- Velo3D will produce complex military components using its advanced metal printing technology as a part of the Joint Additive Manufacturing Acceptability Pilot Parts Program.
- The program is designed to accelerate the adoption of 3D-printed components in the military and establish standardized processes and clear approval pathways.
- The stock has shed more than 35% over the past four sessions, following a disappointing fourth-quarter print.
Shares of Velo3D (VELO) gave up early premarket gains, slipping over 3% on Monday, and heading for a fourth consecutive day of losses.
VELO stock has now dropped more than 35% during the recent sell-off.
On Monday, the company secured a $9.8 million, five-year contract from the Department of War to support a metal manufacturing program aimed at speeding up production timelines for critical U.S. military components.
Under the agreement, Velo3D will produce complex components using its advanced metal printing technology, helping address supply chain gaps. The Joint Additive Manufacturing Acceptability (JAMA) Pilot Parts Program is designed to accelerate the adoption of 3D-printed components and establish standardized processes and clear approval pathways for additively manufactured spare and replacement parts.
This comes just weeks after the company secured a multi-year production agreement with a major U.S. defense contractor, a deal valued at $11.5 million. The deal will leverage Velo’s Rapid Production Solution and Laser Powder Bed Fusion technology to manufacture critical components. The company specializes in additive manufacturing, enabling faster, more cost-effective production than traditional methods.
How Did Retail Traders React?
Despite the intraday slide, retail sentiment on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, amid ‘extremely high’ message volumes.
One user played down the latest contract, citing it as a pilot program, but said the next contract could be “significantly larger.”
Another user said Velo is “firmly entrenched with defense” and will become “indispensable.”
Year-to-date, the stock has declined 38%.
Debt Reduction And FY 2026 Forecast
The company recently reported a 25% decline in fourth-quarter (Q4) revenue, with the net loss widening to nearly $22 million. It reported a 5% decline in 3D printer and parts revenue, mainly due to fewer system sales.
The company said it expects full-year 2026 revenue to range between $60 million and $70 million and anticipates achieving positive earnings before interest, taxes, depreciation, and amortization (EBITDA) in the second half of the year, delayed from its earlier expectation of reaching the milestone in the first half. Velo3D also appointed James Suva as the CFO.
Earlier this month, CEO Arun Jeldi acquired a $5 million promissory note and converted it into shares at $16.38 each, while director Ken Thieneman converted a $10 million note at $10.50 per share. Together, it reduced the company’s outstanding debt by about 60% to roughly $10 million.
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