Velan (VLN) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 sales rose 0.4% year-over-year to $296.4 million, with gross profit margin steady at 27.4%.

• Order backlog increased 3.1% to $283.3 million, with 76.5% deliverable in the next 12 months.

• Strong cash position of $53.4 million and total available liquidity of $102.6 million at year-end.

• Completed sale of French subsidiaries and divestiture of asbestos-related liabilities, unlocking value and returning it to shareholders via a special dividend.

• Announced intent to sell controlling interest to Birch Hill Equity Partners, pending regulatory approvals.

Financial highlights

• Q4 2026 sales grew 2.1% to $84.9 million year-over-year.

• Fiscal 2026 gross profit was $81.1 million (27.4% margin), down from $84.9 million (28.8%) in 2025.

• Adjusted EBITDA for fiscal 2026 was $20.7 million, down from $27.5 million in 2025.

• Adjusted net income for fiscal 2026 was $0.9 million, compared to $6.6 million in 2025.

• Cash flow from operating activities was $22.3 million in Q4 2026.

Outlook and guidance

• Expectation of improved operating performance in fiscal 2027, supported by a solid backlog and cost discipline.

• Birch Hill Equity Partners' involvement expected to accelerate growth and value creation.

• Focus on sharper cost discipline and operational improvements.

• Ongoing geopolitical and trade uncertainties may impact performance.