expenses partially offset operating income gains, reflecting increased investments for growth.
- Cash used in investing activities increased significantly to $13.4 million from $3.6 million, driven by capital expenditures for the Greenville expansion.
- The Vipal acquisition is expected to initially dilute consolidated EBITDA margins, as its margins are lower than Savaria's current average.
- Management noted that patient care margins may face continued pressure if inflation persists, and the full-year impact remains uncertain.
- The Greenville expansion is behind schedule, with the building expansion not fully operational until Q4, and the paint line only in testing phase for dealers.
Good day and thank you for standing by. Welcome to Sovarius Corporation's Q2 2026 Investor and Analyst Call.
Sebastian Bourassa, CEO.
Thanks, Stephanie, and good morning, everyone. So today, I will start with a small recap of our Q2 results, then Steve will update us on financial, and JP will provide an update on SEVAR1, followed by a Q&A session.
So again, I'm very proud of the results of Q2, as it is our highest revenue ever at $246 million, with a growth of 8.4% that is well-balanced between patient care and accessibility.
And we achieved an EBITDA margin of 21%, which really showed that the Survey One success over the last few years continues to be present, and I'm very thankful to our team for all the hard work that they make those great results quarter after quarter. So today, there's three things that I would like to highlight. First, the growth. I'm happy that we have a third good corner of growth, which showed that some good incentives that we have put in place for
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