Velan Inc. Reports Second Quarter Results for Fiscal 2027
Key Highlights
- ➤Sales $57.5 million, down 15.0% year over year, amid shipment delays and softer bookings.
- ➤Net loss $15.1 million ($0.70 per share), including $14.9 million in transaction-related costs.
- ➤Bookings $47.9 million, down from $65.2 million a year earlier, as North American demand weakened.
- ➤Net cash turned negative $11.2 million from positive $41.5 million at February 28.
- ➤Velan suspended dividends for the remainder of fiscal 2027 to preserve liquidity.
Expert Statements
Rishi Sharma, President and Chief Executive Officer of Velan
“Velan is entering a new phase focused on stronger execution, improved business performance and profitable growth.”
Rishi Sharma, President and Chief Executive Officer of Velan
“Our second quarter results reflect challenges to the business we are actively working to meet.”
Rishi Sharma, President and Chief Executive Officer of Velan
“The demand environment in our core nuclear, defense and energy markets remains solid – the softness in results was driven by execution and delivery timing as well as volatility relating to tariffs, trade disputes and geopolitical uncertainty in the Middle East.”
Rishi Sharma, President and Chief Executive Officer of Velan
“We have moved quickly on matters within our control, with a focus around six transformation pillars— cost discipline, procurement and value engineering, talent and organizational improvements, manufacturing footprint, working capital and assets and growth acceleration.”
Rishi Sharma, President and Chief Executive Officer of Velan
“Together they are designed to build a leaner company and drive profitable growth.”
Imran Gibbons, Chief Financial Officer of Velan
“Our second quarter results reflect significant one-time transaction costs rather than a change in the underlying business.”
Imran Gibbons, Chief Financial Officer of Velan
“We are focused on aligning our costs to current volumes and have taken meaningful actions, including the recent implementation of a workforce reduction.”
Imran Gibbons, Chief Financial Officer of Velan
“We also repaid our Canadian secured bank loan and, with a new $80 million credit facility in place, have the liquidity and flexibility to execute on the opportunities ahead.”
MONTREAL, Oct. 07, 2026 (GLOBE NEWSWIRE) -- Velan Inc. (TSX: VLN) (“Velan” or the “Company”), a leading global manufacturer of industrial valves, announced today financial results for its second quarter ended August 31, 2026. All amounts are expressed in U.S. dollars unless indicated otherwise.
IFRS MEASURES * Sales of $57.5 million, versus $67.6 million last year, as the timing and complexity of certain production orders shifted shipments into later periods. Uncertainty around changing tariff regulations and ongoing geopolitical tension also weighed on customer demand and order timing during the period. * Gross profit of $12.6 million or 21.9%, of sales, compared to $15.7 million, or 23.2% of sales, last year. * Net loss(1) of $15.1 million ($0.70 per share), versus a net loss of $1.7 million ($0.08 per share) last year, mainly reflecting $14.9 million of transaction-related costs (see “Significant Transactions”). * Financial position: net cash (cash and cash equivalents less bank indebtedness) was negative $11.2 million as at August 31, 2026, compared to net cash of $41.5 million as at February 28, 2026, reflecting the transaction-related cash outflows. NON-IFRS AND SUPPLEMENTARY FINANCIAL MEASURES * Backlog(2) of $262.5 million, down from $283.3 million at February 28, 2026, and down from $285.8 million a year earlier, reflecting shipments and softer bookings across several regions during the quarter. * Bookings(2) of $47.9 million for the quarter, down from $65.2 million in the second quarter of fiscal 2026, reflecting weaker order intake in the nuclear, power and process end-markets in North America and continued soft bookings in China, partially offset by continued strength in maintenance, repair and overhaul (MRO) activity. * Adjusted net loss(2) of $6.2 million ($0.29 per share), versus adjusted net loss of $1.2 million ($0.05 per share) last year. * Adjusted EBITDA(2) of negative $0.7 million, compared to adjusted EBITDA of $3.4 million last year, reflecting the impact of lower sales and gross profit. SIX MONTHS RESULTS FROM CONTINUING OPERATIONS
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