Velocity Composites Ltd (AIM:VEL) shares advanced on Wednesday after it announced a new ten-year renewal and expansion of its contract with a Tier One aerospace customer for the Airbus A350 programme.
The agreement now includes both the A350-900 and A350-1000 aircraft variants. It is expected to generate $2.5 million in revenue during FY26, with $1 million of that coming from newly secured work.
All composite kits will be manufactured at Velocity’s Burnley facility, with new production beginning in early 2026.
"We are delighted that the contract has been extended to include the A350-1000 variant for the first time," said chief executive Jon Bridges, who also noted that it deepens engagement with the customer and secures long-term revenues.
In London, Velocity shares were up 8.4% changing hands at 24.4p.