Velan Q1 Earnings Call Highlights

Velan reported lower first-quarter sales, bookings and profitability as management said geopolitical and regional conflicts weighed on customer activity, order timing and shipment schedules, while the industrial valve maker pointed to a solid backlog and new financing as it begins a new phase under updated ownership and leadership.
On a conference call for the quarter ended May 31, 2026, President and Chief Executive Officer Rishi Sharma said the company is entering “a new chapter” following the closing of Birch Hill’s acquisition of Velan Holdings’ majority interest. Sharma said the transaction leaves Velan operating “from a position of strength,” citing its balance sheet, brand reputation, product quality and expertise in critical applications.
“While results were below last year, it is important to note that most of the factors impacting our performance were external in nature, primarily relating to geopolitical and regional conflicts and its effect on our customer activity, order timing, and shipment schedules,” Sharma said.
Velan reported first-quarter bookings of $48.0 million, down from $78.2 million a year earlier. Chief Financial Officer Imran Gibbons said the decrease reflected challenging market conditions that reduced bookings in the company’s North American, Italian and German operations, as well as lower maintenance, repair and overhaul activity, mainly in North America.
Sales for the quarter were $57.8 million, compared with $72.2 million in the prior-year period. Gibbons said the decline was mainly tied to geopolitical and regional conflicts that deferred shipments into subsequent periods, particularly affecting volume from North American and Italian operations.
By customer geography, North America was Velan’s largest market in the quarter, representing 57% of total sales. Asia-Pacific accounted for 21%, while Africa and the Middle East represented 16%.
The company’s order backlog stood at $275.1 million at quarter-end, down slightly from the previous quarter because shipments exceeded bookings. Management said about 70% of the backlog is expected to be delivered over the next 12 months.
Sharma said certain shipments deferred during the quarter are expected to be realized in future periods, with the majority expected to be recaptured by the end of the fiscal year.