Despite ongoing volatility, Canadian equity markets have continued their upward momentum, with the S&P/TSX Composite Index gaining 5.4% year to date. A rebound in commodity prices, better-than-expected January inflation data, and strengthening corporate earnings have helped lift investor sentiment and support the broader market rally.
Backed by positive investor sentiments, expansion through strategic acquisitions, and healthy financial performances, Savaria (TSX: SIS) has outperformed the broader market. The stock has delivered a 12.6% year-to-date return and an impressive 47.1% gain over the past 12 months. With that in mind, let’s take a closer look at Savaria’s recent financial performance, growth outlook, and valuation to assess whether the stock presents an attractive buying opportunity.
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Savaria’s third-quarter performance
Savaria manufactures, distributes, and installs accessibility equipment for residential and commercial applications, as well as a broad range of medical products designed to support the safe movement of patients. The company serves global markets through its network of manufacturing facilities, direct sales offices, and an extensive international dealer network.
In its most recent third-quarter results, the Laval-based company generated revenue of $224.8 million, up 5.2% year over year. A combination of organic expansion, favourable foreign exchange movements, and the acquisition of Western Elevator boosted its sales growth. Organic growth contributed 1.8%, favourable currency translation added 2.5%, and the acquisition accounted for 0.9% of the overall revenue increase.
Moreover, its operating income grew 25.7% to $27.7 million amid topline growth and gross margin expansion, which was partially offset by higher selling and administrative expenses. Meanwhile, the operating margin expanded from 10.3% to 12.3%. Further, the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and adjusted EPS (earnings per share) grew by 13.9% and 52.4%, respectively. Also, the adjusted EBITDA margin expanded 170 basis points to 21.2%.
Savaria’s growth prospects
Savaria stands to benefit from the steadily aging global population, which continues to expand the addressable market for mobility and accessibility solutions. At the same time, the company remains focused on product innovation, regularly introducing new solutions to address evolving customer needs and strengthen its competitive positioning.
Savaria also recently completed the acquisition of Baxter Residential Elevators, a dealer and installer of home elevators and lifts that generated $5.5 million in revenue in 2025. This transaction enhances Savaria’s presence in North Texas – one of the fastest-growing regions in the United States – and supports its broader North American expansion strategy.
In addition, the completion of its “Savaria One” initiative at the end of last year has improved operational efficiency, helping lift its adjusted EBITDA margin above 20%. The initiative streamlined factory layouts, enhanced inventory management, improved procurement collaboration across sites, and addressed workforce skill gaps. Moreover, the company has stated that it will unveil the second phase of its “Savaria One” strategy in April, outlining its strategic roadmap for the next five years.
Given its favourable demographic tailwinds, strategic acquisitions, operational improvements, and expanding margins, Savaria appears well-positioned to sustain its financial momentum in the coming years.
Investors’ takeaway
Supported by strong buying interest in recent months, Savaria’s valuation has edged higher. The stock currently trades at a next 12-month (NTM) price-to-sales multiple of 1.9 and a price-to-earnings multiple of 19.1, which still appear reasonable given its growth profile and margin expansion.
In addition to its capital appreciation potential, Savaria offers a monthly dividend of $0.0467 per share, yielding approximately 2.2% on a forward basis. Considering its solid business fundamentals, improving profitability, favourable growth outlook, and balanced valuation, I remain bullish on Savaria’s long-term prospects.
