Virco Q1 revenue falls 9.1% on weaker furniture demand

Virco Mfg

03/06/2026 13:42

Overview
US school furniture maker's Q1 revenue fell 9.1% yr/yr as demand slowed
Company posted Q1 net loss versus profit last year; gross margin declined to 41.4%
Q1 shareholder returns reached $0.6 mln, including buybacks and dividends

Outlook
Company says order rates are roughly flat year-over-year with a slightly higher backlog
Company expects seasonality to return to traditional pattern with sharper summer peak
Company sees growing demand for full-service orders as a positive trend

Result Drivers
SLOWING DEMAND - Co said underlying demand for school furniture is seeking a new baseline after pandemic-related market dislocations
BACKLOG OVERHANG GONE - Last year's Q1 benefited from shipping lingering backlog, making this year's comparison more challenging
LOWER FACTORY OUTPUT - Gross margin declined due to reduced revenue and related lower factory output and overhead absorption

Company press release: ID:nGNX5t7q6D

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
 
$30.69 mln
 
Q1 Net Income
 
-$2.78 mln
 
Q1 Operating Income
 
-$3.66 mln
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the business support supplies peer group is "buy"
Wall Street's median 12-month price target for Virco Mfg Corp is $7.00, about 16.5% above its June 2 closing price of $6.01
The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)