AML3D’s Expansion Hinges on US Navy Contracts and Legislative Approvals
AML3D Limited reports a 77% jump in US customer receipts and secures a pivotal US Navy Letter of Intent worth up to $200 million, underpinning its rapid expansion in defence manufacturing.
- 77% increase in US customer receipts to A$2.9 million in Q4 FY25
- US Navy issues Letter of Intent for $150-$200 million opportunity
- Official opening of US Manufacturing and Technology Centre in Ohio
- Entry into UK defence sector with BAE Systems alloy contract
- Strong cash position of A$30.4 million to fund US and European expansion
US Market Momentum and Strategic Facility Launch
AML3D Limited (ASX – AL3) has delivered a robust quarter, driven by a 77% surge in customer receipts in the US market to A$2.9 million for the June 2025 quarter. This growth coincides with the official opening of its Manufacturing and Technology Centre in Stow, Ohio, a move that strategically positions AML3D to meet escalating demand from US defence and manufacturing sectors. The Ohio facility, equipped with advanced ARCEMY® Wire Additive Manufacturing systems, is central to AML3D’s ambition to scale operations rapidly and deepen ties with key US defence stakeholders.
Pivotal US Navy Letter of Intent and Defence Sector Expansion
A landmark development this quarter was the US Department of the Navy’s Letter of Intent (LOI), which identifies AML3D’s proprietary ARCEMY technology as critical to the Maritime Industrial Base’s additive manufacturing needs. Valued between $150 million and $200 million, this LOI signals a significant commercial opportunity and validates AML3D’s technology as a cornerstone in modernising US naval manufacturing. Complementing this, the appointment of Frederick Stefany, an architect of the US Navy’s Maritime Industrial Base, to AML3D’s US Board enhances the company’s strategic insight and influence within defence circles.
Broadening Horizons – UK Defence and European Expansion
AML3D’s growth is not confined to the US. The company has secured a contract with BAE Systems, a major UK defence prime contractor, to supply Nickel Aluminium Bronze alloy wire feedstock and manufacture test components. This contract marks AML3D’s entry into the UK defence market, aligning with its broader strategy to support AUKUS partners. To further this ambition, AML3D is allocating A$5 million towards establishing a European manufacturing and technology centre, aiming to bolster defence supply chains and tap into significant European defence markets.
Financial Strength Fuels R&D and Capacity Build
Financially, AML3D remains well-capitalised with a cash balance of A$30.4 million as of June 30, 2025. The company has invested close to A$2 million in research and development during FY25, focusing on accelerating ARCEMY deposition rates to enhance production efficiency. Additionally, AML3D is committing A$12 million to more than double its US manufacturing capacity, ensuring readiness to meet anticipated demand from defence and civilian sectors alike.
Outlook – Scaling Up Amid Legislative Tailwinds
Looking ahead, AML3D’s US Scale Up strategy is poised to benefit from supportive US defence legislation, including the National Defense Authorization Act and proposed shipbuilding acceleration bills. These legislative measures are expected to expedite funding and procurement processes, potentially accelerating contract awards. With a strong pipeline of near-term sales to US Navy prime contractors and expanding opportunities across the Army and Marine Corps, AML3D is well-positioned to capitalise on its technological edge and strategic partnerships.
Bottom Line?
AML3D’s strategic expansions and US Navy endorsement set the stage for accelerated growth, but contract execution and legislative developments will be key to watch.
Questions in the middle?
- How soon will AML3D convert the US Navy Letter of Intent into binding contracts?
- What impact will pending US defence legislation have on AML3D’s contract pipeline and funding?
- How will AML3D’s European manufacturing base influence its competitive position in the UK and broader European defence markets?
