AML3D (ASX:AL3) Wins A$2.6m Sub Contract, Follow-On Order Potential Grows

The US Navy Is Now Paying for Parts, Not Just Printers

AML3D has seen a bit of momentum in the market this week. It is a company we are following closely in the additive manufacturing space.

Last week, we broke down its A$9.9M contract win and estimated that, based on current manufacturing capacity, AML3D can likely build around four to six units per year. With the planned expansion through its US manufacturing investment, that capacity should improve. At the same time, we would still expect contracts like these to take around a year to fulfil, depending on supply chain conditions.

The Newport News Shipbuilding story is also becoming more meaningful. The customer will now have six Arcemy systems in total, up from the original two. That step-up in order size is important because it shows the first systems have done enough to justify a much larger follow-on purchase, which is a strong form of validation.

Today’s re-rate reinforces that point. AML3D is no longer being viewed as just a trial vendor. It is becoming more embedded in the US Navy supply chain, and that is a very different risk profile to where the company was 18 months ago.

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What Exactly Did AML3D Just Win?

AML3D has won a contract worth approximately A$2.61M to manufacture five large metal components for US Navy submarines. These parts are currently unavailable from the original manufacturer, which gives AML3D a real opportunity to prove its manufacturing capability. It also highlights a clear supply chain gap within the US Navy, where traditional suppliers are no longer able to fill demand in a cost-effective way.

The contract was signed through BlueForge, which is already an existing AML3D customer. BlueForge effectively acts as a trusted procurement bridge between the Navy and approved technology vendors. Winning work through BlueForge is an important signal because it is a formal endorsement of AML3D’s position within the Navy’s approved supplier ecosystem.

The parts will be made from nickel aluminium bronze alloy, the same material AML3D has already qualified to US Navy standards through its earlier material testing program.

Why Is This Contract Structurally Different?

Most of AML3D’s contracts to date have been tied to the sale or leasing of its Arcemy systems. This contract is different. It is one of the first real steps toward being paid to use those machines to manufacture components for the end customer. That is important because it moves AML3D into a higher-margin part of the business, given the machines are already built.

AML3D has now stated that its cumulative US defence contract value exceeds A$30M. That is a material milestone because it shows the company has moved well beyond the pilot or proof-of-concept phase with the US Navy and into repeat, production-style engagement.

That is also a strong result when you consider the company has spent only around A$12M on expanding its manufacturing hub. In other words, the contract base being built is already becoming meaningful relative to the capital invested.

On this contract, the company is generating roughly A$500K in revenue per component. Given the expected timeline of around 10 months, we would expect much of the cash flow impact to come through in FY27.

The bigger opportunity is the pathway from in-service trial work to repeat orders. If these five components perform well, this could become the foundation for a standing purchase order over time.