Velocity Composites plc announced 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 fiscal26, 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 fiscal26 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.
