Velan (VLN) Q2 2025 earnings summary

Executive summary

• Bookings rose 63.0% year-over-year to $116.6 million, with sales up 22.8% to $98.7 million, reflecting robust performance across nuclear power, defense, and oil & gas sectors.

• Net income improved to $0.1 million from a $2.1 million loss last year; cash flow from operations was $10.1 million for the quarter and $15 million for the first half.

• Achieved highest order backlog in three years at $548.1 million, up $56.6 million since year start, with 72% deliverable within 12 months.

• Secured major nuclear sector agreements, including a main services agreement with GEH SMR Technologies and a CAD 50 million, 10-year alliance with Bruce Power.

• Diversified product portfolio and global reach contributed to growth, with strong sectoral contributions.

Financial highlights

• Q2 sales totaled $98.7 million, up 22.8% year-over-year, with growth driven by increased shipments in Italy, France, and North America.

• Gross profit was $26.7 million (27% of sales), up from $23.4 million; adjusted gross margin excluding non-recurring gain was 28.5%.

• EBITDA rose to $5.1 million from $3 million; adjusted EBITDA last year was $3.3 million.

• Non-recurring revenue gain of $5.2 million from a canceled agreement included in sales.

• Cash and equivalents at $44.5 million, short-term investments $4.8 million, long-term debt $22.6 million.

Outlook and guidance

• Maintains sales growth outlook for the fiscal year, supported by record backlog and strong bookings.

• Expects continued momentum in the second half, with $395.9 million of orders deliverable within 12 months.