Canada's Velan posts higher Q3 profit as restructuring costs fall

Overview

• Industrial valve maker's Q3 sales fell 2.4% yr/yr to $71.7 mln

• Company's Q3 net income was $3 mln, reversing a loss from last year that included significatly higher restructuring expenses

• Velan's backlog rose 8% since fiscal year start, driven by nuclear sector

Outlook

• Velan expects to deliver $238.5 mln of backlog in next 12 months

• Company anticipates solid fiscal 2026 performance despite tariff uncertainties

• Velan sees sale to Birch Hill as conducive to growth strategy execution

Result Drivers

• HIGH-MARGIN PROJECTS - Velan's gross profit margin remained stable due to execution of high-margin projects despite lower sales volume and tariff impacts

• NUCLEAR CONTRACT - Significant contract from Ontario Power Generation boosted backlog

• CURRENCY IMPACT - Currency movements positively affected backlog and gross profit, contributing to improved financial results

Key Details

Press Release: ID:nGNXQZhKL

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