MONTREAL, July 09, 2026 (GLOBE NEWSWIRE) -- Velan Inc. (TSX: VLN) ("Velan" or the "Company"), a world-leading manufacturer of industrial valves, announced today financial results for its first quarter ended May 31, 2026. All amounts are expressed in U.S. dollars unless indicated otherwise.
FIRST-QUARTER HIGHLIGHTS FROM CONTINUING OPERATIONS
IFRS MEASURES
Sales of $57.8 million, compared to $72.2 million last year, reflecting the geopolitical and regional conflicts which resulted in shipments being deferred to subsequent periods, with the majority expected to be delivered by the end of the fiscal year.
Gross profit of $11.4 million or 19.6% of sales, versus $20.6 million or 28.6% of sales last year, due to lower business volume and higher provisions.
Net loss1 of $9.4 million ($0.44 per share) versus net income of $17.8 million ($0.83 per share) last year, which included a $23.1 million non-recurring tax recovery related to the disposal of the French subsidiaries.
Financial position remains solid with cash and cash equivalents of $34.6 million as at May 31, 2026.
NON-IFRS AND SUPPLEMENTARY FINANCIAL MEASURES
Backlog2 of $275.1 million, down from $283.3 million at the end of the previous quarter.
Bookings2 of $48.0 million, versus $78.2 million last year, reflecting challenging conditions caused by the geopolitical and regional conflicts affecting several markets, but bidding activity remains solid in the Company's main end markets, mainly for large-scale projects.
Adjusted net loss2 of $6.9 million, versus adjusted net income of $0.1 million last year.
Adjusted EBITDA2 of negative $2.1 million, compared to adjusted EBITDA of $3.8 million last year, reflecting the impact of lower sales and gross profit.
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1 Net income or loss refer to net income or loss attributable to Subordinate and Multiple Voting Shares.
2 Non-IFRS and supplementary financial measures – more information at the end of this report.
"Velan's first quarter results were affected by the geopolitical and regional conflicts, which impacted new order bookings, delivery schedules, and profitability," said Rishi Sharma, President and Chief Executive Officer of Velan. "We estimate that most of the shipments that were deferred to future periods should be recaptured by fiscal year end. Meanwhile, uncertainty significantly constrained bookings and reduced maintenance, repair and overhaul (MRO) requirements in North America as lower refinery utilization due to the Middle East situation limited the available resources required to carry out such activities. Despite these external factors, Velan is well positioned to capitalize on pent-up demand as market uncertainty subsides and we are looking forward to actively participate in efforts to restart idled projects or rebuild damaged infrastructure."