Aurora Labs has marked a significant milestone by securing its first purchase order for micro gas turbine engines, alongside strategic MOUs with major defence groups and a $5.5 million capital raise to fuel growth.
- First commercial order for 20 AU4 micro gas turbine propulsion systems worth $250,000
- Strategic MOUs signed with MBDA Europe and Ares Armaments
- Canning Vale facility upgraded with new CNC machinery to boost production
- AS9100D aerospace quality certification Phase 1 audit successfully completed
- $5.5 million placement completed, including cornerstone investment from Sovereign Propulsion Systems
Defence Propulsion Breakthrough
Aurora Labs Limited (ASX – A3D) has taken a decisive step into the defence propulsion market with its first commercial order for 20 AU4 micro gas turbine engines, valued at $250,000. This order, placed by Sovereign Propulsion Systems (SPS), follows a joint collaboration agreement focused on aerial testing and integration of Aurora’s propulsion technology. Delivery is expected to complete by the end of the first quarter of 2026, setting the stage for real-world flight testing at SPS’s South Australian facility.
This initial order not only validates Aurora’s propulsion technology after extensive development but also establishes the company as a supplier within the defence sector, opening pathways for future propulsion-related contracts.
Strategic Partnerships with Defence Leaders
Further cementing its defence credentials, Aurora signed Memoranda of Understanding with two prominent defence and aerospace groups – MBDA Europe and Ares Armaments. MBDA, a global leader in missile and complex weapon systems and jointly owned by Airbus, BAE Systems, and Leonardo, represents a significant endorsement of Aurora’s 3D-printed propulsion capabilities.
The partnership with Ares Armaments, a key Australian precision armaments manufacturer, focuses on prototyping high-performance defence components using Aurora’s advanced metal additive manufacturing. These collaborations provide structured frameworks for technical evaluation, testing, and potential commercialisation, reinforcing Aurora’s strategy to embed its technology within sovereign and allied defence supply chains.
Manufacturing Expansion and Quality Certification
To support growing demand, Aurora completed a major upgrade of its Canning Vale manufacturing facility, installing new CNC machining equipment that enhances precision and production efficiency. This upgrade complements its metal additive manufacturing processes, enabling the production of complex, high-performance components required by defence and aerospace customers.
On the quality front, Aurora remains on track to achieve AS9100D certification, a critical aerospace and defence quality standard. The company successfully completed Phase 1 of the certification audit in January 2026, with Phase 2 scheduled for June. Achieving this certification will bolster Aurora’s ability to engage with tier-one defence contractors and international aerospace clients.
Capital Raise and Leadership Strengthening
In a show of investor confidence, Aurora completed a $5.5 million placement, oversubscribed due to strong demand and anchored by a strategic investment from SPS. The funds will accelerate propulsion system development, expand manufacturing capacity, and support key technical and commercial milestones throughout 2026.
The company also restructured its board to align with its growth ambitions, appointing David Trimboli as Chairman and elevating key executives to strengthen strategic partnerships and commercial execution. CEO Rebekah Letheby joined the board as an Executive Director, bringing deep technical expertise and defence sector relationships.
Outlook
Looking ahead, Aurora is focused on delivering propulsion systems under the SPS order, advancing aerial testing and validation, completing AS9100D certification, and leveraging its strategic MOUs toward commercial outcomes. With a cash balance of $3.65 million and disciplined cost management, the company is well-positioned to capitalise on emerging opportunities in defence propulsion and additive manufacturing.
Bottom Line?
Aurora Labs is poised at the cusp of commercialising its defence propulsion technology, with upcoming testing and certification milestones set to define its trajectory in 2026.
Questions in the middle?
- How will the results of SPS’s flight testing influence Aurora’s future propulsion contracts?
- What commercial opportunities might arise from the MOUs with MBDA and Ares Armaments?
- Can Aurora sustain its growth trajectory while progressing towards full AS9100D certification?