Canada's Savaria beats Q2 adjusted EPS estimates

Overview

• Savaria Q2 revenue up 2.4% yr/yr, missed analyst expectations, per LSEG data

• Adjusted EPS for Q2 beats consensus, reflecting improved operational performance

• Adjusted EBITDA for Q2 exceeds estimates, indicating strong financial health

Outlook

• Savaria forecasts 2025 revenue of about C$925 mln, adjusted EBITDA margin at 20%

• Company expects revenue growth from volume, price increases, and new products

• Company confident in sustaining profitability despite geopolitical uncertainties

Result Drivers

• FOREIGN EXCHANGE IMPACT - Revenue increased by 2.4% mainly due to a positive foreign exchange impact of 2.6%, partially offset by an organic contraction of 0.7%

• ACQUISITION CONTRIBUTION - Revenue benefited from the acquisition of Western Elevator, contributing to overall growth

• SEGMENT PERFORMANCE - Accessibility segment grew by 1.9%, driven by North American growth, while Patient Care segment saw a 4.4% increase in revenue

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy electrical equipment peer group is "buy"

• Wall Street's median 12-month price target for Savaria Corp is C$24.00, about 15.8% above its August 5 closing price of C$20.22

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNX3Z6ZBv