VIRC · Virco Mfg. Corporation

Virco Mfg. Corporation's fiscal year 2026 results reflect a challenging environment for the school furniture market following the end of COVID-era subsidies and backlog clearance, leading to full-year revenue of $199.7 million and net income of $2.6 million, significantly below prior year's $266.2 million and $21.6 million. Q4 saw revenue decline 8.1% to $26.2 million with operating loss widening to $9.9 million from $8.1 million, continuing a pattern of post-COVID normalization. Despite headwinds, gross profit held at $81.2 million and operating income at $3.7 million, supported by tight controls and the vertical business model. Balance sheet remains solid with $14.4 million cash and current ratio of 3.1, down from prior peaks but enabling $5.6 million in shareholder returns ($1.6 million dividends at $0.10/share, $4.0 million repurchases reducing shares outstanding to 15.8 million). Management highlights resilience from 76-year history, expanded field services, and rapid prototyping for U.S.-sourced products amid supply chain shifts. Early order rates up low double digits and renewed focus on vocational training signal recovery momentum, though shipments plus backlog is 3% lower year-over-year. CEO Robert Virtue notes strong positioning for modest revenue growth to boost cash flows, with no formal guidance provided but optimism for normalized operations and continued returns.