Metal Powder Works Limited reported a substantial increase in its half-year loss to $3.7 million, driven by investments in production scaling and market expansion. Revenue more than doubled, reflecting strong demand in defence, aerospace, and nuclear sectors.
- Loss after tax widened to $3.7 million from $0.86 million
- Revenue surged to $1.68 million, up nearly 3x year-on-year
- Completed $15 million capital raising to fund growth
- Expanded customer base with new defence and aerospace contracts
- Advanced proprietary DirectPowder™ technology and production capacity
Financial Performance and Operational Scaling
Metal Powder Works Limited (ASX: MPW) has revealed a significant widening of its half-year loss, reporting a $3.7 million deficit after tax for the six months ended 31 December 2025, compared to a loss of $863,615 in the prior corresponding period. This increase in loss accompanies a near tripling of revenue to $1.68 million, underscoring the company’s aggressive investment in scaling production and expanding its market footprint.
The company’s loss reflects elevated expenses tied to operational expansion, research and development, and corporate costs, as Metal Powder Works continues to build capacity and refine its proprietary DirectPowder™ process. This technology, central to the company’s competitive edge, enables efficient production of tailored metal powders for advanced manufacturing applications.
Strategic Market Expansion and Customer Growth
During the half-year, Metal Powder Works made notable strides in commercial engagement, particularly within defence, aerospace, and nuclear sectors. The company secured a follow-on contract with Westinghouse Electric Company to optimise powders for nuclear-grade applications and delivered its Expeditionary DirectPowder™ production unit to the U.S. Naval Postgraduate School, reinforcing its presence in U.S. defence programs.
Additionally, a Powder Partnership Agreement with Austal (ASX: ASB) paves the way for a commercial offtake agreement and potential further funding, highlighting the company’s growing strategic alliances. The customer base expanded materially, with CP-Ti order volumes tripling and five new customers entering qualification programs, reflecting increasing market acceptance of MPW’s powders as a competitive alternative to traditional atomised powders.
Capital Raising and Balance Sheet Strengthening
To support its ambitious growth plans, Metal Powder Works completed a $15 million capital raising during the period, significantly bolstering its cash position to over $15 million. This infusion provides the financial flexibility to accelerate production capacity expansion, including the upcoming deployment of the NextGen machine platform, expected to add approximately 100 metric tonnes of capacity per unit.
The company also reported operational improvements such as in-sourcing tooling production, which increased tool life by 1.5 times and enhanced supply chain security and cost efficiency. Trials demonstrated that MPW powders often outperformed traditional atomised powders across advanced manufacturing processes, including cold spray and laser powder bed fusion.
Outlook and Market Positioning
Metal Powder Works is positioning itself as a high-quality specialty metal powder producer with a growing portfolio of alloys and customers. Its ongoing qualification programs and strategic partnerships in defence and nuclear markets underpin its credibility and potential for future revenue growth. However, the company remains in an investment phase, with losses expected as it scales production and commercial operations.
No dividends were declared during the period, consistent with the company’s focus on reinvesting capital to support growth. The absence of significant post-period events suggests a stable outlook as the company advances its strategic initiatives.
Bottom Line?
Metal Powder Works’ widened loss reflects a deliberate growth strategy that could unlock significant value if its production scaling and market expansion translate into sustained profitability.
Questions in the middle?
- How soon can Metal Powder Works expect profitability given its current investment trajectory?
- What are the key milestones and timelines for the NextGen machine platform deployment?
- How will ongoing validation programs with defence and aerospace customers impact future revenue visibility?