Velocity Composites plc (LSE:VEL) said first-half 2026 revenue is expected to decline to £8.4 million from £10.4 million in the prior year period, reflecting shipment timing issues and short-term material supply disruptions. Despite the lower revenue performance, the company reported stable gross margins and achieved a third consecutive half of positive adjusted EBITDA.
The aerospace composites specialist has also strengthened its financial position, moving into net cash during the period. As part of ongoing efficiency measures, the company closed its satellite facility in Fareham and consolidated operations at its Burnley production site, resulting in lower overhead costs.
Second-half recovery expected from US and UK demand
Velocity Composites said full-year market expectations remain unchanged, with second-half trading anticipated to improve due to stronger-than-forecast demand from long-standing UK customers and the delayed transition of a major US aerospace programme.
Management also highlighted a growing order pipeline across both civil aviation and defence aerospace markets, supporting confidence in future growth despite the slower first-half performance.
Weak technical indicators continue to weigh on outlook
The company’s outlook remains constrained by weak financial quality metrics, as it continues to operate at a loss despite improving margins and stronger cash flow generation. Technical indicators also remain notably bearish, with the shares trading below all major moving averages alongside a negative MACD reading and a deeply oversold RSI position.
Valuation measures provide limited support given the company’s negative earnings profile and the absence of a dividend yield.
More about Velocity Composites Plc
Velocity Composites plc is a Burnley-based manufacturer and supplier of advanced composite material kits used in the aerospace industry. Its proprietary technology is designed to help customers reduce waste, lower production costs and improve sustainability across manufacturing processes. The company works with major aerospace groups including Airbus, Boeing and GKN Aerospace, while also targeting expansion opportunities in sectors such as wind energy, urban air mobility and electric vehicles as demand for lightweight composite materials increases.
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