How MPW’s $1M US Navy Deal Fuels Its Metal Powder Manufacturing Surge

• $1 million contract awarded by US Navy for expeditionary powder production unit
• 18 alloys sold to 27 customers, including 8 new clients and 12 enterprise accounts
• Raised $15 million AUD to fund growth and scale production targeting 800MT by 2028
• Strategic partnerships with Eaton Corporation, UDRI, Toho Titanium, and others
• Achieved key technical milestones including Next Gen production system and powder validations

A Breakthrough Quarter for MPW

Metal Powder Works Limited (ASX, MPW) has delivered a robust September 2025 quarter, marked by a landmark $1 million contract with the US Naval Postgraduate School. This deal for an expeditionary DirectPowder™ production unit positions MPW at the forefront of defence additive manufacturing, embedding the company in ongoing Navy exercises and securing an early-mover advantage in a strategically critical market.

The mobile, containerised system enables on-site powder production in remote or contested environments, complementing MPW’s established Neighbourhood 91 facility that handles high-volume, multi-material production. This dual approach addresses urgent field needs while maintaining large-scale supply capabilities.

Expanding Production and Customer Footprint

MPW’s production and sales momentum continues to build, with 18 different alloys delivered to 27 customers during the quarter, including 8 new clients. Notably, 12 of these customers are strategic enterprise accounts with annual powder demands exceeding 5,000 kilograms, some projecting over 100,000 kilograms by 2028. This growth reflects a 50% increase in customer base since MPW’s March 2025 listing and a sevenfold rise in customer engagements, driven by the efforts of a newly expanded sales team.

The company’s product portfolio now includes 20 alloys, with four new powders developed in direct response to customer demand. MPW’s patented DirectPowder™ process allows for flexible, non-thermal powder production, enabling customers to use familiar alloys without requalifying new materials, a significant advantage in additive manufacturing and powder metallurgy sectors.

Strategic Partnerships and Market Penetration

MPW’s strategic collaborations are gaining traction across key industries. The University of Dayton Research Institute (UDRI) is currently qualifying MPW’s titanium and aluminium powders, a critical step that would allow direct procurement by all US Department of Defense command centers. Early feedback suggests MPW powders often outperform traditional atomized powders in various additive manufacturing processes.

Other notable partnerships include Eaton Corporation, a Fortune 500 electrical equipment giant, which continues to order MPW powders following successful laser powder bed fusion trials. Toho Titanium is advancing sintering optimisation trials, targeting a significant annual demand. MPW also made its first entry into the $1.2 billion global laser cladding market through successful bronze alloy tests with Hardchrome Engineering.

Financial Strength and Production Scale-Up

Financially, MPW strengthened its balance sheet with a $15 million capital raise at $3.50 per share, supported by leading institutional investors. The company ended the quarter with a healthy cash balance of $19.3 million AUD, providing ample runway to accelerate its growth strategy. Operating cash flow was slightly negative at $293,000 AUD, reflecting ongoing investment in scaling production and sales capabilities.

On the production front, MPW completed a critical design review for its Next Gen production system and filed a corresponding patent application. The board approved insourcing tooling manufacture to reduce costs and supply chain risks, aiming for a return on investment within a year. These initiatives underpin MPW’s ambitious target to produce 800 metric tonnes of powder annually by 2028.

Looking Ahead

MPW’s trajectory suggests it is carving out a distinctive niche in the additive manufacturing and powder metallurgy markets, particularly within defence, aerospace, maritime, and energy sectors. The company’s ability to rapidly develop new alloys, secure high-profile contracts, and maintain strong gross margins above 50% bodes well for sustained growth. Upcoming milestones to watch include UDRI’s qualification outcomes and the commercialisation of the Next Gen production system.

Bottom Line?

MPW’s strategic wins and production scale-up set the stage for a pivotal growth phase in defence and advanced manufacturing markets.

Questions in the middle?

• Will UDRI qualification unlock broader US Department of Defense procurement contracts?
• How quickly can MPW scale production to meet its 800MT sales target by 2028?
• What impact will increased competition and market consolidation have on MPW’s pricing and margins?