2025 was a defining year for specialist metal technology business AML3D Limited (ASX: AL3) as the Adelaide-based outfit continued its global expansion.
In particular, the company advanced its ‘Scale Up’ growth strategy, characterised by growing demand and a deepening pipeline of US defence and industrial customers.
US expansion builds momentum
The opening of AML3D’s US technology centre in Stow, Ohio marked a major milestone.
The facility quickly moved into full operation and began securing work from the US Navy.
Notably, the company’s early contract wins demonstrate the value of its ARCEMY 3D printing systems in supplying critical parts for defence customers.
These included a $4.5 million order for two custom ARCEMY systems from Newport News Shipbuilding – a division of HII.
HII is the largest military shipbuilder in the US with a portfolio comprising aircraft carriers and submarines.
The two custom ARCEMY orders marked the ninth and tenth systems deployed to support the US Navy’s Maritime Industrial Base, further embedding AML3D in this sector.
AML3D also nailed down a $1.2 million order for a portable ARCEMY system to support a Navy Technology Centre in Virginia.
Overall, the company estimates its baseline US defence market opportunity to be valued at between $150 million and $200 million.
Meanwhile, the US Navy also committed to providing regular demand updates – an important development in AML3D’s efforts to double its US manufacturing capability.
Here, the US Navy’s forecasts point to a rising need for rapid, flexible metal production – an area where the company’s ARCEMY printing systems are increasingly viewed as mission-critical.
The group’s US expansion was further strengthened by the appointment of former senior Navy leader Frederick J. Stefany to the board of its American subsidiary.
Mr Stefany brings more than forty years of experience leading the US Navy and Marine Corp’s research, development, acquisition, and sustainment programs across shipbuilding, aviation, weapons, and support functions.
Building presence in the UK and Europe
AML3D also entered the UK defence market during the year through a new partnership with BAE Systems. This collaboration involves testing Nickel Aluminium Bronze feedstock and exploring ARCEMY applications for high-value components.
Management believes the European defence markets show the same demand signals that prompted the company’s entry into the US.
In turn, AML3D began planning a new $5 million European technology centre as it looks to replicate its American playbook. This facility is expected to support AUKUS-related programs and rising industrial demand across the region.
The company expects the European market to become increasingly important to its business over the medium term.
Strengthening its Australian base
Australia continues to serve as AML3D’s operational and technological hub, with its production and development teams in Adelaide supporting key defence programs.
During the year, the company reinforced its domestic capability by introducing a modernised ARCEMY system and new robotic welding capabilities.
It also delivered a $1.2 million ARCEMY system to Austal USA through its Australian manufacturing centre.
Moving forward, AML3D’s domestic operations will support its European expansion, alongside AUKUS and Australian defence contracts.
Financial traction builds in FY25
AML3D reported $7.39 million in revenue for FY25, an increase on the prior period. This was driven by US defence contracts and related system orders.
Similarly, gross profit of $5.05 million jumped by 9 per cent from the previous year.
Gross profit margins also improved as the company scaled its operations. And orders in hand of $9 million grew by 34 per cent from twelve months prior.
The company ended FY25 with more than $30 million in cash, providing a strong financial base to support its expansion.
More specifically, its strong balance sheet creates fire power to double US capacity, set up a European technology centre, and continue to advance research and development next year.
Positioned for growth in 2026
AML3D enters the new year from a position of strength.
Its progress in 2025 reflects a transition from an early-stage innovator to a maturing specialising manufacturing company with growing international influence.
Moving forward, the company anticipates continued growth across the US Navy supply chain, as well as expanding traction in the UK.
Its proposed new technology centre could also help drive European expansion.
More broadly, AML3D now aims to broaden its global footprint whilst advancing its technology to support the defence, industrial, energy, and transport sectors.