Velocity Composites Doubles EBITDA as Margins Improve Despite Softer Sales

An announcement from Velocity Composites Plc ( (GB:VEL) ) is now available.

Velocity Composites reported audited results for the year to 31 October 2025 showing revenue down to £20.7m from £23.0m but with gross margin improving by 360 basis points to 29.5% and adjusted EBITDA more than doubling to £1.0m, reflecting a better sales mix, operational efficiencies and the completion of its US production facility. Despite tighter cash with a small net debt position following a move from net cash, management remains focused on returning to higher growth as aircraft production rates, particularly on Airbus’s A350 and delayed US programmes, begin to ramp up, while navigating customer production shifts out of the UK by targeting new European and US business, leveraging its VRP-enabled operations, and aiming for enhanced profitability metrics including a 25% gross margin, 10% adjusted EBITDA margin and 25% return on capital.

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 plc, based in Burnley, UK, is a leading supplier of composite material kits primarily to the aerospace sector, helping customers reduce costs and improve sustainability through value-engineered raw materials and its proprietary Velocity Resource Planning (VRP) technology. Its customer base includes major tier-one suppliers such as BAE Systems, Hamble Aerostructures, Safran Nacelles and GKN, which in turn supply large OEMs including Airbus, Boeing, GE, Rolls-Royce and Lockheed Martin, and the company sees expansion potential into other high-value composite markets such as wind energy, urban air mobility and electric vehicles across Europe and North America.

Average Trading Volume: 86,303

Technical Sentiment Signal: Sell

Current Market Cap: £10.39M

For an in-depth examination of VEL stock, go to TipRanks’ Overview page.