How Amaero’s 445% Revenue Surge Is Reshaping US Defense Manufacturing

• 445% revenue growth to A$4.7 million in September quarter
• US$22.8 million EXIM Bank loan secured for equipment financing
• A$50 million equity placement to accelerate growth initiatives
• Exclusive five-year supply agreements with Titomic and Knust-Godwin
• Satisfaction of Velo3D qualification condition and collaborations with Boeing and US DoD prime contractor

Robust Revenue Growth Amid Production Scaling

Amaero Ltd (ASX, 3DA) has delivered a standout September 2025 quarter, reporting revenue of A$4.7 million, a staggering 445% increase compared to the same period last year. This surge was primarily driven by powder sales, which accounted for approximately A$4.1 million, complemented by A$0.6 million from advanced Powder Metallurgy Hot Isostatic Pressing (PM-HIP) manufacturing. Despite a 240% increase in production from the previous quarter, demand outpaced supply, leaving a backlog of A$0.5 million in unfilled orders heading into the next quarter.

Strategic Capital Raise and Financing to Fuel Expansion

To support its ambitious growth plans, Amaero successfully completed a A$50 million placement, attracting strong institutional interest. The proceeds will accelerate growth and cost reduction initiatives originally slated for FY2027 and beyond. Complementing this, the company secured a US$22.8 million loan facility from the Export-Import Bank of the United States, with US$5.7 million drawn post-quarter. This financing underpins the expansion of manufacturing capacity and the commissioning of new equipment scheduled for the coming quarters.

Strengthening Manufacturing and Leadership

Recognizing the critical need to scale production efficiently, Amaero restructured its operations team and appointed Mark Struss as Vice President of Manufacturing Operations. Production capacity has already expanded significantly, with powder shipments increasing by 153% and atomization output by 240% quarter-on-quarter. Additional equipment orders and process improvements are underway to meet growing demand and improve quality and safety standards.

Forging Key Partnerships in Defense and Aerospace

Amaero’s strategic collaborations continue to deepen, notably with a U.S. Department of Defense prime contractor and Boeing. The company is progressing on First Article parts for defense applications, validating PM-HIP as a viable alternative to traditional large castings and forgings. Furthermore, Amaero satisfied Velo3D’s qualification conditions for its C103 and Ti64 powders, unlocking initial purchase orders and reinforcing its position in additive manufacturing supply chains.

Exclusive five-year supply agreements with Titomic and Knust-Godwin further cement Amaero’s role as a critical supplier of refractory and titanium powders. These partnerships align with the broader U.S. initiative to strengthen sovereign manufacturing capabilities in defense and aerospace sectors.

Looking Ahead, Ambitious Revenue Targets and Market Positioning

Updated guidance projects FY2026 revenue between A$30 million and A$35 million, reflecting an 800%-900% increase over FY2025. The company anticipates a stronger second half, with 60% of revenue expected in 2H FY2026. CEO Hank Holland’s relocation to Chattanooga, Tennessee, underscores Amaero’s commitment to its U.S. manufacturing base and strategic growth trajectory.

Bottom Line?

Amaero’s rapid scaling and strategic partnerships position it as a rising force in advanced manufacturing, but execution risks remain as it strives to meet soaring demand.

Questions in the middle?

• Can Amaero fully resolve its current production shortfall and clear the backlog in coming quarters?
• How will the company leverage its US$22.8 million EXIM Bank loan to accelerate capacity and cost efficiencies?
• What impact will exclusive supply agreements have on Amaero’s market share and long-term revenue stability?