Metal Powder Works nearly doubled its powder revenue in Q1 2026 while maintaining strong margins, secured its first NATO defence contract under the UK Ministry of Defence’s Project TAMPA, and advanced its Next Gen powder production system on schedule.
- Powder revenue almost doubled quarter-on-quarter with ~50% gross margins
- First NATO defence contract awarded via UK Ministry of Defence’s Project TAMPA
- Sales organisation restructured into Additive Manufacturing, Powder Metallurgy, and Defence segments
- Next Gen #1 powder system on track, producing first powder and ramping to 100 MT capacity
- Partnership with CenterLine expands cold spray market reach; Westinghouse contract completed
Surge in Revenue and Defence Breakthrough
Metal Powder Works (ASX:MPW) delivered a striking commercial performance in the March 2026 quarter, nearly doubling its powder sales revenue from the prior quarter while holding gross margins steady at around 50%. This leap is notable not only for its scale but also because Q3 revenue approached the combined total of the first half of the year, signalling a genuine inflection point for the specialty materials producer.
MPW’s breakthrough came in part through securing its first NATO defence contract under the UK Ministry of Defence’s flagship additive manufacturing initiative, Project TAMPA. This contract positions MPW as a US-based production node within a nascent global defence AM supply network, opening a new and strategically important market segment for its DirectPowder™ titanium and specialty alloys.
Sales Restructure Targets Growth in Three Segments
Behind the revenue surge lies a deliberate overhaul of MPW’s sales organisation, now segmented into Additive Manufacturing, Powder Metallurgy, and Defence. The Defence segment’s elevation to standalone status reflects its distinct commercial pathway and the traction MPW is gaining in this sector. The company appointed a Chief Sales Officer post-quarter to drive this growth phase, with recruitment underway for three Sales Directors aligned to these segments.
The quarter saw 35 orders, split evenly between repeat customers and first-time buyers, underscoring both a growing installed base and an active pipeline. Demand concentrated on titanium, bronze, and copper-based alloys, with applications spanning cold spray, additive manufacturing, and press-and-sinter processes.
This commercial momentum builds on recent validation of MPW’s DirectPowder™ titanium feedstock, which independently met stringent aerospace-grade ASTM B384 standards via Laser Powder Bed Fusion, confirming its suitability for high-performance additive manufacturing DirectPowder™ Titanium Passes Aerospace Benchmarks.
Next Gen Production Capacity and Operational Efficiencies
On the production front, MPW’s Next Gen #1 system remains on schedule and budget, having successfully produced its first powder and beginning ramp-up toward a designed 100 metric tonnes annual capacity. This system promises a roughly 25-fold increase in output relative to the current Alpha system at only double the capital cost, laying a foundation for MPW to scale toward 800 tonnes by 2028.
Complementing this, two additional Alpha DirectPowder™ units are being commissioned to meet near-term demand for commercially pure titanium. MPW’s in-house tooling capability is now fully operational, reducing tooling costs and extending tool life by 50%, a tangible advantage derived from owning its intellectual property across the production stack.
Strategic Partnerships and Contract Completions
MPW also cemented a Powder Partner agreement with Canadian firm CenterLine, marking the sixth cold spray manufacturer to adopt DirectPowder™ materials. This partnership aims to leverage MPW’s powder advantages; such as consistent particle acceleration and absence of fines; to enhance cold spray applications, which are increasingly important in sectors like automotive tooling and defence.
Meanwhile, MPW completed its contract with Westinghouse on time and budget, with discussions underway on the next phase. The company’s expeditionary M-175 DirectPowder™ system is slated for deployment aboard the USS Essex and HMCS Asterix during the RIMPAC 2026 naval exercise, offering a high-profile demonstration of its operational utility in real-world maritime environments.
Financial Position and Investment Outlook
MPW ended the quarter with a robust cash balance of A$13.1 million and no debt, though net operating cash outflows of A$2.2 million reflect ongoing investments in sales acceleration and production scaling. Notably, expenditure on sales and marketing exceeded prospectus estimates, highlighting the company’s commitment to commercial growth despite higher costs.
Overall, MPW’s March quarter report reveals a company transitioning from capacity build-out to commercialisation, with strategic contracts and production advancements setting the stage for accelerated growth. The coming quarters will test whether this momentum can be sustained and translated into meaningful earnings.
Bottom Line?
MPW’s commercial and production strides position it for growth, but execution on scaling and defence contracts will be critical to watch.
Questions in the middle?
- How quickly can MPW ramp Next Gen #1 to full 100 MT capacity and what will be the margin impact?
- What is the potential scale and timeline for revenue from the UK Ministry of Defence’s Project TAMPA?
- Will the new sales structure and leadership sustain the sharp revenue growth seen this quarter?