Savaria (TSX:SIS) held its second-quarter earnings conference call on Thursday. Below is the complete transcript from the call.
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Summary
Savaria Corporation reported its highest revenue ever for Q2 2026 at $246 million, reflecting an 8.4% growth, with an EBITDA margin of 21%.
The company highlighted strategic growth in North America and Europe, including the expansion of its home elevator market and the opening of a new paint shop in Greenville.
Savaria achieved best gross margins at 39.6%, and discussed its acquisition strategy, including recent acquisitions of Baxter Laboratories and VPAL in Italy.
The company's financial metrics show strong performance, with a 54.4% increase in net earnings to $25.2 million and improved leverage ratio at 0.87 times.
Future guidance includes a target of 12% annual revenue growth and maintaining EBITDA margins at 20%+, aiming for $1.6 billion in sales by 2030.
Operational highlights included the success of Savaria One in driving growth and profitability, as well as the integration and strategic plans for the VPAL acquisition.
Management expressed confidence in sustaining growth and improving margins despite some inflationary pressures in the patient care division.
Full Transcript
OPERATOR
Good day, and thank you for standing by. Welcome to Savaria Corporation's Q2 2026 Investor and Analyst call. At this time, all participants are in a listen-only mode. After the speakers' presentations, there will be a question-and-answer session. To ask a question during the session, you will need to press star one-one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one-one 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.
Sebastien Bourassa, Chief Executive Officer
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 financial, and JP will provide an update on Savaria 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 margin of 21%, which really showed that the Savaria One success over the last few years continues 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. I'm happy that we have a third good quarter in a row in terms of growth, which shows that some good incentives that we have put in place for the next five years are starting to work in North America. We continue to develop the market of home elevator with architects, builders, contractors, and of course dealers. We increased our sales focus on stairlift, dumbwaiter and material lift, continue to have a push with architect and builder, and good lead time is really helping this product line.
We added a state-of-the-art paint shop in Greenville for the manufacturing of a wood cab, which will be in operation—we're starting to be in operation in the third quarter for direct store and will be launched for dealers in October—and that will really help us complete the best product offering features for dealers. And also a building expansion is on plan to open in Q4 this year. In Europe, we expand the one-stop shop with Primord, 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 stairlift in patient care. Growth has been good since the beginning of the year, but margins are slightly behind what we desire as there's been a bit more inflation in this division than others. But we did a mid-year price increase, and I'm hopeful that by the end of the year in the fourth quarter you will see an improvement on the margins. As before, the strategy to own the room and continue to drive the long-term care continues to be the core of activity of this division.
Second, best gross margins ever at 39.6%, which really shows that we continue to improve, we 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 the investor day, we had the ambition to do some acquisitions in the next five years for approximately 200 million—some small, mid-sized tuck-ins 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 with a one-stop shop.
So far this year, we did Baxter Laboratories in Texas, which showed that we want to grow our presence in this booming market in Texas. And in July we closed VPAL, a small manufacturer home lift and low-rise commercial in Italy to help us to develop Europe with some code-compliant products. With our net debt to EBITDA ratio at 0.7 at the end of the second quarter, liquidity continued to grow and now at 333 million available for capital allocation, we are in very good position.
To conclude, I'm quite happy with the first six months of this year. As we said at investor day, 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 over 220 million by 2030. So thanks to all the people at Savaria, that follows an extra third growth. And thanks for the analysts for your good works. Steve, financials please.
Stephen Reitknecht, CFO
Thank you, Sebastian. 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 30, 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 stairlift 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 UK. Now looking at gross margin and 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 Savaria One. 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 One last year.
This was partially offset by higher selling and admin 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 30, 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 1, 2026, we acquired all outstanding shares of VPAL SpA, a manufacturer of residential elevators based in Ferrantillo, 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
Yeah, thank you, Steve, and good morning, everyone. So today I'll speak about three things: how Savaria One is fueling growth, how Savaria One is also helping us with better margins, and a little bit about the Vipal acquisition. For me, the key message is that year to date we're on track with our objectives of organic growth for the business as well as profitability across the board. For example, the fact that both segments grew 7 to 8% in Q2 is a big success and the growth we see is balanced across product segments as well as across geographies.
But a lot of this is due to some efforts we did in the recent past and in the last two years. So I'll give you a few examples. In the patient care business, we had a lot of success in Q2 installing ceiling lifts, but that is in part due to the fact that we upgraded our ceiling lift lineup with the M-Series and started selling it about a year ago. And with that we won bids that we installed in Q2, also in Silvalea in the UK. This is a smaller part of our business, but still strategic.
We moved to a new factory about a year and a half ago, which allowed us to have better capacity, production capacity, and now we are selling into the NHS. We're able to grow this business because we can produce more at a good price. We also revamped our lineup of slings for Silvalea, so that's also helping that business grow. Another thing that's important in patient care is that we did improvements in the sling manufacturing of St. Louis and also worked with external partners to have more capacity for the disposable slings.
And now we had a good growth in sling sales which we were able to ship thanks to all these efforts we did in the past. Finally, it's worth noting that we also established a dual assembly line, so we can now assemble the M-Series ceiling lifts both in Canada and in the U.S. in St. Louis. So in the current context we can really assemble close to the market now, especially in North America. As Sebastian mentioned in his address, we had great growth again across the board.
It's been a consistent theme for North America. But one of the highlights for me is the growth we had in our direct stores, where we made deliberate efforts for years to develop our referral networks, to do education with architects, to also go and work with contractors and promoters of multi-unit residential projects who now spec our lifts in their offer, and that pays off. So now smaller direct stores have orders for multi-unit projects that are very substantial.
And finally, when we bought Matot, we spent a ton of efforts to in-source production in Brampton, to make the production process also faster and leaner. And this is paying off because now we are growing Matot sales, but we're also able to produce and ship in much shorter lead times than we used to in the past, and that's helping our sales. Finally, we also migrated our website to a new domain this quarter and the website has been redesigned to provide us better domain authority as well as enable better AI search visibility, which is critical in the current world.
In Europe, we reengaged with growth by winning back historical dealer relationships thanks to our consistent efforts in improving product quality. We also expanded cross-selling of platform lifts, so we're now selling Artira and X3 platform lifts across all markets in Europe, including in our own direct stores in the UK and Netherlands. We also continue to drive growth in the largest direct markets by having innovative commercial strategies and just great delivery overall consistently.
We also see that now not only are we recognized for better quality, but we are starting to introduce new product innovations. For example, we introduced the K2 stairlift earlier this year and just now we changed our new outdoor rail for the 4000. So that's a new offering that we think is going to have some traction. And finally, we made a number of small commercial changes that make it simpler to do business with us. So the overall message for me is that we are rigorously managing growth initiatives in Savaria One, just like we focused a lot on cost initiatives in the past.
This being said, we continue to also improve our costs and you can see it in the expansion of gross profit, the expansion of the bottom line results each month. We continue to implement initiatives. So for example, in Q2 we implemented at least 50 new initiatives and a lot of those relate to procurement to reduce the cost of goods sold. And you can see that that shows in our financials. And this is especially relevant in today's world because we know there are inflationary pressures across the board.
But in most of our businesses we're able to offset those with either efficiency gains in production or material cost reductions thanks to our initiatives. The only exception this quarter is patient care where, as Sebastian mentioned, we had some pressures from some commodity cost inflation that we now need to counter with some price increases mid-year. So our focus as a business continues to be on growth and this is where most of our attention and our efforts are oriented towards.
But people working in the factories and people working in the offices on procurement continue to innovate, continue to improve our business nevertheless so we can improve our cost position. Finally, the last highlight for me from Savaria One is the capacity expansion in Greenville, as Seb mentioned. So I'll be brief, but the fact that we now have—we already were assembling Eclipse in Greenville for months, but every quarter, every month we are expanding the capabilities over there.
We also had investments of new machinery. We commissioned the paint line, which is very critical to have a high-quality cabin built and shipped in the U.S. And over time we are shifting more and more orders from Canada production to U.S. production for the U.S. market. Third topic for me is the Vipal acquisition. So just a bit more details on that business. We closed the acquisition in early July. It is a strategic acquisition for us because of the know-how of this team at Vipal in the lift business, because the fabrication process is largely in house, and because the technology is well known and renowned in Europe.
What happened is very shortly after, two weeks later, we had a large group of our global leaders, including myself and Sebastian, who went there to kick off the integration plan. So we already are in motion to integrate the business. And in fact, I am speaking to you from Italy, where I'm doing a roadshow with the sales team of Vipal this week to meet our top dealers and their top dealers. So we're definitely in motion and we are already seizing opportunities to cross-sell in both ways.
So, meaning we can cross-sell our products to their dealers and vice versa, we can sell Vipal to our dealers. And this is going to be an integration that will take years with different steps. So we are very excited about the acquisition. We got a lot of ambitions for Vipal, but of course we'll go step by step, first by selling the products that they have today and over time, improving the operations, improving the products, and really integrating them in our business.
So, in conclusion, we see good performance year to date and in Q2, and that comforts us that there's a clear link between our efforts in Savaria One and the results we see in the business. Thank you. That's it for me. Seb, over to you for closing words.
Sebastien Bourassa, Chief Executive Officer
Thank you, JP. Very good color on the Savaria One improvements. So I guess we are ready for questions. So, Stephanie, can we open the queue, please? Thank you.
OPERATOR
Yes, thank you. At this time, we'll conduct the question and answer session. As a reminder, to ask a question, you will need to press Star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press Star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from Frederick Tremblay from Desjardins Capital Markets. Your line is now open.
Frederick Tremblay, Analyst at Desjardins Capital Markets
Thank you. Good morning. Just maybe following up first on Vipal—you mentioned already seizing opportunities to cross-sell. Just wondering, I guess I think I know the answer, but what was the initial reaction from Vipal's dealers to Savaria's acquisition of the company? And how do you think about, you know, introducing your products to the Vipal dealers going forward?
Sebastien Bourassa, Chief Executive Officer
The best person to answer is JP because, JP, you're in Italy this week meeting dealers, right?
JP
Yeah, yeah, exactly. So I met five already and I have a couple more tomorrow. But honestly, the reaction was very positive on both sides. And, you know, you're always a bit apprehensive when you do something like this, but I was pleasantly surprised. Everybody's excited. I think their dealers are excited because they see Savaria as an established, well-structured company, and they also are now curious—they're learning about our products because most—what happens is most of Vipal's dealers are lifting companies that do mostly lifts, so residential lifts and sometimes what we call ascensore in Italian, but it's like faster, larger lifts.
But they always have a small part of their business which is platform lifts or some requests for stairlifts. And now many of them have been happy to see that we have this offering, and we already received some orders from dealers that said, okay, I might as well work with you. I like Vipal, so why not work with Savaria? So that's been their reaction, and on our side, many of our dealers, especially in Italy, knew about Vipal. So many of them, again in the accessibility space, the opposite.
They tend to have a small part of their business which is selling home lifts. So now we're introducing Vipal to them and the reaction was very positive. They like Savaria. What they recognize in Savaria is the quality of the support and customer service and technical support they get. So they are now keen to see, okay, maybe they can try the Vipal products and if we can provide the same support, they'd be excited to work with us. That's the feedback I'm getting.
Frederick Tremblay, Analyst at Desjardins Capital Markets
Yeah, that's great. And maybe just to get a sense of the opportunity, just wondering if you could remind us how many dealers and direct stores Savaria has in Europe, and how does that compare to the number of dealers that Vipal currently has?
JP
Yeah, so high level, it's a tricky question because we have, I think, more than 325 dealers, if I recall, across Europe. But the reality is in each market not all dealers are equal, right? So there's some dealers that are much larger than others. But, you know, in comparison, Vipal had, I think, less than 50 dealers. So that's the kind of size of the opportunity. And our dealers are across Europe. Vipal was much stronger in Italy than the rest of Europe.
So there's a lot of opportunities for us to grow the business. And it turns out—last thing to know is that there's not that much overlap between our dealers. So that was interesting, like a positive surprise for us, that our networks are actually complementary. So a lot of the dealers are new to Savaria and vice versa.
Frederick Tremblay, Analyst at Desjardins Capital Markets
Okay, great. And maybe just the last one for me quickly—adjusted EBITDA margin in Accessibility was really strong in the quarter at 23.6%. Just wondering if you could, maybe if there's a couple of main drivers to highlight there behind that strength, and just your thoughts on sort of the sustainability and potential to expand that Accessibility margin further in the coming quarters and years. Thanks.
Sebastien Bourassa, Chief Executive Officer
Good question, Fred. Yes, I'm very happy with that, and I think it shows again the strength of Savaria to be vertically integrated. We have factories in China, Mexico, and everywhere we operate. We have machines; we make parts ourselves. There's 32% of our size which is in our direct market. The rest is with distributor partners. So I think again the proof of scale and the vertical integration is quite important. It's good. And after that, product mix: every year we bring new products with good margins, so that is always contributing to that.
The 23% I think is, for sure, I hope it's sustainable, but we have to be careful because when we make acquisitions, they are lower than that. So it might play a bit in the average. So I think if we go back four months ago, we said that in the next few years we want to be at 20% plus for the consolidated Savaria. But you can see that there is still a good opportunity.
Frederick Tremblay, Analyst at Desjardins Capital Markets
Great, thank you and congrats on a strong quarter.
Sebastien Bourassa, Chief Executive Officer
Thank you, Fred.
OPERATOR
Thank you. Our next question comes from Cheryl Zhuang of TD Cowen. Your line is now open.
Cheryl Zhuang, Analyst at TD Cowen
Good morning, Sebastian and Steve. JP, thanks so much for taking my question. Congrats on a strong quarter. I wanted to start on patient care margin. I think in the prepared remarks you called out the higher material costs and the mid-year price increases for mitigation. Just curious if you could expand on what the cost inflation was and the magnitude of the pricing that you're putting through.
Sebastien Bourassa, Chief Executive Officer
Thank you, Cheryl, for the question. Again, we have to be careful because patient care, I think we were a bit tough with them this quarter. If we look, we had good growth in the beginning of the year, and yes, there's been a bit more inflation due to some commodities like, for example, foam and aluminum. But note that the team came back and said, no, there's inflation, we have to pass it on to our customers. So that was their suggestion to do a mid-year price increase, and basically I'm hoping that we'll get an additional 2% again in the fourth quarter in terms of net increase.
So I think it's temporary, but again we need to be careful. It's just one quarter. What is sometimes more difficult is the growth. And we know also in patient care they typically have a good fourth quarter. So I think maybe at the end of the year we can judge a bit if it was just a quarter or it's a year issue.
Cheryl Zhuang, Analyst at TD Cowen
Okay, that's very helpful. And then on accessibility, obviously very strong organic growth. Could you maybe expand on what you're seeing in terms of consumer demand and where your backlog is?
Sebastien Bourassa, Chief Executive Officer
Our backlog is still good. Unfortunately we don't give color on our backlog, but in our direct offices I think JP said we have backlogs that give us good visibility in our factory. For sure, we always want to have good lead time, so our backlog is really consistent. I'm quite happy with that. And I think new products that we launched also—for example, the Luma new through-the-floor—the first year we have that we're coming out with some new options this fall for the through-the-floor elevator.
So definitely also the new products are helping. Now we're doing pretty good in manufacturing in terms of lead time, so that's helping to grow the business. Again, the beauty of Savaria is the diversification of the products that's really helping us to maintain this growth.
OPERATOR
Okay, thank you very much. Thank you. Our next question is from Razi Hassan of Paradigm Capital. Your line is now open.
Razi Hassan, Analyst at Paradigm Capital
Good morning. Thanks for taking my question. For JP on Europe, can you maybe just talk about the M&A landscape, on the quality of assets, multiples you're seeing for manufacturers and dealers there overall, and any challenges you're seeing in Europe on the M&A landscape?
JP
If it's okay, I will take the answer. Basically, I think we have disclosed in a document that for VPAL we have paid 8 million. It was more or less 8 million of sales, so you could argue it was a one-to-one ratio with the sales. In terms of EBITDA ratio, again, we don't disclose that usually—how much we pay each division when it's some small tuck-in. So in terms of M&A landscape, I think again we like to balance our approach. It was a long time we did not do one in Europe that really added to the portfolio.
But we'll see over time worldwide if there's some opportunity with dealers or manufacturers that can complement our product portfolio.
Razi Hassan, Analyst at Paradigm Capital
Okay, thanks. And then maybe on Steve, again lots of talk about the accessibility segment. Maybe just talk about the puts and takes in operating leverage that you're seeing there and what's driving that.
Stephen Reitknecht, CFO
Yes, on the accessibility, on the gross margin specifically, good uptick in both of our regions. Both of our key regions, North America and Europe, both had really strong gross margin improvement over prior year. That's driven by operating leverage. We feel we have enough capacity at our existing sites, and then we have—obviously with some acquisitions, like VPAL is a perfect example—we're expanding our footprint, which comes along with the acquisition, but it's not needed necessarily to support our growth.
So we're doing a good job of keeping our fixed costs fixed and stable while we're growing the top line. Some other benefits that we're seeing are procurement coming through and price increases. Those are continuing from previous quarters and previous years, and that's what's going to be continuing to drive our gross margin expansion. So our guidance is above 20%, but we're confident that we can continue to increase the underlying margin in our existing business.
Razi Hassan, Analyst at Paradigm Capital
Okay, great. And just lastly, just to confirm the Greenville—you guys are expecting that to be in operations by Q4, or was that Q3? I think I missed that again.
Sebastien Bourassa, Chief Executive Officer
We have to be careful. In Greenville, we decided a year ago to start manufacturing one of our key products, the Eclipse home elevator. Right now we manufacture 40% of our Eclipse in the U.S., so we are in operation in Greenville. The only thing, we're expanding the building, and this expansion is planned to be ready in Q4 as planned earlier this year.
Razi Hassan, Analyst at Paradigm Capital
Okay, thanks for that. I'll pass the line.
OPERATOR
Thank you. Our next question is from Zachary Evershed of National Bank of Canada Capital Markets. Your line is now open.
Sebastien Bourassa, Chief Executive Officer
Morning, Zach.
Zachary Evershed, Analyst at National Bank of Canada Capital Markets
Congrats on the quarter. So a couple questions for you on Greenville. It does seem like that's going to come in well under budget. Is that the case?
Sebastien Bourassa, Chief Executive Officer
We have to be careful. Again, if we go back to our press release that we did a year ago, we wanted to make an investment of $30 million. So a portion is for the building, a portion is for equipment, a portion is for inventory. Now we are—again, we started last year—so it's ongoing and maybe it's going to take a bit more time, but I think the range of 30 million will probably finish a bit lower. But I think it's a good target. Maybe we'll take a bit more time, but this year finalized, in the future it's maybe more inventory or machinery that we'd like to add.
Zachary Evershed, Analyst at National Bank of Canada Capital Markets
Understood. Thank you. And on that equipment, could you tell us a little bit more about what the paint line will be able to do?
Sebastien Bourassa, Chief Executive Officer
The paint line is amazing. It's fully automated. And again, most of our cabins in North America are made in wood, so typically you can have some melamine, wood veneer. But this new equipment gives us the ability to do very high-end quality of paint, fully automatic. And this is something we're going to be able to differentiate ourselves with, to have a better offering for our customers to upscale the elevator. So we're quite excited with that. It went live in the second quarter.
Now we're making some tests with our direct offices to make sure it is perfect. And we'll be live with our dealers in the fourth quarter. Very exciting.
Zachary Evershed, Analyst at National Bank of Canada Capital Markets
Excellent. Thanks. And just one last one for me. From a human capital standpoint over in Europe, what's your capacity for concurrent M&A? Is there a limit there?
Sebastien Bourassa, Chief Executive Officer
JP has a very good team, but JP, do you want to give color on that?
JP
Yeah, yeah. So we had the discussion internally not later than yesterday, and my point of view is we have the capacity to take more than one, because the reality is we are, first of all, in different markets. Right? So when we make an acquisition in a market, if we need to integrate the commercial aspect, we can ask the local team to integrate. And then from a functional standpoint, we have a pretty good team. So I think we can have multiple acquisitions concurrent.
Yeah. Thank you very much.
Zachary Evershed, Analyst at National Bank of Canada Capital Markets
I'll turn it over.
OPERATOR
Thank you. Our next question is from Justin Keywood of Stifel. Your line is now open.
Justin Keywood, Analyst at Stifel
Hi, good morning. Thanks for taking my call. Nice to see the results. Are we able to have an update on Savaria Link and how that technology offering is going to drive services revenue? The percentage of services revenue as far as total sales would also be helpful, and how you see that progressing. Thank you.
Sebastien Bourassa, Chief Executive Officer
Very good question this morning. I guess you came to the investor day, huh? So, yes. So Savaria Link is a very nice feature. Again, if we go back in time, we bought an electronics company a few years ago in the UK called Ultrons. So we designed our own electronics, and that gives us the ability to put some nice features. So yes, we have a new version. We did Wi‑Fi monitoring for many years, but this year we have launched a new improved version. We started to drive it across most of our products, and this is something that is helping to monitor the status of the elevators and the stairlift. So I think definitely this brings a good future in terms of that. Right now, again, it's part of our product offering, so we don't upcharge the sales for that. It's included in the product. That gives the tools to our customers and to the dealers to know what's happening, to be easier to troubleshoot, to make sure you want to work with smart products.
So that's the feature. In terms of service revenue—Steve, which percentage total?
Stephen Reitknecht, CFO
We are right now approximately 15% of our total service revenue.
Justin Keywood, Analyst at Stifel
Thank you. And I assume there's some higher margin with the services revenue. Any context on what that margin profile is?
Stephen Reitknecht, CFO
Unfortunately, we don't disclose the margins per product or per segment, but definitely, for sure, when you have the chance to capture some recurring revenue for maintenance, to be able to service it—yes, it's quite interesting. So that's the beauty of Savaria. That's why you see the very good margins in accessibility, because again, we can have also this additional bulk with the service and maintenance.
Justin Keywood, Analyst at Stifel
Thank you. And just finally, is there a target percentage of sales as far as services revenue to get to, let's say on the 2030 target of 1.6 billion in overall sales?
Sebastien Bourassa, Chief Executive Officer
No, I think we did not set up an exact target to the public on that. But for sure, if we are at 15 now, you can expect that it could grow over time.
Justin Keywood, Analyst at Stifel
Got it. Thank you very much.
Sebastien Bourassa, Chief Executive Officer
Thank you, Justin.
OPERATOR
Thank you. At this time we do have a few moments for additional questions. If you'd like to ask a question, you'll need to press Star 11 on your telephone and wait for your name to be announced. And we could hold for a moment to see if we do have any additional questions. Okay. I'm showing no further questions at this time. So I would now like to turn it back to Sebastian for closing remarks.
Sebastien Bourassa, Chief Executive Officer
Thank you very much for all the questions from the analysts. You know well the story. You had some good questions. So thank you again for the support. I think it was a good quarter; quite happy with that. And I guess we'll go back to work to work on our third quarter to make sure we can continue to have those great results. Thanks again for the call this morning.
OPERATOR
Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.
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