How Is Titomic Turning Defense Contracts into Production Momentum?

Titomic’s Transition to Production

In its Q2 FY2026 report, Titomic Limited detailed a pivotal quarter marked by its evolution from a technology developer to a production-focused advanced manufacturer. The company’s proprietary cold spray additive manufacturing technology, Titomic Kinetic Fusion™, has gained traction across aerospace, defense, semiconductor, energy, and industrial sectors. This shift is underscored by a series of new contracts and operational milestones that position Titomic for sustained revenue growth.

Key Contract Wins and Technology Validation

A standout achievement was the successful hot fire test of a solid rocket motor thrust chamber manufactured for Northrop Grumman. This test validated the structural integrity and thermal resilience of Titomic’s cold spray technology under extreme conditions, reinforcing its suitability for mission-critical aerospace applications. Complementing this, Titomic secured a USD 1.7 million early manufacturing development contract with a leading defense prime, aimed at accelerating production timelines and enhancing supply chain resilience for next-generation defense components.

In the semiconductor sector, Titomic received its first Low-Rate Initial Production (LRIP) order following process validation, marking a critical step towards scalable production. This contract, to be fulfilled at the company’s Heerenveen facility in the Netherlands, signals growing confidence in Titomic’s precision manufacturing capabilities within high-value markets.

Expanding Market Footprint and Applications

Beyond aerospace and defense, Titomic’s technology is making inroads in energy and automotive sectors. The deployment of a D623 medium-pressure cold spray system on Australian offshore oil and gas rigs under a lease agreement validates the technology’s robustness in harsh operational environments. Additionally, the sale of a TKF™623 system to the U.S. operations of a global automotive manufacturer highlights accelerating adoption in automotive manufacturing, supporting goals around lightweighting and sustainability.

Notably, Titomic has also demonstrated a breakthrough application of its cold spray technology in lithium-ion battery electrode manufacturing. This dry-coating process offers a more energy-efficient alternative to traditional slurry-based methods, positioning the company within the growing clean energy market.

Operational and Financial Position

Operationally, Titomic has strengthened its leadership team in Europe and enhanced manufacturing readiness at its Huntsville and Heerenveen facilities. The Huntsville factory is on track for manufacturing readiness of the TKF™ 3250 system by March 2026, supported by certifications and a skilled workforce.

Financially, the company reported a solid cash position of AUD 35.8 million at quarter-end, with operating cash outflows consistent with expectations as it invests in scaling production capabilities. Customer receipts remain modest at AUD 1.4 million for the quarter, but management anticipates a material increase in revenue as contracts convert to production. Titomic targets achieving break-even cash flow by 2027, reflecting confidence in its commercial trajectory.

Strategic Outlook

CEO Jim Simpson emphasised the company’s focus on disciplined execution and operational excellence to convert demonstrated capabilities into long-term customer programs. With growing demand for advanced manufacturing solutions that offer cost, speed, and supply chain advantages, Titomic is well positioned to deepen partnerships and expand its market presence globally.