Savaria Q3 revenue misses estimates

Overview

• Savaria Q3 revenue rose 5.2% yr/yr but missed analyst expectations

• Adjusted EPS for Q3 met analyst expectations

• Adjusted EBITDA for Q3 beat analyst expectations

Outlook

• Savaria forecasts fiscal 2025 projects revenue of approximately $925 mln

• Company expects adjusted EBITDA margin slightly above 20% for fiscal 2025

• Savaria plans to optimize North American manufacturing to maintain competitiveness

Result Drivers

• SAVARIA ONE INITIATIVE - Operational improvements from the Savaria One project contributed to a record gross margin of 39.2%

• ACCESSIBILITY SEGMENT - Strong performance in the Accessibility segment, which delivered 23.5% adjusted EBITDA margin

• REVENUE GROWTH DRIVERS - Revenue growth driven by organic growth, foreign exchange impact, and acquisition of Western Elevator Ltd.

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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$25.50, about 15.2% above its November 4 closing price of C$21.62

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNX6MqTtz

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