Velocity Composites Doubles Adjusted EBITDA Despite Aerospace Headwinds

Velocity Composites Plc ( (GB:VEL) ) has provided an update.

Velocity Composites reported audited results for the year to 31 October 2025 showing revenue down to £20.7m from £23.0m, but with a 360-basis-point improvement in gross margin to 29.5% and adjusted EBITDA more than doubling to £1.0m, helped by operational efficiencies and completion of its US production facility. The group ended the year with £0.4m of cash and a small net debt position of £0.1m, undrawn on its £3.1m invoice discounting facility, and management reiterated medium-term targets of gross margins above 25%, a 10% adjusted EBITDA margin and a 25% return on capital. Despite industry headwinds from delays and supply chain disruption at Airbus and Boeing, programme consolidations in Europe and lower UK customer production, the company is positioning for renewed growth as aircraft build rates recover, pursuing new business in Europe and the US, expanding its advanced manufacturing footprint and leveraging its technology-led, lean operating model to underpin long-term growth and shareholder value.

The most recent analyst rating on (GB:VEL) stock is a Hold with a £15.50 price target. To see the full list of analyst forecasts on Velocity Composites Plc stock, see the GB:VEL Stock Forecast page.

Spark’s Take on GB:VEL Stock

According to Spark, TipRanks’ AI Analyst, GB:VEL is a Neutral.

Velocity Composites Plc faces significant challenges with profitability and cash flow, reflected in a low financial performance score. The technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio. These factors collectively result in a low overall stock score.

To see Spark’s full report on GB:VEL stock, click here.

More about Velocity Composites Plc

Velocity Composites, based in Burnley, UK, is a leading supplier of composite material kits to the aerospace sector, helping manufacturers reduce costs and improve sustainability. Using its proprietary Velocity Resource Planning technology, the company serves customers such as BAE Systems, Safran Nacelles and GKN, which in turn supply major OEMs including Airbus, Boeing, GE, Rolls-Royce and Lockheed Martin. Velocity is also targeting growth opportunities in adjacent markets such as wind energy, urban air mobility and electric vehicles, where demand for advanced composites is expected to increase.

Average Trading Volume: 86,303

Technical Sentiment Signal: Sell

Current Market Cap: £10.39M

See more insights into VEL stock on TipRanks’ Stock Analysis page.