Velan Stock Earnings Reports

Velan reported Q2 FY2026 sales of $67.6M, adjusted EBITDA of $3.4M and an operating income of $0.4M. Results missed internal expectations primarily because >$12M of deliveries were rescheduled (mostly to accommodate changing customer requirements) and tariffs suppressed spare‑parts/MRO purchasing, though about $5M of the delayed shipments were completed early in Q3 and the remainder is expected later in Q3 or before year‑end. Backlog was $285.8M (up 4% YTD) with 88% deliverable within 12 months; bookings were $65.2M in the quarter and early Q3 saw a rebound including a >$15M reactor‑cooling valve award in Ontario. Management highlighted strategic growth drivers: nuclear/SMR, defense, and oil & gas (with expansion in the Middle East via a Saudi JV that has begun shipments following Saudi Aramco approvals). Gross profit fell to $15.7M (23.2% of sales) due to lower volumes, mix and tariff timing; adjusted EBITDA declined vs. prior year. Cash and short‑term investments totaled $36.5M, bank indebtedness $6.6M and long‑term debt $15.9M; with a new $35M credit facility Velan states it has roughly $96M of available liquidity to execute growth plans. The Board declared a CAD 0.10/share dividend payable November 27, 2025. Management remains focused on executing backlog, converting delayed shipments, capturing nuclear/SMR opportunities, and evaluating capital‑structure options to support growth.