Amaero Commits A$72M to Tennessee Facility, Reaffirms FY26 Revenue Guidance
Amaero has completed commissioning its second advanced atomizer at its Tennessee facility, reinforcing its production capacity and reaffirming strong revenue visibility for FY2026. The company’s strategic investments position it as a key domestic supplier in the US advanced manufacturing sector.
- Second advanced EIGA atomizer commissioned at Tennessee facility
- A$72 million capital expenditure to upgrade manufacturing capacity
- Approximately 80% of FY2026 Q1 and Q2 revenue secured via long-term contracts
- Third atomizer scheduled for commissioning in 2026
- Focus on scaling production for defense and advanced manufacturing markets
Amaero Advances Production Capacity
Amaero Ltd (ASX – 3DA) has marked a significant milestone by completing the commissioning of its second advanced Electrode Induction Melting Gas Atomizer (EIGA) at its flagship manufacturing facility in Tennessee, USA. This development enhances the company's ability to produce high-value refractory and titanium spherical powders, critical materials for additive and advanced manufacturing sectors.
The commissioning is part of a broader A$72 million capital expenditure program aimed at upgrading Amaero’s 9,290 square meter Tennessee site. This investment not only expands production capacity but also positions Amaero as a leading domestic supplier capable of meeting the growing demand within the US defense industrial base and broader advanced manufacturing ecosystem.
Strong Revenue Visibility and Strategic Contracts
With the second atomizer operational, Amaero has reaffirmed its FY2026 revenue guidance, buoyed by contracted sales from long-term agreements and purchase orders. The company reports visibility to approximately 80% of its planned revenue for the first half of FY2026, underscoring the strength and reliability of its order book. Key partners include Castheon, KAM, ADDMAN, and Velo3D, reflecting a diversified and strategic customer base.
Chairman and CEO Hank Holland highlighted the company’s forward-leaning capital investments as a decisive move to secure a first-mover advantage in the US market. He emphasized that the enhanced production capacity will enable Amaero to deliver resilient and scalable supply chain solutions, particularly for titanium and refractory alloy powders essential to aerospace, defense, and medical manufacturing.
Looking Ahead – Third Atomizer and Scaling Production
Looking forward, Amaero plans to commission a third EIGA atomizer in 2026, further expanding its production capabilities. The company is focused on scaling production and fulfilling commercial contracts as it moves into FY2026. This expansion aligns with broader industry trends favoring domestic supply chains and advanced manufacturing technologies.
An investor briefing scheduled for late June will provide additional insights into Amaero’s operational progress and strategic outlook. Market participants will be watching closely to assess how the company leverages its enhanced capacity to capitalize on surging demand for advanced materials.
Bottom Line?
Amaero’s expanded capacity and secured contracts set the stage for a pivotal year in scaling US advanced materials production.
Questions in the middle?
- How will Amaero manage ramp-up risks associated with new atomizer commissioning?
- What are the margins and profitability expectations tied to the long-term contracts?
- How might emerging competitors or supply chain disruptions impact Amaero’s growth trajectory?
