Savaria (TSE:SIS) reported record second-quarter revenue of C$245.8 million for 2026, up 8.4% from a year earlier, as growth in its Accessibility and Patient Care businesses supported higher profitability.
Chief Executive Officer Sébastien Bourassa said the quarter marked the company’s third consecutive period of solid growth. Revenue growth was “well-balanced” between Patient Care and Accessibility, he said, while adjusted EBITDA margin reached 21%.
Revenue Growth Across Segments
Accessibility revenue rose 8.7% to C$192 million, driven by 6.4% organic growth. Sales increased in Canada and the United States, while Europe delivered another strong quarter supported by stairlift sales, Reitknecht said.
Patient Care revenue increased 7.3% to C$53.7 million, entirely through organic growth. The segment benefited from higher U.S. sales and continued growth in the United Kingdom.
A company representative said Patient Care growth included ceiling-lift installations following the rollout of the M-Series product line about a year ago. The company also cited increased production capacity at its Silvalea facility in the U.K., growth in sling sales, and the establishment of M-Series ceiling-lift assembly lines in both Canada and St. Louis.
In North America, Bourassa said Savaria has continued to develop the home-elevator market through architects, builders, contractors and dealers. He also pointed to higher stairlift sales and demand for Matot dumbwaiters and material lifts, with shorter lead times helping support those product lines.
The company said its direct-store operations have secured substantial orders for multi-unit residential projects after years of developing referral networks and working with architects and contractors.
Margins Improve, Though Patient Care Faces Inflation
Consolidated gross margin increased 60 basis points to 39.6% from 39% in the prior-year period. Operating income rose 34.1% to C$35.8 million, or 14.6% of revenue, from 11.8% a year earlier.
Adjusted EBITDA was C$51.8 million, compared with C$46.7 million a year earlier, and adjusted EBITDA margin improved to 21.1% from 20.6%.
Accessibility adjusted EBITDA margin reached 23.6%, up from 21.9% a year earlier. Reitknecht attributed margin improvement to gross-margin expansion across the business, including operating leverage, procurement initiatives and pricing actions. Bourassa also cited Savaria’s vertically integrated manufacturing operations and product mix.
Patient Care adjusted EBITDA margin declined to 18.4% from 20.9% in the prior-year quarter. Bourassa said the segment faced inflation in commodities including foam and aluminum. Savaria implemented a midyear price increase and expects the action to contribute to an improvement in Patient Care margins by the fourth quarter, though management said it would assess whether the pressure is temporary as the year progresses.
The company said its Savaria One program continued to support profitability and growth. Management said it implemented at least 50 new initiatives during the second quarter, many focused on procurement and lowering cost of goods sold. The company said efficiency improvements and material-cost reductions have generally offset inflationary pressures outside Patient Care.
Cash Position Supports Acquisitions and Expansion
Net earnings increased 54.4% to C$25.2 million, or C$0.34 per diluted share, from C$16.3 million, or C$0.23 per diluted share, in the second quarter of 2025. Lower net finance costs contributed to the increase, as interest on long-term debt fell with a lower debt balance.
Cash flow from operating activities totaled C$33.3 million, compared with C$30.3 million a year earlier. Savaria invested C$12.5 million in fixed and intangible assets during the quarter, including C$5.3 million for the Greenville building expansion and related equipment.
Available funds stood at C$333.4 million as of June 30, up from C$311.7 million at year-end, while net debt fell to C$172.8 million from C$191.5 million. Reitknecht said the company’s leverage ratio was 0.87 times at quarter-end, providing flexibility for acquisitions and capital expenditures.
Savaria said the Greenville expansion remains planned for completion in the fourth quarter. The site is already assembling Eclipse home elevators for the U.S. market, and management said roughly 40% of Eclipse production is currently being manufactured in the United States. A new automated paint line began operating in the second quarter and is being tested through direct stores before a planned dealer launch in the fourth quarter.
Vipal Deal Adds European Lift Capability
After the quarter ended, Savaria acquired Vipal S.p.A., an Italian manufacturer of residential lifts and elevators, for C$13 million, or €8 million, subject to customary adjustments. Bourassa said the acquisition adds code-compliant products for European markets and advances the company’s one-stop-shop strategy.
Management said Vipal has fewer than 50 dealers, compared with Savaria’s network of more than 325 dealers across Europe. A company representative said there is limited overlap between the dealer networks and described them as complementary, creating opportunities to cross-sell Savaria accessibility products to Vipal dealers and Vipal home lifts to Savaria dealers.
Bourassa reiterated Savaria’s target of approximately 12% annual revenue growth through 2030 while maintaining adjusted EBITDA margins above 20%. The company is targeting C$1.6 billion in revenue and more than C$220 million in EBITDA by 2030.
About Savaria (TSE:SIS)
Savaria Corporation ( savaria.com ) is a global leader in the accessibility industry. It provides accessibility solutions for the physically challenged to increase their comfort, their mobility and their independence. Its product line is one of the most comprehensive on the market. Savaria designs, manufactures, distributes and installs accessibility equipment, such as stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts and elevators for home and commercial use. It also manufactures and markets a comprehensive selection of pressure management products for the medical market, medical beds for the long-term care market, as well as an extensive line of medical equipment and solutions for the safe handling of patients, including ceiling lifts and slings.
