Virco Mfg. 2026 Q2 Earnings Earnings Fall 39.5% Amid Revenue Decline

Virco Mfg. reported its fiscal 2026 Q2 earnings on Sep 05th, 2025, showing a notable dip in performance compared to the previous year. The company’s revenue and net income both declined significantly, driven by a challenging market environment and the absence of a one-time order from the prior year.

The earnings fell short of prior-year levels, with management offering a cautious outlook for the remainder of the year amid ongoing uncertainties.

Revenue

Virco Mfg.'s total revenue dropped by 15.1% year-over-year to $92.09 million in Q2 2026, compared to $108.42 million in Q2 2025. The decline was attributed to a general downturn in demand and the absence of a large one-time order that contributed to the previous year’s results.

Earnings/Net Income

The company’s earnings per share (EPS) fell by 37.5% to $0.65 in Q2 2026, down from $1.04 in the same period last year. Net income also declined sharply, falling by 39.5% to $10.19 million from $16.83 million in Q2 2025. The performance reflected the ongoing economic headwinds and reduced order levels, though management highlighted its ability to maintain strong gross margins.

Price Action

Shares of Virco Mfg. posted a 4.75% gain during the latest trading day, 1.50% rise for the week, and a 6.39% increase month-to-date, showing some investor optimism despite the earnings miss.

Post-Earnings Price Action Review

Virco Chairman and CEO Robert Virtue acknowledged the slowdown in demand but emphasized the company’s strategic advantages, particularly its domestic manufacturing model, which he believes helps navigate supply chain and tariff uncertainties. He expressed cautious optimism, noting the company’s experience in leveraging market recoveries, such as post-pandemic demand surges. Virtue highlighted Virco’s liquidity, infrastructure, and skilled workforce as key strengths.

Management noted that the company’s proprietary “Shipments plus Backlog” metric stood at $165.9 million as of July 31, 2025, a 25.8% decline from the prior year. The company is focused on balancing output, inventories, and expenses and remains prepared for a potential market recovery in the next two years.

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