AML3D Strong Q1 FY26 Positions It for A$200 Million US Navy Opportunity

AML3D Secures US Navy Backing as Defence Additive Manufacturing Opportunity Expands to AUD 200 Million

AML3D (ASX: AL3), a company specialising in large-scale metal additive manufacturing for the defence sector, released its September quarter (1Q26) update showcasing steady operational progress. Customer receipts came in at AUD 2.5 million, a 9 percent decline from the previous quarter, reflecting the natural timing of milestone payments and receivables rather than a slowdown in demand.

The key highlight of the quarter was the Letter of Intent (LOI) issued by the US Department of the Navy in July, which identifies AML3D’s proprietary ARCEMY technology as a core solution within a forecast AUD 150–200 million manufacturing opportunity across the Navy’s Maritime Industrial Base. The LOI outlines potential demand for up to 100 ARCEMY robotic manufacturing systems, each valued between AUD 1–3 million, along with approximately 1,600 components over the next five years.

For investors, the focus remains on execution, converting this LOI and other US defence relationships into confirmed orders. While near-term cash receipts may fluctuate due to milestone-based contracts, AML3D’s growing footprint within the US defence ecosystem reinforces the company’s long-term growth trajectory in one of the most strategically important and high-barrier manufacturing sectors globally.

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AL3 Secures A$8.2 Million in New Contracts, Expands Beyond Defence into US Utilities Sector

During the quarter, AL3 also secured an AUD 4.5 million order from Huntington Ingalls Industries (HII), the largest military shipbuilder in the United States, for two custom ARCEMY systems. This agreement is strategically significant and, in my view, underappreciated by the market. It represents one of the first major commercial integrations of AML3D’s technology within the largest US defence manufacturing network.

Importantly, AML3D’s growth is not limited to the defence sector. During the quarter, the company successfully installed an AUD 2.27 million ARCEMY system at the Tennessee Valley Authority (TVA), the sixth-largest public utility in the United States, servicing around 10 million people across seven states. This deployment highlights the versatility of AML3D’s technology and its potential to scale into adjacent industries such as utilities, energy, and infrastructure.

When combined with the recent AUD 4.5 million order from Huntington Ingalls Industries and the AUD 1.2 million portable ARCEMY sale to Austal USA, AML3D has generated approximately AUD 8.2 million in near-term contracted revenue, equal to roughly 110 percent of its total FY25 receipts. This demonstrates that the company continues to build momentum, even as investors may be underestimating the natural timing delays associated with milestone-based defence and industrial contracts.

The Investors’ Takeaway for AML3D

It is increasingly clear that AML3D is experiencing growing demand across multiple markets. The company’s ability to execute its planned expansion in the US and UK facilities will be critical to scaling production capacity for its ARCEMY systems. Increasing output will allow AML3D to capture larger contracts, particularly as opportunities in the UK defence sector begin to emerge through prototype programs with BAE Systems and other major partners.

With a strong cash position of AUD 30.7 million, AML3D has an estimated cash runway of around three years, providing the financial stability needed to support its global expansion. This robust balance sheet gives the company flexibility to continue executing its growth strategy even if broader economic conditions soften. Given that defence spending tends to remain resilient during economic downturns, AML3D appears well-positioned to navigate macro cycles and sustain its momentum through both US and European scale-up phases.