Velocity Comp Share News (VEL)

(Alliance News) - Velocity Composites PLC on Wednesday said it has agreed a contraction renewal and expansion with a key customer for the supply of material kit parts for the Airbus A350 programme.

The Burnley, England-based supplier of composite material kits to aerospace and other high-performance manufacturers said the pact with a "longstanding tier one customer" has been extended by 10 years.

"The contract is for the supply of composite material kits parts for the Airbus A350 programme. The contract runs to 2035 in line with the customer's agreement with the OEM to supply materials to the A350 programme," Velocity Composites says.

"The contract renews the supply of structural material kits for the A350-900 wing spars by Velocity. It expands the scope to include kits for the A350-1000 variant for the first time (subject to the necessary approvals) alongside additional new material kits for both aircraft types."

The deal is to generate around USD2.5 million in revenue in financial 2026, which concludes in October of next year. It added that USD1.0 million of that comes in the form of new business.

"The new business will replace contracts with other customers that are coming to a natural end. Based on current market projections for A350 build rates, the total contract value could be up to USD54 million. Pricing within the contract is subject to annual inflation indexing. This renewal supports the company's existing FY26 revenue expectations," it added.

Shares in the company were up 0.4% at 22.60 pence each in London on Wednesday afternoon.

By Eric Cunha, Alliance News news editor

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