Q1 2027 Velan Inc Earnings Call Transcript
Key Points
- Velan Inc (VLNSF) has completed the acquisition of Velan Holdings' majority interest by Birch Hill, positioning the company for sustainable growth.
- The company maintains a strong balance sheet with nearly $35 million in cash and cash equivalents.
- Velan Inc (VLNSF) has a solid order backlog of $275 million, with approximately 70% expected to be delivered over the next 12 months.
- The company is advancing a transformation plan focused on optimizing operations and modernizing facilities to support growth in nuclear, defense, and energy markets.
- Velan Inc (VLNSF) secured a new five-year, $80 million revolving credit facility, enhancing liquidity and lowering the cost of capital.
- First-quarter sales decreased to $57.8 million from $72.2 million last year, primarily due to geopolitical and regional conflicts affecting shipments.
- Gross profit declined to $11.4 million or 19.6% of sales, down from 28.6% in the prior year, due to lower business volume and increased provisions.
- Adjusted EBITDA was a negative $2.1 million compared to a positive $3.8 million last year, reflecting lower gross profit.
- The order backlog decreased slightly due to shipments exceeding bookings, with bookings totaling $48 million compared to $78.2 million last year.
- Cash used by operating activities increased to $17.4 million, reflecting negative changes in non-cash working capital items.
Good morning, ladies and gentlemen, and welcome to the Vela Inc Q1 financial Results conference call. (Operator Instructions)
Please turn your attention to the disclaimer from Velan's related IR presentation, which is available on its website in the Investor Relations section. The first paragraph mentions that the presentation provides analysis of VLAN's consolidated results for the first quarter ended May 31, 2026, which the Board of Directors of the company approved yesterday, July 9, 2026.
The second paragraph refers to non-IFRS and supplementary financial measures, which are defined and reconciled at the end of the presentation. The last paragraph addresses forward-looking information, which is subject to risks and uncertainties that are not guaranteed to occur. Forward-looking statements contained in this presentation are expressly qualified by this cautionary statement.
Finally, unless indicated otherwise, all amounts are expressed in U.S. Dollars. This call is being recorded on Friday, July 10, 2026.
I now turn the conference over to Rishi Sharma, President and
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