Savaria Corporation (TSX: SIS) delivered robust second-quarter 2026 results, reporting revenue of $245.8 million, an 8.4 percent increase year-over-year, driven by strong organic growth of 6.6 percent and acquisition contributions. The accessibility equipment manufacturer achieved its best-ever quarterly adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $51.8 million, reflecting improved operational efficiency and margin expansion across its segments.

The company’s financial performance was bolstered by the completion of its Savaria One strategic initiative, which eliminated $4.6 million in strategic initiative expenses present in the prior-year quarter. This cost optimization contributed significantly to a 34.1 percent surge in operating income to $35.8 million, lifting the operating margin from 11.8 percent in Q2 2025 to 14.6 percent in Q2 2026. Net earnings rose sharply by 54.4 percent to $25.2 million, or $0.34 per share on a diluted basis, compared to $16.3 million or $0.23 per share in the same period last year.

Segment Performance

Both of Savaria’s primary business segments posted double-digit growth in profitability metrics. The Accessibility segment, which accounted for 78 percent of total revenue, generated $192.0 million, up 8.7 percent year-over-year. Its adjusted EBITDA margin expanded to 23.6 percent from 21.9 percent in Q2 2025. The Patient Care segment saw revenue grow by 7.3 percent to $53.7 million, though its adjusted EBITDA margin contracted slightly to 18.4 percent from 20.9 percent, as the division navigated specific cost pressures despite top-line gains.

Strategic Developments and Outlook

Savaria announced the acquisition of Vipal S.p.A., effective July 1, 2026, marking a strategic expansion into the European home elevator and commercial lift market. Sébastien Bourassa, President and CEO, highlighted that the acquisition provides immediate opportunities for sales growth with code-compliant, innovative products in key European markets. The company maintains comfortable liquidity with available funds of $333.4 million and reduced net debt to $172.8 million, resulting in a net debt-to-adjusted EBITDA ratio of 0.87, down from 1.03 at year-end 2025.

Looking ahead, Savaria has set a target of approximately 12 percent annual top-line growth over the next five years, aiming to reach roughly $1.6 billion in revenue by 2030. Management intends to maintain adjusted EBITDA margins of at least 20 percent, which should drive adjusted EBITDA per share to approximately $4.25 by 2030. This growth strategy relies on organic initiatives, including new product introductions, alongside selective acquisitions to complement commercial efforts.

What the Numbers Show

The divergence between the 8.4 percent revenue growth and the 10.7 percent increase in adjusted EBITDA indicates successful operating leverage. The elimination of one-time strategic initiative expenses in the current quarter versus the prior year artificially inflated the operating income growth rate; however, the underlying gross profit margin expansion of 60 basis points to 39.6 percent suggests genuine operational improvement. Investors should monitor whether the Patient Care segment can stabilize its margins, as its decline contrasts with the broader company trend of margin expansion.

Savaria Corporation has acquired all issued and outstanding shares of Vipal S.p.A., a manufacturer of residential lifts and elevators based in Ferentillo, Italy. The transaction, announced on July 02, 2026, provides Savaria with elevator manufacturing capabilities in Europe and expands its accessibility product offering through the addition of elevators and residential lifts. For the trailing twelve months, Vipal generated sales of approximately €8.2 million (C$13.3 million).

Founded in 1983, Vipal manufactures elevators, platform lifts, and related metal structures and components for residential and commercial applications, primarily within the Italian market. Originally established as a metalworking business, the company has evolved into a fully integrated elevator manufacturer with approximately 50 employees. The acquisition includes a scalable 64,600 sq. ft (6,000 sqm) owned factory with vertically integrated operations, including in-house manufacturing of shafts, cars, controllers, and doors for elevators.

Strategic Rationale

The acquisition adds a portfolio of elevator products fully compliant with European codes and standards. It creates opportunities to accelerate the growth of Vipal elevator products through Savaria’s extensive dealer and direct store network across Europe. The deal is expected to improve purchasing efficiencies and support operational excellence across procurement and manufacturing within Vipal.

Key Financials

"We are very excited to welcome Vipal to the Savaria family. The addition of Vipal’s residential lifts expands our portfolio in Europe and represents another important step in our strategy to become the one-stop shop for accessibility in Europe," said Jean-Philippe De Montigny, President Europe Accessibility.

"We are proud of the manufacturing technologies and know-how we have built at Vipal over many years, and we are confident Savaria is the right partner to accelerate the company's global growth and help realize its full potential," said Innocenzo Rossi Bartoli, Managing Director and Principal Shareholder, Vipal S.p.A.