Why investors are watching AML3D (ASX:AL3) after its latest ARCEMY U.S. order

AML3D Limited (ASX:AL3) has secured a new AUD 1.69 million order from U.S.-based additive manufacturing supplier FasTech LLC, marking a significant step forward in its United States growth agenda. The contract involves the delivery of a large-scale ARCEMY X 3D metal printing system and is set to further embed AML3D Limited’s presence across defense and high-demand industrial sectors in North America. With installation planned near the U.S. Navy’s Additive Manufacturing Center of Excellence in Danville, Virginia, this latest deal reflects increasing institutional trust in the company’s proprietary wire-arc additive manufacturing technology and its capacity to deliver on the dual goals of defense-grade performance and commercial scalability.

The ARCEMY X unit for FasTech LLC will be shipped from AML3D Limited’s U.S. Technology Centre located in Stow, Ohio and will be supported by a 2.7-tonne positioner. To ensure continuity in operations, AML3D Limited will install a replacement ARCEMY X unit at the Stow facility. The installation is scheduled to be operational in the third quarter of the 2026 financial year and will represent the ninth ARCEMY system deployed in the United States. The announcement builds on AML3D Limited’s broader strategic goal to scale its additive manufacturing footprint across multiple verticals including defense, aerospace, marine, utilities, and oil and gas.

This latest win adds to the momentum AML3D Limited has generated following its July 2025 Letter of Intent from the U.S. Navy and its April 2025 entry into the United Kingdom defense market through a contract with BAE Systems. These developments are part of a coordinated effort by AML3D Limited to mirror the early growth trajectory it established in the United States in other markets such as Europe, while continuing to reinforce its leadership position in Australia through technology-led research and development.

How does the FasTech order expand AML3D’s positioning beyond defense into high-demand industries?

The significance of the FasTech LLC order extends beyond its financial value. FasTech LLC operates as a critical link in U.S. military and industrial supply chains. Its decision to integrate ARCEMY X into its production capabilities underscores the relevance of AML3D Limited’s technology in addressing the growing demand for large-scale, energy-efficient, and high-precision metal part manufacturing. Managing Director Sean Ebert noted that ARCEMY technology enables faster production timelines, lower energy consumption, and less material waste compared to traditional casting, forging, and machining approaches. These characteristics, he indicated, are resonating with both defense and non-defense customers that are under pressure to localize production and meet stricter sustainability mandates.

The expansion in the U.S. is part of a AUD 12 million investment program that aims to double AML3D Limited’s production capacity in North America. This capital is being deployed in response to growing visibility around long-term demand signals, particularly from the U.S. Navy. Internal estimates from AML3D USA suggest that there will be a need for approximately 100 ARCEMY systems and up to 1,600 parts by the end of the decade. The company has described this as the baseline for future investment decisions in the U.S. market, which it believes can be replicated in similarly regulated and high-specification industries.

What does the latest financial data reveal about AML3D’s growth strategy and risk profile?

AML3D Limited reported revenue of AUD 7.39 million for the 2025 financial year, showing a modest year-on-year growth of 1 percent. Gross profit increased by 9 percent to AUD 5.05 million, yielding a strong gross margin of 68 percent. However, the company also recorded a significantly higher net loss before tax of AUD 7.40 million, up 78 percent from the previous year. This rise was largely driven by upfront investments into its U.S. operations and enhanced research and development expenditure. Importantly, AML3D Limited’s cash reserves stood at AUD 30.4 million as of June 30, 2025, representing a 290 percent increase year-over-year, and creating a financial buffer to support international expansion.

The company also entered FY26 with AUD 9 million in confirmed orders carried forward, representing a 34 percent increase. Management has highlighted that this order momentum, paired with the FasTech deal, reinforces the commercial viability of ARCEMY X across both defense and civilian sectors. The presence of active deployments in power utilities further validates ARCEMY’s broader utility in decarbonized industrial supply chains and emergency infrastructure support applications.

How is AML3D redefining its U.S. narrative through utilities, oil and gas, and military partnerships?

AML3D Limited is no longer confined to the defense sector in the U.S. market. The company has made deliberate moves to enter the utility and infrastructure domains, leveraging additive manufacturing to solve challenges related to aging assets, maintenance backlogs, and the need for localized part production. The ARCEMY X deployment in a U.S. power utility environment has been described internally as a strategic proof point, helping justify the AUD 12 million capacity expansion at its Stow facility. The addition of high-level institutional relationships, such as the appointment of Frederick J. Stefany to the board of AML3D USA, strengthens the company’s network within federal and commercial ecosystems.

In tandem, AML3D Limited is positioning ARCEMY as a scalable technology suited for distributed manufacturing, disaster response, and field-level deployment. The system’s flexibility and compatibility with existing IIoT and Industry 4.0 frameworks make it an attractive proposition for manufacturers aiming to future-proof their operations.

How does the European roadmap stack up next to U.S. expansion plans?

Beyond North America, AML3D Limited is preparing for its next strategic move: replicating its U.S. growth blueprint in Europe. The April 2025 contract with BAE Systems at Barrow-in-Furness marked its formal entry into the United Kingdom defense manufacturing space. The company has outlined a EUR 5 million plan to establish a dedicated Technology Centre in the region, supported by its core engineering and research facilities in Australia. Executives believe the European market shows similar early demand signals that preceded the U.S. Navy’s engagement and foresee accelerated adoption once operations commence.

The North Plympton facility in South Australia will continue to function as the global technology and R&D anchor, providing support to both U.S. and European rollouts. As AML3D Limited expands its global network, it is also aligning with the AUKUS alliance to support trilateral defense contracts and technology co-development opportunities.

What should investors watch as AML3D eyes a breakout year in FY26?

Despite strategic advancements, AML3D Limited’s share price performance has lagged. The stock closed at AUD 0.18 on November 18, 2025, marking a 20 percent decline over the past year. Trading volume reached nearly 2 million shares on the day the FasTech deal was announced, with the company’s market capitalization hovering around AUD 35 million. Analysts suggest that investor sentiment remains cautious due to widening losses and execution risks associated with aggressive expansion.

However, the opportunity set appears robust. Analysts covering AML3D Limited have pointed to several upcoming catalysts that could unlock valuation upside. These include repeat orders from existing defense customers, the successful launch of its European hub, and further penetration into energy and aerospace verticals. The depth of its order pipeline, recurring revenue from service contracts, and growing relevance of additive manufacturing in resilient supply chain strategies could serve as tailwinds. As the company transitions from technology validation to full-scale commercial execution, its ability to convert interest into recurring business will be closely scrutinized.

The addition of FasTech LLC to AML3D’s North American partner network underscores the versatility and industrial readiness of ARCEMY. The deal is being viewed as a key enabler that may help the company navigate from defense exclusivity toward broader manufacturing impact across the U.S. landscape. Executives have expressed confidence that this order positions AML3D Limited as increasingly indispensable to the modern industrial supply chain architecture.

Key takeaways: AML3D’s FasTech expansion and what it means for ASX:AL3

• AML3D Limited secured a AUD 1.69 million ARCEMY X order from U.S. manufacturer FasTech LLC, expanding its presence in defense‑adjacent industrial sectors.

• The ARCEMY X unit will be installed near the U.S. Navy’s Additive Manufacturing Center of Excellence, strengthening AML3D Limited’s strategic footprint in Virginia.

• This will be the ninth ARCEMY system deployed in the United States, reflecting rising demand for large‑format wire‑arc additive manufacturing.

• AML3D Limited accelerated delivery by reallocating an in‑fleet ARCEMY X system from its Stow, Ohio Technology Centre and will backfill capacity with a replacement system.

• The deal supports a broader U.S. scale‑up plan backed by a AUD 12 million investment to double production capacity.

• Recent U.S. Navy demand forecasts suggest a need for up to 100 ARCEMY systems and 1,600 parts by 2030, shaping long‑term planning.

• FY25 financials show AUD 7.39 million in revenue, a widened AUD 7.40 million net loss, and a strengthened AUD 30.4 million cash position providing expansion flexibility.

• AML3D Limited entered FY26 with AUD 9 million in orders, including strong forward visibility into defense and non‑defense projects.

• ARCEMY adoption is expanding across utilities, aerospace, marine, oil and gas, and heavy industrial markets as customers seek localized, energy‑efficient production.

• European expansion is underway, anchored by a United Kingdom defense contract with BAE Systems and plans for a EUR 5 million Technology Centre.

• AML3D Limited’s share price remains subdued at AUD 0.18 despite strategic progress, positioning the stock as a potential re‑rating candidate as execution milestones are met.

• Analysts are watching for repeat U.S. orders, stronger commercial sector penetration, and successful commissioning of the planned European hub.