Velan Inc. Reports Strong Fiscal 2025 Third Quarter Results

Velan Inc. (TSX: VLN), a world-leading manufacturer of industrial valves, has reported strong financial results for its fiscal 2025 third quarter ended November 30, 2024. The company's solid performance was driven by robust momentum in the clean energy sector, particularly in the global nuclear market. Velan's order backlog increased by 5.3% since the beginning of the year, reaching $298.7 million, while bookings were $59.1 million, representing a book-to-bill ratio of 0.81. This growth is attributed to Velan's strong brand, high-quality products, and proven expertise in delivering solutions for critical applications.

Velan's third quarter results also demonstrated significant improvements in sales and profitability. Sales grew by 18.1% compared to the same quarter last year, reaching $73.4 million. Adjusted net income from continuing operations was $8.5 million, compared to an adjusted net loss of $7.0 million in the corresponding quarter. This strong performance was driven by higher sales and gross profit, as well as the company's strategic positioning in the nuclear sector and clean energy markets.

Velan's CEO, James A. Mannebach, highlighted the company's strategic alliances with leading players for its proprietary products at small modular reactors (SMRs) and its large installed base at existing reactors. These factors, combined with Velan's solid order backlog and sustained momentum in bookings, indicate a strong pipeline of future revenue. The company's order backlog of $298.7 million, up $15.0 million or 5.3% since the beginning of the year, ensures a steady stream of revenue and allows Velan to plan its production and operations more effectively.

Velan's strategic positioning in the nuclear sector and clean energy markets is well-suited to drive long-term growth for the company. The growing demand for clean energy sources, driven by environmental concerns and government policies aimed at reducing greenhouse gas emissions, has created a multi-year growth cycle in the global nuclear market. Velan's focus on this sector, combined with its strong brand and expertise in delivering solutions for critical applications, has positioned the company to benefit from robust momentum in clean energy markets.

In conclusion, Velan Inc.'s strong fiscal 2025 third quarter results demonstrate the company's solid execution on its strong order backlog and sustained momentum in bookings. Velan's strategic positioning in the nuclear sector and clean energy markets, combined with its strong brand and expertise in delivering solutions for critical applications, has driven the company's improved profitability and sales growth. As Velan continues to capitalize on the growing demand for clean energy sources, investors can expect the company to maintain its strong performance in the long term.