Q1 2026 Varex Imaging Corp Earnings Call Transcript
Key Points
- Varex Imaging Corp (VREX) reported a strong start to fiscal year 2026 with first-quarter revenue of $210 million, up 5% year over year.
- The industrial segment saw a significant 17% year-over-year increase in revenue, driven by strong performance in the cargo systems business.
- Non-GAAP gross margin was 34%, at the high end of guidance, benefiting from a favorable product sales mix.
- The company experienced solid demand for X-ray sources, particularly in high-end CT, and growing engagement around next-generation system designs.
- Varex Imaging Corp (VREX) is seeing positive momentum in its non-destructive testing and inspection business, supported by strength in high energy linear accelerators and X-ray tube products.
- The medical segment revenue was stable year over year, indicating no significant growth in this area.
- Dental and oncology modalities were below their respective sales trends, suggesting potential challenges in these areas.
- The company is facing a burden on the P&L due to ramping up inventory and costs associated with the new India operations.
- Gross margin on a GAAP basis was down 100 basis points year over year, indicating some pressure on profitability.
- The increase in inventory, primarily to support anticipated demand, has led to a net cash outflow from operations of $16 million in the quarter.
Greetings and welcome to the Vre's first quarter fiscal year 2026 earnings conference call and webcast. At this time, all participants are in listen-only mode.
A question-and-answer session will follow the formal presentation.
You may be placed in the question queue at any time by pressing one on your telephone keypad as a reminder, this conference is being recorded.
If anyone should require operator assistance, please press 0 on your telephone keypad.
It's not my pleasure to turn the call over to Christopher Belfiore, director of investor relations. Christopher, please go ahead.
Good afternoon and welcome to Bras Imaging's earnings conference call for the 1st quarter fiscal year 2026. With me today are Sonny Saniel, our President and CEO, and SAM Maheshwari, our CFO.
Please note that the live webcast of this conference call includes a supplemental slide presentation that can be accessed at Barras's website at barraimaging.com.
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