Sales at industrial valve firm Velan fell as shipments were pushed into next year, but a hefty order backlog and Middle East progress suggest brighter days ahead.
Industrial valve manufacturer Velan booked a quarterly loss after pushing more than $12 million of sales into next year, but a wave of new Middle East orders and a hefty backlog signal better days ahead.
Velan’s $2.4 million net loss this quarter marks a turn from last year’s small profit, with shipment delays—rather than weak demand—dragging sales down from $77.7 million to $67.6 million. Clients shifting orders and tariff changes slowed deliveries, but the company’s massive $285.8 million backlog, with almost 90% set to ship within a year, points to strong demand. Velan also scored its first Saudi joint venture order—a big step into the world’s largest oilfield valve market. With its French asset sale closed and longstanding asbestos liabilities settled, Velan is now focused on restructuring for growth. The board kept its dividend unchanged, and shares edged up, closing at $15.94.
While this quarter’s weaker sales might look disappointing, Velan’s fat order book and expanding presence in the Middle East show some real backbone. Investors seem confident—the stock nudged up and a steady dividend adds extra comfort. If the bulk of those $252.4 million in backlogged shipments go out next year as planned, fiscal 2026 could see a solid comeback—especially if global trade headwinds ease.
Velan’s push into Saudi Arabia taps major infrastructure investments and oil sector demand, giving the firm a cushion against tariff volatility elsewhere. With legal headaches and asset shifts behind it, management can now zero in on long-term strategy—positioning Velan strongly as global industrial demand stabilizes.