Velan Inc. Reports Fiscal 2025 Fourth Quarter and Year-End Results

Core Insights - Velan Inc. reported significant improvements in bookings, sales, gross profit, and cash flow generation for fiscal year 2025, achieving a sales growth of 14.1% from continuing operations [2][6][16] - The company declared a dividend of CA$0.33 per share, which includes a special dividend of CA$0.30, reflecting its commitment to return funds to shareholders [1][33] Financial Performance - Sales for fiscal 2025 reached $295.2 million, an increase of $36.5 million or 14.1% compared to the previous year [6][16] - Gross profit improved significantly to $84.9 million, representing 28.8% of sales, up from $54.6 million or 21.1% of sales in the prior year [6][17] - Adjusted net income was $6.6 million, or $0.31 per share, compared to an adjusted net loss of $15.7 million, or a loss of $0.73 per share in fiscal 2024 [22] - Adjusted EBITDA rose to $27.5 million from $2.1 million in the previous year, driven by higher sales and gross profit [20][22] Cash Flow and Financial Position - The company ended fiscal 2025 with a net cash position of $32.4 million and cash and cash equivalents of $34.9 million, which is expected to increase to approximately $55.0 million following significant transactions [2][30] - Operating cash flows from continuing operations were $26.5 million, compared to $12.5 million in the previous year [6][30] Significant Transactions - Velan completed the divestiture of its asbestos-related liabilities and the sale of its French subsidiaries, which are expected to enhance liquidity and de-risk the balance sheet [8][9][10] - The asbestos-related liabilities were permanently removed from the balance sheet, and the sale of the French businesses generated a total consideration of $208.2 million [9][10] Backlog and Bookings - The backlog as of February 28, 2025, was $274.9 million, down 3.1% from $283.6 million a year earlier, with 82.1% of the backlog expected to be deliverable within the next 12 months [11][31] - Bookings for fiscal 2025 reached $292.5 million, an increase of 1.3% compared to the previous year, reflecting higher North American bookings in the nuclear sector [14][15] Outlook - The company anticipates continued strong performance in fiscal 2026, supported by a solid backlog and ongoing demand in clean energy markets, particularly nuclear energy [2][31]