News

Solid execution on strong order backlog and sustained momentum in bookings driven by robust demand from clean energy markets

MONTREAL, Quebec, October 10, 2024 – Velan Inc. (TSX: VLN) (“Velan” or the “Company”), a world-leading manufacturer of industrial valves, announced today financial results for its second quarter ended August 31, 2024. All amounts are expressed in U.S. dollars unless indicated otherwise.

Second-quarter highlights and recent events

• Strong order backlog of $548.1 million, up $56.6 million since the beginning of the year; highest backlog in three years.
• Bookings of $116.6 million, up significantly from $71.5 million in the second quarter of fiscal 2024.
• Book-to-bill ratio of 1.18 versus 0.89 in the same period last year.
• Sales of $98.7 million, up 22.8% from $80.3 million in the second quarter of fiscal 2024.
• Gross profit of $26.7 million, or 27.0% of sales, versus $23.4 million, or 29.1% of sales, last year.
• Improvement of $2.2 million in net profitability, resulting in net income of $0.1 million.
• Solid cash flows from operating activities of $10.1 million, versus negative $21.2 million last year.
• Net cash and cash equivalents of $41.3 million, versus $36.4 million at the beginning of the year.
• On September 2, Velan announced a Main Services Agreement with GEH SMR Technologies Canada Ltd. to provide certain proprietary products and services required for the development of a small modular reactor to Ontario Power Generation Inc.
• On October 10, the Company and union members at the Williston, Vermont plant, signed a new three-year collective agreement. Employees will return to work on October 14.