Q3 2026 Velan Inc Earnings Call Transcript
Key Points
- Velan Inc (VLNSF) reported a healthy adjusted EBITDA of $9.5 million on sales of $71.7 million, driven by high-margin projects and tight management of operating expenses.
- The order backlog increased by 8% to $296.8 million, with 80.4% of the backlog deliverable within 12 months.
- Bookings grew by 32% year-over-year, reflecting strong performance in the nuclear and oil and gas sectors, particularly in North America.
- Velan Inc (VLNSF) secured a significant order from Ontario Power Generation for the refurbishment of reactors, reinforcing its leadership in the nuclear sector.
- The proposed sale of controlling interest to Birch Hill Equity Partners is expected to accelerate the execution of Velan Inc (VLNSF)'s strategic plan, leveraging Birch Hill's business experience and access to capital.
- Sales decreased by 2.4% compared to the previous year, primarily due to lower shipments from Italian operations.
- Gross profit slightly declined both in absolute terms and as a percentage of sales, impacted by lower absorption due to reduced volume and tariff impacts.
- Cash flow from operating activities was negative, with $6.7 million used in the third quarter, mainly due to temporary increases in accounts receivable and inventory.
- The company incurred restructuring expenses of $1.3 million related to transaction costs, impacting overall profitability.
- The transaction costs associated with the sale to Birch Hill, including legal fees and change of control costs, are expected to be borne by Velan Inc (VLNSF), totaling approximately $16 million.
Good morning ladies and gentlemen, and welcome to the Velan Inc Q3 financial results conference call. (Operator Instructions). I would now like to turn the conference over to Rishi Sharma, Chief Financial Officer. Please go ahead.
Thank you, operator. Good morning, bonjour. Thank you for joining us for our conference call. Let's start by discussing the disclaimer from our related IR presentation, which is available on our website in the Investor Relations section.
As usual, the first paragraph mentions that the presentation provides an analysis of our consolidated results for the third quarter ended November 30, 2025. The Board of Directors approved these results yesterday, January 14, 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
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