Amaero’s Heavy Investment Raises Execution and Profitability Questions

Strong Revenue Growth Amid Heavy Investment

Amaero Ltd (ASX – 3DA) has delivered a landmark year for FY2025, reporting a 470% increase in revenue to $3.8 million, a significant leap from $0.46 million the prior year. This growth reflects the company’s successful transition from development to initial commercial operations in the advanced materials and additive manufacturing sector, particularly in the production of refractory and titanium alloy powders.

Despite this revenue surge, Amaero recorded a loss after tax of $24.4 million, widening from $18.8 million in FY2024. The loss underscores ongoing substantial investments in manufacturing capacity, infrastructure, and operational readiness as the company positions itself for future scale.

Manufacturing Capacity Expansion and Technical Milestones

Central to Amaero’s growth strategy has been the commissioning of its second Electrode Induction Melting Inert Gas Atomizer (EIGA Premium) in June 2025 at its flagship 100,000 square foot facility in McDonald, Tennessee. This follows the commissioning of the first atomizer in June 2024, placing Amaero among the largest domestic producers of high-purity spherical powders in the U.S.

The company has also ordered a third atomizer, on track for commissioning by June 2026, which will further boost production throughput. Alongside these expansions, Amaero completed a $28 million infrastructure upgrade, enhancing its manufacturing capabilities and achieving AS9100D aerospace quality certification for both powder production and Powder Metallurgy Hot Isostatic Pressing (PM-HIP) processes.

Strategic Commercial Agreements Bolster Revenue Visibility

Amaero’s commercial momentum was highlighted by a five-year exclusive supply agreement with Velo3D, a leading U.S. additive manufacturing technology company. Under this deal, Amaero will exclusively supply Velo3D with C103 and other refractory alloy powders, with estimated revenue of $35 million over the contract term. Initial purchase orders for 500 kg each of C103 and Ti64 powders are scheduled for shipment in Q1 FY2026.

Additionally, a three-year supply agreement with The Perryman Company secures a reliable source of U.S.-melt titanium bar feedstock, critical for Amaero’s atomization processes. These agreements, combined with ongoing discussions with aerospace primes and defense contractors, provide the company with approximately 80% visibility of planned revenue for the first half of FY2026.

Capital Structure and Leadership Enhancements

To fund its ambitious growth plans, Amaero raised $47 million through two institutional placements during FY2025, attracting both existing cornerstone investors and new U.S.-based institutional capital. Complementing this equity raise, the company secured a $35 million equipment financing loan from the U.S. Export-Import Bank under the Make More In America initiative, marking a significant endorsement of Amaero’s role in U.S. sovereign manufacturing.

Leadership was strengthened with the appointment of Michael “Mick” Maher as Chief Strategy and Commercial Officer and Brett Paduch as Chief Financial Officer, both bringing deep expertise in defense programs and financial management. The Board also welcomed Non-Executive Director Alistair Cray, enhancing governance and capital markets experience.

Outlook – Positioned for Commercial Scaling and Profitability

Looking ahead, Amaero is poised to capitalize on the reshoring and re-industrialization trends in the U.S., driven by increased defense spending and supply chain security imperatives. The company expects a significant revenue step-up in FY2026, with Q1 projected at approximately $5.5 million; a 550% increase year-on-year; and targets positive EBITDA by FY2027.

Ongoing collaborations with major defense contractors and aerospace leaders like Boeing further validate Amaero’s technology and manufacturing approach. However, the company acknowledges risks related to production scale-up, regulatory compliance, and competitive pressures in the specialty alloy market.