AML3D posts positive quarter

AML3D is reporting a quarter that included the completion of key US Navy and Australian defence contracts, the opening and expansion of the company’s US facilities and entry into the US utilities sector. AML3D also raised an additional A$30 million of capital to fund the company’s next growth phase. An award of US$951 million by the US Navy to Blue Forge Alliance, an AML3D partner, to boost the U.S. Navy’s submarine industrial base is expected to underpin continuing strong growth in AML3D’s U.S. operations. U.S. growth is also expected to be driven by continued expansion into new US markets. In addition, AML3D will be investing in its European expansion plans, with an initial focus on the Defence sector in the UK, an AUKUS partner. Key highlights during the quarter included: Successful completion of a strongly supported, institutional placement that raised A$30 million. Completion of the: U.S. Navy’s Virginia-Class nuclear submarine tailpiece components contract. –  A$2 million design and supply contract for non-safety critical US Navy submarine parts; Australian Government Defence Science and Technology Group (DSTG) contract to supply components for testing in marine applications; DSTG contract to supply a 6-part nozzle assembly for an aerospace project.  – Contract to upgrade an Australian Defence and industry supplier’s systems to ARCEMY standard. The opening, with immediate plans for expansion, of AML3D’s US facility. US operations launched with A$2.27 million ARCEMY® X contract for the Tennessee Valley Authority, the sixth-largest power supplier and largest public utility in the USA. Delivery of the largest custom made ARCEMY® system, for Austal, to AML3D’s US facility for final testing. Continuing US Navy materials qualification programs for: Nickle Aluminium Bronze (NAB) alloys characterisation and testing; Copper Nickle (CuNi) alloys characterisation and testing. AML3D’s US ‘Scale up’ strategy was launched in early 2023 to access the huge demand for industrial metal 3D printing that continues to emerge in the USA. The strategy represents an evolution from using AML3D’s patented ARCEMY® technology to manufacture 3D printed parts to supplying ARCEMY® metal 3D printing systems to end users. The ARCEMY® supply strategy has delivered bigger contracts and is unlocking new software licensing, hardware maintenance and tech support revenue streams with over A$19 million in orders won to date and A$2.4 million of those orders received in the quarter under review. AML3D maintains a contract manufacturing capability to showcase its WAM® technology, print proof of concept parts, run alloy testing programs and small production runs as needed. AML3D continues to invest to support the US Scale up strategy, which is creating significant shareholder value, with the opening of AML3D’s US technology centre in Stow, Ohio (Stow) during the December quarter. At opening, Stow was operational and working on the delivery of a A$2.27 million ARCEMY® order from the Tennessee Valley Authority (TVA), the largest public utility in the USA. Alongside the formal opening of Stow, AML3D announced immediate plans for an investment of A$12 million dollars to expand its US operations. The US expansion plans will position AML3D for its next growth phase, which is expected to be underpinned by the award of US$951 million in additional funds by the US Department of Defence to Blue Forge Alliance, an AML3D partner, to boost the US Navy’s Submarine Industrial Base. The next phase of AML3D’s US ’Scale Up‘ strategy also includes building on the TVA ARCEMY® contract win to expand into additional US sectors, with a particular focus on the Utilities, Aerospace, Marine and Oil & Gas sectors. The Company also plans to use the additional manufacturing capacity the US expansion will create, in both the US and Australia, to enter additional globally significant defence markets. AML3D is executing plans, announced during the December quarter, to establish a European technology centre to facilitate the roll out of the US Scale up playbook across European markets. The European technology centre will be built around a production and demonstration ARCEMY system to allow AML3D access to the UK’s defence sector, in the first instance, with plans to explore additional opportunities across the European Defence, Utilities, Aerospace, Marine and Oil & Gas sectors thereafter. AML3D has identified similar demand signals in Europe that underpinned its successful entry into the US market. In preparation for the next phase of growth, AML3D has completed several US and Australian defence contracts and is continuing its alloy characterisation and testing work in support of the US Navy’s submarine industrial base. The company also completed a A$30 million capital raise in the December quarter, via a strongly support placement to new and existing institutional and sophisticated investors, to fund its growth plans. AML3D is now also positioned to leverage an expanded US manufacturing base to compete for lucrative International Traffic in Arms Regulations (ITAR) and other US only controlled information Defence contracts. AML3D announced contracts worth A$2.4 million and delivered cash receipts of A$0.5 million in the December quarter, with cash receipts for the First Half of 2025 of A$3.2 million. Overdue cash receipts for the December quarter of A$1 million have been received in early January 2025. Operating cash outflows were consistent with Q1 with the exception of a significant reduction in the Cost of Goods Sold from $0.9 million in 1Q25 to $210,000 in 2Q25 reflecting a focus on the completion of projects already underway in preparation for AML3D’s next growth phase. AML3D continued to invest in the establishment and expansion of its US facilities with A$0.5 million invested in capital equipment in 2Q25, and close to $1 million invested year to date. The company’s cash position is extremely strong at A$32.1 million on 31 December 2024, representing 15 quarters of available future operating cash, following the A$30 million of capital raised (before costs), via an equity placement, undertaken in 2Q25. AML3D is well funded to execute the next phase of its U.S. growth strategy. A key part of this strategy is having the capacity to expand AML3D’s U.S. operations to match an expected increase in U.S. Defence production and ARCEMY® system contracts over the short and medium term. This demand is expected to be driven, to a large extent, by the award of US$951 million to Blue Forge Alliance by the U.S. Department of Defence to uplift the U.S. Navy Submarine Industrial Base. Alongside the expansion of the U.S. operations to keep pace with the expected growth in US Defence contracts AML3D also expects to leverage additional capacity to build on the TVA ARCEMY® contract and accelerate entry into the US Utility, Marine, Oil & Gas and Aerospace sectors. The staged expansion of AML3D’s US operations will create additional capacity across AML3D’s manufacturing network to build on the company’s success, to date, in supporting the Australian defence sector. AML3D expects the Australian defence sector to also contribute to a near and medium-term flow of defence contracts. In addition, AML3D is progressing plans to open a European Technology Hub in the Second half of FY25, to take advantage of the strong demand signals from Europe and the UK Defence sector in particular. The planned entry into Europe is expected to drive significant additional contract growth across European Defence, Utility, Oil & Gas, Marine and Aerospace markets over the medium term. For Editorial Inquiries Contact: Editor Kym Bergmann at [email protected] For Advertising Inquiries Contact: Group Sales Director Simon Hadfield at [email protected]