Savaria Corporation

Good day and thank you for standing by. Welcome to Savarius Corporation's Q2 2026 Investor and Analyst Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. 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 call is being recorded. I would now like to hand the conference over to your first speaker today, Sebastien Bourassa, CEO.

Thanks, Stephanie, and good morning, everyone. So today I will start with a small recap of our Q2 results. Then Steve will update us on financials, and G2 will provide an update on summer one, followed by a Q&A session. So, again, I'm very proud of the results of Q2, as it is our highest revenue ever, at 246 million, with a growth of 8.4% that is well balanced between patient care and accessibility. And we achieved an EBITDA margins of 21%, which really showed that the 7-1 success of the last few years is fortunate to be present, and I'm very thankful to our team for all the hard work that they make those great results quarter after quarter. So today there's three things that I would like to highlight. First, the growth. Happy that we have a third good coroner role in tomorrow's growth, which shows that some good incentives that we have put in place for the next five years is starting to work. In North America, we continue to develop the market of home elevator with architect, builder, contractor, and of course, your dealers. We increase our size focus on stair lift, method, dumb weather, and material lift. We have a push with architect and builder, and our good lead time is is really helping this product line. We added a state-of-the-art paint shop in Greenville for the manufacturing of a wood cabin, which will be in operation, starting to be in operation in the third quarter for a direct store and will be launched for a dealer in October. And that will really help us complete the best product offering feature for a dealer. And also a building extension is on plan to open in Q4 this year. In Europe, we expand the one-stop shop We promote the VPL Incline and now with the VPAL product line, it's pretty much a complete product portfolio. So that will really help us for the future. And we continue to be the partner of choice on Sterlift. In patient care, growth has been good since the beginning of the year, but margin are slightly behind what we desire, as there's been a bit more inflation in this division than others. But within the mid-year, price increased. by the end of the year in the fourth quarter you will see an improvement on the margins as before. A strategy to underrun and continue to develop the long-term care continue to be the core of activity of this division. Second, best growth margins ever at 39.6% which really show that we continue to improve, continue to have good initiative despite the small contraction we had in the patient care in the second quarter. Third, acquisition. As we said during Investor Day, we have the ambition to do some acquisition in the next five years for approximately $200 million, some small mid-sized stocking that will help us in some area where we see some more potential, or bring some new products to our distribution network to continue the best product portfolio for the one-stop shop. So far this year, we did Baxter Laborator in Texas, which shows that we want to grow our presence in this booming market in Texas. and in July, we closed Vipal, a small manufacturer and low-rise commercial in Italy to help us to develop Europe with some product compliance products. With our net debt-to-bidder ratio at 0.7 at the end of the second quarter, our liquidity continued to grow and now at $333 million available for capital allocation, we are in a very good position. I'm quite happy with the first six months of this year. We have the ambition to grow the business at 12% per year for the next five years and maintain our margins at 20 plus, which ultimately will lead us to 1.6 billion of sales with an EBITDA of over $220 million by 2030. So thanks to all the people at Server that follow and accept our growth, and thanks to the analysts for your good works. Steve, financial, please.

Thank you, Sebastien. Good morning, everyone. I'll now provide some additional detail on our second quarter results. So key highlights for the quarter include, firstly, revenue grew by 8.4% in Q2, driven by organic growth of 6.6%. Year-to-date revenues reached $481.3 million, representing 7.7% growth on a year-to-date basis. Secondly, adjusted EBITDA margin reached 21.1%. That's a 50 basis point improvement over prior year. driven by continued gross margin expansion across the business. And finally, our leverage ratio continued to improve, sitting at 0.87 times as at June 30th, giving us significant flexibility to support our growth strategy, including acquisitions and planned capital expenditures. Turning now to consolidated revenues, we generated $245.8 million in the quarter. That's an increase of $19 million, or 8.4%, as I mentioned, over last year. This includes organic growth of 6.6%, also a 0.8% contribution from the acquisitions of Baxter earlier this year and Western Elevator last year, as well as a positive foreign exchange impact of 1%. Accessibility revenue increased by 8.7% to 192 million, mainly driven by organic growth of 6.4%. Sales increased in both Canada and the United States, while Europe continued to deliver another strong quarter, supported by continued growth in stairless sales. Patient care revenue increased by 7.3% to $53.7 million, entirely driven by organic growth. This reflected higher U.S. sales and continued growth in the U.K. Now looking at gross margin operating income, consolidated gross margin was 39.6%, compared with 39% in Q2 2025. That's an increase of 60 basis points. Gross profit increased 8.8 million year-over-year, providing testament to the continued success and ongoing benefits of Siberia 1. Operating income increased by 9.1 million or 34.1% to 35.8 million, representing a margin of 14.6% compared with 11.8% in Q2 2025. The increase was driven by higher revenue, gross margin expansion, lower other expenses, and the termination of strategic initiative expenses following the completion of Savaria 1 last year. This was partially offset by higher selling in NIN as we invest for growth. Adjusted EBITDA reached 51.8 million, representing a margin of 21.1% compared with 46.7 million and 20.6% last year. Accessibility adjusted EBITDA margin reached 23.6%. That's 170 basis points over last year's 21.9% margin. And patient care adjusted EBITDA was 18.4% compared with 20.9% last year. Net finance costs were $1.7 million in the quarter compared with $4.7 million last year. Interest on long-term debt decreased by $1.2 million, mainly due to a lower debt balance. We recorded a foreign currency gain of $0.6 million compared to a loss last year of $0.5 million, and a net gain of $0.1 million this year on financial instruments compared to a loss of $0.7 million last year. Correspondingly net earnings increased by 54.4% to $25.2 million or $0.34 per diluted share compared with $16.3 million or $0.23 per diluted share in Q2 2025. Now taking a look at cash flow and liquidity. Cash flow from operating activities was $33.3 million compared with $30.3 million in Q2 last year. The increase was mainly driven by higher net earnings and a favorable unrealized foreign exchange gain partially offset by higher income taxes paid this year. Cash used in investing activities was $13.4 million compared with $3.6 million last year. We invested $12.5 million in fixed and intangible assets in the quarter including $5.3 million for the Greenville building expansion and related equipment for that site. As of June 30th, available funds were $333.4 million compared to $311.7 million at year-end, and net debt decreased to $172.8 million from $191.5 million at year-end. After quarter-end, on July 1st, 2026, we acquired all outstanding shares of VPAL SPA, a manufacturer of residential lifts and Elevators based in Ferentillo, Italy. Total consideration was 13 million Canadian or 8 million euros, subject to customary adjustments for net financial position and net working capital. Our Q2 results support our long-term outlook. Revenue grew by 8.4%, including 6.6% organic growth and adjusted EBITDA margin reached 21.1%. Building on this momentum, we continue to target annual revenue growth of approximately 12% through 2030, while maintaining adjusted EBITDA margins of at least 20%. And with that, this concludes my prepared remarks. I'll now turn the call over to JP for additional comments. JP?