Savaria's outlook.... Outlook
Savaria expects to deliver approximately $1.0 billion in revenue and a 20% adjusted EBITDA margin in 2025. These targets will be achieved through continued strong demand in both the Accessibility and Patient Care segments and completion of Savaria One, the Corporation’s multi-year, company-wide, sales and operations program designed to unlock the full potential of the business.
The expected benefits from Savaria One will be realized through:
- Sales initiatives focused on market share growth and pricing optimization;
- Operational and production improvements to increase capacity and throughput;
- Procurement and supply chain efficiencies and streamlining;
- Investments in research and development to enhance existing products and develop new ones.
In relation to Savaria One, the Corporation plans to record an average of $5.0 million in strategic initiative expenses per quarter through 2024 and at the beginning of 2025, and anticipates increasing financial and operational benefits to be realized on a sequential quarterly basis. Depending on the performance of Savaria One, the Corporation could record an additional $15.0 million in fees in 2025, resulting in total costs for the entire project of $40.0 to $45.0 million, as disclosed at our investor day, as we continue toward our record revenue and adjusted EBITDA margin targets for 2025.
Savaria will also continue to evaluate potential tuck-in acquisitions to replace some or all of the lost revenue from the divestitures of Van-Action, Freedom Motors and the Norwegian vehicle adaptation business.
The above-mentioned outlook is a “forward-looking statement” within the meaning of the securities laws of Canada and subject to the Corporation’s disclosure statement.