Metal Powder Works (ASX: MPW) Surges 10% on US Navy Contract

Is This the Start of Its Defence Breakout?

Metal Powder Works (ASX: MPW) has quietly become one of the most interesting names in the emerging defence and advanced manufacturing space. The company’s latest quarterly report, ending September 30, sent its stock up 10%, underscoring a clear shift in commercial momentum. The catalyst? A USD 1 million contract with the US Naval Postgraduate School to deliver a mobile, containerised metal powder production unit effectively embedding MPW into US Navy exercises.

For investors, this is more than just a sales win. It marks Metal Powder Works transition from an additive manufacturing play into a key supplier for defence-grade materials, a space where trust and capability drive long-term contracts. With customer growth up 50% since its March IPO and a healthy USD 19 million cash position, the company is demonstrating both traction and staying power.

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Strategic Expansion into Defence Manufacturing

The latest report highlights Metal Powder Works clear strategic focus on delivering scalable, low-cost metal powder production to capture market share in the rapidly expanding additive manufacturing industry, valued between USD 10 and 15 billion. According to the Wohlers Report 2025, this sector is projected to grow at an annual rate of 25–30% through to 2030, positioning MPW in a high-growth environment supported by strong structural tailwinds. The timing is also favourable, with geopolitical tensions and the drive to secure critical mineral supply chains drawing increased federal attention and funding. MPW now targets annual sales of 800 metric tonnes by 2028 across multiple verticals.

Operationally, the company has made strong progress, producing 18 different alloys and supplying them to 27 customers, including eight new clients. This represents a 50% increase since listing. Notably, MPW has secured 12 enterprise customers such as Eaton, which has validated its copper alloy. Since the IPO, customer engagements have risen sevenfold, signalling growing commercial traction and effective execution by the sales team.

Metal Powder Works Targets USD 200 Million Revenue Opportunity as New Alloys Unlock Entry into USD 1.2 Billion Laser Cladding Market

Metal Powder Works continues to expand its technological edge, developing four new metal powders, including a bronze alloy designed for Hardchrome applications. This innovation has opened the door to the USD 1.2 billion laser cladding market, which is experiencing steady growth as industries seek higher-performance, longer-lasting materials. Early trials have been encouraging, with copper and copper-nickel alloys outperforming traditional alternatives in both durability and efficiency.

Customer interest has followed quickly. Existing clients have already indicated potential demand of between 300,000 and 600,000 kilograms of titanium by 2028, which could translate to approximately USD 100–200 million in revenue. With gross margins remaining above 50% and a strong USD 19 million cash position following a recent USD 15 million capital raise, MPW is well positioned to scale production and accelerate its commercial rollout across multiple high-value verticals.