Velan (VLN) Q1 2025 earnings summary

Executive summary

• Q1 fiscal 2025 sales grew 14.5% year-over-year to $77.5M, driven by strong North American and Italian operations and major project deliveries.

• Order backlog reached $528.3M, up $36.8M from the start of the year, with 70.5% deliverable in the next 12 months.

• Bookings increased 19.6% year-over-year to $109.8M, with a book-to-bill ratio of 1.42 for the quarter.

• Gross margin exceeded 30%, supported by higher sales volume and production efficiency.

• Signed a CA$50M, 10-year alliance with Bruce Power, strengthening position in the nuclear sector.

Financial highlights

• Sales totaled $77.5M, up 14.5% from Q1 fiscal 2024, with gross profit at $23.8M (30.7% margin) versus $15.1M (22.2%) last year.

• Adjusted EBITDA was $3.9M, up from -$3.3M last year, reflecting improved profitability.

• Adjusted net loss was $1M ($0.05/share), improved from $7.9M ($0.37/share) last year.

• Net loss narrowed to $1.1M ($0.05/share) from $8.3M ($0.38/share) in Q1 FY24.

• Cash flow from operations was $4.9M, down from $10.7M a year ago, mainly due to less favorable working capital changes.

• Cash and equivalents stood at $35.8M, with $5.7M in short-term investments and $24.8M in long-term debt as of May 31, 2024.

Outlook and guidance

• Sales growth is expected for fiscal 2025, supported by a strong backlog and 70.5% of orders deliverable within 12 months.

• Anticipates benefiting from a decade-long nuclear power growth cycle, especially in North America and Europe, driven by global demand and legislative support.