Q4 2025 Savaria Corp Earnings Call

March 5, 2026

Operator: Good morning. My name is Daniel. I will be your conference operator today. At this time, I would like to welcome everyone to Savaria Corporation's Q4 2025 Investor and Analyst Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. At this time, all participants are in a listen-only mode. To ask a question during the session, you will need to press star one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. This call may contain forward-looking statements which are subject to the disclosure statement contained in Savaria's most recent press release, issued on 4 March 2026, with respect to its Q4 2025 results. Thank you. Mr.

Speaker #1: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. At this time, all participants are in a listen-only mode.

Speaker #1: To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised.

Speaker #1: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. This call may contain forward-looking statements, which are subject to the disclosure statement contained in Savaria's most recent press release issued on March 4, 2026, with respect to its Q4 2025 results.

Operator: Please be advised that today's conference is being recorded. This call may contain forward-looking statements which are subject to the disclosure statement contained in Savaria's most recent press release, issued on 4 March 2026, with respect to its Q4 2025 results. Thank you. Mr. Operator, you may begin your conference.

Speaker #1: Thank you , Mr. Bourassa . You may begin your conference .

Operator: Operator, you may begin your conference.

Speaker #2: Thanks , Daniel , and good morning , everyone . Today I will start with a small recap of our Q4 results Then Steve will update us on financial and JP will update us on several one and Europe , followed by a Q&A session .

Sébastien Bourassa: Thanks, Daniel. Good morning, everyone. Today, I will start with a small recap of our Q4 results. Steve will update us on financial. J.P. will update us on Savaria One and Europe, followed by a Q&A session. Once again, I'm very proud of our Q4 results, as for the first time ever, we reached CAD 51.3 million of EBITDA at 21.2%, which is a very important milestone and our best quarter ever. We finished the year with sales of CAD 913 million and an EBITDA of CAD 186.2 million at 20.4%, which again, is our best result ever. All KPI are improving. Steve will go more in detail later. Today, there's three things that I would like to highlight. First, thank you.

Speaker #2: Once again , I'm very proud of our Q4 results As for the first time ever , we reached 51.3 million of EBITDA at 21.2% , which is a very important milestone and our best quarter ever We finished the year with sales of 913 million , an inhibitor of 186.2 million 20.4% , which again is our best result ever I'll KPIs are improving and see if we go more in detail later today .

Speaker #2: There are three things that I would like to highlight First , thank you . Yesterday marked the five year anniversary of our acquisition , and I need to say that I'm quite proud of all the work that has been achieved since the beginning , especially through several one .

Sébastien Bourassa: Yesterday marked the five-year anniversary of Handicare acquisition. I need to say that I'm quite proud of all the work that has been achieved since the beginning, especially through Savaria One. It's not the same company anymore, you can see it in the people, in the operation, in the product portfolio, and recently the change under Savaria brand in Europe. I'm very optimistic about the future, the growth, and the profitability. Also, I would like to highlight the performance of Garaventa North America in 2025. It was a record year for the team in Vancouver and North America. Congrats to all the team. Second, growth. I'm quite happy with the way we ended the year as we had growth in each area.

Speaker #2: It's not the same company anymore and you can see it in the people in the operation , in the product portfolio and essentially the change under several brand in Europe .

Speaker #2: So, I'm very optimistic about the future and the growth and the profitability. Also, I would like to highlight the performance of North America in 2025.

Speaker #2: It was a record year for the team in Vancouver and North America . So congrats to all the team Second growth . I'm quite happy with the way we ended the year as we had growth in each area , and it is the pillar that was a bit behind in the Savaria one as naturally commercial efforts takes more time .

Sébastien Bourassa: It is the pillar that was a bit behind in the Savaria One, as naturally, commercial efforts takes more time usually to pay off. Here are some example of the recent effort to help to generate some future growth. Continue the effort to develop the market on Multilift in North America. Increase our sales effort in North America. Continue to expand the Matot and material lift line of products. Business development activities are always ongoing so that we continue our growth and be a market leader. Expand the one-stop shop in Europe. Talk about it for a long time, but it's coming. The Luma, the VPL, and the incline lift, so that will give us a good future.

Speaker #2: Usually, to pay off, and here are some examples of the recent effort to help to generate some future growth. Continue the effort to develop the market on home in North America.

Speaker #2: Increase our sales effort in North America . Continue to expand the dumbwaiter and material lift line of products business development activities are always ongoing , so that we continue our growth and be a market leader Expand the one stop shop in Europe .

Speaker #2: Talk about it for a long time , but it's coming . The more the VPL , the lift . So that will give us a good future .

Speaker #2: Continue to be . The partner of choice on Stairlift in Europe and in the patient care on the room and continue to develop the long term care segment well as the care and just some small details , and we'll try to unveil a more detailed our Investor Day on April 14th , as well as our five year financial target Third item acquisition .

Sébastien Bourassa: Continue to be the partner of choice on stairlift in Europe and in the Patient Care on the room and continue to develop the long-term care segment as well of the acute care. just some small details, and we'll try to unveil more detail during our Investor Day on 14 April as well of our five years financial target. Third item, acquisition. We have demonstrated in the past that we can do three, four acquisition per year to bring additional sales and EBITDA. with liquidity of CAD 312 million and a debt ratio of 1.03, we can easily invest CAD 200 million over the next three years and maintain an EBITDA debt below 2, which has been always a comfort zone.

Speaker #2: We have demonstrated in the past that we can do 3 or 4 acquisitions per year to bring additional EBITDA , and now with liquidity of 312 million and a debt ratio of 1.03 , we can easily invest 200 million over the next few years .

Speaker #2: And maintain an EBITDA that below two , which has been always a comfort zone with the best team ever . We feel quite good that we can apply the learning of the last two years towards integration to make it successful faster The recent acquisition of Baxter Residential Elevator is a good example .

Sébastien Bourassa: With the best team ever, we feel quite good that we can apply the learning of the last two years towards integration to make it successful faster. The recent acquisition of Baxter Residential Elevator is a good example. Small tuck-in, very strategic. In a high potential area, it's one of the most area with the best housing start in North America. We will invest more to develop this area with a sales force and marketing to become a dominating player in Texas. Welcome, R&D and all the team in the Savaria family. To conclude, what allows us to beat each quarter after quarter in the last two years is the new Savaria One culture. It's part of our DNA, and it make it normal to always have continuous improvement and what we implement is sustainable.

Speaker #2: Small token but very strategic in a high potential area . It's one of the most area with the best housing start in North America .

Speaker #2: We will invest more to develop this area to Salesforce and marketing to become a dominating player in Texas . So welcome R&D and all the team in our family to conclude , what allows us to meet each quarter after quarter in the last two years is the new several one culture .

Speaker #2: It's part of our DNA, and it makes it normal to always have continuous improvement. And what we implement is sustainable. Once again, thanks to all the employees for their efforts over the last two years, and looking forward to this new chapter of growth. Steve, Financial, please.

Sébastien Bourassa: Once again, thanks to all the employee for their efforts over the last two years and looking forward to this new chapter of growth. Steve, financial, please.

Speaker #2: Thank you .

Operator: Thank you, Sébastien, and good morning to everyone on the call. I'm now going to provide some further detail and commentary regarding our Q4 2025 financial results. Key highlights for the quarter include: Firstly, our adjusted EBITDA for Q4 reached CAD 51.3 million, which is our highest quarter ever and represents growth of almost 20% over prior year.

Steve Reitknecht: Thank you, Sébastien, and good morning to everyone on the call. I'm now going to provide some further detail and commentary regarding our Q4 2025 financial results. Key highlights for the quarter include: Firstly, our adjusted EBITDA for Q4 reached CAD 51.3 million, which is our highest quarter ever and represents growth of almost 20% over prior year.

Speaker #3: Sebastien, and good morning to everyone on the call. I'm now going to provide some further detail and commentary regarding our Q4 2025 financial results. Key highlights for the quarter include:

Speaker #3: Firstly, our adjusted EBITDA for Q4 reached $51.3 million, which is our highest quarter ever and represents growth of almost 20% over the prior year.

Speaker #3: The corresponding margin of 21.2% represents an increase of 200 basis points and brings our 2025 year to date margin to 20.4% . This EBITDA performance was driven by revenue growth of 8.3% , made up of almost 8% growth in accessibility and 10% growth in patient care .

Steve: The corresponding margin of 21.2% represents an increase of 200 basis points and brings our 2025 year-to-date margin to 20.4%. This EBITDA performance was driven by revenue growth of 8.3%, made up of almost 8% growth in accessibility and 10% growth in Patient Care. Lastly, our Q4 ending leverage ratio is 1.03, which reflects a decrease of CAD 71 million in our net debt versus the same time last year. Now going into more details. Consolidated revenues for the quarter were CAD 241.8 million, an increase of CAD 18.4 million versus last year. This was driven by organic growth of 5.2% as well as a positive foreign exchange impact of 2.5%.

Steve Reitknecht: The corresponding margin of 21.2% represents an increase of 200 basis points and brings our 2025 year-to-date margin to 20.4%. This EBITDA performance was driven by revenue growth of 8.3%, made up of almost 8% growth in accessibility and 10% growth in Patient Care. Lastly, our Q4 ending leverage ratio is 1.03, which reflects a decrease of CAD 71 million in our net debt versus the same time last year. Now going into more details. Consolidated revenues for the quarter were CAD 241.8 million, an increase of CAD 18.4 million versus last year. This was driven by organic growth of 5.2% as well as a positive foreign exchange impact of 2.5%.

Speaker #3: And lastly , our Q4 ending leverage ratio was 1.3 , which reflects a decrease of 71 million in our net debt versus the same time last year So now going into more details , consolidated revenues for the quarter were 241.8 million , an increase of 18.4 million versus last year .

Speaker #3: This was driven by organic growth of 5.2% , as well as a positive foreign exchange impact of 2.5% . Our Q2 acquisition of Western Elevator also provided revenue growth of 0.6% .

Steve: Our Q2 acquisition of Western Elevator also provided revenue growth of 0.6%. Our Accessibility segment saw growth of 7.7%, including growth of 7.2% coming from North America, combined with a strong growth of 9% in Europe. Europe recorded positive organic growth this quarter, and we feel that we have turned the corner there. Patient Care achieved a revenue growth of 10% in Q4 to bring the full-year revenue growth number for that segment to almost 5%. Our consolidated gross margin for the quarter was 38.9% compared to 37.7% in 2024, and our operating income increased by 36.6%. This performance was mainly driven by the Accessibility segment due to continued improvements under Savaria One as well as operating leverage.

Steve Reitknecht: Our Q2 acquisition of Western Elevator also provided revenue growth of 0.6%. Our Accessibility segment saw growth of 7.7%, including growth of 7.2% coming from North America, combined with a strong growth of 9% in Europe. Europe recorded positive organic growth this quarter, and we feel that we have turned the corner there. Patient Care achieved a revenue growth of 10% in Q4 to bring the full-year revenue growth number for that segment to almost 5%. Our consolidated gross margin for the quarter was 38.9% compared to 37.7% in 2024, and our operating income increased by 36.6%. This performance was mainly driven by the Accessibility segment due to continued improvements under Savaria One as well as operating leverage.

Speaker #3: Our accessibility segment saw growth of 7.7% , including growth of 7.2% coming from North America , combined with a strong growth of 9% in Europe .

Speaker #3: Europe recorded positive organic growth this quarter , and we feel that we have turned the corner there Patient care achieved a revenue growth of 10% in Q4 to bring the full year revenue growth number for that segment to almost 5% .

Speaker #3: Our consolidated gross margin for the quarter was 38.9%, compared to 37.7% in 2020 Q4. And our operating income increased by 36.6%.

Speaker #3: This performance is mainly driven by the Accessibility segment due to continued improvements under Savaria One, as well as operating leverage. As mentioned, adjusted EBITDA was $51.3 million for the quarter, marking our first quarter above the $50 million threshold.

Steve: As mentioned, adjusted EBITDA was CAD 51.3 million for the quarter, marking our 1st quarter above the CAD 50 million threshold. Adjusted EBITDA margin finished at 21.2% for the quarter versus 19.2% in Q4 2024. The Accessibility segment finished at 23.4%, while Patient Care finished at 19.4%. Our full-year adjusted EBITDA margin was 20.4%, which is above our goal of 20% that we set over three years ago. We also incurred CAD 4.7 million in strategic initiative expenses for the quarter. This quarter marks the last quarter of consulting fees related to Savaria One. We also incurred CAD 1.8 million of other expenses in this quarter, that's related to optimization and one-off costs. Finance costs for the quarter were CAD 4.8 million compared to CAD 2.4 million last year.

Steve Reitknecht: As mentioned, adjusted EBITDA was CAD 51.3 million for the quarter, marking our 1st quarter above the CAD 50 million threshold. Adjusted EBITDA margin finished at 21.2% for the quarter versus 19.2% in Q4 2024. The Accessibility segment finished at 23.4%, while Patient Care finished at 19.4%. Our full-year adjusted EBITDA margin was 20.4%, which is above our goal of 20% that we set over three years ago. We also incurred CAD 4.7 million in strategic initiative expenses for the quarter. This quarter marks the last quarter of consulting fees related to Savaria One. We also incurred CAD 1.8 million of other expenses in this quarter, that's related to optimization and one-off costs. Finance costs for the quarter were CAD 4.8 million compared to CAD 2.4 million last year.

Speaker #3: Adjusted EBITDA margin finished at 21.2 for the quarter versus 19.2 in Q4 2020 . For and the accessibility segment finished at 23.4 , while patient care finished at 19.4 .

Speaker #3: Our full year adjusted EBITDA margin was 20.4 , which is above our goal of 20% that we set over three years ago We also incurred 4.7 million in strategic initiative expenses for the quarter This quarter marks the last quarter of consulting fees related to Savaria one .

Speaker #3: We also incurred $1.8 million of other expenses in this quarter, and that's related to optimization and one-off costs. Finance costs for the quarter were $4.8 million, compared to $2.4 million last year, interest on loan.

Steve: Interest on long-term debt decreased by CAD 1.3 million due to an overall lower debt balance and a reduction in variable interest rates. We also incurred an unrealized foreign currency loss of CAD 1.7 million compared to a gain at the same time last year. Net earnings was CAD 20.5 million for the quarter compared to CAD 14.3 million last year, which is an increase of 43%. Earnings per share was CAD 0.28 for the quarter compared to CAD 0.20 in Q4 2024. Now looking at cash flow in our balance sheet. Cash flow from operating activities in Q4 was CAD 35 million, driven by the strong net earnings and also a reduction of working capital of CAD 2.8 million for the quarter.

Speaker #3: Interest on long term debt decreased by 1.3 million due to a overall lower debt balance and a reduction in variable interest rates We also incurred an unrealized foreign foreign currency loss of 1.7 million , compared to a gain at the same time last year Net earnings was 20.5 million for the quarter , compared to 14.3 million last year , which is an increase of 43% .

Steve Reitknecht: Interest on long-term debt decreased by CAD 1.3 million due to an overall lower debt balance and a reduction in variable interest rates. We also incurred an unrealized foreign currency loss of CAD 1.7 million compared to a gain at the same time last year. Net earnings was CAD 20.5 million for the quarter compared to CAD 14.3 million last year, which is an increase of 43%. Earnings per share was CAD 0.28 for the quarter compared to CAD 0.20 in Q4 2024. Now looking at cash flow in our balance sheet. Cash flow from operating activities in Q4 was CAD 35 million, driven by the strong net earnings and also a reduction of working capital of CAD 2.8 million for the quarter.

Speaker #3: And earnings per share was $0.28 for the quarter , compared to $0.20 in Q4 of 2020 . For Now , looking at cash flow in our balance sheet .

Speaker #3: Cash flow from operating activities in Q4 was 35 million , driven by the strong net earnings and also a reduction of working capital of 2.8 million for the quarter CapEx was 6.8 million for the quarter and finished at 22 million for the year , which represents 2.4% of sales and is in line with our guidance .

Steve: CapEx was CAD 6.8 million for the quarter and finished at CAD 22 million for the year, which represents 2.4% of sales and is in line with our guidance. CapEx mainly includes for us a mixture of maintenance, new equipment, and R&D costs. Our cash flow contributed to a repayment of debt of CAD 45.2 million in Q4 and CAD 75.2 million for all of 2025, improving our leverage ratio to 1.03 at year-end as previously mentioned. We finished 2025 with our guidance largely achieved. As noted already, we surpassed our adjusted EBITDA goal of 20%, which we owe in large part to Savaria One and the transformation that has taken place across the company. This new profitability level is 100% structural and was achieved without any favorable one-offs in our underlying numbers.

Steve Reitknecht: CapEx was CAD 6.8 million for the quarter and finished at CAD 22 million for the year, which represents 2.4% of sales and is in line with our guidance. CapEx mainly includes for us a mixture of maintenance, new equipment, and R&D costs. Our cash flow contributed to a repayment of debt of CAD 45.2 million in Q4 and CAD 75.2 million for all of 2025, improving our leverage ratio to 1.03 at year-end as previously mentioned. We finished 2025 with our guidance largely achieved. As noted already, we surpassed our adjusted EBITDA goal of 20%, which we owe in large part to Savaria One and the transformation that has taken place across the company. This new profitability level is 100% structural and was achieved without any favorable one-offs in our underlying numbers.

Speaker #3: CapEx mainly includes, for us, a mixture of maintenance, new equipment, and R&D costs. Our cash flow contributed to a repayment of debt of $45.2 million in Q4 and $75.2 million for all of 2025.

Speaker #3: Improving our leverage ratio to 1.03 at year end . As previously mentioned , we finished 2025 with our guidance largely achieved . As noted already .

Speaker #3: We surpassed our adjusted EBITDA goal of 20% , which we which we owe in large part to Savaria one . And the transformation that has taken place across the company This new profitability level is 100% structural and was achieved without any favorable one offs in our underlying numbers .

Speaker #3: Savaria one is a continuous improvement way of working that is now ingrained in our culture and the next phase of our strategic plan will focus on accelerating growth by expanding our market opportunities , deepening customer relationships , and further strengthening our competitive position We look forward to details at our upcoming Investor Day in April And with that , that completes my prepared remarks , and I'll turn the call over to J.P.

Steve: Savaria One is a continuous improvement way of working that is now ingrained in our culture. The next phase of our strategic plan will focus on accelerating growth by expanding our market opportunities, deepening customer relationships, and further strengthening our competitive position. We look forward to sharing more details at our upcoming Investor Day in April. With that completes my prepared remarks, and I'll turn the call over to JP to provide further details on Savaria One. JP?

Steve Reitknecht: Savaria One is a continuous improvement way of working that is now ingrained in our culture. The next phase of our strategic plan will focus on accelerating growth by expanding our market opportunities, deepening customer relationships, and further strengthening our competitive position. We look forward to sharing more details at our upcoming Investor Day in April. With that completes my prepared remarks, and I'll turn the call over to JP to provide further details on Savaria One. JP?

Speaker #3: to provide further details on Savaria one . J.P. .

Speaker #4: Yes , thank you , Steve , and good morning , everyone . So let me first talk about Savaria one to explain what happened in 2025 , highlights some of the successes in Q4 and also give a heads up for what to expect in 26 .

Jean-Philippe DeMontigny: Yes. Thank you, Steve, and good morning, everyone. Let me first talk about Savaria One to explain what happened in 2025, highlight some of the successes in Q4, and also give a heads-up for what to expect in 2026, and then I'll say a few words about Europe. 2025 was a year of transition for us on Savaria One because we really internalized the effort. What happened is we kept the rigorous cadence of implementation that we had for the past years. We started to generate more initiatives by ourselves, so a lot of the initiatives we implemented in last year have been developed in-house without any support. When I look back at the numbers, we implemented more than a dozen initiatives each month with over 160 initiatives through the year.

JP De Montigny: Yes. Thank you, Steve, and good morning, everyone. Let me first talk about Savaria One to explain what happened in 2025, highlight some of the successes in Q4, and also give a heads-up for what to expect in 2026, and then I'll say a few words about Europe. 2025 was a year of transition for us on Savaria One because we really internalized the effort. What happened is we kept the rigorous cadence of implementation that we had for the past years. We started to generate more initiatives by ourselves, so a lot of the initiatives we implemented in last year have been developed in-house without any support. When I look back at the numbers, we implemented more than a dozen initiatives each month with over 160 initiatives through the year.

Speaker #4: And then I'll say a few words about Europe . 2025 was a year of transition for us on Savaria one , because we really internalize the effort .

Speaker #4: What happened is we kept the rigorous cadence of implementation that we had for the past years . We started to generate more initiatives by ourselves .

Speaker #4: So a lot of the initiatives we implemented in last year have been developed in-house without any support When I look back at the numbers , we implemented more than a dozen initiatives each month for with the over 160 initiatives through the year .

Jean-Philippe DeMontigny: It's really a lot of small efforts across the company that are paying off. We also continue to generate more gains each quarter than the quarter before, which means that we have an accelerating momentum, nothing is slowing down on our side. Also important to note is that we refreshed our strategic plan last summer and early fall, that's something we'll present in the next investor date in April. Therefore we have a growth roadmap for the next 3 years, but also cost reduction initiatives that we continue to implement. I think we had a very successful year in 2025 on Savaria One, and now we enter 2026 with at least 100 new initiatives generated for this year. Still a lot of work ahead of us.

JP De Montigny: It's really a lot of small efforts across the company that are paying off. We also continue to generate more gains each quarter than the quarter before, which means that we have an accelerating momentum, nothing is slowing down on our side. Also important to note is that we refreshed our strategic plan last summer and early fall, that's something we'll present in the next investor date in April. Therefore we have a growth roadmap for the next 3 years, but also cost reduction initiatives that we continue to implement. I think we had a very successful year in 2025 on Savaria One, and now we enter 2026 with at least 100 new initiatives generated for this year. Still a lot of work ahead of us.

Speaker #4: So it's really a lot of small efforts across the company that are paying off We also continue to generate more gains each quarter than a quarter before , which means that we have an accelerating momentum .

Speaker #4: And so nothing is slowing down on our side . Also important to note is that we refreshed our strategic plan last summer and early fall , and that's something we'll present in the next investor Day in April .

Speaker #4: And therefore we have a growth roadmap for the next few years , but also cost reduction initiatives that we continue to implement . So I think we had a very successful year in 2025 .

Speaker #4: On Savaria one , and now we enter 2026 with at least 100 new initiatives generated for this year . So still a lot of work ahead of us at Q4 in particular , there were about 35 new initiatives implemented in the quarter , generating multiple millions of recurring savings .

Jean-Philippe DeMontigny: If I look at Q4 in particular, there were about 35 new initiatives implemented in the quarter, generating multiple millions of recurring savings. Some examples of what happened include the renegotiation of our main IT support and license contracts. We also improved our what we call the RMA process, which is the returns and warranty parts process to reuse more parts. We completed a number of procurement RFPs, which delivered savings across different categories. We also partnered with a distributor for small hardware across many of our facilities to reduce small hardware costs. Also, we had some additional successes with automation of our business processes, and something that we've been working on for some time is getting our field engineers to be more efficiently dispatched, and that continues to improve. Finally, we reduced our warehousing costs and also innovated in our factories.

JP De Montigny: If I look at Q4 in particular, there were about 35 new initiatives implemented in the quarter, generating multiple millions of recurring savings. Some examples of what happened include the renegotiation of our main IT support and license contracts. We also improved our what we call the RMA process, which is the returns and warranty parts process to reuse more parts. We completed a number of procurement RFPs, which delivered savings across different categories.

Speaker #4: Some examples of what happened include the renegotiation of our main . It support and license contracts . We also improved our what we call the May process , which is the returns and warranty parts process to reuse more parts .

Speaker #4: We completed a number of procurement RFPs , which delivered savings across different categories . We also partnered with a distributor for small hardware across many of our facilities to reduce small hardware costs Also , we had some additional successes with automation of our business processes and something that we've been working on for some time is getting our our field engineers to be more efficiently dispatched .

JP De Montigny: We also partnered with a distributor for small hardware across many of our facilities to reduce small hardware costs. Also, we had some additional successes with automation of our business processes, and something that we've been working on for some time is getting our field engineers to be more efficiently dispatched, and that continues to improve. Finally, we reduced our warehousing costs and also innovated in our factories.

Speaker #4: And that continues to improve . And finally , we reduced our warehousing costs and also innovated in our factories . So still many improvements happening even in Q4 last year So we're also already actioning some elements of our growth plan .

Jean-Philippe DeMontigny: Still many improvements happening even in Q4 last year. We're also already actioning some elements of our growth plan. We did a lot of work last summer to look at how we can grow the business, but as you saw in the results in Q4, we're already accelerating our growth, including in Europe. That's very positive. One thing I wanted to highlight is our direct businesses are doing particularly well, and that's because we had a lot of innovation and improvements in those through Savaria One. What to expect for 2026 for Savaria One. Like I mentioned, we entered the year with two things.

JP De Montigny: Still many improvements happening even in Q4 last year. We're also already actioning some elements of our growth plan. We did a lot of work last summer to look at how we can grow the business, but as you saw in the results in Q4, we're already accelerating our growth, including in Europe. That's very positive. One thing I wanted to highlight is our direct businesses are doing particularly well, and that's because we had a lot of innovation and improvements in those through Savaria One. What to expect for 2026 for Savaria One. Like I mentioned, we entered the year with two things.

Speaker #4: So we did a lot of work last summer to look at how we can grow the business . But as you saw in the results in Q4 , we're already accelerating our growth , including in Europe So that's very positive .

Speaker #4: And one thing I wanted to highlight is our direct businesses are doing particularly well, and that's because we had a lot of innovations and improvements in those through Savaria One.

Speaker #4: So what to expect for 2026 for Savaria one , like I mentioned , we entered the year with two things . First is a about 100 new initiatives that we're going to implement this year , but we also have some tailwinds or momentum , as you call it .

Jean-Philippe DeMontigny: First is about 100 new initiatives that we're gonna implement this year, but we also have some tailwinds or momentum, as you call it this way, from all the initiatives we implemented in 2025. If you remember, we had initiatives implemented through the year and some of them did not pay off fully in the year and continue to accrue benefits in the next year. I think we have good momentum starting this year and, of course, we'll have more details to unveil during the investor day. Rest assured, everything, all the good habits we developed in Savaria One continue. In fact, we decided to keep the name Savaria One internally because we really believe this is the right way to talk about how we improve the business and work together to be one great efficient company.

JP De Montigny: First is about 100 new initiatives that we're gonna implement this year, but we also have some tailwinds or momentum, as you call it this way, from all the initiatives we implemented in 2025. If you remember, we had initiatives implemented through the year and some of them did not pay off fully in the year and continue to accrue benefits in the next year. I think we have good momentum starting this year and, of course, we'll have more details to unveil during the investor day. Rest assured, everything, all the good habits we developed in Savaria One continue. In fact, we decided to keep the name Savaria One internally because we really believe this is the right way to talk about how we improve the business and work together to be one great efficient company.

Speaker #4: This way , from all the initiatives we implemented in 2025 . So if you remember , we had initiatives implemented through the year , and some of them did not pay off fully in the year .

Speaker #4: And continue to accrue benefits in the next year . So we I think we have good momentum starting this year . And of course , we'll have more details to unveil during the Investor Day .

Speaker #4: But rest assured , everything , all the good habits we developed in Savaria one continue . In fact , we decided to keep the name Savaria one internally because we believe this is the right way to talk about how we improve the business and work together to be one great , efficient company .

Jean-Philippe DeMontigny: Maybe some news about Europe now. I started a new role earlier this year officially, but I've been spending a lot of time in Europe in Q4 of last year. The way I would think about it is that the last 2 years in Europe before I started were a lot about reorganizing the business and improving profitability. Somehow my arrival coincides with a changing in momentum and priorities for Europe, where we now have a good business that is very healthy and profitable, and our focus is about growing the top line. As you saw in the Q4 results, we already have some good momentum there.

JP De Montigny: Maybe some news about Europe now. I started a new role earlier this year officially, but I've been spending a lot of time in Europe in Q4 of last year. The way I would think about it is that the last 2 years in Europe before I started were a lot about reorganizing the business and improving profitability. Somehow my arrival coincides with a changing in momentum and priorities for Europe, where we now have a good business that is very healthy and profitable, and our focus is about growing the top line. As you saw in the Q4 results, we already have some good momentum there.

Speaker #4: And maybe some news about Europe now So I started a new role earlier this year officially , but I've been spending a lot of time in Europe in Q4 of last year , and the way I would think about it is that the last two years in Europe , before I started were a lot about reorganizing the business and improving profitability .

Speaker #4: But somehow my arrival coincides with a change in momentum and priorities for Europe , where we now have a good business that is very healthy and profitable , and our focus is about growing the top line .

Speaker #4: And as you saw in the Q4 results , we already have some good momentum there So one thing that we did to to make that happen and enable that going forward is we already reorganized the team in Europe to have a better allocation of responsibility between different leaders , so we can have a better support for each of our growth factors .

Jean-Philippe DeMontigny: One thing that we did to make that happen and enable that going forward is we already reorganized the team in Europe to have a better allocation of responsibility between different leaders, so we can have a better support for each of our growth vectors. We also spend a lot of time with our different dealers, which actually have great feedback about our company, about our support to those dealers, and about our products. That is already starting to show in the numbers, and we're quite optimistic about the potential there. We already have some good wins since I started of dealers switching their product portfolio to us, and again, it shows in the numbers that we have in Q4.

JP De Montigny: One thing that we did to make that happen and enable that going forward is we already reorganized the team in Europe to have a better allocation of responsibility between different leaders, so we can have a better support for each of our growth vectors. We also spend a lot of time with our different dealers, which actually have great feedback about our company, about our support to those dealers, and about our products. That is already starting to show in the numbers, and we're quite optimistic about the potential there. We already have some good wins since I started of dealers switching their product portfolio to us, and again, it shows in the numbers that we have in Q4.

Speaker #4: We also spent a lot of time with our different dealers , which actually have great feedback about our company , about our support to those dealers and about our products , so that is already starting to show in the numbers .

Speaker #4: And for quite optimistic about the potential , there , we already have some good wins . Since I started , I've dealers switching their product portfolio to us .

Speaker #4: And again it shows in the numbers that we have in Q4 . Looking forward , 2026 is going to be a year of new product introductions and innovations , especially in Europe , where we have new stairlifts that are coming .

Jean-Philippe DeMontigny: Looking forward, 2026 is gonna be a year of new product introductions and of innovations, especially in Europe, where we have new stair lifts that are coming, but also a new incline platform lift. We have a number of field trials going on right now, and hopefully, if everything goes well this year, we'll have a number of those product introductions to come to mass market. We did something important for us, which is that we rebranded our operations in Europe to be under the name Savaria, which is a bit of a symbolic thing, but to say we are now Savaria in Europe. We're not just the different brands that we used to convey, but we're actually Savaria, which means we have the full product portfolio.

JP De Montigny: Looking forward, 2026 is gonna be a year of new product introductions and of innovations, especially in Europe, where we have new stair lifts that are coming, but also a new incline platform lift. We have a number of field trials going on right now, and hopefully, if everything goes well this year, we'll have a number of those product introductions to come to mass market. We did something important for us, which is that we rebranded our operations in Europe to be under the name Savaria, which is a bit of a symbolic thing, but to say we are now Savaria in Europe. We're not just the different brands that we used to convey, but we're actually Savaria, which means we have the full product portfolio.

Speaker #4: But also a new inclined platform lift . We have a number of field trials going on right now , and hopefully if everything goes well this year , we'll have number of those product introductions to come to mass market Finally , we did something important for us , which is that we rebranded our operations in Europe to be under the name Savaria , which is a bit of a symbolic thing , but to say we are now Savaria in Europe , we're not just the different brands that we use to to convey , but we're actually Savaria , which means we have the full product portfolio .

Jean-Philippe DeMontigny: We are the one-stop shop, we're positioning ourselves to be the best partner for accessibility with our dealers. This summarizes my updates. Maybe I'll turn it back to you, Seb, for closing remarks.

JP De Montigny: We are the one-stop shop, we're positioning ourselves to be the best partner for accessibility with our dealers. This summarizes my updates. Maybe I'll turn it back to you, Seb, for closing remarks.

Speaker #4: We are the one stop shop and we're positioning ourselves to be the best partner for accessibility with our dealers So this this summarizes my updates .

Speaker #4: Maybe I'll turn it back to you, Sam, for closing remarks.

Sébastien Bourassa: Well, thank you very much, JP. Good detail. Before we turn to Q&A, I just want to say thank you very much to all the analysts. You do a very good job on your coverage. You know well the story of Savaria. Hopefully here today you will learn a few new things that you can continue your good work. Daniel, I think we are ready for questions.

Speaker #2: Well , thank you very much , JP . Good , good good detail . So before we turn to Q&A , I just want to say thank you very much to all the analysts .

Speaker #2: You do a very good job on your coverage, you know. Well, the story of Savaria. So hopefully today you will learn a few new things that you can continue your good work.

Speaker #2: So, Daniel, I think we are ready for questions.

Operator: As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from Michael Glen with Raymond James. Your line is open.

Speaker #1: As a reminder to ask a question , please press star one one on your telephone and wait for your name to be announced .

Speaker #1: To withdraw your question , please press star one . One again . Please stand by while we compile the Q&A roster Our first question comes from Michael Glenn with Raymond James .

Speaker #1: Your line is open .

Michael Glen: Hey, good morning. Maybe just to start, JP, you were talking about Europe. Just remind us, I think it's been for the past 2 years that Europe on the top line has seen some pressure. Can you just remind us, like what were the main items that were overhanging top line in Europe and just the duration of those in total?

Speaker #5: Hey . Good morning . Maybe just to start , JP , you were talking about Europe . Can you just remind us ? I think it's been for the past two years that Europe on the top line has seen some pressure .

Speaker #5: Can you just remind us , like , what were the main items that were overhanging ? Top line in Europe and just the duration of those in total

Jean-Philippe DeMontigny: When you say overhanging, you mean that limited the growth of the top line? Just to be sure.

JP De Montigny: When you say overhanging, you mean that limited the growth of the top line? Just to be sure.

Speaker #4: When you say overhanging , you mean that limited the growth of the top line ? Just to be sure .

Michael Glen: That. Yeah, exactly. I think there were some programs, some government programs that came off, and then there was some, you guys had exited some business. Just the, those elements, the timing of those and the duration.

Speaker #5: Yeah , exactly . I think there were some there were some programs , some government programs that came off . And then there was some you guys had exited some business , just those those elements , the timing of those and the duration .

Jean-Philippe DeMontigny: If you want exact timing and duration, maybe Steve, you can complement. Okay. I can talk about the main ones, just to give you a flavor. If you think about top line, what happened is, first of all, we did some divestments in the car business, but that was a while back. Maybe Steve can add to this. We had some restructuring, if I can call it this way, to our business in Europe. In some of our direct businesses, we decided to have a more rigorous approach on pricing. We did the same in some of our dealer businesses. In some markets, we had some contracts with, let's say, business partners and dealers that were unfavorable to us.

JP De Montigny: If you want exact timing and duration, maybe Steve, you can complement. Okay. I can talk about the main ones, just to give you a flavor. If you think about top line, what happened is, first of all, we did some divestments in the car business, but that was a while back. Maybe Steve can add to this. We had some restructuring, if I can call it this way, to our business in Europe. In some of our direct businesses, we decided to have a more rigorous approach on pricing. We did the same in some of our dealer businesses. In some markets, we had some contracts with, let's say, business partners and dealers that were unfavorable to us.

Speaker #4: If you want exact timing and duration , maybe Steve , you you can compliment . Okay , I can I can talk about the main ones just to give you a flavor one .

Speaker #4: So if you think about top line , what happens , first of all , we we did some divestments in the car business .

Speaker #4: But that was a while back . So maybe Steve can add to this . We had some some restructuring if I can call it this way , to our business in Europe .

Speaker #4: So in some of our direct businesses , we decided to have a maybe a more rigorous approach on , on pricing . We did the same in some of our dealer businesses .

Speaker #4: So in some markets we had some contracts with , let's say , business partners and dealers that were unfavorable to us . We just held a stronger line on on the partnership terms and sometimes on pricing .

Jean-Philippe DeMontigny: We just held a stronger line on the partnership terms and sometimes on pricing, and that made some of them go to a competition. We also had very aggressive competition, some markets, to be honest, so at the same time. That's why we had limited or sometimes a flat growth in Europe. I think that happened in through 2024 and maybe the first half of 2025, largely speaking. There were also some, let's say, challenges with government programs. In many of our markets in Europe, there is some form of government support for purchasing of our accessibility products. Sometimes, for example, in France and in Italy last year, there were some moments of stop and go.

JP De Montigny: We just held a stronger line on the partnership terms and sometimes on pricing, and that made some of them go to a competition. We also had very aggressive competition, some markets, to be honest, so at the same time. That's why we had limited or sometimes a flat growth in Europe. I think that happened in through 2024 and maybe the first half of 2025, largely speaking. There were also some, let's say, challenges with government programs. In many of our markets in Europe, there is some form of government support for purchasing of our accessibility products. Sometimes, for example, in France and in Italy last year, there were some moments of stop and go.

Speaker #4: And that made some some of them go to a competition . We also had very aggressive competitions on markets , to be honest .

Speaker #4: So at the same time . So that's why we had limited or sometimes flat growth in Europe . So I think that happened in through 2024 .

Speaker #4: And maybe the first half of 2025 , largely speaking , there were also some some challenges with government programs . So in many of our markets in Europe , there is some form of government support for purchasing of our accessibility products .

Speaker #4: And sometimes , for example , in France , in Italy last year there were some moments of stop and go . So , so the government would announce a program , for example , in France , but would not be ready to process the order .

Jean-Philippe DeMontigny: The government would announce a program, for example, in France, but would not be ready to process the order, so that slows down the business. In Italy, they announced that the program would stop, and then it started again. There's a bit of stop and go like this happening, but I think that's just creating fluctuations quarter to quarter. I think the fundamental thing we did in last two years is more to be more rigorous about which business we wanna have, to be more disciplined about which partnerships and the pricing we wanna have, and that resulted in limited growth since 2024. Steve, do you wanna add anything on this?

JP De Montigny: The government would announce a program, for example, in France, but would not be ready to process the order, so that slows down the business. In Italy, they announced that the program would stop, and then it started again. There's a bit of stop and go like this happening, but I think that's just creating fluctuations quarter to quarter. I think the fundamental thing we did in last two years is more to be more rigorous about which business we wanna have, to be more disciplined about which partnerships and the pricing we wanna have, and that resulted in limited growth since 2024. Steve, do you wanna add anything on this?

Speaker #4: So that slows down the business . Or in Italy , they announced that the program would stop and then it started again . So there's a bit of stop and go like this happening .

Speaker #4: But I think that's just creating fluctuations quarter to quarter. But I think the fundamental thing we did in the last two years is to be more rigorous about which business we want to have, to be more disciplined about which partnerships and the pricing we want to have, and that resulted in limited growth since 2024.

Speaker #4: Steve , do you want to add anything on this ?

Steve: I mean, I think you covered it well, JP. Just adding that, you know, the biggest impact was really our focus on higher margin sales. You know, these efforts really kicked off with Savaria One. I'd say, Michael, it's really been two years that sort of the end of 2023 and now, lapping that at the end of 2025. It's really been the last two years that we've seen sort of that decline now come to an end.

Steve Reitknecht: I mean, I think you covered it well, JP. Just adding that, you know, the biggest impact was really our focus on higher margin sales. You know, these efforts really kicked off with Savaria One. I'd say, Michael, it's really been two years that sort of the end of 2023 and now, lapping that at the end of 2025. It's really been the last two years that we've seen sort of that decline now come to an end.

Speaker #3: I mean , I think you covered it well , JP , just just adding that , you know , the biggest impact was really our focus on on higher margin sales .

Speaker #3: And , you know , we these efforts really kicked off with Savaria one . So I'd say . Michael , it's really been two years that sort of the end of 2023 .

Speaker #3: And now lapping that at the end of 2025 . So it's really been the last two years that we've we've seen sort of that decline .

Speaker #3: Now , now come to an end okay .

Michael Glen: Okay. No, that's... Thanks for framing it that way. That's good information. Can you also just provide an update on the capacity expansion in the US and the expected timing for the go-to-market on the Made in the USA elevator product?

Speaker #5: No , that's thanks for framing it that way . That's good . Good information . And then can you also just provide an update on the capacity expansion in in the US and the expected timing for the go to market on , on the the made in the USA elevator product ?

Sébastien Bourassa: Okay. Well, my a very good question. Thanks for the interest. Yeah, definitely Greenville, if we go back in time in Q2 2025, we started to do some elevator, home elevator in Greenville. I think right now, again, we are doing approximately 35% to 40% of our home elevator of Savaria brand in Greenville, depending on where the end user is located. For sure right now, we're still complying with USMCA, that means we do not pay tariff, so that's why we pick and choose. I will say our Greenville expansion. We are actually all our permits, the digger are on place, they are digging, and the new extension should be ready in October this year.

Speaker #2: Okay . Well my a very good question . Thanks for the interest . So yeah , definitely Greenville . If we go back in time in Q2 2025 , we started to do some elevator home elevator in Greenville .

Speaker #2: I think right now, again, we are doing approximately 35% to 40% of our elevators of several brands in Greenville, depending on where the end user is located, for sure.

Speaker #2: Right now, we still comply with UMSC, so that means we do not pay tariffs. So that's why we pick and choose.

Speaker #2: And I would say at Greenville expansion . But we are actually all have all our permits . The they place the are digging and the new extension should be ready in October this year .

Sébastien Bourassa: I think that will be a positive news to be able to continue to add some capacity for the future.

Speaker #2: So I think that will be a positive news to be able to continue to add some capacity for the future

Michael Glen: How much of the elevator at that point in time will be made in Greenville once that capacity expansion is done?

Speaker #5: And with that, when would you expect to fill the elevator? How much of the elevator at that point in time will be made in Greenville once that capacity expansion?

Michael Glen: How much of the elevator at that point in time will be made in Greenville once that capacity expansion is done?

Sébastien Bourassa: We'll need to come back later with more details. Right now, again, we are compliant. We do not pay tariffs. I think this is why we started with one line, and as the expansion gets ready, we'll be able to expand with more for the future.

Speaker #2: We'll need to come back here later with more details right now again , we are we are compliant . We do not pay tariffs .

Speaker #2: So I think this is why we started with one line . And as the expansion gets ready , we'll be able to expand with more for the future .

Michael Glen: Steve, can you just remind us of how CapEx trends next year and what we should expect quarter to quarter?

Speaker #5: And Steve , can you just remind us of how CapEx trends next year and what we should expect quarter to quarter

Steve: Yeah. The Greenville obviously is a one-off project for us. It's an owned building that's started already. It's, you know, we have shovels in the ground already in 2026, so the work's actually started. We're gonna see this probably come live in Q4, so we're gonna see the spend or the CapEx investment over the next few quarters. We do have an increase in our CapEx budget this year, but we have tightened up some other areas. You know, we're gonna be slightly over our 2.5% of sales, but this is sort of a one-off project investment that we're treating that way.

Steve Reitknecht: Yeah. The Greenville obviously is a one-off project for us. It's an owned building that's started already. It's, you know, we have shovels in the ground already in 2026, so the work's actually started. We're gonna see this probably come live in Q4, so we're gonna see the spend or the CapEx investment over the next few quarters. We do have an increase in our CapEx budget this year, but we have tightened up some other areas. You know, we're gonna be slightly over our 2.5% of sales, but this is sort of a one-off project investment that we're treating that way.

Speaker #3: Yeah , so the Greenville obviously is a is a one off project for us . It's an old building . That's that started already .

Speaker #3: It's you know , we have shovels in the ground already in 2026 . So the work is actually started . We're going to see this probably come live in Q4 .

Speaker #3: So we're going to see the spend or the CapEx investment over the next few quarters . We do have an increase in our CapEx budget this year , but we have tightened up some other areas .

Speaker #3: So , you know , we're going to be slightly over our 2.5% of sales . But this is sort of a one off project investment that we're that we're treating that way

Michael Glen: Would it be CAD 20, 25 million in CapEx? I'm just trying to get a number.

Speaker #5: So would it be would it be 2025 million in CapEx ? I'm just trying to get a get a number

Steve: For 2026, our number's probably gonna be more in the 2.5% to 3% of sales.

Steve Reitknecht: For 2026, our number's probably gonna be more in the 2.5% to 3% of sales.

Speaker #3: For 2026, our numbers are probably going to be more in the 2.5% to 3% of sales. Okay?

Michael Glen: Okay. Okay, thank you.

Steve: Thank you, Michael.

Sébastien Bourassa: Thank you, Michael.

Speaker #5: Okay . Thank you .

Speaker #2: Thank you Michael

Operator: Thank you. Our next question comes from Derek Létourneau with TD Cowen. Your line is open.

Speaker #6: Thanks .

Speaker #1: Thank you . Our next question comes from Derek Lazard with TD Cowan . Your line is open .

Derek Létourneau: Good morning, everybody. Congratulations on a great year, Sébastien, to you and your team.

Derek Lessard: Good morning, everybody. Congratulations on a great year, Sébastien, to you and your team.

Speaker #7: Yeah. Good morning, everybody. Congratulations on a great year, Sebastian, to you and your team. Maybe just talking about the business as a whole.

Sébastien Bourassa: Thank you.

Derek Létourneau: Maybe just talking about the business as a whole. Curious how you're thinking about it, and without stealing any of your thunder coming this April. You did allude to accelerated top-line growth, but can we expect some margin expansion in 2026 as well?

Derek Lessard: Maybe just talking about the business as a whole. Curious how you're thinking about it, and without stealing any of your thunder coming this April. You did allude to accelerated top-line growth, but can we expect some margin expansion in 2026 as well?

Speaker #7: Curious how you're thinking about it . And without stealing any of your thunder coming this April . But is it more . And you did allude to accelerated top line growth , but can we expect some margin expansion in 2026 as well ?

Sébastien Bourassa: A very good question, Derek. For sure, we need to wait a bit more to get further detail. Definitely, as J.P. say, things are sustainable. We continue to generate new ideas. When there's new idea, it's not always about money, but often that there's some, a bit impact. Definitely, I would be disappointed if we don't continue to improve the margins this year. Let's call it this way. For sure, we always have to be careful if we do, example, midsize acquisition that could bring down the margins for a certain time, but on the legacy business, on the full Savaria, I'm very positive on as the environment change, that we should be able to improve the margins.

Speaker #2: A very good question , Derek . So for sure we need to wait a bit more to get further detailed . Definitely . As you say , we things are sustainable .

Speaker #2: We continue to generate new ideas . And when this new idea is not always about money , but often there's some EBITDA impact .

Speaker #2: So definitely I would be disappointed if we don't continue to improve the margins this year . Let's call it this way for sure .

Speaker #2: We always have to be careful if we do . Example midsize acquisition , that could bring down the margins for a certain time .

Speaker #2: But on the legacy business , on on the full Savaria , I'm very positive on the environment change that we should be able to improve the margins .

Derek Létourneau: Okay. Maybe that's a good segue. My next question was on M&A. Curious about the pipeline and maybe some of the opportunities that you're seeing in the market, whether it's, you know, new categories that you guys wanna get into, or is it, maybe related to incremental manufacturing capacity that you might need?

Derek Lessard: Okay. Maybe that's a good segue. My next question was on M&A. Curious about the pipeline and maybe some of the opportunities that you're seeing in the market, whether it's, you know, new categories that you guys wanna get into, or is it, maybe related to incremental manufacturing capacity that you might need?

Speaker #7: Okay . And then maybe that's a good segue . My next question was on on M&A . Curious about about the pipeline and maybe some of the opportunities that you're seeing in the market , whether it's , you know , new categories that you guys want to get into or is it maybe , maybe related to incremental manufacturing capacity that you might need ?

Sébastien Bourassa: Good question. For sure, again, we have always done M&A in the past, okay? We like to do M&A because for us, okay, to acquire one of our existing dealer is very natural, okay? Again, we proved it last year with Western, this year with Baxter. This is good because we're vertical integrated. That give us a chance to invest a bit more in the local market to accelerate the sales. Also, when we bring in new products, example, Maytag, when we bought that last year, right? That's always good because that bring new products to our dealers so that we can continue to be the number 1 choice in the industry. Definitely, there's the two type of acquisition we like to do, a product or a dealer that can help us to be better on the local market.

Speaker #2: Good question . So for sure , again , we have always done in the past and we like to do M&A because for us , okay , to acquire one of our existing dealers is very natural .

Speaker #2: And again we proved it last year with Western . This year with Baxter . So this is good because we are vertically integrated .

Speaker #2: That gives us the chance to invest a bit more on the local market to accelerate the sales . Also , when we bring a new products example , a method when we bought that last year , right , that that's always good because that brings new products to our dealers that we can continue to be the number one choice in the industry .

Speaker #2: So definitely, that's the two types of acquisitions we like to do—our products or dealers that can help us to be better on the local market.

Sébastien Bourassa: Now we're lucky, we have the right liquidity. For sure we will always remain disciplined, okay? We don't want just do acquisition to do acquisition. We have to do the one that will be the most beneficial for the group if we have a good future.

Speaker #2: Now we're lucky we have the right liquidity, but for sure we always remain disciplined. Okay, we don't want just the acquisition to acquisition.

Speaker #2: We have to do the the one that will be the most beneficial for the for the group . We have a good future .

Derek Létourneau: Absolutely. Okay. Maybe I'll throw one last one in here for JP. Just maybe talk about your full circle transition from consultant to a leadership role in Europe and how that came about.

Derek Lessard: Absolutely. Okay. Maybe I'll throw one last one in here for JP. Just maybe talk about your full circle transition from consultant to a leadership role in Europe and how that came about.

Speaker #7: Absolutely . Okay . And maybe I'll throw one last one in here for for JP . Can you maybe talk about your your full circle transition from consultant to to a leadership role in in in Europe and how that came about .

Jean-Philippe DeMontigny: What's your question specifically? Do you wanna... I'm happy to answer, but what are you thinking about?

JP De Montigny: What's your question specifically? Do you wanna... I'm happy to answer, but what are you thinking about?

Speaker #4: What's your question specifically do you want to . I'm happy to answer , but what are you thinking ?

Derek Létourneau: No, I was just curious on and, you know, why the transition, and is it because you saw or what opportunities you saw in the role in Europe in particular?

Derek Lessard: No, I was just curious on and, you know, why the transition, and is it because you saw or what opportunities you saw in the role in Europe in particular?

Speaker #7: No , I just I was just I was just curious . And you know why you that one the transition and is it because you .

Speaker #7: Is it because you saw or what opportunities you saw in the role in Europe , in particular ?

Jean-Philippe DeMontigny: Well, just, I'll try to answer your question. Thanks for asking. For me, the role in Europe is a natural professional progression for me because, like joining Savaria as a Chief Transformation Officer, I got to know the whole business, and I learned skills that I did not have as a consultant. I was building on my skill set, but expanding it. Leading the business here in Europe is a personal professional challenge for me, so I'm learning a new role. I feel like I'm also very well equipped for it 'cause, true Savaria One, I did spend a lot of time in Europe. I know the business quite well. I speak multiple languages. I studied and worked in Europe a lot in my previous life. I think I'm very happy here.

JP De Montigny: Well, just, I'll try to answer your question. Thanks for asking. For me, the role in Europe is a natural professional progression for me because, like joining Savaria as a Chief Transformation Officer, I got to know the whole business, and I learned skills that I did not have as a consultant. I was building on my skill set, but expanding it. Leading the business here in Europe is a personal professional challenge for me, so I'm learning a new role. I feel like I'm also very well equipped for it 'cause, true Savaria One, I did spend a lot of time in Europe. I know the business quite well. I speak multiple languages. I studied and worked in Europe a lot in my previous life. I think I'm very happy here.

Speaker #4: Well , just if I'll try to answer your question . Thanks for asking for me . The the role in Europe is a natural professional progression for me because like joining several years as a chief transformation officer , I got to know the whole business and I learned skills that I did not have as a consultant .

Speaker #4: So I was building on my skill set , but expanding it and leading the business in Europe is a personal , professional challenge for me .

Speaker #4: So I'm learning a new role , but I feel like I'm also very well equipped for it because the true Savaria one I did spend a lot of time in Europe .

Speaker #4: I know the business quite well . I speak multiple languages . I studied and worked in Europe a lot in my previous life , so I think I'm I'm very happy here .

Jean-Philippe DeMontigny: I'm having a great time, and I think it's benefiting the business also that I bring some of the Savaria North American culture to Europe, so I can really bridge the gap there. I think, yeah, that's how I think about it. It's great for me. It's great for the business, I believe. Hopefully, we have a lot of success with me playing this role.

JP De Montigny: I'm having a great time, and I think it's benefiting the business also that I bring some of the Savaria North American culture to Europe, so I can really bridge the gap there. I think, yeah, that's how I think about it. It's great for me. It's great for the business, I believe. Hopefully, we have a lot of success with me playing this role.

Speaker #4: I'm having a great time and I think it's benefiting the business . Also , that I bring some of the Savaria North American culture to Europe so I can really bridge the gap there .

Speaker #4: So I think , yeah , that's that's how I think about it . So it's great for me . It's great for the business , I believe , and hopefully we have a lot of success with me playing this role .

Derek Létourneau: Okay. That was helpful. That's exactly what I was asking the question for. Thanks.

Derek Lessard: Okay. That was helpful. That's exactly what I was asking the question for. Thanks.

Jean-Philippe DeMontigny: Thank you.

JP De Montigny: Thank you.

Speaker #7: Okay . That was that was helpful . That's exactly what I was asking the question for . Thanks . Thank you .

Sébastien Bourassa: Thank you, Derek.

Operator: Thank you. Our next question comes from Frederic Tremblay with Desjardins Capital Markets. Your line is open.

Speaker #2: Thank you Derek

Speaker #1: Thank you . Our question comes from Frederick Tremblay with Dejardin Capital Markets . Your line is open .

Sébastien Bourassa: Hello, Frederic.

Frederic Tremblay: Thanks. Good morning, everyone. Morning. Just maybe coming back on the CapEx and beyond 2026. Not looking for specific numbers, but just wondering if the growth plan that you're, you know, about to introduce, will that require incremental CapEx, or do you feel like the growth opportunity can be supported with, largely with the existing infrastructure?

Speaker #5: Thanks .

Speaker #8: Good morning everyone . Good morning . Just maybe coming back on the CapEx and beyond 2026 , not looking for a specific numbers , but just wondering if if the growth plans that you're , you know , about to introduce will that require incremental CapEx or do you feel like the the growth opportunity can be supported with largely with the existing infrastructure ?

Sébastien Bourassa: No, I mean, and we're definitely gonna talk more about this at the Investor Day, but generally speaking, we have enough capacity, especially with what we're building at Greenville to facilitate the growth that we have planned for the next few years. You never know what could come through M&A too, as far as, you know, footprint is concerned. We have enough, especially with the Greenville expansion, we're gonna have enough footprint and capacity to achieve our growth plan. You know, we are gonna have a little bit of additional expenditure this year, but we're gonna be back down, this year being 2026, but we're gonna be back down in line with our, you know, 2 to 2.5% of sales for 2027. That's our plan.

Speaker #3: Yeah . No , I mean , we're definitely going to talk more about this at the Investor Day . But generally speaking , we have enough capacity , especially with what we're building at at Greenville to facilitate the growth that we have planned for the next few years .

Speaker #3: You never know what could come through M&A to as far as you know , footprint is concerned . But we have enough , especially with the Greenville expansion .

Speaker #3: We're going to have enough footprint in capacity to to achieve our growth plan . So , you know , we are going to have a little bit of additional expenditure this year .

Speaker #3: But we're going to be back down this year being 2026 . But we're going to be back down in line with our , you know , 2 to 2.5% of sales for 2027 .

Sébastien Bourassa: Big part of our CapEx spend, as a reminder, is our R&D. You know, that continues to be an area of focus for us where we do invest. It's roughly half of that CapEx spend on a normal annual year. It won't be not exactly the same in 2026, but for 2025 and 2027, typically R&D and intangibles is sort of half of where we spend the money. That's important to us to make sure we have a robust R&D pipeline of new products hitting the market. You know, while it's can be a sizable investment, it's critical, a critical area of expertise for us and a critical.

Speaker #3: That's our plan . A big part of our CapEx spend , as a reminder , is R&D . You know that continues to be an area of focus for us where we do invest .

Speaker #3: It's roughly half of that CapEx spend on a normal annual year . So it won't be not exactly the same in 2026 , but for 2025 and 2027 , typically , R&D and intangibles is sort of half of where we spend the money .

Speaker #3: And that's important to us to make sure we have a robust R&D pipeline of new products hitting the market . So , you know , while it's it can be a sizable investment , it's critical , a critical area of expertise for us .

Operator: Competitive advantage, I'm trying to say.

Steve Reitknecht: Competitive advantage, I'm trying to say.

Sébastien Bourassa: Okay. If I may, Steve. I think, again, for us, Fred, we have pushed a lot our factories in the last two years to improve, to have the best machine, to be the most productive. Right now, we have unlocked so much capacity in the last few years. To continue to be the best, okay, is very, very important for us. In R&D, we have 62 people. I think we have done a lot of reorganization, new process in the company, and you will see that in the future, we will be able to improve existing product, launch some new one, and R&D has to be part of the growth plan, okay? I think we are pretty in good shape across all our different segments, right?

Speaker #3: And a critical competitive advantage, in trying to say.

Speaker #2: , and if I may , Steve , okay . So I think , again , for us , Fred , we have pushed a lot of factories in the last two years to improve , to have the best machine , to be the most productive .

Speaker #2: And right now we have unlocked so much capacity in the last few years . But to continue to be the best is very , very important for us .

Speaker #2: And R&D . We have 62 people . I think we have done a lot of reorganization , new process in the company , and you will see that in the future we'll be able to improve existing product , launch some new ones and R&D has to be part of the growth plan .

Speaker #2: Okay . And I think we we are pretty in shape across all the different segments

Frederic Tremblay: That's great. I was hoping to get maybe a bit of an update on market conditions in North America, where, you know, obviously, you know, seeing home construction activity still pretty slow, but you guys keep growing at a nice pace in North America in accessibility segment. Wondering if you could comment just generally on the market and sort of what Savaria has been doing to win market share and keep growing nicely in that region?

Speaker #8: That's great . I was hoping to get maybe a bit of an update on market conditions in North America . We're obviously , you know , seeing home construction activity still pretty pretty slow .

Speaker #8: But you guys keep going at a nice pace in North America . And accessibility segment . So I'm wondering if you could comment just generally on the market and sort of what's has been doing to win market share and keep growing nicely in that region .

Sébastien Bourassa: Definitely. We have some interesting slide, okay, to show at our Investor Day about the size of the market, the opportunity. Again, with the aging of the population, after that, the densities in the city, the townhouse are going up, okay, that's really helping elevators. Right now, not enough people put home elevator into their housing. If we continue the good work with architect, contractor, designer to develop this market, I think that's enough, okay, opportunity, Fred, to offset some maybe the slowdown you might have right and left. Example, Texas, we talk about that's an opportunity for us. I think, on our side, we continue to be busy. When we look at other product like stairlift, it is a necessity. When your bedroom is on the second floor, you cannot go up and down.

Speaker #2: Definitely . We have some interesting slides to show you today about the size of the market , the opportunity , but again , with the aging of the population After that , the densities in the city that townhouse are going up .

Speaker #2: Okay . That's really helping elevators . And right now , not enough people put an elevator into their house . Okay . So if we continue the good work with architect , contractor , designer to develop this market , I think that's enough opportunity to offset some some of the slowdown you might have right and left example Texas we talk about that's an opportunity for us .

Speaker #2: So I think on our side we continue to be busy . And when we look at other products like Sterling it is a necessity .

Sébastien Bourassa: Oh, you put a stair lift, it is very affordable. Some place in Europe, yes, you can have some subsidies. That's, again, we have the right demographic to help us.

Speaker #2: When your bedroom is on the second floor , you cannot go up and down or you put a stair lift . It is very affordable and in some places in Europe , yes , you can have some subsidies .

Speaker #2: So that's again , we have the right demographic to help us

Frederic Tremblay: Great. Maybe last one for me. Just on dealer acquisitions, can you remind us of, like, the drivers of accelerating the growth of those businesses after you acquire them? I think typically you'd expect the organic growth of those businesses to accelerate after you've acquired them. So maybe, you know, briefly run through some of the key aspects that you guys focus on after acquisitions.

Speaker #8: Great . And then the last one for me , just on dealer acquisitions , can you remind us of like the drivers of accelerating the growth of those businesses after you acquire them ?

Speaker #8: I think typically you'd expect the organic growth of those businesses to to accelerate after you've you've acquired them . So maybe , you know , briefly run through some of the key aspects that you guys focus on after acquisitions .

Sébastien Bourassa: For sure. It's a good question. No, right now, we own 30 direct store, okay? I think there's a lot of good place that we do very good business. At the end, okay, we're able to learn from each other and to bring it to the dealer after the acquisition to enable to invest in the business, to generate more leads, to again, push a bit the sales team to meet more architect, and contractor. We believe in showroom, so very often, okay, we'll make sure we have a good representation, a nice showroom that we can bring a professional and a customer into our showroom to see what is the best we can do.

Speaker #2: For sure it's a good question . I know right now we own 30 Direct Store , and I think we there's a lot of good plays that we do very good business .

Speaker #2: And and at the end , we're able to learn from each other and to bring it to the dealer after the acquisition , to enable to invest in the business to generate more leads to , push the sales team to meet more architect , contractor .

Speaker #2: We believe in showrooms. So I, very often, say okay, we'll make sure we have a good representation—a nice room that we can bring a professional and customer into, a showroom to see what is the best we can do.

Sébastien Bourassa: I think that's really all the knowledge that we had in the past, that when a dealer wants to sell or wants to retire, we are a very natural buyer. Right now, approximately 32% of our sales of accessibility are direct. The rest is dealer, yeah, we're good at it.

Speaker #2: So I think that's really all the knowledge that we had in the past , that when a dealer wants to sell or wants to retire , we are very natural buyer right now , approximately 33% of our sales of accessibility are direct .

Frederic Tremblay: Thank you, and congrats on the strong results.

Speaker #2: The rest is dealer . But we're good at it .

Sébastien Bourassa: Thank you.

Speaker #8: Thank you and congrats on the strong results .

Speaker #2: Thank you

Operator: Thank you. Our next question comes from Zachary Evershed with National Bank Capital Markets. Your line is open.

Speaker #1: Thank you . Our next question comes from Zachary Evershed with National Bank Capital Markets . Your line is open

Zachary Evershed: Good morning, everyone. Congrats on the quarter.

Sébastien Bourassa: Thank you.

Speaker #9: Good morning everyone . Congrats on the quarter .

Zachary Evershed: Most of my questions have been answered. Maybe just one. You mentioned a five-year target to be revealed on 14 April. Will we be getting shorter term guidance as well for 2026?

Speaker #2: Thank you .

Speaker #9: So most of my questions have been answered . Maybe just one . You mentioned a five year target to be revealed on April 14th .

Speaker #9: Will we be getting shorter-term guidance as well for 2026?

Sébastien Bourassa: Oh, I think it's the job of the analyst to do short-term guidance, Zach. No, we try to. I think we have demonstrated in the last two years, okay, what we are capable to do, and what we do is sustainable. I think we'll be able to give enough color, the investor on the five years target that people will be able to put a number by themself for the yearly guidance. No, we want to go on a broader period because we're in the business for the mid-long term, not for the short-term.

Speaker #2: Oh , I think it's the job of the analyst to do short term guidance . But we try to I think we have demonstrated in the last two years , okay , what we are capable to do and what we do is sustainable .

Speaker #2: I think we'll be able to give enough color and the investor Day on a five year target that people will be able to put the number by themselves for the yearly guidance .

Speaker #2: We want to go on a on a broader period because we are in the business for the long term , not for the short term .

Zachary Evershed: Makes sense. Thanks. Actually just one other one. You previously mentioned that some parts of Europe are already exceeding the 20% margin target, while some are dragging. Can you tell us broadly what those units are doing differently versus the ones still under the target, or is it primarily a function of the subsidies that are available in those geographies?

Speaker #9: Makes sense . Thanks . And then actually just one other one you've previously mentioned that some parts of Europe are already exceeding the 20% margin target , while some are dragging .

Speaker #9: Can you tell us broadly what those units are doing differently versus the ones still under the target , or is it primarily a function of the subsidies that are available in those geographies ?

Sébastien Bourassa: I think just one, I'm not sure where you got this comment. I think if we look at our detail MD&A, I think we see that the accessibility is at 22%. Again, it's a mix of North America and Europe. I think we're probably closer to 20 than we were in the past, okay? I don't think we detail exactly per location or per country what's happening. Maybe some of the good thing that we are doing, GP, you want to highlight a few item what we're doing good for Europe to improve our profitability?

Speaker #2: I think I just one , I'm not sure where you got these comments , but I think if we look at our detail , I think we see that the accessibility is at 23% .

Speaker #2: So again , it's a mix of North America and Europe . So I think we're probably closer to 20 than we were in the past .

Speaker #2: Okay . But I don't think we did exactly per per location or per country . What's happening . But maybe some of the good things that we are doing want to highlight a few items , what we're doing good for Europe to improve our profitability .

Jean-Philippe DeMontigny: The main things in the last few years have been the efficiency of our factories and our field operations. In our factories, there were a number of initiatives to reduce, let's say, the number of people we have for the same output by automating some industrial processes we have. That's been very effective. We also deployed a lot of lean, let's say, lean improvements to our factories. I think that's where we have a lot of people in the factories, and there we became much more efficient. The other place where we have a lot of people is in the field operations for installation and servicing.

JP De Montigny: The main things in the last few years have been the efficiency of our factories and our field operations. In our factories, there were a number of initiatives to reduce, let's say, the number of people we have for the same output by automating some industrial processes we have. That's been very effective. We also deployed a lot of lean, let's say, lean improvements to our factories. I think that's where we have a lot of people in the factories, and there we became much more efficient. The other place where we have a lot of people is in the field operations for installation and servicing.

Speaker #4: Yeah . So the main things in the last few years have been the efficiency of our factories and our field operations . So in our factories there are a number of initiatives to reduce the , let's say , the number of people we have for the same output by automating some industrial processes .

Speaker #4: We have . So that's been very effective . We also deployed a lot of lean , let's say lean improvements to our factories .

Speaker #4: So I think that's that's where we have a lot of people in the factories . And there we became much more efficient . The other place where we have a lot of people is in the field operations for installation and servicing , and for that we did improve the quality , let's say , of our work , because we had a lot of training and we elevated the performance of our team by capability building .

Jean-Philippe DeMontigny: For that, we did not only improve the quality, let's say, of our work because we had a lot of training and we elevated the performance of our team by capability building, but also we deployed better systems where the dispatching, for example, is more efficient. That's something we keep working on, but it's already much better than it was. Through this, we improved the profitability quite a bit. Last thing is, as I mentioned before, is we became a bit more, let's say, rigorous and strategic in how we price and manage the pricing. As a result of all these things, we improved our profitability overall.

JP De Montigny: For that, we did not only improve the quality, let's say, of our work because we had a lot of training and we elevated the performance of our team by capability building, but also we deployed better systems where the dispatching, for example, is more efficient. That's something we keep working on, but it's already much better than it was. Through this, we improved the profitability quite a bit. Last thing is, as I mentioned before, is we became a bit more, let's say, rigorous and strategic in how we price and manage the pricing. As a result of all these things, we improved our profitability overall.

Speaker #4: But also we deployed better systems where the dispatching , for example , is more efficient . So that's something we keep working on .

Speaker #4: But it's already much better than it was . So through this , we improved the profitability quite a bit . And last thing is , as I mentioned before , is we became a bit more , let's say rigorous and strategic in how we price and manage the pricing .

Speaker #4: So as a result of all these things , we improved our profitability overall .

Operator: Great, Colin. Thanks. I'll turn it over.

Zachary Evershed: Great, Colin. Thanks. I'll turn it over.

Speaker #9: Great . Thanks . I'll turn it over

Operator: Thank you. Our next question comes from Justin Keywood with Stifel. Your line is open.

Speaker #1: Thank you. Our next question comes from Justin Keywood with Stifel. Your line is open.

Justin Keywood: Good morning. Thanks for taking my call. Just on the Baxter Residential Elevator acquisition announced early in February. Realize it's a tuck-in deal. Are you able to provide any metrics around the profitability of that asset and the opportunity to expand margins and some of the integration activities that have been successful with some of Savaria's other acquisitions?

Speaker #10: Hey . Good morning . Thanks for taking my call . Still on the Baxter Residential elevator acquisition announced early in February . Realize it's a tuck in deal , but are you able to provide any metrics around the profitability of that asset and the opportunity to expand margins in some of the integration activities that have been successful with some of Savaria other acquisitions

Sébastien Bourassa: Okay. Thank you, Justin. Yes, the was just probably in the low teen, okay, the profitability. I think the success of Savaria is always the vertical integration from the dealer to the factory to the subcomponents, example, in Mexico. I think all this make us successful. Again, we see with Baxter a good opportunity. Again, it's a small business unit, so I think we will add some volume and develop some area that will continue to help for the success. Takes us in the area that we believe we can be much better and that's why we did the acquisition.

Speaker #2: Yeah . Thank you . Justin So yes , we probably in the low teen . Okay . The profitability . But I think the success of Savaria is always the vertical integration from the dealer to the factory to the subcomponents example in Mexico , I think all this makes it successful .

Speaker #2: Again , we see that with Baxter , a good opportunity . Again , it's a small business unit . So I think I will add some volume and develop some area that will be that will continue to help for the success .

Speaker #2: But Texas , in the area that we believe we can be much better and and that's why we did the acquisition

Justin Keywood: Great. That's helpful. How did the acquisition come about? Was this a cultivated opportunity? Just if you have any background on that. Thank you.

Speaker #10: Great . That's helpful . And how did the acquisition about ? Was this a cultivated opportunity ? Just if you have any background on that .

Sébastien Bourassa: I think at this stage, most of the dealers know that we are natural buyers. I think it goes to different conversation with their president right and left. Okay, that, and then Nicola, our corporate development. Definitely we know which dealer might be selling in the next few years and typically on the list, and when they are ready, they call us. That's a bit how it works.

Speaker #10: Thank you .

Speaker #2: I think at this stage , most of the dealers know that we are a natural buyer . So I think it goes to different conversation .

Speaker #2: With with their president . Right and left . Okay . That Nicola or corporate development . So definitely we know which dealer might be selling in the next few years .

Speaker #2: And typically they are on the list . And when they are ready they , they call us . So that's a bit of artworks .

Justin Keywood: Great. Good to hear. I had a question on foreign exchange. It was quite impactful in the quarter. I don't recall it being impactful historically. Just wondering if there's a strategy around managing FX risk with hedges or if there were any unique factors for this quarter impacting the results.

Speaker #10: Great . Good to hear . And I had a question on foreign exchange . It was quite impactful in the quarter . I don't recall it being impactful historically .

Speaker #10: Just wondering if there's a strategy around managing FX risk with with Hedges or if there were any unique factors for this quarter impacting the results ?

Steve: We do have some hedges in place, Justin. We do hedge some of our debt. What happened this quarter was unrealized loss on the US dollar. Some of our... mainly related to US cash and to US receivables, that when they were converted back to Canadian, just a change in the FX rate quarter-over-quarter created that loss versus the same time last year, you remember the US dollar was going the other way, so quite a bit. I mean, we do have some hedging in place. You know, we're going to see these types of impacts on a quarterly basis. I think this one is just more pronounced based on the change in the US dollar over the last short term.

Steve Reitknecht: We do have some hedges in place, Justin. We do hedge some of our debt. What happened this quarter was unrealized loss on the US dollar. Some of our... mainly related to US cash and to US receivables, that when they were converted back to Canadian, just a change in the FX rate quarter-over-quarter created that loss versus the same time last year, you remember the US dollar was going the other way, so quite a bit. I mean, we do have some hedging in place. You know, we're going to see these types of impacts on a quarterly basis. I think this one is just more pronounced based on the change in the US dollar over the last short term.

Speaker #3: We do have some hedges in place . Justin . So we do have some of our debt . What happened this quarter was unrealized loss on the US dollar .

Speaker #3: So some of our mainly related to US cash and to US receivables that when they were converted back to Canadian just to change the FX rate quarter over quarter created that loss versus the same time last year .

Speaker #3: You remember the US dollar was going the other way . So quite a bit . So I mean we do we do have some hedging in place .

Speaker #3: But you know we're going to see these types of impacts on a quarterly basis . I think this one is just more pronounced based on the change in in the US dollar over the last short term

Justin Keywood: Thank you very much.

Speaker #10: Thank you very much

Operator: Thank you. Our next question comes from Razi Hasan with Paradigm Capital. Your line is open.

Speaker #1: Thank you . Our next question comes from Rosie Hassan with Paradigm Capital . Your line is open .

Operator: Hi. Good morning. Thanks for taking my questions. You spoke about operating leverage in the quarter. Could you maybe talk about future ability to capture operating leverage and where that comes from?

Razi Hazan: Hi. Good morning. Thanks for taking my questions. You spoke about operating leverage in the quarter. Could you maybe talk about future ability to capture operating leverage and where that comes from?

Speaker #10: Hi . Good morning .

Speaker #11: Thanks for taking my questions . You spoke about operating leverage in the quarter . Could you maybe talk about future ability to capture operating leverage and where that comes from

Steve: Yeah, I mean, you know, we've talked a lot about continued improvements, and that have come under Savaria One, and it's a new way of working and a new culture here. You know, something that is just gonna happen naturally without any effort is gonna be some of that operating leverage. You know, I mentioned the capacity that we have at our sites. You know, a significant amount of our cost base is fixed, being able to put through more revenue with the same cost base, we're gonna see that leverage come through in all of our regions and segments. We're gonna see that in Patient Care and Accessibility. We are making this one-off investment in Greenville, but we know that we have enough capacity to service our long-term growth plans.

Steve Reitknecht: Yeah, I mean, you know, we've talked a lot about continued improvements, and that have come under Savaria One, and it's a new way of working and a new culture here. You know, something that is just gonna happen naturally without any effort is gonna be some of that operating leverage. You know, I mentioned the capacity that we have at our sites. You know, a significant amount of our cost base is fixed, being able to put through more revenue with the same cost base, we're gonna see that leverage come through in all of our regions and segments. We're gonna see that in Patient Care and Accessibility. We are making this one-off investment in Greenville, but we know that we have enough capacity to service our long-term growth plans.

Speaker #3: Yeah , I mean , we're you know , we've talked a lot about continued improvements and that have come under Savaria one . And it's a new way of working and a new culture here .

Speaker #3: But, you know, something that is just going to happen naturally without any effort is going to be some of that operating leverage.

Speaker #3: Well, you know, I mentioned the capacity that we have at our sites. You know, a significant amount of our cost base is fixed.

Speaker #3: So being able to put through more revenue with the same cost base , we're going to see that leverage come through in all of our regions and segments .

Speaker #3: So we're going to see that in patient care and accessibility . We are making this one off investment in Greenville . But but we feel well we know that we have enough capacity to service our our long term growth plans .

Steve: Razi, we're gonna see this come through. We saw some this quarter. We're gonna see this continue over the next few years.

Steve Reitknecht: Razi, we're gonna see this come through. We saw some this quarter. We're gonna see this continue over the next few years.

Speaker #3: So so we're going to see this come through . We saw some this quarter . We're going to see continue over the next few years

Operator: Okay, great. Thanks for that. Maybe one for JP. Just if we take a step back a bit, could you maybe provide some details on growth rates for the elevator market in Europe? Just overall, you know, how do you see that market growing? How has it been growing, and how do you see it growing going forward?

Razi Hazan: Okay, great. Thanks for that. Maybe one for JP. Just if we take a step back a bit, could you maybe provide some details on growth rates for the elevator market in Europe? Just overall, you know, how do you see that market growing? How has it been growing, and how do you see it growing going forward?

Speaker #11: Okay . Great . Thanks for that . And then maybe one for JP . Just if you take a step back a bit , could you maybe provide some details on growth rates for the elevator market in Europe .

Speaker #11: Just overall, how do you see that market growing, or how has it been growing—and how do you see it growing going forward?

Sébastien Bourassa: Just to clarify, we're currently not playing in the elevator market in Europe except for Vuelift, right? You know this.

Speaker #4: Just to clarify , we're we're currently not playing the elevator market in Europe except for you left , right . You know this .

Operator: Right.

Razi Hazan: Right.

Sébastien Bourassa: That's the context. Now, the growth rate, we will present that in the Investor Day, what we think, like, are the growth rates per market. I think it's in the range of 4% to 5%, if I re-remember. I'm going from memory, but it's in that range. Most of our markets are in that or slightly higher range of growth rate. That's what's. Yeah. Maybe hold that question until the Investor Day, and you'll get the more granular view of all the markets we operate in.

Speaker #4: So so the that's the context . Now the growth rate . We will present that in the Investor Day . What we think are the growth rates for market .

Speaker #4: But I think it's in the range of 4 to 5% . If I remember I'm going from memory . But it's in that range .

Speaker #4: Most of our markets are in that or slightly higher range of growth rates . So that's what . Yeah . But maybe I'll hold that question until the investor .

Speaker #4: Then you'll get a more granular view of all the markets we are in.

Operator: Fair enough. That's helpful. Then maybe just lastly, I'm not sure if it was answered earlier or asked, but, just thoughts on priorities for capital deployment for 2026?

Razi Hazan: Fair enough. That's helpful. Then maybe just lastly, I'm not sure if it was answered earlier or asked, but, just thoughts on priorities for capital deployment for 2026?

Speaker #11: Fair enough . That's helpful . And then maybe just lastly , I'm not sure if it was answered earlier or asked , but just thoughts on priorities for capital deployment for 2026 .

Speaker #11: Fair enough . That's helpful . And then maybe just lastly , I'm not sure if it was answered earlier or asked , but just

Steve: Yeah, I can take this one, Razi. I mean, we have been de-levering over the last couple years. We're gonna continue to do that. We are building the balance sheet for, mainly for acquisition growth, and for acquisition opportunities to make sure we have the funds available to execute transactions as they arise. You know, we are at 1x leverage. Our sweet spot is, around that 2 mark or below that 2 mark. You know, Sébastien mentioned in his comments that there's CAD 200 million available for acquisitions over the next few years. I mean, this is gonna continue to expand, and the idea is that we're gonna be self-funding acquisitions. You know, our dividend policy is relatively stable.

Steve Reitknecht: Yeah, I can take this one, Razi. I mean, we have been de-levering over the last couple years. We're gonna continue to do that. We are building the balance sheet for, mainly for acquisition growth, and for acquisition opportunities to make sure we have the funds available to execute transactions as they arise. You know, we are at 1x leverage. Our sweet spot is, around that 2 mark or below that 2 mark. You know, Sébastien mentioned in his comments that there's CAD 200 million available for acquisitions over the next few years. I mean, this is gonna continue to expand, and the idea is that we're gonna be self-funding acquisitions. You know, our dividend policy is relatively stable.

Speaker #3: Yeah , I can take this one . Rosie . I mean , we're we have been delivering over the last couple of years .

Speaker #3: We're going to continue to do that . We are building the balance sheet for mainly for acquisition growth and for acquisition operate opportunities to make sure we have the funds available to execute transactions as they arise .

Speaker #3: So we are at one times leverage our sweet spot is around that two mark or below that two mark . So you know , Sebastian mentioned in his comments that there's 200 million available for acquisitions over the next few years .

Speaker #3: I mean , this is going to continue to expand . And we're going to the idea is that we're going to be self-funding acquisitions .

Steve: You know, we're not looking at buybacks in the short term. We've talked a little bit about CapEx already. The main goal right now is to continue to repay debt and use our revolver to execute on acquisitions when they arise.

Speaker #3: So our dividend policy is relatively stable . You know , we're not looking at buybacks in the short term . And we've talked a little bit about CapEx already .

Steve Reitknecht: You know, we're not looking at buybacks in the short term. We've talked a little bit about CapEx already. The main goal right now is to continue to repay debt and use our revolver to execute on acquisitions when they arise.

Speaker #3: But the the main goal right now is to continue to repay debt and use use our revolver to execute on acquisitions when they arise .

Operator: Great. Thanks. That's helpful. I'll leave it there.

Razi Hazan: Great. Thanks. That's helpful. I'll leave it there.

Speaker #11: Great . Thanks . That's helpful . I'll leave it there

Operator: Thank you. Our next question comes from Jonathan Goldman with Scotiabank. Your line is open.

Speaker #1: Thank you . Our next question comes from Jonathan Goldman with Scotiabank . Your line is open .

Jonathan Goldman: Hey, good morning, team, and thanks for taking my questions. Really nice organic growth. Maybe we can just focus on Accessibility, both North America and Europe. Can you provide some color on how booking trends and backlog have trended so far in Q1? I guess if you wanna talk about it directionally, has the momentum from Q4 spilled over into 2026?

Speaker #12: Hey . Good morning and thanks for taking my questions . So really nice organic growth . Maybe we can just focus on accessibility .

Speaker #12: Both North America and Europe . Can you provide some color on how booking trends and backlog have trended so far in Q1 ? I guess if you want to talk about directionally , how does the momentum from Q4 spilled over into 2026 ?

Sébastien Bourassa: Okay. I don't, I don't think we have re-taller backlog in Q4, okay. I think we had a good start of the year, and typically Q1, okay, there's a bit of deadline in North America for some price increase, so that usually gives us a healthy backlog. I think in terms of Sterling, for we are busy. No, I'm quite comfortable with the way we have exited the year that we have some backlog remaining to hopefully have a good Q1.

Speaker #2: Okay , so I don't think we have our backlog in Q4 . I think we are we had a good start of the year , and typically Q1 .

Speaker #2: Okay , there's a bit of a deadline in North America for some price increase . So that usually give us a backlog . And I think in terms of where we are busy .

Speaker #2: So no , I'm quite comfortable with the way we have exited the year that we have some backlog remaining to hopefully have a good Q1

Jonathan Goldman: Okay, thanks for that. Maybe switching to Europe, the idea of you know, kind of being a one-stop shop. Could you remind us of what the current product mix is in Europe right now? I guess related to that, could you give us an update on the dealer uptake and reception of the Luma?

Speaker #12: Okay , thanks for that . And maybe switching to to Europe , the idea of kind of being a one stop shop , can you remind us of what the current product mix is in Europe right now ?

Speaker #12: And I guess related to that , could you give us an update on the dealer uptake and reception of the Luma ?

Sébastien Bourassa: Yeah. Maybe I will start, then JP will complete. For sure in Europe, we are first, okay, the Sterling for organization. That has been the bread and butter of Handicare for many, many years. Don't forget, we have the Garaventa brand in Europe, where we have the incline platform. We have been a strong parent incline platform as well. We brought the Luma last year. For sure Luma, again, it takes time, but that's one of those who put the seeds for the mid long term because people before they buy, example, 10, they do 1 and they put 1 in their showroom. Then they do 1 on their customers, so it takes some time. Definitely, there's a lot of traction. People like the products, so I think we'll get a good future.

Speaker #2: Okay , so maybe I will start on GPU with complete . So first up we are firstly the organization that has been the bread and butter of Handicare for many , many years .

Speaker #2: And then don't forget we have the Garaventa brand in Europe where we have the incline platform that we have been a strong player in client platform as well .

Speaker #2: We brought the Lumo last year , so for sure again , it takes time , but it's one of those we put the seeds for the mid long term because people before they buy example ten , they do one , they put one in their showroom .

Speaker #2: They then they do one on their customer . So it takes some time , but definitely there's a lot of traction . People like the .

Sébastien Bourassa: We have the Vuelift in Europe. We have some short VPL called the Multilift. Definitely, we are starting to have a better picture of the one-stop shop and the dealer appreciate that. I think that will be good. Maybe J.P. want to complete something on that.

Speaker #2: So I think we'll get a good future and we have the view in Europe . We have some short VPN called the multi-device .

Speaker #2: So definitely we are starting to have a better picture of the one stop shop and the dealer appreciate that . So I think that would be good .

Jean-Philippe DeMontigny: Well, I think you said it well, Sébastien, but I think it's recent that we bring almost all the products. The one big piece that's missing is home elevators, 'cause we have the Vuelift, but we don't have the other category killers like the Eclipse, for example, but for everything else we are there. For us, to be transparent, for example, selling incline platform lifts, vertical platform lifts has always been something that we existed through Garaventa, but we still have room to grow there because we're, for example, educating even still today some of our historical Handicare dealers to sell those products.

JP De Montigny: Well, I think you said it well, Sébastien, but I think it's recent that we bring almost all the products. The one big piece that's missing is home elevators, 'cause we have the Vuelift, but we don't have the other category killers like the Eclipse, for example, but for everything else we are there. For us, to be transparent, for example, selling incline platform lifts, vertical platform lifts has always been something that we existed through Garaventa, but we still have room to grow there because we're, for example, educating even still today some of our historical Handicare dealers to sell those products.

Speaker #2: Maybe you want to complete something on that.

Speaker #4: Well , I think you said it well , Sebastian , but I think it's recent that we bring almost all the products . So the one big piece that's missing is home elevators , because we have the view lift that we don't have .

Speaker #4: The other category killers like the eclipse , for example , but for everything else , we are there . But for us to be transparent , for example , selling incline platform lifts , vertical platform lifts , has always been something that we existed through Garaventa , but we still have room to grow there because we're , for example , educating .

Jean-Philippe DeMontigny: We made progress in that regard in the last few years, but there is still work for us to do and room for us to cross-sell our different products to our different historical dealers in Europe.

JP De Montigny: We made progress in that regard in the last few years, but there is still work for us to do and room for us to cross-sell our different products to our different historical dealers in Europe.

Speaker #4: Even still today , some of our historical handicare dealers to sell those products . Okay , so we made progress in that regard in the last few years .

Speaker #4: But there is still work for us to do and room for us to cross-sell our different products to our different historical dealers in Europe .

Jonathan Goldman: Okay, that's good color. Maybe just one more on the Patient Care. The organic growth was really strong in the quarter and you were lapping also like a really strong comp as well. Was there any one time projects in there or anything that would make that growth look unusual?

Speaker #12: Okay , that's good color . Maybe just one more on the patient care . The organic growth was really strong in the quarter , and you were lapping also like a really strong comp as well .

Speaker #12: Was there any one time projects in there or anything that would make that growth look unusual ?

Sébastien Bourassa: On my Patient Care, we have to be careful. It's always a bit lumpy from one quarter to the other, okay, because of big project, as you said. Sometimes there's some deadline with some funding with the government. On our side, we try to get more at a year, okay, versus a quarter for the Patient Care. I think last year we finished in the low 5% of growth. I think it is below what we want, but I think this is how more we should look at it.

Speaker #2: Oh , my patient care . We have to be careful . It's always a bit lumpy from one quarter to the other . Okay .

Speaker #2: Because of big projects , as you said , and sometimes there's some deadline with some funding with the government . But on our side , we try to get more at a year .

Speaker #2: Okay , versus a quarter for the patient care . I think last year we finished in the low 5% of growth . I think it is below what we want , but I think this is how we should look at it .

Jonathan Goldman: Oh, that's a fair comment. I'll get back in queue. Thanks for taking my questions.

Jean-Philippe DeMontigny: Thank you.

Sébastien Bourassa: Thank you.

Speaker #12: Oh , that's a fair comment . I'll get back in queue . Thanks for taking my questions .

Operator: Thank you. Our next question is a follow-up from Michael Glen with Raymond James. Your line is open.

Speaker #2: Thank you

Speaker #1: Thank you . Our next question is a follow up from Michael Glenn with Raymond James . Your line is open

Steve: I'm just I apologize if I missed this, did you indicate what the organic, like the excluding Forex organic growth rate was in Europe for the quarter?

Michael Glen: I'm just I apologize if I missed this, did you indicate what the organic, like the excluding Forex organic growth rate was in Europe for the quarter?

Speaker #5: Hey . I'm just I apologize if I missed this , but did you indicate what the organic like the excluding forex organic growth rate was in Europe for the quarter

Sébastien Bourassa: Steve?

Steve: Yeah. We don't typically disclose that number, but we had low single-digit. In the quarter, we had low single-digit organic growth in Europe. They had a very large positive FX impact, so it was roughly around, you know, the 9% split roughly around 2% organic and 7% FX. The pound neuro strengthened versus the CAD.

Steve Reitknecht: Yeah. We don't typically disclose that number, but we had low single-digit. In the quarter, we had low single-digit organic growth in Europe. They had a very large positive FX impact, so it was roughly around, you know, the 9% split roughly around 2% organic and 7% FX. The pound neuro strengthened versus the CAD.

Speaker #3: Yeah . So we don't typically disclose that number . But we had low single digit in the quarter . We had low single digit organic growth in Europe .

Speaker #3: They had a very large positive FX impact. So it was roughly around the 9% split—roughly around 2% organic and 7% FX.

Jonathan Goldman: Okay. That, is it safe to assume that would have been negative through the first nine months of the year?

Michael Glen: Okay. That, is it safe to assume that would have been negative through the first nine months of the year?

Speaker #3: But the pound euro strengthened versus the cat .

Speaker #5: Okay . And that is is it safe to assume that that would have been negative through the first nine months of the year ?

Steve: No, it wasn't negative. It's been positive for most of the year.

Steve Reitknecht: No, it wasn't negative. It's been positive for most of the year.

Jonathan Goldman: Okay. Just, the tax rate next year or this year, 2026?

Michael Glen: Okay. Just, the tax rate next year or this year, 2026?

Speaker #3: No it wasn't negative . It's been positive for most of the year .

Speaker #5: Okay . And then just the tax rate next year . Or this year 2026 .

Steve: Yeah. Maybe your question is coming from our lower tax rate that we experienced in Q4. For next year, we're expecting to be back in the range of 26 and a half percent. There were some positive impacts in Q4 that you'll see. I think our rate for the quarter was about 17 and a half, and we had some positive adjustments on earnings in some countries that previously were experiencing losses. We have carry forward losses in some of those countries that when we're now making income, that we can apply those losses against the current income so that the effective tax rate is lower. You know, there was a bit of a one-off adjustment. But going forward, I think if you're modeling, keep 26 and a half percent.

Steve Reitknecht: Yeah. Maybe your question is coming from our lower tax rate that we experienced in Q4. For next year, we're expecting to be back in the range of 26 and a half percent. There were some positive impacts in Q4 that you'll see. I think our rate for the quarter was about 17 and a half, and we had some positive adjustments on earnings in some countries that previously were experiencing losses. We have carry forward losses in some of those countries that when we're now making income, that we can apply those losses against the current income so that the effective tax rate is lower. You know, there was a bit of a one-off adjustment. But going forward, I think if you're modeling, keep 26 and a half percent.

Speaker #3: Yeah . And so maybe your question is coming from our our lower tax rate that we experienced in Q4 for next year . We're we're expecting to be back range of 26 , 26.5% .

Speaker #3: There were some positive impacts in Q4 that you'll see. I think our EBIT for the quarter was about $17.5 million, and we had some positive adjustments on earnings in some countries that previously were experiencing losses.

Speaker #3: So, we had, we have carryforward losses in some of those countries where we're now making income that we can apply those losses against, against the current income, so that the effective tax rate is lower.

Speaker #3: So there was a bit of a one off adjustment . But going forward , I think if you're modeling keep keep 26.5% .

Jonathan Goldman: Thank you.

Michael Glen: Thank you.

Operator: Thank you. If we have any additional questions, please press star one one on your telephone. Again, that is star one one to ask a question. I'm showing no further questions at this time. I would now like to turn it back to Sébastien Bourassa for closing remarks.

Speaker #5: Thank you

Speaker #1: Thank you . If we have any additional questions please press star one one on your telephone . Again that is star one one to ask a question I'm showing no further questions at this time .

Sébastien Bourassa: Well, thank you very much, Daniel. Thanks for all the good questions. Seems a lot of good interest this morning. Again, I'm very happy of the results. Very proud of that. I think it shows that we are in a good industry. We continue to do the right thing, the Savaria One learning we did in the last two years, so quite comfortable and excited to present you the next chapter of growth in April. Remember, if you have interest to be at Investor Day in April in Brampton, Toronto, please register so that we have enough chair and enough sandwich for lunch. Thank you very much, Daniel. See you next quarter.

Speaker #1: I would now like to turn it back to Sebastien Bourassa for closing remarks .

Speaker #2: Thank you very much , Daniel . So thanks for all the good questions . Seems a lot of good interest this morning . So again , very happy of the results .

Speaker #2: Very proud of that . And I think it shows that we are in a good industry . We continue to do the right thing .

Speaker #2: The one we did in the last two years . So quite comfortable and excited to present to you the next chapter of growth .

Speaker #2: In April . And by remember , if you have interest to be at the Investor Day in April in Brampton , Toronto , please register so that we have enough chair and enough sandwich for lunch .

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

Speaker #2: So thank you very much , Daniel . See you next quarter

Q4 2025 Savaria Corp Earnings Call

Request a DemoDemo

SIS

Savaria

Earnings