Velan Inc. Reports Fiscal 2027 First-Quarter Results

MONTREAL, 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 loss 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

• Backlog of $275.1 million, down from $283.3 million at the end of the previous quarter.
• Bookings 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 loss of $6.9 million, versus adjusted net income of $0.1 million last year.
• Adjusted EBITDA 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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