Aurora Labs Advances AU4 Micro Gas Turbine, Eyes Defence Production Scale-Up

AU4 Micro Gas Turbine Milestone

Aurora Labs Limited (ASX: A3D) has reached a pivotal milestone with the completion of the design, build, and initial testing phase of its AU4 micro gas turbine, engineered specifically for unmanned aerial vehicle (UAV) propulsion. Delivering 40 kilograms of thrust, the AU4 leverages the company's advanced additive manufacturing capabilities to optimize engine performance, efficiency, and manufacturability.

The design improvements are notable, with over 40 individual parts eliminated by integrating components such as the gas seal, exhaust nozzle, and engine mounts into a single print-ready casing. This consolidation not only streamlines assembly but also contributes to a measured 6% reduction in fuel consumption compared to conventional propulsion systems, underscoring Aurora Labs’ commitment to innovation in fuel efficiency.

Strategic Defence Engagements and Market Positioning

During the quarter, Aurora Labs capitalized on key industry events including the Avalon Airshow 2025 in Australia and the Sea Air Space conference in Washington, D.C. These platforms facilitated strong engagement with international defence primes, UAV developers, and government delegations. The company showcased both the AU4 and its smaller AU2 propulsion engines, generating significant interest in its additive manufacturing-based propulsion solutions tailored for attritable and rapidly deployable UAV systems.

CEO Rebekah Letheby highlighted the importance of these interactions, noting the alignment of Aurora’s technology with sovereign defence needs and the encouraging depth of discussions around volume manufacturing and higher-thrust propulsion systems for extended-range UAV applications. The company is actively pursuing formal partnerships and commercial agreements to transition from development to scaled production.

Industrial Print Services and R&D Progress

The Industrial Print Services Bureau continues to be a valuable revenue stream and strategic asset, delivering across defence, oil and gas, and resources sectors. Notably, the bureau supports the Commonwealth’s novel engine project, with ongoing engineering milestones fostering engagement with the Australian Defence Force. Repeat orders from key customers such as Alcoa reinforce steady demand for printed components.

Research and development efforts using the AL250 3D metal printer have advanced material performance, particularly with aluminium, copper, and zirconium-based alloys. These materials enhance engine weight, thermal management, and operational endurance, while the company progresses toward ISO 9100D certification to meet aerospace and defence quality standards. Zirconium’s unique properties, including corrosion resistance and neutron transparency, open avenues for specialised defence applications.

Financial Position and Outlook

Despite ongoing investment in production initiatives, Aurora Labs maintained a cash balance of $1.16 million at quarter-end, reflecting prudent fiscal management. The company reported net cash used in operating activities of $1.02 million for the quarter, consistent with its focus on R&D and scaling production capabilities.

Looking ahead, Aurora Labs aims to secure purchase orders for its micro gas turbines, advance infield testing and verification, and formalize defence and aerospace partnerships initiated at recent airshows. Preparations for volume production and certification compliance are underway, alongside expanding design and testing activities for higher-thrust propulsion systems.

With the initial development phase complete, Aurora Labs is positioned at the forefront of sovereign propulsion system manufacturing through additive manufacturing, poised to meet growing defence sector demand for efficient, scalable UAV propulsion solutions.