How Aurora Labs’ $250K Defence Order Could Transform Its Future

Financial Overview

Aurora Labs Limited has released its half-year results for the six months ending 31 December 2025, revealing a 15% drop in revenue to $201,219 and a 12% increase in net loss to $2.89 million. Despite these financial headwinds, the company’s cash position strengthened significantly to $3.65 million, following a $5.5 million capital raise that was oversubscribed and cornerstone-backed by Sovereign Propulsion Systems (SPS).

Strategic Entry into Defence Propulsion

The standout development for Aurora Labs during this period was its formal entry into the defence propulsion market. The company secured its inaugural purchase order from SPS for 20 micro gas turbine engines valued at $250,000. This order is a critical milestone, positioning Aurora as a supplier within the sovereign defence ecosystem and laying the groundwork for future contracts domestically and internationally.

Alongside this commercial breakthrough, Aurora has advanced propulsion testing and validation, including extensive bench testing and an agreement with SPS to conduct aerial testing. These steps are vital for operational qualification and will provide real-world data to support further defence sector engagement.

Manufacturing Expansion and Certification Progress

Aurora also completed a significant upgrade of its Canning Vale manufacturing facility, installing new CNC machining equipment that complements its 3D metal printing capabilities. This integrated manufacturing approach enhances production efficiency and quality, enabling the company to meet increasing demand for complex defence and aerospace components.

Progress toward AS9100D certification, a key quality standard for aerospace and defence suppliers, is underway with the successful completion of the Stage 1 audit and approval to proceed to Stage 2. Achieving this certification is expected to unlock access to tier-one defence contractors and government agencies.

Strengthened Leadership and Strategic Partnerships

The company has refreshed its board and executive team to align with its strategic ambitions. David Trimboli was appointed Chairman, Andrew Garth took on the role of Executive Director – Strategy & Strategic Partnerships, and CEO Rebekah Letheby joined the board as an Executive Director. These changes aim to bolster governance and strategic execution.

Strategic memoranda of understanding were signed with prominent defence and aerospace players including MBDA (Europe), Ares Armaments, and SPS. These partnerships provide frameworks for collaboration on propulsion development, testing, and manufacturing, reinforcing Aurora’s position in sovereign supply chains.

Outlook and Challenges

While Aurora Labs continues to operate at a loss, the company is transitioning from technology development to early commercialisation, particularly in defence propulsion. The next 12 months will be critical as it executes the SPS order, advances aerial testing, pursues AS9100D certification, and seeks to convert strategic engagements into revenue-generating contracts.

However, the company acknowledges material uncertainty regarding its going concern status, dependent on generating sufficient revenue or securing additional funding. The directors remain confident in their capital raising track record and strategic plan to navigate these challenges.