06:49 AM EDT, 10/10/2025 (MT Newswires) -- Velan ( VLNSF ) , a manufacturer of industrial valves, overnight Thursday reported a swing to net loss and a fall in sales in the second quarter.

For the three-months ended August 31, the company reported net loss of US$2.4 million or $0.11 loss per basic and diluted share, compared with a net income of $0.1 million or $0.01 income per share, a year earlier.

The company said sales in Q2 decreased to $67.6 million, compared with $77.7 million a year-ago, reflecting the rescheduling of more than $12 million in sales to later in the fiscal year, largely related to customer changes in delivery schedules, and the disruptive effects of ongoing changes in global tariff schemes.

"What's more, we delivered the first order from our new joint venture in Saudia Arabia, building on our growing momentum in the Middle East market, the largest worldwide for oilfield valves," said Velan ( VLNSF ) chief executive James A. Mannebach. "Finally, after permanently resolving our asbestos-related liabilities and completing the sale of our French assets earlier this year, we remain active considering capital structure options to assure the company remains well positioned to fully achieve its growth ambitions and its determination to maximize shareholder value."

As at Aug. 31, orders amounting to $252.4 million, representing 88.3% of a total backlog of $285.8 million, are expected to be delivered in the next 12 months. It said it expects to deliver "another solid performance" in fiscal 2026 given these orders, and despite the current uncertainty related to tariffs.

Velan's ( VLNSF ) board also declared a dividend of $0.10 per common share, unchanged from the prior quarter, payable on Nov. 27, to shareholders of record as at Nov. 13.

Shares of the company closed up 0.3% to $15.94 Thursday on the Toronto Stock Exchange.