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Velocity Composites Reports Positive EBITDA Amidst Industry Challenges

Story Highlights
  • Velocity Composites achieved a positive EBITDA for the first time since before the pandemic.
  • The company is optimistic about long-term growth in aerospace and defence sectors.
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Velocity Composites Reports Positive EBITDA Amidst Industry Challenges

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

Velocity Composites plc reported a trading update for the first half of 2025, indicating an expected revenue of £10.4 million, slightly down from the previous year, but with improved gross margins due to operational efficiencies and recovery from inflationary pressures. The company achieved a positive adjusted EBITDA for the first time since before the pandemic, despite slower-than-anticipated production rate increases in the aerospace sector. Velocity is progressing with a major US contract and has secured a contract extension with a UK Defence contractor, positioning itself for growth in both civil aerospace and defence sectors. The company remains optimistic about the long-term industry outlook, with expectations of increased production rates driven by strong demand dynamics.

Spark’s Take on GB:VEL Stock

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

Velocity Composites Plc faces significant challenges in profitability and cash flow, impacting its financial performance score. Technical analysis indicates moderate momentum but potential bearish trends. The absence of dividend yield and negative earnings raise valuation concerns. However, recent corporate events highlight strategic growth potential and strong shareholder confidence, slightly offsetting these challenges.

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 to the aerospace industry and other high-performance manufacturers. The company focuses on reducing costs and improving sustainability for its clients, which include major players like Airbus, Boeing, and GKN. Velocity is exploring expansion opportunities in new markets such as wind energy, urban air mobility, and electric vehicles.

Average Trading Volume: 44,786

Technical Sentiment Signal: Sell

Current Market Cap: £14.71M

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

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