Virco Mfg. Corporation reported solid operating and net income for the second quarter and first six months of 2025.
Despite a significant reduction in revenue, the company maintained a high gross margin of 45.2%.
Management cautions for the remainder of the year due to ongoing uncertainties over economic conditions and school funding.
Revenue Decline
Shipments in the second quarter and first six months decreased by 15.1% and 18.9% respectively compared to the previous year.
Profitability
Operating income for the second quarter was $15.4 million, a decrease from $21.9 million last year.
Dividend Declaration
The Board declared a quarterly dividend of $0.025 per share, payable on October 10, 2025.
Market Conditions
Management is cautious about the market outlook and is preparing for potential market recovery in the next two years.
- The company's revenue stream quality remains high despite the decline, reflecting good control over cost of goods sold.
- Net income through six months decreased to $10.9 million compared to $19.0 million in the previous year, highlighting the impact of lower shipments.
Virco Mfg. Corporation continues to demonstrate strong profitability and financial stability amidst challenging market conditions. Management's cautious approach and focus on maintaining a strong balance sheet positions the company for future opportunities.