AML3D Secures A$4.5M US Navy Order, Eyes A$200M Market Opportunity

Quarterly Performance and Financial Health

AML3D Limited (ASX, AL3) delivered a solid first quarter for FY26 with customer receipts of A$2.5 million, a slight 9% dip compared to the prior year. Despite this modest decline, the company’s cash position remains robust, closing the quarter with A$30.7 million in cash and equivalents. Operating cash flow was negative, reflecting ongoing investments in research and development and operational scaling, but the balance sheet strength supports AML3D’s ambitious growth plans.

US Navy Opportunity, A Game Changer

The standout highlight was the US Department of the Navy’s Letter of Intent (LOI), which identifies AML3D’s proprietary ARCEMY Wire Additive Manufacturing technology as central to a potential A$150-200 million opportunity within the US Navy Maritime Industrial Base (MIB). This endorsement signals strong confidence in AML3D’s technology to modernize naval shipbuilding and repair. Post-quarter, AML3D converted this momentum into a confirmed A$4.5 million order from Huntington Ingalls Industries, the largest US military shipbuilder, for two custom ARCEMY X systems. This order not only validates the LOI but also marks a critical step in scaling production and deployment within the US defence sector.

Expanding Footprint in UK and Europe

AML3D is actively broadening its international reach, particularly in the UK and Europe. The company secured a A$1.2 million alloy test contract with BAE Systems UK and established distribution partnerships with Scotland-based Arc Additive Limited and Germany’s DMFG Solutions GmbH. These moves are designed to capitalize on emerging demand in European defence markets and lay the groundwork for a planned A$5 million European Technology Hub. This strategic expansion complements AML3D’s US scale-up and diversifies its market exposure.

Innovation and R&D Investment

AML3D continues to invest heavily in advancing its ARCEMY technology. The ARCEMY Increase Deposition Rates (AIDR) project, with a total budget of A$2.24 million, aims to boost production efficiency and component output. The South Australian Government’s contribution of A$1.1 million to date underscores the project’s significance. These R&D efforts are critical to maintaining AML3D’s competitive edge in large-scale metal additive manufacturing and supporting its ability to meet growing demand.

Broader Market Penetration and Advocacy

Beyond defence, AML3D is making inroads into the US utilities sector, exemplified by the ARCEMY X system installation at the Tennessee Valley Authority, the largest US public utility. The company’s advocacy program in the US remains a cornerstone of its strategy, fostering relationships with key opinion leaders and government officials, including support from Australia’s ambassador to the US and the Australian Minister for Defence Industry. This engagement is pivotal for navigating the complex defence procurement landscape and accelerating adoption of ARCEMY systems.