Overview

* Velan's ( VLNSF ) fiscal Q1 sales rise 18.6% to $72.2 mln, boosting gross profit margin

* Reports net income from continuing operations of $17.8 mln compared to loss of $2.2 mln a year earlier

* Increases quarterly dividend to C$0.10 per share from C$0.03

Outlook

* Velan ( VLNSF ) expects to deliver solid performance despite tariff uncertainties

* Company reassessing capital allocation strategy due to strong financial position, per CEO James A. Mannebach

* Company expects 84.4% of backlog delivered in next 12 months

Result Drivers

* SALES GROWTH - Sales increased by 18.6% to $72.2 million, driven by higher shipments from Italian operations for oil & gas and increased business volume in China, India, and Germany

* GROSS PROFIT IMPROVEMENT - Gross profit margin rose to 28.6% from 27.6% last year, due to better absorption of fixed costs and a favorable product mix

* BACKLOG INCREASE - Backlog grew by 4.1% to $286.1 million, supported by strong MRO bookings and a sequential improvement in new orders

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales $72.23

mln

Q1 Net $17.83

Income mln

Q1 Gross $20.63

Profit mln

Press Release:

(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.)