AML3D Accelerates US Expansion with $30M Raise and $951M US Navy Contract Boost
AML3D Limited has reported a strong December quarter marked by significant defense contract completions, a $30 million capital raise, and strategic expansion into the US and European markets. The company is poised for accelerated growth, underpinned by a major US Navy funding boost and new sector entries.
- Completed key US Navy and Australian defense contracts
- Raised A$30 million through institutional placement
- Opened and expanded US facility with plans for $12 million investment
- Secured $951 million US Navy funding to support submarine industrial base
- Entered US utilities sector with $2.27 million ARCEMY® contract
Strong Quarter Anchored by Defense Wins and Capital Raise
AML3D Limited (ASX: AL3) has delivered a robust performance in the December 2024 quarter, successfully completing several high-profile defense contracts including components for the US Navy's Virginia-Class nuclear submarines and Australian Defence Science and Technology Group projects. The company also secured a A$30 million capital raise via an institutional placement, providing a solid financial foundation for its ambitious growth plans.
These defense contracts not only validate AML3D's Wire Additive Manufacturing (WAM®) technology but also reinforce its strategic positioning within critical industrial sectors. The completion of these contracts coincides with ongoing materials qualification programs for key alloys used in submarine manufacturing, underscoring AML3D's integral role in supporting the US Navy's submarine industrial base.
US Expansion and New Market Penetration
AML3D's US growth strategy is gaining momentum with the opening of its technology centre in Stow, Ohio, which is already operational and fulfilling a A$2.27 million ARCEMY® X contract for the Tennessee Valley Authority (TVA), the sixth-largest power supplier in the US. This marks AML3D's entry into the US utilities sector, expanding its footprint beyond defense into new industrial verticals.
Building on this momentum, AML3D announced plans to invest an additional A$12 million to expand its US operations. This expansion is strategically timed to leverage the US Department of Defence's recent award of US$951 million to Blue Forge Alliance, an AML3D partner, aimed at revitalizing the US Navy's submarine industrial base. This funding is expected to drive a surge in demand for AML3D's ARCEMY® systems and related services.
European Market Entry and Diversification
Looking beyond the US, AML3D is preparing to establish a European technology centre focused initially on the UK defense sector, a key AUKUS partner. This move is designed to replicate the successful US scale-up playbook in Europe, targeting defense, utilities, aerospace, marine, and oil & gas sectors. The company has identified strong demand signals in Europe similar to those that catalyzed its US expansion, positioning AML3D for diversified growth across multiple geographies and industries.
Financial Health and Operational Efficiency
AML3D's financial position remains robust with cash reserves of A$32.1 million at quarter-end, representing approximately 15 quarters of operating cash runway. The company reported contracts worth A$2.4 million and cash receipts of A$0.5 million for the quarter, with overdue receipts of A$1 million collected in early January 2025. Notably, the cost of goods sold dropped significantly from $0.9 million in Q1 to $210,000 in Q2, reflecting a strategic focus on completing existing projects ahead of the next growth phase.
Capital expenditure in the US facilities totaled A$0.5 million for the quarter, with nearly A$1 million invested year-to-date, underscoring AML3D's commitment to scaling its manufacturing capabilities to meet anticipated demand.
Outlook: Positioned for Multi-Sector Growth
With a strong balance sheet and a clear growth trajectory, AML3D is well-positioned to capitalize on expanding US defense contracts and new sector opportunities in utilities, aerospace, marine, and oil & gas. The planned European technology hub will further diversify AML3D's market exposure and contract pipeline. The board expresses confidence that these strategic initiatives will generate significant shareholder value over time, as AML3D leverages its patented ARCEMY® technology and manufacturing scale to disrupt traditional metal additive manufacturing markets globally.
Bottom Line?
AML3D’s strategic capital raise and multi-market expansion set the stage for accelerated growth, but execution risks remain as it scales operations internationally.
Questions in the middle?
- How will AML3D manage operational risks associated with rapid US and European expansion?
- What is the timeline and expected impact of the European technology centre on AML3D’s revenue?
- How dependent is AML3D’s growth on continued US Department of Defence funding and partner contracts?
