Velo3D Inc. (NASDAQ:VELO) stock jumped on Tuesday after its strategic manufacturing partner, Mears Machine Corporation, announced a major defense contract win.
Mears Machine Corporation revealed on Monday that it secured a long-term supply agreement with a major U.S. defense original equipment manufacturer to manufacture critical hardware for existing products and a new airframe platform. The 10-year agreement establishes Mears Machine as a strategic production supplier.
The contract is expected to generate approximately $100 million in revenue during the first three years, with continued production and sustainment opportunities beyond that period.
Mears Machine operates four state-of-the-art Velo3D Sapphire XC large platform Laser Powder Bed Printers as part of its advanced manufacturing capabilities.
To support program execution and planned growth, Mears Machine is expanding hiring across manufacturing and operations functions.
Recent Corporate Developments
Velo3D has secured significant defense contracts in recent months. On Dec. 22, the company announced a $32.6 million Department of War contract under Project FORGE.
The company also collaborated with Momentus Inc. on a 3D-printed fuel tank for space testing, as announced on Jan. 5.
More recently, on Jan. 13, Velo3D entered a Cooperative Research and Development Agreement with the U.S. Army’s DEVCOM Ground Vehicle Systems Center.
Upcoming Earnings and Analyst Sentiment for VELO
Investors are looking ahead to the next earnings report on Feb. 26.
- EPS Estimate: Loss of 50 cents
- Revenue Estimate: $8.50 million
VELO Price Action: Velo3D shares were up 21.28% at $13.21 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo by Michael Vi via Shutterstock
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