AML3D (ASX:AL3): Order Book at $16.5m, The Growth Runway Stays Intact

A $150m to $200m Navy Opportunity, But Execution Comes First

AML3D has reported its interim half-year results, and while revenue came in softer, the expanding order book remains the more important signal for investors watching this stock closely.

As a company we follow and model, the key focus here is not just what happened this half, but what this result says about the growth runway ahead in 3D printing and additive manufacturing, particularly as defence demand continues to build.

Revenue for the half came in at $3.25 million, down 30% from the prior half. Management attributed this largely to timing delays around raw materials and project extensions.

That is a risk that can show up across defence-linked businesses. In our view, it is not necessarily a red flag on the underlying demand story, but it does push expected revenue recognition and cash flow delivery further out. In other words, the work has not disappeared, but the timing has shifted.

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The Next Phase Is Scaling Capacity, Not Selling the Story

The more important point for us is that AML3D’s order book has expanded to $16.5 million, which was broadly in line with our FY26 expectations.

Given the company had already flagged around $9 million in expected revenue recognition for FY25, and then added another $7.5 million in signed contracts in 1H26, there is not a lot here that changes the broader shape of our forecasts.

So at this stage, our view has not changed materially. The bigger takeaway is simply that revenue and cash flow we expected earlier now look more weighted toward 2H26.

These timing delays did weigh on profitability in the half. Loss before tax increased to $4.97 million, largely because gross profit was impacted by the softer revenue outcome.

It is also worth noting that the company moved a large portion of its cash into a $20 million term deposit. So this looks less like a deterioration in fundamentals, and more like the financial impact of delayed project execution.

For AML3D, the key focus from here is not just winning demand, but building the operational capacity to actually deliver on it.

That means expanding manufacturing capacity fast enough to keep pace with growth, while also tightening the supply chain to reduce dependency risk and improve reliability as the business scales.

This is especially important because AML3D is now moving into a more execution-heavy phase. The company is in the process of doubling its US manufacturing capacity and establishing a European technology centre, both of which are strategically important, but neither will happen overnight.

These initiatives take time to roll out, and that means investors should now be watching how well management balances growth with operational discipline.

Delays Hurt the Half, The Pipeline Still Builds

In our view, there are two things that matter most at this stage.

The first is whether AML3D can scale manufacturing capacity quickly enough to meet rising demand without creating bottlenecks.

The second is whether it can strengthen its supply chain in a way that keeps costs stable, supports pricing, and allows the business to execute more consistently as volumes increase. Those two factors will be critical because the commercial opportunity in front of AML3D is becoming increasingly clear, particularly in the US.

The US Navy is showing a real need for alternatives to traditional welding processes, and that is where AML3D’s wire arc additive manufacturing technology stands out. The company’s process can be up to 90% more material efficient, while also improving delivery times for complex parts, which is a meaningful advantage in an environment where speed, waste reduction, and operational readiness all matter.

That is also why the Navy’s previously disclosed letter of intent is so significant. The potential requirement for up to 100 additive manufacturing systems points to what could become a $150 million to $200 million opportunity over time. Importantly, though, this is not just a defence story. What makes AML3D more compelling is that its wire arc technology is not limited to naval or military applications.

The recent sale of a larger Arcemy unit to the Tennessee Valley Authority highlights that the company’s technology can also be deployed across broader industrial markets.
That matters because it shows the platform has relevance well beyond defence, with the potential to serve multiple high-growth end markets where faster, more efficient, and less wasteful manufacturing is becoming increasingly valuable.

So while defence may be the clearest near-term growth driver, the bigger story is that AML3D is building a technology platform that can extend across a much wider industrial base. The opportunity is there. The next step is proving the company can scale into it efficiently.