Amaero Ltd (ASX:3DA) has signed a Master Purchasing Agreement worth A$7.8 million for titanium alloy powders, underpinning plans to double production in FY2027 amid strong demand across multiple sectors.
- Master Purchasing Agreement includes A$7.8 million minimum commitment for titanium powders
- Equal quarterly shipments scheduled from July 2026 to June 2027
- Customer is a private equity-backed advanced materials business
- Amaero plans to double titanium powder production in FY2027
- Advanced atomization technology commissioned to support increased output
Master Purchasing Agreement Details and Customer Profile
Amaero Ltd (ASX:3DA, OTC:AMROF) has entered into a Master Purchasing Agreement with a private equity-backed manufacturing technology and advanced materials business. The agreement includes a minimum purchase order valued at A$7.8 million for spherical titanium alloy powders, with shipments evenly distributed quarterly from July 2026 through June 2027. While the customer’s identity remains undisclosed in line with ASX guidance, Amaero has confirmed its satisfaction with the counterparty’s creditworthiness and capacity to perform.
Production Expansion and Technology Deployment
The contract aligns with Amaero’s plans to increase titanium powder production by approximately 100% in FY2027 compared to FY2026. This expansion is supported by the commissioning of two advanced EIGA Premium atomizers, with a third expected online by June 2026. These installations position Amaero as the largest capacity and lowest unit cost producer of refractory and titanium alloy spherical powders domestically in the U.S.
The company highlighted strong demand driven by accelerating adoption of additive manufacturing technologies, particularly laser powder bed fusion (LPBF), across defence, aerospace, medical, consumer, and civilian firearms markets. Demand for mature gas atomized and plasma atomized powders is a key growth driver.
Broader Market Momentum and Strategic Outlook
In addition to titanium powders, Amaero is advancing opportunities in refractory alloy powders, with current orders to atomize five different high-value refractory alloys. The company also anticipates finalising a strategic refractory powder development contract by the end of the fiscal year.
Chairman and CEO Hank J. Holland noted the company’s strong commercial activity across its business segments and expressed optimism about entering FY2027 with robust bookings and revenue visibility. This follows a period of significant revenue growth and strategic deals, including a recent surge in revenue and capital raise that have supported capacity expansion and partnerships in aerospace and defence.
Contract Terms and Pricing Structure
The Master Purchasing Agreement has an initial one-year term starting 1 July 2026. Pricing is fixed for the contractual minimum order, with discounts available for orders exceeding this minimum. Either party may terminate the agreement if the other fails to perform material obligations. There are no material conditions precedent attached to the contract.
Bottom Line?
Amaero’s A$7.8 million titanium powder contract and planned production doubling signal growing demand, but future order expansions and contract finalisations will be key to watch.
Questions in the middle?
- Will the customer increase orders beyond the minimum commitment in FY2027 as anticipated?
- How will the commissioning of the third EIGA Premium atomizer impact production efficiency and costs?
- What are the prospects and timelines for the strategic refractory powder development contract?