Aurora Labs Accelerates Defence Manufacturing with New Propulsion Contracts

Strategic Defence Contracts Propel Aurora Labs Forward

Aurora Labs Limited (ASX: A3D) has reported a robust quarter ending December 2024, marked by key contract wins and technological advancements that reinforce its position as a sovereign leader in additive manufacturing for Defence applications. The company announced a novel propulsion engine contract awarded by the Commonwealth Government, alongside a third contract focused on advanced materials printing, underscoring growing demand for its industrial printing services.

CEO Rebekah Letheby highlighted the company’s strategic pivot towards printed propulsion systems, particularly micro gas turbines (MGTs), which are poised to disrupt traditional supply chains in aerospace manufacturing. Successful test flights and bench testing have demonstrated the performance and reliability of Aurora Labs’ propulsion systems, with the company now scaling production capabilities to meet anticipated orders.

Expanding Production and Market Reach

To support this growth, Aurora Labs completed a $2 million capital raising aimed at expanding its Canning Vale production facility and accelerating the micro gas turbine production pipeline. The company’s Industrial Print Services Bureau continues to gain traction, servicing Defence, Resources, and Oil & Gas sectors, with a notable $300,000 purchase order for a novel propulsion system design and print for the Australian Defence Force.

Further, Aurora Labs is advancing the development and testing of 400N and 800N thrust-class micro gas turbines, targeting next-generation UAVs and tactical air systems. These efforts align with the company’s goal to provide scalable, cost-effective propulsion solutions that enhance sovereign defence capabilities.

Innovation in Materials and Manufacturing

The company’s R&D team has made significant progress with the AL250 printer, trialing aluminium composite alloys to improve strength-to-weight ratios, corrosion resistance, and thermal performance. These advancements aim to meet stringent aerospace standards and certification requirements, positioning Aurora Labs as a trusted supplier in the aerospace and defence markets.

Ongoing collaboration with the Department of Defence on experimental metal alloy 3D printed parts continues to refine material properties for specialised applications, reinforcing Aurora Labs’ reputation as an innovative leader in sovereign manufacturing.

Industry Engagement and Outlook

Participation at the LandForces Defence Conference in Melbourne provided Aurora Labs with valuable opportunities to engage with defence primes and government stakeholders, strengthening relationships and showcasing its technological capabilities. CEO Letheby expressed confidence that these engagements will translate into material orders in the near term.

Financially, the company ended the quarter with a cash balance of $2.2 million, reflecting prudent management amid ongoing investments in growth initiatives. While operating cash flows remain negative, the recent capital raise provides a runway of approximately 2.5 quarters to advance production and business development activities.

Looking ahead, Aurora Labs plans to continue negotiations with key defence and industrial customers, advance R&D to optimise propulsion system efficiency, and pursue certification milestones. The company also intends to exhibit at the 2025 Avalon Airshow, further cementing its presence in the aerospace and defence sectors.