Canada's Covalon Q2 revenue rises on  U.S. vascular access, surgical consumables growth

Covalon Technologies

21/05/2026 12:09

Overview

Canada advanced medical tech firm's fiscal Q2 revenue grew 15% yr/yr

Gross margin for fiscal Q2 improved to 61.5%, up 690 basis points yr/yr

Company reported net income up 155% yr/yr, driven by product adoption

Outlook

Company says future pipeline for Contamination Prevention products is extremely robust

Covalon sees rapid adoption of Contamination Prevention solutions at hospitals in the U.S. and beyond

Company expects continued business development engagement with other vascular access firms

Result Drivers

U.S. SALES CHANNELS - Growth in U.S. Vascular Access and Surgical Consumables and Advanced Wound Care sales channels drove revenue gains

CONTAMINATION PREVENTION ADOPTION - Rapid adoption of CovaClear Cover dressings and VALGuard Line Guard at leading U.S. hospitals contributed to results

Company press release: ID:nBwbdLWK8a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
C$8.7 mln
Q2 EPS
C$0.04
Q2 Gross Margin
61.50%


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

Wall Street's median 12-month price target for Covalon Technologies Ltd is C$2.90, about 39.4% above its May 20 closing price of C$2.08

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)