VIRC

EX-99.1

2 exhibit991q207312026pressr.htm

EX-99.1

Document

Exhibit 99.1

Virco Reports Revenue through Six Months Declined 6.1% to $118.2 Million from $125.8 Million, as Rebalancing of School Furniture Market Continues

•Operating Income of $10.5 Million for Second Quarter Remains Above Long-Term Average

•Shipments Plus Backlog of $162.5 Million is 2.1% Lower Than Same Period Last Year

•Current Ratio of 2.5 Supports Aggressive Development of Existing and New Revenue Streams

•Revenue Quality Remains High, With YTD Gross Margin of 40.4%

•Board Declares Quarterly Dividend of $0.025 per Share, Payable October 9, 2026 to Shareholders of Record as of September 18, 2026

TORRANCE, CALIFORNIA, SEPTEMBER 4, 2026 (Globe Newswire) — Virco Mfg. Corporation (NASDAQ: VIRC), a leading manufacturer and direct supplier of moveable furniture and equipment for educational environments and public spaces in the United States, reported solid profitability for its second quarter and the six months ended July 31, 2026. Reflecting the ongoing rebalancing of the market for school furniture following uncertainties of the past few years, net sales for the second quarter totaled $87.5 million, versus $92.1 million for the same quarter in the prior year. Revenue quality remains high, with a gross margin of 40.0% for the quarter. Operating income for the quarter was $10.5 million versus $15.4 million last year. This remains well above the Company’s long-term average performance for the period.

Through six months, net sales totaled $118.2 million, a 6.1% decline from last year’s $125.8 million. Operating income was $6.9 million versus $15.3 million in the prior year. Year-over-year comparisons may reflect uncertainties among school administrators regarding the just-ended budget cycle. Most public schools have fiscal years that run from July 1 through June 30. Uncertainties heading into the current cycle may have resulted in cautious spending through the Company’s first and second quarters. Very recent trends show a slight improvement in demand following recent approval of new budgets for the school year of July 2026 through June 2027. Management cautions that even though these trends are encouraging, they come at a low point in the annual revenue cycle and are therefore unlikely to meaningfully improve the Company’s full-year results.

The Company’s domestically-based fabrication and service model continues to deliver good control over cost of goods sold and inventory levels, excellence of delivery and customer service, and of course product quality. In addition, the flexibility provided by U.S. manufacturing allows more responsive customer service without excessive reliance on debt financing. Through six months, interest expense was flat at $0.3 million, while selling, general, and administrative expense was 34.5% of revenue vs. 33.1% in the prior year.

Net income for the three months ended July 31, 2026 was $8.6 million versus $10.2 million in the prior year (a 15.4% decline). Through six months, net income was $5.8 million compared to $10.9 million the year before (a 46.5% decline). The performance comparison between each of the first two quarters of this year reflects a modest improvement in recent trends, as discussed earlier, following approval of new budgets in many public

schools. Again, Management cautions that while trends are positive, the typical lower volume of the second half of the year is likely to moderate their impact on full-year results.

As global supply chains continue to rebalance, the impact on the Company’s core market of school furniture and equipment remains fluid. Business development efforts in adjacent markets with similar products, processes, and distribution channels are beginning to show consistent data suggesting that domestic manufacturers like Virco, while always enjoying advantages in flexibility, customization, and response time, are now finally nearing cost parity as well. As that threshold is approached, the other advantages of Virco’s U.S. factories and experience may be extensible to an entirely new customer base.

Supply chain relationships tend to be “sticky” and Management anticipates that any rebalancing in Virco’s favor may take several years. However, initial responses to these efforts are encouraging enough to justify further investment in new products and “platform processes”, Management’s term for major operating systems like tube mills, panel processing, injection molding, and metal finishing. Management expects any new investments to fall comfortably within the Company’s typical $4 to $6 million annual capital expenditures budget, which also includes ongoing maintenance and repairs.

Commenting on the first half of the year, Virco Chairman and CEO Robert Virtue said: “As the school delivery season becomes more compressed, the response time of our U.S. factories becomes more of a competitive advantage. We can provide superior quality, customization, and speed o

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