Velo3D Inc. saw its stock price surge approximately 21% in late trading Tuesday after the metal 3D-printing company announced a strategic partnership with Aurelia Technologies focused on gas-turbine manufacturing. The deal marks a significant expansion of Velo3D's market reach beyond its traditional aerospace and defense strongholds.
The collaboration will leverage Velo3D's Sapphire XC platform for a phased qualification and low-rate initial production program aimed at advancing additive manufacturing for next-generation gas turbine platforms. The companies plan to work together on feasibility studies, materials development, and process optimization to achieve qualification and initial production runs on the Sapphire XC system.
Velo3D shares closed the late session at $19.64, up $3.41 from the previous close, with trading volume approaching 7.9 million shares. The stock experienced a wide intraday range of $14.72 to $20.34, reflecting heightened investor interest and volatility typical of small-cap industrial technology names.
The partnership highlights growing pressure on traditional manufacturing methods as advanced energy systems demand more efficient production processes. Michelle Sidwell, Velo3D's Chief Revenue Officer, noted that conventional manufacturing is being challenged by the need for innovative solutions in the energy sector. Aurelia's Karol Hricisak emphasized that additive manufacturing can simplify designs, reduce failure points, and accelerate development timelines.
While no specific order value was disclosed, the market reaction suggests investors are pricing in expectations of future revenue from this collaboration. Velo3D management is scheduled to present at the RedChip Future Tech virtual conference on Wednesday at 12:00 p.m. ET, which could provide additional details on the partnership and the company's strategic direction.
The stock's performance outpaced its peers in the 3D printing sector. The ARK 3D Printing ETF remained flat in late trading, while 3D Systems declined nearly 3% and Stratasys dropped about 4%.
Velo3D continues to navigate its turnaround strategy. The company reported first-quarter revenue of $13.8 million in May, representing a 48% year-over-year increase, with a gross margin of 17.2%. However, it posted a GAAP net loss of $7.0 million for the quarter.
The company's balance sheet remains under scrutiny. Velo3D ended March 31 with $16.6 million in cash and cash equivalents, down from $39.0 million at the end of 2025. This was before its April stock offering, which raised approximately $50 million in gross proceeds. CFO Jim Suva stated that the company reduced its outstanding debt by approximately 70%.
Risks associated with the Aurelia project include a phased rollout without disclosed financial terms, potential delays in qualifying key turbine parts, and the need for sufficient funding for 2026 capital expenditures, particularly for RPS growth. Velo3D has flagged liquidity issues, debt covenants, capital raising, and the timing of government contracts as potential risks that could affect outcomes.
Looking ahead, Velo3D is targeting 2026 revenue between $60 million and $70 million and expects EBITDA to turn positive in the second half of the year. The company also plans to present at the Planet MicroCap conference in Las Vegas on June 17.
