Savaria Corporation

Good morning. My name is Daniel, and 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 speakers' 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 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 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 4th with respect to its QX2025 results. Thank you. Mr. Bourassa, you may begin your conference.

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 GP will update us on Server 1 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 $51.3 million of EBITDA at 21.2%, which is a very important milestone and our best quarter ever. We finished the year with a size of $913 million and an EBITDA of $186.2 million at 20.4%, which again is our best result ever. All KPIs are improving, and Steve will go more in detail later. Today there's three things that I would like to highlight. First, thank you. Yesterday marked the five-year anniversary of Endicare acquisition, and I need to say that I'm quite proud of all the work that has been achieved since the beginning, especially through SAVAIR-1. It's not the same company anymore, and you can see it in the people, in the operation, in their product portfolio, and recently the change under SAVAIR brand in Europe. So I'm very optimistic about the future and the growth and the profitability. Also, I would like to highlight the performance of Garamenta North America in 2025. 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 several one, as naturally commercial efforts takes more time 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 elevator in North America. Increase RSA's effort in North America. Continue to expand the Meta, Dumb Weather, 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. We've talked about it for a long time, but it's coming. The LUMO, the VPL, the Incline Lift, so that will give us a good future. Continue to be the partner of choice on Sterlift in Europe. And in the patient care, on the room, and continue to develop the long-term care segment, as well as acute care. Just some small details, and we'll try to unveil more details during our investor day on April 14, as well as our five-year financial target. Third item, acquisition. We have demonstrated in the past that we can do three, four acquisitions per year to bring additional sales and 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 and maintain an EBITDA debt 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. 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. We will invest more to develop this area with a sales force and marketing to become a dominating player in Texas. So welcome R&D and all the team members of our family. To conclude, what allows us to beat each quarter after quarter in the last two years is the new 701 culture. 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.

Thank you, Sebastian, 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 51.3 million, which is our highest quarter ever and represents growth of almost 20% over prior year. 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. And lastly, our Q4 ending leverage ratio is 1.03, 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. 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%. 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've 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 is mainly driven by the accessibility segment due to continued improvements under Saverio 1 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. Adjusted EBITDA margin finished at $21.2 million for the quarter versus $19.2 million in Q4 2024, and 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 $4.7 million in strategic initiative expenses for the quarter. This quarter marks the last quarter of consulting fees related to Saverio 1. 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 long-term debt decreased by $1.3 million due to an overall lower debt balance and a reduction in variable interest rates. We also incurred an unrealized $4.5 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%. And earnings per share was $0.28 for the quarter compared to $0.20 in Q4 2024. Now looking at cash flow in our balance sheet. 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. 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, 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 Severia 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. Severia 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 sharing more details at our upcoming investor day in April. And with that, that completes my prepared remarks, and I'll turn the call over to JP to provide further details on Savaria 1. JP?