Amaero Plans A$72M Investment, Targets FY2027 Profitability
Amaero Ltd updates its financial outlook, targeting positive EBITDA by FY2027 and reaffirming a A$72 million capital investment plan despite delays in US Department of Defense contracts.
- Positive EBITDA expected in FY2027, breakeven in FY2026
- Planned capital investments of approximately A$72 million over FY2024-FY2026
- Full funding secured for recent A$22 million placement
- Revenue growth anticipated to accelerate significantly in FY2026
- Delays in US Department of Defense contracts due to budget and policy uncertainties
Updated Financial Guidance and Capital Plans
Amaero Ltd (ASX:3DA) has provided an updated financial guidance that signals a cautious yet optimistic outlook for the coming years. The company now expects to achieve positive EBITDA by fiscal year 2027, with a breakeven point anticipated in FY2026. This marks a significant milestone for the advanced manufacturing firm, which specialises in refractory titanium powders and near-net-shape components for defence, space, and aviation sectors.
Alongside this, Amaero reaffirms its commitment to substantial capital investment, planning approximately A$72 million over the three-year period from FY2024 to FY2026. This investment is aimed at scaling manufacturing capabilities and supporting the company’s strategic growth initiatives.
Funding and Revenue Growth Outlook
The company confirms that the recent A$22 million placement is fully funded, providing a solid financial foundation to support its expansion plans. Amaero anticipates that revenue growth will accelerate significantly in FY2026, driven by a robust pipeline of long-term commercial contracts and agreements. This confidence is underpinned by the company’s advanced manufacturing technology and its positioning within critical supply chains.
Impact of US Department of Defense Contract Delays
However, Amaero’s progress faces headwinds from delays in new contract awards by the United States Department of Defense. The ongoing congressional budget resolution for FY2025 has paused new starts and restarts of various defense programs, including those related to hypersonic development and testing. These delays have contributed to slower-than-expected revenue recognition in the near term.
Despite this, Amaero’s leadership remains focused on the broader strategic opportunity presented by US government initiatives aimed at reshoring manufacturing supply chains. Chairman and CEO Hank J. Holland highlighted the company’s mission to address critical domestic supply gaps in titanium spherical alloy powders and near-net-shape manufacturing, aligning with national priorities to strengthen sovereign defense capabilities.
Strategic Positioning and Market Potential
Amaero’s advanced powder metallurgy and PM-HIP (Powder Metallurgy Isostatic Pressing) technologies position it as a key player in alleviating strained domestic supply chains for high-value aerospace and defense components. The company’s US-based manufacturing and technical teams bring decades of experience, supporting its ambition to become a cornerstone supplier as multinational companies relocate parts of their manufacturing footprint back to the United States.
Looking ahead, Amaero expects the current quarter’s revenue growth momentum to continue accelerating into FY2026, supported by a growing commercial pipeline and long-term contracts. The company’s strategic focus on reshoring and sovereign supply chain resilience could well position it to benefit from evolving geopolitical and fiscal policies.
Bottom Line?
Amaero’s path to profitability hinges on navigating US defense budget uncertainties while capitalising on reshoring trends.
Questions in the middle?
- How will ongoing US defense budget negotiations impact Amaero’s contract pipeline and revenue timing?
- What are the key milestones Amaero must achieve to meet its FY2026 breakeven and FY2027 positive EBITDA targets?
- How might shifts in global supply chain policies accelerate demand for Amaero’s advanced manufacturing capabilities?
