Why Did AML3D’s Losses Deepen Despite Revenue Growth in FY2025?
AML3D Limited reported a modest increase in revenue for FY2025 but saw its losses widen significantly, raising questions about its path to profitability.
- Revenue increased marginally to $7.39 million
- EBITDA loss nearly doubled to $6.54 million
- Net tangible assets per security rose to 5.7 cents
- Loss before tax expanded to $7.40 million
- No dividends declared or paid for the year
Financial Performance Overview
AML3D Limited (ASX – AL3), a player in the industrial additive manufacturing sector, has released its preliminary final report for the year ended 30 June 2025. The company recorded a slight increase in revenue, edging up 1% to $7.39 million compared to the previous year. However, this modest top-line growth was overshadowed by a sharp deterioration in profitability metrics.
The company’s EBITDA loss ballooned to $6.54 million, nearly doubling from $3.31 million in FY2024. This translated into a loss before income tax of $7.40 million, a 78% increase year-on-year. The loss after tax attributable to shareholders also widened significantly, although the basic and diluted loss per share improved slightly from 1.7 cents to 1.6 cents.
Balance Sheet Highlights
On the balance sheet front, AML3D reported a substantial increase in net tangible assets per security, rising from 2.1 cents to 5.7 cents. This improvement was driven by a rise in net tangible assets to approximately $30.46 million, despite a reduction in intangible assets. The company’s ordinary shares on issue increased to over 537 million, reflecting capital management activities during the year.
Operational and Strategic Context
The report notes no changes in ownership of controlled entities or joint ventures, and no dividend payments or reinvestment plans were declared. While the revenue growth is a positive sign, the widening losses suggest that AML3D is still navigating challenges in scaling its operations profitably. The absence of dividends aligns with the company’s focus on reinvesting in growth and technology development.
Investors will be keen to see the detailed Directors’ Report and audited financial statements for insights into cost drivers and strategic initiatives. The company’s registered trademarks; AML3D, WAM, WAMSoft, and ARCEMY; highlight its technology portfolio, but the financials indicate that commercialisation and cost control remain critical hurdles.
Looking Ahead
AML3D’s financial results underscore the tension between growth ambitions and operational realities in the additive manufacturing sector. The company’s ability to convert its technology into sustainable profits will be closely watched by the market. Further clarity on management’s plans to address the escalating losses and capitalise on its asset base will be pivotal in shaping investor confidence.
Bottom Line?
AML3D’s FY2025 results reveal growing pains amid modest revenue gains, setting the stage for a critical year ahead.
Questions in the middle?
- What are the main factors driving the sharp increase in EBITDA losses?
- How does AML3D plan to leverage its increased net tangible assets to improve profitability?
- When can investors expect clearer guidance on the company’s path to sustainable earnings?
