In This Article:
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Revenue: $223.3 million for Q4, a 3% increase year-over-year.
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Organic Growth: 20.6% in the patient care segment.
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Gross Margin: 37.7% for Q4, an increase of 340 basis points from the previous year.
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Adjusted EBITDA: $42.9 million for Q4, with a margin of 19.2%.
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Net Earnings: $14.3 million for Q4, up from $11 million the previous year.
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Cash Flow from Operations: $34.2 million in Q4.
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Debt Ratio: Leverage ratio of net debt to adjusted EBITDA at 1.63.
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Capex: $20.1 million for the year, 2.3% of sales.
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Free Cash Flow: $34.9 million for the year, an improvement of $43.2 million over 2023.
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2025 Revenue Guidance: Approximately $925 million.
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2025 Adjusted EBITDA Margin Guidance: Between 17% and 20%.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Savaria Corp (SISXF) reported a strong Q4 2024, with EBITDA performance aligning with expectations, marking the fourth consecutive stable quarter.
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The patient care segment achieved a record EBITDA margin of 23.1% in Q4, with organic growth of 20.6% driven by increased sales in medical bed frames and ceiling lift packages.
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Savaria Corp (SISXF) improved its leverage ratio to 1.63, with $242 million available for acquisitions or investments, positioning the company well for future opportunities.
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The company launched the Luma elevator, a new product expected to drive organic growth, with manufacturing starting and sales ramping up soon.
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Savaria Corp (SISXF) achieved a consolidated gross margin of 37.7% in Q4, an increase of 340 basis points from the previous year, due to procurement improvements and operational efficiencies.
Negative Points
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The accessibility segment experienced a contraction of 1.9% in Q4, with a 7.8% decline in Europe and flat growth in North America.
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Savaria Corp (SISXF) faces uncertainties due to new tariffs affecting Canada-to-US exports, which could impact short-term financial performance.
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The company revised its 2025 guidance, projecting revenues of $925 million and an adjusted EBITDA margin between 17% and 20%, reflecting tariff-related uncertainties.
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Despite strong performance in patient care, the company anticipates more modest growth in this segment moving forward, targeting 8% to 10% growth.
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Savaria Corp (SISXF) acknowledges potential challenges in maintaining its competitive position in the US market due to tariff impacts and the need for price adjustments.
Q & A Highlights
Q: Are there any advocacy groups or lobbyists in the accessibility industry, and what are you hearing from them regarding the recent tariffs? A: Sebastien Bourassa, President & CEO, mentioned that the tariff situation is new and has been officialized this week. They are working with the FDA and other medical industry groups to assess the impact. They are focusing on what they can control and are planning to work with advocacy groups to potentially influence tariff decisions.