Savaria Corporation

Good day, and thank you for standing by. Welcome to the Savaria Corporation's Q3 2026 Investor and Analyst Conference today. 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 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I will now hand the call over to our first speaker today, Sebastien Bourassa, CEO and President of Savaria Corporation. Please go ahead.

Thank you Angela and good morning everyone. Today I'm happy to present our Q3 results which show that we have a good momentum across the business and a new process and culture that we have developed during several years is well established and this is why we have realized our best EBITDA dollars so far at $52.1 million at 21.2% EBITDA margins. First, accessibility with a growth of 9.1% and an EBITDA of 24.2% It showed that in our main division, we still have a lot of initiatives that are getting implemented and that we can offset some of the inflation we received this year. Our vertical strategy is paying off. As you know, we design, manufacture our own electronic PCB in the UK. We have good contribution from our China and Mexico factory, and we have made significant investment in machinery in the last few years in our local factory so that we can be more productive and we can make some custom product with good lead time. The core product line of Omelirator and Sterlif remain the main driver of this growth and we continue to build our product roadmap with our 62 people in R&D across all the business segment. Here's a few examples that what excite me about the future growth. The new Lumo L. We have received an enthusiastic dealer response at the NEC exhibition in September with the launch of our new larger model of Lumo. We also introduce it at the Grand Design Show in the UK that we have really good interest from the designer and home elevator. The larger cabin can accommodate many styles of mobility devices. The Lumo L is now available in North America from October and will be available in Europe in January 2027. Through the floor, lift categories should be a strong area for coming years for growth. It's really an elegant product that is easy to install and can be a retrofit application. VPAL. We talked about VPAL in the last few months, but again, the strong product offering and code compliant product in Europe that will really help us to develop the sales of home elevator in Europe in the coming years. Another exciting thing, the new precision cab for home elevator that was introduced at the NEC also was very well received. The style and colour are very trendy, which will be a big one for the contractor, designer and customers. The quality of those wood cab can be produced at a A factory in Greenville are outstanding. They can be sold in multi-units projects, custom home elevator, and really differentiate ourselves on our home elevator from our competitors and hopefully earn a higher share of projects. Regarding Greenville, we continue to manufacture approximately 50% of our home elevator and our building expansion is on plan and should be ready by the end of Q4 of this year. Second, patient care. Happy with the growth of 9%, but for sure the EBITDA percentage is not where we want. The team of patient care is very aware and are working on it, and as we discussed during the last conference call, we did a mid-year price adjustment, which we hope to have better results in Q4, starting from Q4. Still, I would like to highlight the performance in Europe and the rest of the world, so good job, Gary, and the team in the UK. Third, acquisition. as we said during the investor day we have the ambition to do some acquisition for in the next five years for around 200 million those are small mid-sized acquisition in some area that we underperform or can bring some new products or new data network to expand our product portfolio and also the one-stop shop so far this year we did Baxter elevator in Texas where it's a booming market and in July and we closed the VPAD with a small home and a low-rise commercial elevator in Italy to help develop Europe in the coming years. With our net debt ratio of 0.85 at the end of Q3 and our liquidity that continues to grow at $338 million, we are in a very good position for our capital allocation to continue to make investments in this business. To conclude, I'm very happy with the first nine months of the year and as we all will during the investor day, we have the ambition to grow the business at 12% per year in the next five years and maintainer EBITDA margins at 20 plus, which ultimately will lead us to a 1.6 billion of sales with over 220 million of EBITDA. Thanks to all the people at Savara for their efforts in the next chapter of growth. Steve, financial please.

Thank you, Sebastian. Good morning, everyone. I'll now provide some additional details on our third quarter results. Starting with the key financial highlights for the quarter. First, revenue grew by 9% in Q3 including 6.8% organic which is in line with our guidance. Year-to-date revenue is up 8.1% reaching $726.4 million at the end of Q3. Secondly, operating income increased by 28.6% in Q3 and has increased by 38% on a year-to-date basis reaching $104.4 million which is driven by improved gross margins as well as the elimination of strategic initiative expenses. And lastly, as it relates to capital allocation, we acquired BPAL, an elevator manufacturer in Italy in July and invested in the expansion of our Greenville facility while decreasing our debt leverage ratio and ending the quarter with available funds of $337.7 million to support our future growth plans. Now turning to consolidated revenue, we generated $245 million in the quarter, an increase of 20.3 million or 9% over last year. This includes organic growth of 6.8%, a 1.4% contribution from the acquisitions of Baxter and VPAL, as well as a positive foreign exchange impact of 0.8%, mainly driven by the strengthening of the USD versus CAD. Looking at the segments, accessibility revenue increased by 9.1% to $196.5 million mainly driven by organic growth of 6.6%. Sales increased in all regions with Europe delivering another strong quarter. Patient care revenue increased by 8.6% to $48.6 million including organic growth of 7.5%. This reflects Higher project sales in North America and continued growth from our UK location, which was partially offset by a softer bed market. Now looking at gross margin operating income. Consolidated gross margin was 39.3% compared with 39.2% in Q3 2025, representing an increase of 10 basis points. Gross profit increased by 8.2 million year over year. This demonstrates our ability to continue to increase gross margins under the current tariff environment. Operating income increased by $7.9 million or 28.6% to $35.6 million, representing a margin of 14.5% compared with 12.3% last year. The drivers of the increased operating income are increased revenues, gross margin expansion, Lower Other Expenses and the Termination of Strategic Initiative Expenses. Adjusted EBITDA reached a record $52.1 million, representing a margin of 21.2% compared with $47.6 million and 21.2% last year. Accessibility Adjusted EBITDA margin reached 24.2% compared with 23.5% last year, an increase of 70 basis points and again that's driven by improvements in both of our key geographical regions. Patient care adjusted EBITDA margin was 16.2% compared with 18.3% in Q3 2025 reflecting higher selling and admin costs and unfavorable product and project mix and higher material costs. We are working towards improving the patient care margins in Q4 of this year. Net finance costs were $4.4 million compared with $2.2 million last year. Interest on long-term debt continues to decrease and decrease by $0.9 million mainly due to a lower debt balance. However, this was more than offset by a foreign currency loss of $1.9 million compared with a gain of $1.1 million last year, the majority of which is unrealized. Net earnings increased by 18.4% to $23.1 million or 32 cents per diluted share compared with 19.5 million or 27 cents per diluted share last year. Now looking at cash flow and liquidity, excuse me, cash flow from operating activities was 36.8 million compared with 41.5 million last year. Cash flow before changes in non-cash operating items increased by 4 million to 41.9 but Working capital used $5.1 million compared to an inflow of $3.6 million last year. The largest driver of increased working capital in the quarter was inventory which we expect to decrease substantially in the fourth quarter ahead of year end. Cash used in investing activities was $18.8 million compared with $5.4 million last year. We invested $9.7 million in fixed and intangible assets including $3.1 million for Greenville on a cash basis for the Greenville building expansion and related equipment and $9.1 million for the acquisition of VPAL. As at September 30th, the available funds were $337.7 million compared with $311.7 at year end and our net debt decreased to $173.2 million from $191.5 million. In closing, our Q3 results demonstrate good progress on achieving our long-term guidance. The underlying business is seeing strong growth, which is being helped along by strategic acquisitions. Our EBITDA margin remains strong and our balance sheet continues to improve. This concludes my prepared remarks. I'll now turn the call over to JP for additional comments on our ongoing transformation efforts across the group. JP?