Savaria Corporation

Good morning. My name is Rory and I will be your conference operator today. At this time, I would like to welcome everyone to Savaria Corporation's Q1 2026 conference 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. To ask a question during the session, please 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. This call may contain forward-looking statements which are subject to the disclosure statement contained in Savaria's most recent press release issued on May 6, 2026, with respect to its Q1 2026 results. Thank you. Mr. Bourassa, you may begin your conference.

Thanks, Rory, and good morning, everyone. Today, we'll start with a small recap of our Q1 results, and Steve will update us on financial, and MGP will provide us an update on SAVAIR 1 and Europe followed by Q&A. So once again, I'm very proud and it seems that I repeat always that I'm proud, but in the last 10 years or 40 quarters, 39 out of the 40 will be the previous year. So I think for me it's very good proof that we should work very consistent in our results and with all the learning we have done in the SAVAIR 1, I think we have created a good path for the future. With a size of 225 million, Upverses last year, and right away in EBITDA in the first quarter, 20.4% of EBITDA, all KPI improving, so Steve will go more in detail later, so quite happy with that. A few things that I would like to highlight today. First, thank you again for all team members at Savaria to continue to be diligent in your approach towards Savaria One, to act as a one company, and continue to have a bottom-up approach to bring good idea and all can be better. This mentality of continuous improvement is part of our DNA now and really continue to help us to make us better. Second, growth. So we talked about that during the investor day a few weeks ago, but continue the effort to develop the market in North America for home and library tourists is a priority and we see some traction. The increase of effort into a stir lift in North America. Continue to expand the main path dumb weather material lift line up. The business development activity are going to continue to put us as a market leader. Expand the one-stop shop in Europe. Example, the Luma, the VPL, and the Incline Lift. I think we start to see some traction. To be the partner of Chorus and Sterlift. I think JP will talk later, but we have a good traction in Europe in the last six months, so quite happy to turn around what we have done there. Patient care, to own the room and continue to develop the long-term care. I think we have some good traction there also. and also a Greenville Building Extension to be more diversified in summer manufacturing in North America is progressing well and the expansion should be complete in the fourth quarter of this year. Third, acquisition. As we said during the investor day, we have the ambition to do some acquisition in the next five years for approximately 200 million on small mid-size. As we said earlier, we like some of our dealer distribution network, very natural, buy some small product lineup, small manufacturer to bring some better products and to improve our one-stop shop. So I think it's always a priority. I would say for net debt, the very issue of now is 0.92 and liquidity available of 225 million, 324, excuse me, for capital allocation and M&A. I think we're in a very good position. So to conclude, I'm quite happy with the start of 2026. And as we all know during the investor day, we have the ambition to grow the business at 12% per year, a mix of organic growth and acquisition. to maintain our margins over 20%. And if we do our job, that will ultimately lead us to some sales of $1.6 billion, and then it is up $320 million, and that will be the job per share of 4.25 by 2030. So thanks again to all the employees for the effort in this new chapter of growth. Steve, financial, please.

Thank you, Sebastien. Good morning to everyone on the call. I'm now going to provide some further detailed commentary regarding our first quarter results. The key highlights for the quarter include, firstly, revenue growth of 7% over last year, driven by growth in both segments and all regions. Adjusted EBITDA margin reached 20.4% in Q1, which is especially great since Q1 is typically our seasonally weakest quarter. And lastly, our leverage ratio is now under 1 at 0.92 times. Now looking at consolidated revenues for the quarter, we generated revenue of $235.5 million, an increase of $15.3 million versus last year. This is driven by organic growth of 5.7%, revenue contribution from the acquisitions of Baxter and Western direct stores of 0.7%, and a positive foreign exchange impact of 0.6%. Our accessibility segments saw growth of 7.9%, driven by strong growth in stair lifts in Europe, as well as increased sales in Canada. Pishuncare achieved revenue growth of 3.8%, driven by strong organic growth of 6.5%, partially offset by a negative foreign exchange impact of 2.7% on the US dollar currency. Our consolidated gross margin for the quarter was 38.9% compared to 37.8% in 2025, and our operating income increased by 11.7 million versus last year. This is especially important to note since this demonstrates that we are continuing to improve the performance of the business post-Severio 1. The gross margin improvement is mainly driven by operating leverage, improved pricing, and procurement benefits. And furthermore, operating income, excuse me, further benefited from the termination of strategic initiative expenses. Q1 adjusted EBITDA reached $48.1 million for the quarter. representing a margin of 20.4% compared to 18.5% in 2025. That's an improvement of 190 basis points. Accessibility adjusted even though margin was 22.4% versus 20.1, so up 2.3% year over year, 230 basis points. And we saw improvements in both of our key regions. Patient care adjusted EBITDA margin stood at 19.5 compared to 18.8 last year. Moving on to finance costs, they were 3.1 million for the quarter compared to 3.5 million last year. Interest on long-term debt decreased by 1.2 million due to an overall lower debt balance and decreased interest rates. We also had impact from an unrealized foreign currency loss of 0.4 million this year versus a gain of .4 million last year, causing an 800,000 year-over-year swing. Net earnings were 22.7 million for the quarter, compared to 12.5 million last year, representing an increase of 82%. And correspondingly, EPS reached 31 cents for the quarter versus 17 cents last year. I'm now going to provide some comments on our cash flow and balance sheet. Cash flow from operating activities in Q1 was 35.8 million, driven by the strong net earnings, partially offset by higher working capital and higher income taxes paid. Our working capital remains healthy, and while it has increased in terms of dollars, we have reduced our working capital days from last year. CapEx was 6 million for the quarter, which represents 2.5 million, excuse me, which represents 2.5% of sales, This is in line with our guidance, and this includes approximately $1 million for the building expansion in Greenville. We also disbursed $2.1 million for business acquisitions, largely attributable to Baxter Elevator, our new direct store just outside Dallas, Texas. And we have now $324 million of funds available under our current credit facility as of March 31st. and as previously stated, our leverage ratio has reduced under one to 0.92 times. On April 14th, 2026, at our investor day, we unveiled our plan for the next five years. Severia targets a top line increase of approximately 12% per year for the next five years derived from organic and acquisition growth. This will bring Severia to approximately $1.6 billion in revenue at the end of 2030, while maintaining adjusted EBITDA margins of at least 20%. And with that, this completes my prepared remarks, and I'll now turn the call over to JP to provide updates and details on Severia 1.0. JP?