Velan Inc. Reports Second Quarter Results for Fiscal 2026

MONTREAL, Oct. 09, 2025 (GLOBE NEWSWIRE) -- Velan Inc. (TSX: VLN) (“Velan” or the “Company”), a world-leading manufacturer of industrial valves, announced today financial results for its second quarter ended August 31, 2025. All amounts are expressed in U.S. dollars unless indicated otherwise.

SECOND-QUARTER HIGHLIGHTS FROM CONTINUING OPERATIONS

IFRS MEASURES

• Sales of $67.6 million, versus $77.7 million last year, reflecting the rescheduling of more than $12 million in sales to later in the fiscal year, largely related to customer changes in delivery schedules, and the disruptive effects of ongoing changes in global tariff schemes.
• Gross profit of $15.7 million or 23.2%, of sales, compared to $20.0 million, or 25.7% of sales, last year.
• Operating income of $0.4 million, compared to an operating loss of $0.3 million a year ago.
• Net loss¹ of $1.7 million, versus a net loss of $1.2 million a year ago.
• Strong financial position with a net cash position of $29.5 million as at August 31, 2025, versus $32.4 million at the beginning of the fiscal year, and access to total liquidity of approximately $96 million.
  
  

NON-IFRS AND SUPPLEMENTARY FINANCIAL MEASURES

• Backlog² of $285.8 million, up 4.0% from $274.9 million since the beginning of the fiscal year.
• Bookings² of $65.2 million, versus $88.4 million last year which included new strategic projects for the nuclear power market with typically long lead times.
• Adjusted net loss² of $1.2 million, versus adjusted net income of $2.8 million last year
• Adjusted EBITDA² of $3.4 million, compared to $6.7 million last year.
  
  

SIX-MONTH HIGHLIGHTS FROM CONTINUING OPERATIONS

IFRS MEASURES INCLUDING SIGNIFICANT TRANSACTIONS (see below)

• Sales of $139.8 million, up $1.2 million, or 0.9%, compared to the same period a year ago.
• Gross profit of $36.3 million, or 26.0% of sales, versus $36.8 million, or 26.5%, of sales last year.
• Operating loss of $3.4 million, compared to an operating loss of $2.0 million a year ago.  
• Net income of $16.2 million, versus a net loss of $3.4 million, last year.
  
  

NON-IFRS AND SUPPLEMENTARY FINANCIAL MEASURES

• Bookings of $143.4 million, versus $171.4 million last year.
• Adjusted net loss² of $1.1 million, versus adjusted net income of $3.0 million last year.
• Adjusted EBITDA² of $7.1 million, compared to $9.6 million last year.
• Net income of $74.8 million considering discontinued operations, including gain on disposal of French assets.
  

^{____________________
1} Net income or loss refer to net income or loss attributable to Subordinate and Multiple Voting Shares
² Non-IFRS and supplementary financial measures – more information at the end of this document.

"VeIan generated positive operating income of $385 thousand in the second quarter notwithstanding rescheduling certain order deliveries totaling more than $12 million to accommodate changes in customer requirements and the ongoing disruptive impact of changing tariff schemes," said James A. Mannebach, Chairman of the Board and CEO of Velan. "Rescheduled orders totaling approximately $5 million were shipped early in the third quarter, with the remainder to be executed later in the quarter or before fiscal year-end. We also have a solid backlog of $285.8 million, mostly deliverable within the next 12 months, to support our growth ambitions. What's more, we delivered the first order from our new joint venture in Saudia Arabia, building on our growing momentum in the Middle East market, the largest worldwide for oilfield valves. Finally, after permanently resolving our asbestos-related liabilities and completing the sale of our French assets earlier this year, we remain active considering capital structure options to assure the Company remains well positioned to fully achieve its growth ambitions and its determination to maximize shareholder value."

"Despite an increase in working capital requirements due to higher late-stage work in process related to the changes in delivery schedules, our financial position remains very strong with cash and cash equivalents of $36.1 million and modest indebtedness. Considering our liquidities, credit facilities, working capital financing, letters of credit and guarantees, we have $95.9 million available to invest in expansion opportunities. Additionally, with reduced balance sheet risk following the transactions, we are well positioned to execute our strategy and sustain long-term profitable growth," added Rishi Sharma, Chief Financial and Administrative Officer of VeIan.

FINANCIAL RESULTS in ‘000s of U.S. dollars, excluding per share amounts)	Three-month periods ended						Six-month periods ended
	August 31, 2025			August 31, 2024			August 31,  2025			August 31,  2024
From continuing operations
Sales	$67,611			$77,696			$139,840			$138,594
Gross profit	$15,675			$19,954			$36,301			$36,782
Gross margin	23.2%			25.7%			26.1%			26.5%
Administration costs	$15,377			$15,977			$33,690			$31,345
Restructuring expenses	$690			$4,493			$6,064			$6,833
Other expenses (income)	(777		)	(175		)	(45		)	788
Operating income (loss)	$385			($341		)	($3,408		)	($1,984		)
Net income (loss)	($1,660		)	($1,168		)	$16,166			($3,355		)
Net income from discontinued operations	($780		)	$1,289			$58,599			$2,372
Net income (loss)	($2,440		)	$121			$74,765			($983		)
(in dollars per share – basic and diluted)
Net income (loss) from continuing operations	($0.08		)	($0.05		)	$0.75			($0.16		)
Net income (loss) from discontinued operations	($0.03		)	$0.06			$2.71			$0.11
Net income (loss)	($0.11		)	$0.01			$3.46			($0.05		)

NON-IFRS AND SUPPLEMENTARY FINANCIAL MEASURES (From continuing operations, in ‘000s of U.S. dollars, excluding per share amounts)	Three-month periods ended						Six-month periods ended
	August 31, 2025			August 31, 2024			August 31, 2025			August 31, 2024
Adjusted EBITDA	$3,358			$6,746			$7,138			$9,592
Adjusted net income (loss)	($1,153		)	$2,754			($1,063		)	$2,997
per share - basic and diluted	($0.05		)	$0.13			($0.05		)	$0.14

BACKLOG AND BOOKINGS

BACKLOG (‘000s of U.S. dollars)	As at
	August 31,  2025		February 28, 2025
Backlog	$285,800		$274,877
for delivery within the next 12 months	$252,355		$225,662

BOOKINGS  (‘000s of U.S. dollars, excluding ratios)	Three-month periods ended				Six-month periods ended
	August 31, 2025		August 31, 2024		August 31, 2025		August 31, 2024
Bookings	$65,065		$88,408		$143,399		$171,377

As at August 31, 2025, the backlog from continuing operations stood at $285.8 million, up $10.9 million, or 4.0%, from $274.9 million since the beginning of the fiscal year. Currency movements had a $9.6 million positive effect on the value of the backlog during the first six months of fiscal 2026 mainly due to the strengthening of the euro versus the U.S. dollar. Excluding currency movements, the increase reflects bookings exceeding shipments in the first six months of fiscal 2026. As at August 31, 2025, 88.3% of the backlog, representing orders of $252.4 million, is deliverable in the next 12 months, versus 91.3% of last year's backlog. This shift in the delivery schedule is driven by the securing of an increasing number of long-term larger contracts for the nuclear and defense sectors.

Bookings from continuing operations amounted to $65.2 million in the second quarter of fiscal 2026, compared to $88.4 million in the second quarter of fiscal 2025. The decrease reflects lower bookings in North America and Germany due to large orders received in last year's second quarter and the timing of certain bookings due to tariff-related uncertainty. These factors were partially offset by higher bookings recorded by Italian operations. Currency movements had a negligible effect on the value of bookings for the quarter.

In the first half of fiscal 2026, bookings from continuing operations totaled $143.4 million, compared to $171.4 million in the first half of fiscal 2025. The decrease is mainly attributable to the factors mentioned above. Currency movements had a $1.3 million positive effect on the value of bookings for the period.

SECOND QUARTER RESULTS

Sales from continuing operations totaled $67.6 million, a decrease of $10.1 million or 13.0% compared to $77.7 million for the same period last year. The variation is mainly related to customer changes in delivery schedules on certain projects at North American and Italian operations of more than $12 million and to the disruptive effects of ongoing changes in global tariff schemes. Last year's second quarter results also included non-recurring revenue of $5.2 million related to a cancelled agreement for German operations. These factors were partially offset by higher sales in Korea, India and China as well as higher maintenance, repair and overhaul {MRO) sales in North America. Currency movements had a $1.4 million positive effect on sales for the period.

Gross profit from continuing operations was $15.7 million, versus $20.0 million last year. The variation reflects a lower business volume which affected the absorption of fixed production overhead costs, a less favorable product mix this year compared to last, and the effect of tariffs on supply chain optimization as well as a timing lag between tariffs incurred and customer recovery. Currency movements had a $0.3 million positive effect on gross profit for the period. As a percentage of sales, gross profit was 23.2%, compared to 25.7% last year.

Administration costs from continuing operations amounted to $15.4 million, or 22.7% of sales, compared to $16.0 million, or 20.6% of sales, last year. The variation mainly reflects lower sales commissions and lower freight costs.

The Company incurred restructuring expenses of $0.7 million, consisting of transaction-related costs, while last year’s restructuring expenses of $4.5 million included asbestos-related costs of $2.3 million and divestiture transaction-related costs of $2.2 million.

Adjusted EBITDA from continuing operations, excluding restructuring expenses, was $3.4 million, versus $6.7 million a year ago. The decrease is primarily attributable to lower gross profit, partially offset by lower administration costs, as explained above.

Net loss from continuing operations was $1.7 million, or $0.08 per share, compared to a net loss of $1.2 million, or $0.05 per share, a year earlier. Net loss from discontinued operations was $0.8 million, or $0.03 per share, representing conditional transaction closing fees, versus net income from discontinued operations of $1.3 million, or $0.06 per share, last year. As a result, the net loss was $2.4 million, or $0.11 per share, versus net income of $0.1 million, or $0.01 per share, last year.  

Adjusted net loss from continuing operations, excluding restructuring expenses, was $1.2 million, or $0.05 per share, versus adjusted net income of $2.8 million, or $0.13 per share, a year earlier.

SIX-MONTH RESULTS

Sales from continuing operations amounted to $139.8 million, an increase of $1.2 million, or 0.9%, compared to$138.6 million a year ago. The variation reflects higher sales in Korea, India, China and Italy. These factors were mostly offset by the changes in customers’ delivery schedules, the tariff effect, and last year’s non-recurring revenue of $5.2 million. Currency movements had a $1.5 million positive effect on sales for the period.

Gross profit from continuing operations was $36.3 million, compared to $36.8 million last year. The small decrease reflects the negative effect of the factors mentioned above, offset by the positive effect of higher business volume and a more favourable product mix in the first quarter. Currency movements had a $0.3 million positive effect on gross profit for the period. As a percentage of sales, gross profit was 26.0%, compared to 26.5% last year.

Administration costs from continuing operations were $33.7 million, or 24.1% of sales, compared to $31.3 million, or 22.6% of sales, a year ago. The variation is attributable to higher professional fees and higher sales commissions, partially offset by lower freight costs.

The Company incurred restructuring expenses of $6.1 million, including $6.8 million in transaction-related costs, partially offset by a $0.8 million reversal of asbestos-related costs. Last year, restructuring expenses of $6.8 million included asbestos-related costs of $4.7 million transaction-related costs of $2.2 million.

Adjusted EBITDA from continuing operations, excluding restructuring expenses, was $7.1 million, versus $9.6 million last year. The decrease is primarily attributable to higher administration costs.

Net income from continuing operations was $16.2 million, or $0.75 per share, compared to a net loss of $3.4 million, or $0.16 per share, in the prior year. Net income from discontinued operations was $58.6 million, or $2.71 per share, versus net income from discontinued operations of $2.4 million, or $0.11 per share, last year. As a result, net income was $74.8 million, or $3.46 per share, compared with a net loss of $1.0 million, or $0.05 per share, a year ago.

Adjusted net loss from continuing operations, excluding restructuring expenses and a non-recurring tax recovery on the France transaction, was $1.1 million, or $0.05 per share, versus adjusted net income of $3.0 million, or $0.14 per share, a year ago.

FINANCIAL POSITION

As at August 31, 2025, the Company held cash and cash equivalents of $36.1 million and short-term investments of $0.4 million. Bank indebtedness stood at $6.6 million, while long-term debt, including the current portion, amounted to $15.9 million. In total, the Company has $95.9 million in cash and available credit to fund its growth and investment objectives.

OUTLOOK

As at August 31, 2025, orders amounting to $252.4 million, representing 88.3% of a total backlog of $285.8 million, are expected to be delivered in the next 12 months. Given these orders, and despite the current uncertainty related to tariffs, the Company expects to deliver another solid performance in fiscal 2026.

DIVIDEND

On October 9, 2025, the Board of Directors of Velan has declared a dividend of CA$0.10 per common share payable on November 27, 2025, to shareholders of record as at November 13, 2025.

SIGNIFICANT TRANSACTIONS

On March 31, 2025, the Company announced the closing sale of its French subsidiaries Velan S.A.S. and Segault S.A.S. for a total consideration of $208.2 million (€192.5 million) and net consideration of $183.1 million. Based on the net book value at the closing of the transaction and related costs, a gain of $95.8 million was recorded in the first quarter of fiscal 2026. The sale also triggered the recognition of a cumulative translation adjustment of $12.5 million. These amounts were recorded as part of results from discontinued operations.

Concurrently with the sale of its French subsidiaries, the Company entered into an agreement to sell its current and future exposure to asbestos-related litigation in the United States. Part of the proceeds received from the sale of the French assets was used on April 3, 2025, to pay an amount of $143.0 million for this settlement.

CONFERENCE CALL NOTICE

Financial analysts, shareholders, and other interested individuals are invited to attend the second quarter conference call to be held on Friday, October 10, 2025, at 8:00 a.m. (EDT). The toll-free call-in number is 1-800-990-4777 or by RapidConnect URL: https://emportal.ink/3HMQyiC. The material that will be referenced during the conference call will be made available shortly before the event on the company’s website under the Investor Relations section (https://velan.com/investor-relations). A recording of this conference call will be available for seven days at 1-289-819-1450 or 1-888-660-6345 and entering the replay code 06670.

ABOUT VELAN

Founded in Montreal in 1950, Velan Inc. (www.velan.com) is one of the world’s leading manufacturers of industrial valves, with sales from continuing operations of US$295.2 million in its last reported fiscal year. The Company employs 1,265 people and has manufacturing plants in 9 countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN.

SAFE HARBOUR STATEMENT

This news release may include forward-looking statements, which generally contain words like “should”, “believe”, “anticipate”, “plan”, “may”, “will”, “expect”, “intend”, “continue” or “estimate” or the negatives of these terms or variations of them or similar expressions, all of which are subject to risks and uncertainties, which are disclosed in the Company’s filings with the appropriate securities commissions. While these statements are based on management’s assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that it believes are reasonable and appropriate in the circumstances, no forward-looking statement can be guaranteed and actual future results may differ materially from those expressed herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements contained herein whether as a result of new information, future events or otherwise, except as required by the applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

NON-IFRS AND SUPPLEMENTARY FINANCIAL MEASURES

In this press release, the Company has presented measures of performance or financial condition which are not defined under IFRS (“non-IFRS measures”) and are, therefore, unlikely to be comparable to similar measures presented by other companies. These measures are used by management in assessing the operating results and financial condition of the Company and are reconciled with the performance measures defined under IFRS. The Company has also presented supplementary financial measures which are defined at the end of this report. Reconciliation and definition can be found below.

Adjusted net income (loss), Adjusted net income (loss) per share, Earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA

	Three-month periods ended				Six-month periods ended
(in thousands, except per share amounts; certain totals may not add up due to rounding)	August 31, 2025 $		August 31, 2024 $		August 31, 2025 $		August 31, 2024 $
Reconciliation of net income (loss) from continuing operations to adjusted net income (loss) from continuing operations and adjusted net income (loss) from continuing operations per share
Net income (loss) from continuing operations	(1,660	)	(1,168	)	16,166		(3,355	)
Adjustments for:
Asbestos-related costs	-		2,341		(754	)	4,681
Transaction-related costs	507		1,582		6,635		1,582
Other restructuring expenses	-		-		-		89
Non-recurring tax recovery on France transaction	-		-		(23,110	)	-
Adjusted net income (loss) from continuing operations	(1,153	)	2,754		(1,063	)	2,997
per share – basic and diluted	(0.05	)	0.13		(0.05	)	0.14
Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA from continuing operations
Net income (loss) from continuing operations	(1,660	)	(1,168	)	16,166		(3,355	)
Adjustments for:
Depreciation of property, plant and equipment	1,723		2,196		3,352		3,545
Amortization of intangible assets and financing costs	541		364		1,060		987
Finance costs – net	244		331		634		525
Income tax expense (recovery)	1,820		531		(20,138	)	937
EBITDA	2,668		2,254		1,074		2,638
Adjustments for:
Asbestos-related costs	-		2,341		(754	)	4,681
Transaction-related costs	690		2,152		6,818		2,152
Other restructuring expenses	-		-		-		121
Adjusted EBITDA	3,358		6,746		7,138		9,592

The term “Adjusted net income (loss)” is defined as net income or loss attributable to Subordinate and Multiple Voting Shares plus adjustment, net of income taxes, for costs related to restructuring and to the proposed transaction. The terms “Adjusted net income (loss) per share” is obtained by dividing Adjusted net income (loss) by the total amount of subordinate and multiple voting shares. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The term “EBITDA” is defined as adjusted net income plus depreciation of property, plant & equipment, plus amortization of intangible assets, plus net finance costs, plus income tax provision. The term “Adjusted EBITDA” is defined as EBITDA plus adjustment for costs related to restructuring and to the proposed transaction. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Definitions of supplementary financial measures

The term “Net new orders” or “bookings” is defined as firm orders, net of cancellations, recorded by the Company during a period. Bookings are impacted by the fluctuation of foreign exchange rates for a given period. The measure provides an indication of the Company’s sales operation performance for a given period as well as well as an expectation of future sales and cash flows to be achieved on these orders.

The term “backlog” is defined as the buildup of all outstanding bookings to be delivered by the Company. The Company’s backlog is impacted by the fluctuation of foreign exchange rates for a given period. The measure provides an indication of the future operational challenges of the Company as well as an expectation of future sales and cash flows to be achieved on these orders.

The term “book-to-bill” is obtained by dividing bookings by sales. The measure provides an indication of the Company’s performance and outlook for a given period.  

The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Contact:
Rishi Sharma, Chief Financial and Administrative Officer	Martin Goulet, M.Sc., CFA
Velan Inc.	MBC Capital Markets Advisors
Tel: (438) 817-4430	Tel.: (514) 731-0000, ext. 229

Consolidated Statements of Financial Position
(in thousands of U.S. dollars)
				As at
		August 31,		February 28,
		2025		2025
		$		$
Assets
Current assets
Cash and cash equivalents		36,093		34,872
Short-term investments		388		358
Accounts receivable		68,209		62,612
Income taxes recoverable		5,994		5,617
Inventories		137,307		134,969
Deposits and prepaid expenses		4,288		3,689
Derivative assets		705		24
Assets held for sale		-		176,762
		252,984		418,903
Non-current assets
Property, plant and equipment		50,523		51,349
Intangible assets and goodwill		5,904		5,893
Deferred income taxes		5,597		25,101
Other assets		777		720
		62,801		83,063
Total assets		315,785		501,966
Liabilities
Current liabilities
Bank indebtedness		6,616		2,508
Accounts payable and accrued liabilities		74,598		78,776
Income taxes payable		2,366		1,818
Customer deposits		14,939		22,338
Provisions		5,140		153,957
Derivative liabilities		-		480
Current portion of long-term lease liabilities		1,537		1,437
Current portion of long-term debt		1,481		2,096
Liabilities held for sale		-		110,883
		106,677		374,293
Non-current liabilities
Long-term lease liabilities		4,479		4,727
Long-term debt		14,432		14,107
Income taxes payable		-		692
Deferred income taxes		1,526		737
Customer deposits		9,518		3,876
Other liabilities		5,210		4,796
		35,165		28,935
Total liabilities		154,664		403,228
Total equity		180,262		98,738
Total liabilities and equity		334,926		501,966

Consolidated Statements of Income (loss)
(in thousands of U.S. dollars, excluding number of shares and per share amounts)
	Three-month periods ended					Six-month periods ended
	August 31,		August 31,			August 31,		August 31,
	2025		2024			2025		2024
	$		$			$		$
Sales	67,611		77,696			139,840		138,594
Cost of sales	51,936		57,742			103,539		101,812
Gross profit	15,675		19,954			36,301		36,782
Administration costs	15,377		15,977			33,690		31,345
Restructuring expenses	690		4,493			6,064		6,833
Other expense (income)	(777	)	(175	)		(45	)	588
Operating income (loss)	385		(341	)		(3,408	)	(1,984	)
Financing expenses	(244	)	(331	)		(634	)	(525	)
Net income (loss) before income taxes	141		(672	)		(4,042	)	(2,509	)
Income tax expense (recovery)	1,820		531			(20,138	)	937
Net income (loss) for the period from continuing operations	(1,679	)	(1,203	)		16,096		(3,446	)
Results from discontinued operations	(780	)	1,289			58,599		2,372
	(2,459	)	86			74,695		(1,074	)
Net income (loss) attributable to:
Subordinate Voting Shares and Multiple Voting Shares	(2,440	)	121			74,765		(983	)
Non-controlling interest	(19	)	(35	)		(70	)	(91	)
Net income (loss) for the period	(2,459	)	86			74,695		(1,074	)
Net income (loss) per Subordinate and Multiple Voting Share
Basic and diluted from continuing operations	(0.08	)	(0.05	)		0.75		(0.16	)
Basic and diluted from discontinued operations	(0.03	)	0.06			2.71		0.11
Basic and diluted from all operations	(0.11	)	0.01			3.46		(0.05	)
Dividends declared per Subordinate and Multiple	0.07		-			0.31		-
Voting Share	(CA$ 0.10)		(CA$ - )			(CA$ 0.43 )		(CA$ - )
Total weighted average number of Subordinate and
Multiple Voting Shares
Basic and diluted	21,585,635		21,585,635			21,585,635		21,585,635

Consolidated Statements of Comprehensive Loss
(in thousands of U.S. dollars)
	Three-month periods ended					Six-month periods ended
	August 31,		August 31,			August 31,		August 31,
	2025		2024			2025		2024
	$		$			$		$
Comprehensive loss
Net income (loss) for the period	(2,459	)	86			74,695		(1,074	)
Other comprehensive income (loss)
Foreign currency translation of foreign subsidiaries	(2,319	)	(434	)		(5,191	)	(91	)
Foreign currency translation of foreign subsidiaries from discontinued operations	-		(1,837	)		-		337
Reclassification of foreign currency translation from discontinued operations	-		-			12,456		-
Comprehensive loss	(4,778	)	(2,185	)		81,960		(828	)
Comprehensive income (loss) attributable to:
Subordinate Voting Shares and Multiple Voting Shares	(4,759	)	(2,150	)		82,030		(737	)
Non-controlling interest	(19	)	(35	)		(70	)	(91	)
Comprehensive loss	(4,778	)	(2,185	)		81,960		(828	)
Other comprehensive loss is composed solely of items that may be reclassified subsequently to the consolidated statement of loss.

Consolidated Statements of Changes in Equity
(in thousands of U.S. dollars, excluding number of shares)
	Equity attributable to the Subordinate and Multiple Voting shareholders
	Share capital	Contributed surplus	Accumulated other comprehensive loss		Retained earnings		Total		Non-controlling interest		Total equity
Balance - February 29, 2024	72,695	6,260	(38,692	)	141,914		182,177		1,082		183,259
Net loss for the period	-	-	-		(983	)	(983	)	(91	)	(1,074	)
Other comprehensive income	-	-	246		-		246		-		246
Comprehensive income (loss)	-	-	246		(983	)	(737	)	(91	)	(828	)
Balance - August 31, 2024	72,695	6,260	(38,446	)	140,931		181,440		991		182,431
Balance - February 28, 2025	72,695	6,355	(47,141	)	65,952		97,861		877		98,738
Net loss for the period	-	-	-		74,765		74,765		(70	)	74,695
Other comprehensive income	-	-	(5,191	)	-		(5,191	)	-		(5,191	)
Comprehensive income (loss)	-	-	(5,191	)	74,765		69,574		(70	)	(69,504	)
Reclassification of foreign currency translation to discontinued operations	-	-	12,456		-		12,456		-		12,456
Dividends
Multiple Voting Shares	-	-	-		(4,869	)	(4,869	)	-		(4,869	)
Subordinate Voting Shares	-	-	-		(1,886	)	(1,886	)	-		(1,886	)
Balance - August 31, 2024	72,695	6,355	(39,876	)	133,962		173,136		807		173,943

Consolidated Statements of Cash Flow
(in thousands of U.S. dollars)
	Three-month periods ended					Six-month periods ended
	August 31,		August 31,			August 31,		August 31,
	2025		2024			2025		2024
	$		$			$		$
Cash flows from
Operating activities
Net income (loss) for the period	(2,459	)	86			74,695		(1,074	)
Less: results from discontinued operations	780		(1,289	)		(58,599	)	(2,372	)
Net income (loss) for the period from continuing operations	(1,679	)	(1,203	)		16,096		(3,446	)
Adjustments to reconcile net loss to cash used by operating activities	2,389		10,800			(14,726	)	9,968
Changes in non-cash working capital items	(17,808	)	(2,311	)		(34,875	)	12,684
Cash provided (used) by operating activities from continuing operations (excluding Asbestos settlement)	(17,098	)	7,286			(33,505	)	19,206
Asbestos Settlement transaction	-		-			(143,553	)	-
Cash provided (used) by operating activities from continuing operations	(17,098	)	7,286			(177,058	)	19,206
Investing activities
Short-term investments	-		1,105			(33	)	665
Additions to property, plant and equipment	(979	)	(1,321	)		(2,932	)	(3,069	)
Additions to intangible assets	-		735			-		(69	)
Proceeds on disposal of property, plant and equipment	180		138			1,133		146
Net change in other assets	(49	)	-			(14	)	(53	)
Cash provided (used) by investing activities from continuing operations (excluding proceeds on disposal of France assets)	(848	)	656			(1,846	)	(2,380	)
Proceeds on disposal of France assets	(780	)	-			182,363		-
Cash provided (used) by investing activities from continuing operations	(1,628	)	656			180,517		(2,380	)
Financing activities
Dividends paid to Subordinate and Multiple Voting shareholders	(6,755	)	-			(6,755	)	-
Net change in revolving credit facility	-		(3,000	)		-		(3,000	)
Increase in long-term debt	80		519			1,143		772
Repayment of long-term debt	(642	)	(120	)		(1,512	)	(3,936	)
Repayment of long-term lease liabilities	(413	)	21			(812	)	(426	)
Cash provided (used) by financing activities from continuing operations	(7,730	)	(2,580	)		(7,936	)	(6,590	)
Effect of exchange rate differences on cash	149		62			1,590		(475	)
Net change in cash during the period from continuing operations	(26,307	)	5,424			(2,887	)	9,761
Net change in cash during the period from discontinued operations	(780	)	1,826			8,745		(4,939	)
Net change in cash during the period	(27,087	)	7,250			5,858		4,822
Net cash – Beginning of the period	55,784		31,620			32,364		27,283
Net cash – End of the period	29,477		37,044			29,477		37,044
Net cash is composed of:
Cash and cash equivalents	36,093		40,257			36,093		40,257
Bank indebtedness	(6,616	)	(3,213	)		(6,616	)	(3,213	)
Net cash – End of the period	29,477		37,044			29,477		37,044
Supplementary information
Interest received (paid)	(39	)	(205	)		(278	)	(409	)
Income taxes paid	(1,437	)	(508	)		(2,864	)	(1,545	)

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