Velocity Composites' FY2025 revenue falls on delayed US work transfers

Velocity Composites

27/01/2026 07:10

Overview

UK aerospace supplier's FY2025 revenue fell 10% to £20.7 mln

Gross margin improved to 29.5% from 25.9% due to better sales mix, efficiencies

Adjusted EBITDA more than doubled to £1.0 mln from £0.4 mln

Outlook

Velocity Composites anticipates near-term growth from increased A350 production rates

Company is securing new business in Europe and US amid production shifts

Velocity Composites expects long-term growth from new programs and opportunities

Result Drivers

GROSS MARGIN IMPROVEMENT - Co reported gross margin increased to 29.5% from 25.9% due to better sales mix and operational efficiencies

REVENUE DECLINE - Revenue fell to £20.7m from £23.0m due to unmet production rate increases for A350 and delayed US work transfers

ADJUSTED EBITDA GROWTH - Adjusted EBITDA more than doubled to £1.0m from £0.4m, driven by operational efficiencies

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY EPS
-GBP 0.02
FY Net Income
-GBP 1.08 mln
FY Basic EPS
-GBP 0.02
FY Gross Profit
GBP 6.11 mln
FY Pretax Profit
-GBP 1.06 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for Velocity Composites PLC is GBp50.00, about 163.2% above its January 26 closing price of GBp19.00

Press Release: ID:nRSa4410Qa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)