Sign In
Last checked at 
8 Oct 2025 07:00
8 October 2025
Velocity Composites plc
("Velocity" or the "Company" )
Contract Renewal and Expansion with Tier One Customer
Contract is expected to generate approximately $2.5 million in revenue in FY26
Velocity Composites plc (AIM: VEL), the leading supplier of composite material kits to the aerospace sector, is pleased to announce the signing of a 10-year contract extension, and an increased scope of work ("The Contract"), with a longstanding Tier One customer ("The Customer"). 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.
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 Contract is expected to generate approximately $2.5 million in revenue in FY2026, with $1.0 million representing 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 $54 million. Pricing within the contract is subject to annual inflation indexing. This renewal supports the Company's existing FY26 revenue expectations.
All kits will be manufactured at Velocity's advanced facility in Burnley, UK - in line with the previous programmes since 2017 - with supply of new kits expected to commence in early 2026 following the completion of the normal qualification and transfer process. Velocity already has approvals and a proven transfer process in place for the A350-900 wing spars, completed in 2017.
Jon Bridges, Chief Executive Officer of Velocity, commented: "The renewal and extension of this major contract is a testament to the strength of our relationship with this prestigious Customer, and the value they see in our services. We are delighted that the Contract has been extended to include the A350-1000 variant for the first time, and that we have been selected to supply all remaining kitted material for both variants. The expanded scope of work deepens our engagement with the Customer, and the successful A350 programme whose build rates are expected to increase in the coming years. The Contract secures a long-term revenue stream to support our growth."
Enquiries:
Velocity Composites plc Andy Beaden, Chairman Jon Bridges, Chief Executive Officer Rob Smith, Group Chief Financial Officer
| +44 (0) 1282 577577 |
Canaccord Genuity Limited Nominated Adviser and Joint Broker Max Hartley George Grainger
| +44 (0) 20 7523 8000 |
Dowgate Capital Limited Joint Broker Russell Cook Nick Chambers
| +44 (0) 20 3903 7715 |
SEC Newgate Financial Communications Robin Tozer George Esmond Harry Handyside | +44 (0)7540 106 366 velocity@secnewgate.co.uk |
About Velocity Composites plc
Based in Burnley, UK, Velocity is the leading supplier of composite material kits to aerospace, that reduce costs and improve sustainability. Customers include Airbus, Boeing, and GKN.
By using Velocity's proprietary technology, manufacturers can also free up internal resources to focus on their core business. Velocity has significant potential for expansion, both in the UK and abroad, including into new market areas, such as wind energy, urban air mobility and electric vehicles, where the demand for composites is expected to grow.
Follow the stocks
