Savaria (SIS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached CAD 235.5 million, up 7% year-over-year, driven by 5.7% organic growth, acquisitions, and FX contributions.

• Adjusted EBITDA margin improved to 20.4%, a 190 basis point increase, with adjusted EBITDA climbing 18.4% to $48.1M.

• Net earnings rose 82% to CAD 22.7 million, with EPS at CAD 0.31 versus CAD 0.17 last year.

• Strong performance attributed to Savaria One initiatives, operational improvements, and market traction in Europe and North America.

• Gross profit increased 10.2% to $91.7M, with gross margin up 110 bps to 38.9%.

Financial highlights

• Organic revenue growth was 5.7%, with acquisitions contributing 0.7% and FX impact 0.6%.

• Accessibility segment revenue grew 7.9% to $183.6M; Patient Care segment up 3.8% to $52.0M.

• Operating income rose by CAD 11.7 million compared to Q1 2025, reaching $33.0M.

• Net debt reduced to $178.7M, with net debt to adjusted EBITDA ratio improving to 0.92.

• Cash flow from operations was CAD 35.8 million; CapEx was CAD 6 million (2.5% of sales).

Outlook and guidance

• Targeting 12% annual revenue growth through 2030, aiming for CAD 1.6 billion in sales and CAD 320 million EBITDA.

• Plan to maintain adjusted EBITDA margins above 20% and reach adjusted EBITDA per share of approximately $4.25 by 2030.

• Acquisition strategy targets CAD 200 million in deals over five years.

• Q2 expected to continue positive trends, with strong backlog and momentum in Europe and North America.

• Focus on organic growth, acquisitions, and margin expansion through operational improvements.