Velan posts Q2 net loss of $15.1 million as sales fall

• Sales fell to $57.5 million from $67.6 million a year earlier.
• Net loss widened to $15.1 million, or $0.70 a share.
• Velan said it repaid its Canadian secured bank loan and has a new $80 million credit facility.

Quarterly results

Velan reported second-quarter results for the period ended August 31, 2026. Sales were $57.5 million, down from $67.6 million a year earlier.

Velan posts Q2 net loss of $15.1 million as sales fall

Gross profit was $12.6 million, or 21.9% of sales, compared with $15.7 million, or 23.2%, last year. The company posted a net loss of $15.1 million, or $0.70 a share, versus a loss of $1.7 million, or $0.08 a share, a year earlier.

Velan said the quarter included $14.9 million of transaction-related costs. It also said net cash was negative $11.2 million at August 31, 2026, versus net cash of $41.5 million at February 28, 2026.

Bookings and backlog

Backlog was $262.5 million at August 31, 2026, down from $283.3 million at February 28, 2026 and $285.8 million a year earlier. Bookings were $47.9 million for the quarter, compared with $65.2 million in the second quarter of fiscal 2026.

For the first six months, sales were $115.4 million, down 17.5% from a year earlier. Velan reported a six-month net loss of $24.5 million, compared with net income of $16.2 million last year.

Management comments

Velan is entering a new phase focused on stronger execution, improved business performance and profitable growth.

— Rishi Sharma, President and Chief Executive Officer

Our second quarter results reflect significant one-time transaction costs rather than a change in the underlying business.

— Imran Gibbons, Chief Financial Officer

Sharma said demand in its core nuclear, defense and energy markets remains solid, while softness in results was driven by execution and delivery timing, tariff volatility and geopolitical uncertainty in the Middle East. He also cited six transformation pillars, including cost discipline, procurement and value engineering, talent and organizational improvements, manufacturing footprint, working capital and assets, and growth acceleration.

Gibbons said Velan repaid its Canadian secured bank loan and now has a new $80 million credit facility in place.