Velan Inc.

Good morning, ladies and gentlemen, and welcome to the Volan Inc. Q2 Financial Results Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star-zero for the operator. This call is being recorded on Friday, October 10, 2025. I would now like to turn the conference over to Rishi Sharma, Chief Financial Officer. Please go ahead.

Thank you, operator. Good morning. Bonjour. Thank you for joining us on our conference call. Let's start by discussing the disclaimer from our related investor relations presentation, which is available on our website in the investor relations section. As usual, the first paragraph mentions that the presentation provides an analysis of our consolidated results for the second quarter ended August 31st, 2025. The board of directors approved these results yesterday, October 9th, 2025. The second paragraph refers to non-IFRS and supplementary financial measures, which are defined and reconciled at the end of the presentation. The last paragraph addresses forward-looking information, which is subject to risks and uncertainties that are not guaranteed to occur. Forward-looking statements contained in this presentation are expressly qualified by this cautionary statement. Finally, unless indicated otherwise, all amounts are expressed in US dollars and all financial metrics discussed are from continuing operations. I will now turn the call over to Jim Monabuck, Chairman of the Board and CEO of ELA.

Thank you, Rishi, and good morning, good afternoon, good evening, everyone. Please turn to slide four for a general overview of the second quarter of fiscal 2026. ELA reported adjusted EBITDA of $3.4 million, an operating income of $400,000 on sales of $67,000 0.6 million during the period. Our performance in the quarter, which fell short of our internal expectations, was negatively affected by the need to reschedule certain deliveries, totaling more than $12 million, mostly to adapt to changes in customer requirements. Moreover, delays in purchasing decisions due to tariffs, largely for spare part orders, which are typically booked and shipped in the same quarter, further dampened sales in the period. It's important to note that rescheduled orders are part of firm contracts, which have simply been pushed out in time and will be delivered in the near future. For certain orders, small outstanding items prevented revenue recognition. And for others, greater complexity in part due to change in customer requirements led to these delays. In fact, we've already shipped orders related to the delays, totaling approximately 5 million, early in the third quarter. with remainder now planned for delivery later in the third quarter or before the end of the fiscal year. We delivered the first order from our new manufacturing plant in Saudi Arabia, which is part of a joint venture in the Middle East dedicated to addressing the largest market for oilfield valves worldwide. This milestone follows the prior approval and certification from Saudi Aramco, for some of our key valves. So Vaughn is fully prepared to deliver this region with a promising pipeline already in the works. Now let's turn to slide five. Our order backlog reached 285.8 million at the end of the second quarter, up 4% from the beginning of the year. At quarter end, 88.3% of the backlog representing orders of 252.4 million was deliverable within 12 months. This compared to 91.3% at the end of Q2 last year. As I stated last quarter, the shift in delivery schedule was driven by continued securing of an increasing number of large, long-term contracts for the nuclear and defense industries. Bookings amounted to 65.2 million in the second quarter of fiscal 2026, compared to 88.4 million in the same period last year. Water intake early in the third quarter rebounded with significant contract and MRO wins throughout the world. Notably, we were recently advised of an award for certain reactor cooling valves related to the refurbishment of an Ontario reactor, totaling more than $15 million, confirming the strength of our position, supplying the most critical valves in the rapidly growing nuclear industry. To this point, among the key projects booked in the second quarter last year, was a main services agreement with GE Itachi as part of the provision of a small modular reactor, SMR, at OPG's Darlington site, which I'll further explain in a moment. As we turn to slide six, I'm particularly pleased that this key infrastructure project was recently fast-tracked by the Canadian government through the newly implemented major projects office. The office's role, as outlined by the federal government, involves streamlining regulatory assessment approvals, as well as helping structure finance and partnerships with all stakeholders. The main objective is to significantly reduce the approval time for projects identified as of national importance. Clearly, the land stands to benefit from the pending acceleration of projects that typically require an extended planning period, such as new ones. As a reminder, we have more than 55 years of experience in supplying valves to the nuclear power market with deep expertise providing leading reactor technologies. More specific to the Darlington project, which happens to be the first SMR deployment in North America, Belan is the supplier of choice for GE Hitachi Nuclear Energy. Under the terms of our agreement, We are providing the development of advanced technology engineering support and leading-edge proprietary valves for the safe and efficient operation of this first four planned SMR units. This project has the potential to position Canada as a global leader in nuclear energy and the line of SD leading valve provider in critical applications in the growing deployment of SMR technology. In summary, on slide seven, nuclear and clean energy represents key growth sectors for Volant, both in Canada and increasingly on a global basis, as customers move to reach their own carbon reduction objectives. But let's not forget that we're also fortified with a very solid footing in other markets, such as oil and gas, where our valves equip the vast majority of refineries in North America and a growing base worldwide. which will further expand through our Middle East joint venture. Defense activity also continues to rise as sovereign states are addressing their national security concerns. With our proven solutions for both surface and subsurface nuclear marine propulsion, we expect positive development in the years to come and continued growth. With the strength of our brand and our proven ability to address complex needs for the most demanding flow control applications throughout the world, we are very confident in our ability to stay in growth in our backlog. Before turning the call over to Rishi, let me assure you that after permanently resolving our asbestos-related liabilities and completing the sale of our French assets, as announced earlier in the year, we remain quite active considering capital structural to assure the company remains well-positioned to fully achieve its growth ambitions and its determination to maximize shareholder value. This wraps up my presentation. I'm going to turn it over to you, Rishi.