How Aurora Labs’ Defence Tech Advances Amid Rising Losses and Revenue Surge

Financial Performance and Revenue Growth

Aurora Labs Limited (ASX – A3D) has released its preliminary final report for the year ended 30 June 2025, revealing a mixed financial picture. The company recorded a loss after tax of $3.75 million, up 34% from the previous year’s $2.81 million loss. However, this was accompanied by a striking 327% increase in revenue, which rose to $743,831, primarily driven by contracts and services related to defence and industrial 3D metal printing.

While losses have widened, the revenue growth signals early commercial traction as Aurora Labs advances its proprietary additive manufacturing and propulsion technologies. The company’s cash position stood at $1.16 million at year-end, supported by a $2 million capital raising and R&D tax refunds, though management acknowledges ongoing cash flow challenges.

Progress in Defence-Focused Technologies

Aurora Labs continues to focus on its strategic pivot towards defence applications, particularly through the development of micro gas turbine (MGT) engines. The company successfully completed bench and flight testing of its AU2 200N-class turbine and finalized the design of the more powerful AU4 400N turbine. These propulsion systems are targeted at small unmanned aerial systems (SUAS), a growing segment within defence technology.

Significantly, Aurora Labs secured a $319,000 grant from the Australian Defence Force (ADF) to develop a novel propulsion system, completing the first stage and positioning itself for further development phases. The company also supplied prototype and production parts to multiple defence programs, expanding its footprint within sovereign industrial capabilities.

Industrial Printing Services and Certification Efforts

The company’s industrial print bureau in Perth has grown both in revenue and technical capability, servicing clients across defence, resources, and oil & gas sectors. The integration of the AL250 industrial metal printer has enhanced production capacity and material versatility, supporting both internal propulsion projects and external customer demands.

Looking ahead, Aurora Labs is actively pursuing AS 9100D certification, the aerospace quality management standard essential for supplying flight-critical parts to government and major defence contractors. Achieving this certification is expected to unlock new commercial opportunities and facilitate integration into the aerospace and defence supply chain.

Governance and Management Changes

The company experienced notable board changes with the retirement of long-serving director Terry Stinson in July 2025. The leadership team, including Chairman Grant Mooney and CEO Rebekah Letheby, remains committed to navigating the complex path of commercialisation and scaling production capabilities.

Despite the progress, the board acknowledges the inherent risks and uncertainties typical of early-stage industrial technology ventures, including market acceptance, competition, and operational scalability. The company’s risk management framework is designed to mitigate these challenges as it advances its technology portfolio.

Outlook and Market Positioning

Aurora Labs enters the new financial year with a clear focus on converting its technological advances into commercial sales, particularly within the defence propulsion market. The company aims to expand its industrial printing revenues, achieve critical aerospace certifications, and continue developing its intellectual property in additive manufacturing.

While the company’s losses and cash burn remain material, the strategic investments in technology development, government partnerships, and manufacturing capacity position Aurora Labs as a potential leader in sovereign defence manufacturing and advanced propulsion systems.