Canada's Velan posts higher Q3 profit as restructuring costs fall

Velan

15/01/2026 05:26

Overview

Industrial valve maker's Q3 sales fell 2.4% yr/yr to $71.7 mln

Company's Q3 net income was $3 mln, reversing a loss from last year that included significatly higher restructuring expenses

Velan's backlog rose 8% since fiscal year start, driven by nuclear sector

Outlook

Velan expects to deliver $238.5 mln of backlog in next 12 months

Company anticipates solid fiscal 2026 performance despite tariff uncertainties

Velan sees sale to Birch Hill as conducive to growth strategy execution

Result Drivers

HIGH-MARGIN PROJECTS - Velan's gross profit margin remained stable due to execution of high-margin projects despite lower sales volume and tariff impacts

NUCLEAR CONTRACT - Significant contract from Ontario Power Generation boosted backlog

CURRENCY IMPACT - Currency movements positively affected backlog and gross profit, contributing to improved financial results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
$71.66 mln
Q3 Net Income
$3 mln
Q3 Gross Profit
$27.18 mln


Press Release: ID:nGNXQZhKL

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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.)