Virco Mfg (VIRC) investor relations material

Executive summary

• Full year net income was $2.6 million on revenue of $199.7 million for the period ended January 31, 2026, reflecting a significant decline from the prior year amid market normalization post-COVID.

• Fourth quarter revenue was $26.2 million, down 8.1% year-over-year, with an operating loss of $9.9 million compared to $8.1 million loss in the prior year.

• Shareholder distributions totaled $5.6 million, including $1.6 million in dividends and $4.0 million in share repurchases.

• Management highlights strong operating and financial controls, positioning the company to benefit from a recovering school furniture market.

Financial highlights

• Net sales for the year were $199.7 million, down from $266.2 million the previous year.

• Gross profit was $81.2 million, compared to $114.7 million year-over-year.

• Operating income was $3.7 million, a sharp decrease from $27.9 million last year.

• Net income dropped to $2.6 million from $21.6 million year-over-year.

• Cash at year-end was $14.4 million, down from $26.9 million the prior year.

Outlook and guidance

• Early order rates are running ahead of the prior year by low double digits, suggesting potential for improved shipments and backlog if trends continue.

• Management cautions that metrics such as shipments plus backlog should not be treated as formal guidance due to ongoing market volatility.

• The company expects to continue balanced cash returns to shareholders and to capitalize on market recovery.