Velan Inc. Reports Solid Performance in the Third Quarter of Fiscal 2026

Core Insights - Velan Inc. reported solid performance in Q3 fiscal 2026, with a backlog of $296.8 million and bookings rising nearly 32% year over year, driven by significant contracts in the nuclear sector [4][8][9]. Financial Performance - Sales for Q3 were $71.7 million, a decrease of 2.4% from $73.4 million in the previous year [6][11]. - Gross profit was $27.2 million, representing a gross margin of 37.9%, compared to 38.6% last year [6][12]. - Operating income improved to $5.9 million from an operating loss of $62.4 million a year ago [6][15]. - Net income was $3.0 million, or $0.14 per share, compared to a net loss of $47.8 million, or $2.22 per share, in the previous year [6][15]. - Adjusted net income was $4.0 million, or $0.18 per share, down from $8.5 million, or $0.39 per share, last year [6][16]. Backlog and Bookings - The backlog increased by 8.0% since the beginning of the fiscal year, reflecting strong demand and bookings of $77.9 million in Q3, up from $59.1 million last year [8][9]. - For the first nine months of fiscal 2026, total bookings were $221.3 million, down from $230.5 million in the same period last year [10]. Financial Position - As of November 30, 2025, the company had a strong balance sheet with $86 million in total liquidity and a net cash position of $20.2 million [5][24]. - The company incurred restructuring expenses of $1.3 million in Q3, significantly lower than the $74.5 million incurred in the same quarter last year [13][20]. Strategic Outlook - The proposed sale of the Velan family's majority share to Birch Hill Equity Partners is expected to create a results-oriented environment to enhance business strategy execution and shareholder value [4][26]. - The company anticipates delivering $238.5 million of its backlog within the next 12 months, despite uncertainties related to tariffs [25].