AML3D (ASX: AL3) has published its annual results for the year ended June 2025, highlighting both the challenges of scaling up advanced manufacturing and the company’s ambitions in the defense sector. The Adelaide, Australia-based 3D printing firm is investing heavily to build its position in metal additive manufacturing, with defense contracts becoming the backbone of its future growth strategy.

For the year, AML3D reported revenue of AUD 7.39 million ($4.8 million), up AUD 64,000 ($42,000) from the prior year, as the company expanded orders from the U.S. Navy and Australian Defence Force. Despite the growth in sales, the company posted a net loss after tax of AUD 7.40 million ($4.8 million), driven largely by ramping up operations. Management said that AUD 2.06 million ($1.3 million) of those costs were tied to establishing its new U.S. Technology Centre in Ohio, which is key to supporting defense contracts with the U.S. Navy.

In fact, strategic growth in the U.S. was the main focus of AML3D’s full-year 2025 (FY25) report. Aside from the new center in Ohio, AML3D referenced a Letter of Intent from the U.S. Department of the Navy, received after the end of the year, that outlines requirements for up to 100 additive manufacturing systems and 1,600 components by 2030, which would be a huge opportunity for the company.

AML3D also delivered its largest-ever custom ARCEMY system for Austal USA and secured a further AUD 1.2 million ($779.088) portable system order, while strengthening its alliance with BlueForge Alliance to support the U.S. Navy submarine program. To back this growth, AML3D raised AUD 30 million ($19.5 million) in December 2024 through an institutional placement, which will go toward expanding in the U.S. and Europe and further R&D.

A major milestone in the year was AML3D’s multi-year deal with the U.S. Department of Defense (DoD) to supply its ARCEMY 3D printing systems. The company also moved forward with BAE Systems Maritime Australia on shipbuilding projects, strengthening its role as a key local manufacturing partner. Management said, “These partnerships bring short-term sales but, more importantly, set the stage for steady, long-term defense work.”

The large-scale ARCEMY WAAM 3D printer from AML3D. Image courtesy of AML3D

While defense remains key, AML3D also reported progress in commercial applications. The company supplied components to oil and gas and mining customers during the year, industries that require heavy-duty, corrosion-resistant parts. Management said these sectors represent promising diversification, though defense will continue to drive the bulk of growth.

Following the results, AML3D’s shares fell about 11 percent to AUD 0.28 ($0.18) on August 18. Still, the stock is 9 percent higher over the past two weeks, suggesting that investors could be giving the company credit for its defense-led growth potential.

For the near future, AML3D says its main strategy is leveraging its patented wire arc additive manufacturing (WAM) technology, which it claims offers speed and cost advantages for producing large, complex metal parts. 

“Our focus is on building repeat, high-value contracts with defense primes,” the executives stated. “Near-term goals centre on scaling system sales and securing more U.S. Navy programs.”

At the same time, the company is investing heavily to keep its technology ahead of the curve. In FY25, R&D spending jumped 83% to AUD 1.07 million ($694,687), supporting the AUD 2.24 million ($1.5 million) ARCEMY Increase Deposition Rates (AIDR) project. Backed by an AUD 1.12 million ($727,149) grant from South Australia’s Economic Recovery Fund, AIDR aims to deliver a multi-robot, twin-wire ARCEMY system capable of printing faster, with less energy and waste.

As the board pointed out: “AML3D is well positioned to expand in multiple high-growth markets, which gives the board confidence the Company will deliver significant shareholder value over time.”

AML3D’s results show a company still in transition, and in the red, but moving quickly to secure a place in the defense supply chain. With a record cash position following an AUD 30 million raise, growing U.S. Navy commitments, and a technology pipeline designed to keep its ARCEMY systems competitive, AML3D is betting that scale will move its next reports toward profitability. The next 12 to 18 months will be a test of whether the company can turn its AUD 9 million ($5.8 million) backlog and defense partnerships into sustainable financial returns.