Amaero Ltd has reported a remarkable 366% increase in revenue for the first half of FY2026, alongside key capital investments and formal validation from the US Navy, signalling a strong move towards scaled commercial production.
- 366% revenue growth in H1 FY2026 to A$7.7 million
- Updated FY2026 revenue guidance of A$18-20 million, up to 425%
- Secured A$4.6 million commercial order from Titomic Limited
- US Navy issues Letter of Support for PM-HIP manufacturing process
- Capital investments in Argon recycling plant and advanced atomiser to scale US production
Strong Revenue Growth and Financial Position
Amaero Ltd (ASX, 3DA) has delivered a striking financial performance in the December 2025 quarter, with revenue for the first half of FY2026 soaring to A$7.7 million; a 366% increase compared to the same period last year. The company has updated its full-year revenue guidance to between A$18 million and A$20 million, representing a 372% to 425% uplift over FY2025. This growth is underpinned by a robust pipeline of contracted revenue worth A$9.7 million secured for the second half of the fiscal year.
Maintaining a strong cash position, Amaero ended December with A$52.6 million in cash and restricted cash, up A$1.7 million from the previous quarter. This financial strength supports the company’s ongoing capital investment and operational expansion plans.
Capital Investments Accelerate US Manufacturing Scale-Up
Key capital investments during the quarter include binding purchase contracts for a dedicated Argon recycling plant and a fourth advanced EIGA Premium atomiser. These assets are critical to expanding Amaero’s powder production capacity in the United States and are expected to significantly reduce unit costs. Impressively, the Argon recycling plant was secured at approximately 60% below earlier cost estimates, enhancing capital efficiency and accelerating the company’s path to competitive commercial production.
The Argon recycling plant alone is projected to cut Argon costs by around 80% once fully operational, a substantial saving given Argon’s role in the gas atomisation process for producing high-value powders.
US Navy Validation and Strategic Partnerships
Amaero’s proprietary Powder Metallurgy Hot Isostatic Pressing (PM-HIP) manufacturing process received formal validation from the United States Navy in the form of a Letter of Support. This endorsement recognises PM-HIP as a viable and scalable alternative to traditional casting and forging methods, aligning with US sovereign manufacturing priorities and efforts to strengthen the domestic defense industrial base.
Further commercial progress was marked by converting a strategic partnership with Titomic Limited into a tangible order. Amaero received a A$4.6 million purchase order for refractory alloy powders under their exclusive five-year supply and development agreement, signalling the transition from partnership to recurring commercial supply.
Operational Momentum and Outlook
Operationally, Amaero reported increased powder shipments and improved atomisation output, reflecting better utilisation of existing capacity and ongoing manufacturing optimisation. The company is advancing a diversified portfolio of commercial opportunities across defense, aerospace, space, medical, and industrial sectors, leveraging its US-based manufacturing capabilities.
Looking ahead, Amaero anticipates that the resolution of US government funding uncertainties and federal budget appropriations will act as positive catalysts, accelerating contract awards and commercial momentum. The company remains focused on disciplined execution, scaling production in line with customer demand, and achieving sustainable positive earnings before interest, tax, depreciation, and amortisation (EBITDA).
Bottom Line?
Amaero’s strategic investments and US Navy endorsement position it well for accelerated growth, but the timing of government contracts remains a key variable.
Questions in the middle?
- How quickly will the new Argon recycling plant and atomiser impact production costs and volumes?
- What is the potential scale and timing of further US government contracts following the Navy’s validation?
- How will Amaero manage supply chain and operational risks as it scales production capacity?