Velan (VLN) Q1 2026 earnings summary

Executive summary

• Sales grew 18.6% year-over-year to $72.2 million, led by strong performance in Italy, China, India, and Germany, and robust MRO activity.

• Gross profit margin improved by 100 basis points to 28.6%.

• Cash position reached $59.1 million, the highest in five years, following major asset sales and liability settlements.

• Quarterly dividend increased to CA$0.10 per share, reflecting confidence in future performance.

• Net income from continuing operations was $17.8 million, compared to a net loss of $2.2 million last year, with consolidated net income totaling $77.2 million due to one-time gains.

Financial highlights

• Gross profit rose to $20.6 million (28.6% margin) from $16.8 million (27.6%) year-over-year.

• Adjusted EBITDA was $4.0 million, up from $2.8 million last year, excluding restructuring costs.

• Adjusted net income from continuing operations was $0.1 million, with adjustments for restructuring and non-recurring items.

• Backlog grew 4.1% to $286.1 million, with $241.3 million (84.4%) deliverable within 12 months.

• Bookings for the quarter were $78.2 million, down from $83.0 million last year; book-to-bill ratio at 1.08.

Outlook and guidance

• Strong backlog and cash flow support long-term growth objectives and shareholder returns.

• Continued optimism for growth in China, the Middle East, and MRO activities, with new joint ventures and production orders in Saudi Arabia.

• Bullish outlook on the nuclear sector, expecting further agreements and a longer-term revenue recognition cycle.

• 84.4% of backlog expected to be delivered in the next 12 months.

• Management anticipates another solid performance in fiscal 2026 despite tariff uncertainties.