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Velocity Composites Reports Revenue Decline but Expects EBITDA Growth

Story Highlights
  • Velocity Composites reported FY25 revenue of £20.7m, down due to Airbus A350 production issues.
  • Despite revenue drop, Velocity expects FY25 EBITDA to more than double from FY24 due to efficiency gains.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Velocity Composites Reports Revenue Decline but Expects EBITDA Growth

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Velocity Composites Plc ( (GB:VEL) ) just unveiled an update.

Velocity Composites plc reported a decrease in unaudited revenue for FY25 to £20.7 million, attributed to lower-than-expected Airbus A350 production rates and delays in program transfers from a US customer. Despite the revenue drop, the company expects adjusted EBITDA to more than double from FY24, thanks to improved operational efficiencies and reduced overhead costs. The company remains optimistic about its long-term prospects, focusing on cash generation and operational improvements to position itself for future growth. However, the board anticipates FY26 revenue to be lower than current market expectations due to ongoing delays and market shifts, though EBITDA is expected to improve further.

The most recent analyst rating on (GB:VEL) stock is a Hold with a £23.00 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’s overall stock score is primarily influenced by its financial performance, marked by revenue growth but significant profitability and cash flow challenges. Technical analysis suggests short-term stability, though valuation concerns persist due to negative earnings and lack of dividends. The absence of earnings call and corporate events data limits additional insights.

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

More about Velocity Composites Plc

Based in Burnley, UK, Velocity Composites plc is a leading supplier of composite material kits to the aerospace and other high-performance manufacturing sectors. The company serves major clients like Airbus, Boeing, and GKN, and is known for its proprietary technology that helps manufacturers reduce costs and improve sustainability. Velocity is also exploring expansion into new markets such as wind energy, urban air mobility, and electric vehicles.

Average Trading Volume: 63,504

Technical Sentiment Signal: Sell

Current Market Cap: £11.75M

Find detailed analytics on VEL stock on TipRanks’ Stock Analysis page.

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