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Valens Q1 2025 Earnings Report
Velan Inc. reported strong first quarter results for fiscal 2025, with significant gains in sales, gross margin, and profitability, alongside a growing order backlog.
Key Takeaways
Velan Inc. delivered a robust performance in the first quarter of fiscal 2025, with sales increasing by 14.5% to $77.5 million and gross profit rising significantly to $23.8 million, representing a 30.7% gross margin. The company reduced its net loss to $1.1 million from $8.3 million in the prior year and ended the quarter with a strong order backlog of $528.3 million.
Sales increased by 14.5% year-over-year to $77.5 million.
Gross profit significantly improved to $23.8 million, with gross margin reaching 30.7%.
Net loss decreased substantially to $1.1 million from $8.3 million in the prior year.
Order backlog grew to $528.3 million, reflecting strong first-quarter bookings.
Valens
Valens
Forward Guidance
Velan Inc. anticipates continued sales growth in fiscal 2025, driven by its strong order backlog and expanded opportunities in the nuclear sector.
Positive Outlook
- Growing order backlog of $528.3 million, with 70.5% expected to be delivered within the next 12 months.
- Anticipated sales growth for fiscal 2025.
- Heightened interest in small modular reactors (SMRs) gaining traction in Europe and North America.
- Strengthened position in the nuclear market through a 10-year strategic agreement with Bruce Power.
- Expectation of a nuclear power growth cycle for at least the next decade globally.
Challenges Ahead
- No dividend declared for the quarter.
- Potential for currency movements to negatively impact financial results.
- Supply-chain issues could still cause shipment delays.
- Competition in the industrial valve market remains a factor.
- Economic uncertainties could impact future order volumes.