Core Viewpoint - Amaero Ltd has received a Letter of Support from the Department of the Navy, validating PM-HIP manufacturing as a viable alternative to traditional casting and forging methods for the Maritime Industrial Base, highlighting the company's strong technical capabilities [2][3]. Group 1: Company Developments - The Letter of Support is considered material as it confirms the Navy's recognition of PM-HIP manufacturing technology as mature and capable of meeting rigorous technical requirements, addressing long lead times and capacity constraints in the supply chain [3][7]. - Amaero has engaged in an 18-month intensive collaboration with the Department of the Navy, demonstrating strong technical capabilities in PM-HIP manufacturing, including advances in material behavior modeling and geometric precision [4][7]. - The Navy has compiled a list of components that are delayed due to current manufacturing challenges, which are well-suited for PM-HIP manufacturing, enabling a clear pathway for production contracts [5][7]. Group 2: Industry Context - PM-HIP manufacturing is positioned as a promising solution to address long lead times and capacity constraints in the casting and forging supply chain, particularly for high-mix, low-volume components [7]. - The collaboration reflects a growing alignment and support for the adoption of PM-HIP manufacturing within the defense sector, emphasizing the importance of public-private partnerships in strengthening the domestic supply chain critical to national security [7]. - The strategy to improve the resiliency and responsiveness of domestic manufacturing includes re-shoring and expanding legacy manufacturing capabilities while adopting advanced technologies like PM-HIP [4][7].

Core Insights - Amaero Ltd reported a significant increase in revenues, with revenues from ordinary activities up 470% and revenues from contracts with customers from continuing operations up 722%, reaching A$3.8 million for the financial year ending June 30, 2025 [1] Company Overview - Amaero Ltd is a leading U.S. domestic producer of high-value refractory and titanium alloy powders for additive and advanced manufacturing, primarily serving the defense, space, and aviation industries [31] - The company aims to address gaps in the U.S. manufacturing ecosystem by providing large near-net-shape components as alternatives to traditional castings and forgings [3] Operational Milestones - In FY2025, Amaero expanded its manufacturing capabilities by commissioning its second Electrode Induction Melting Inert Gas Atomizer (EIGA Premium) in June 2025, enhancing its production capacity for C103 and titanium alloy powders [4] - A significant A$28 million infrastructure improvement project was completed at the Tennessee facility, achieving AS9100D accreditation for both metal powder production and Powder Metallurgy Hot Isostatic Pressing (PM-HIP) [7] Commercialization Progress - FY2025 marked the transition into initial commercial operations, with a record revenue of A$1.5 million in the June 2025 quarter, driven by strong powder sales and increasing PM-HIP orders [9] - A five-year exclusive supply agreement was executed with Velo3D, estimated to generate A$35 million in revenue, with initial orders to be shipped in Q1 FY2026 [10][11] Financial Stewardship - The capital position improved significantly during FY2025, with a completed A$22 million institutional placement and a US$22.8 million equipment financing loan from the Export-Import Bank of the United States [14][15] - Amaero ended FY2025 with A$19.2 million in cash and A$50.7 million in tangible assets, fully funded for its three-year capital plan through FY2026 [17] Leadership and Governance - The leadership team was strengthened with the promotion of Michael "Mick" Maher to Chief Strategy and Commercial Officer and the appointment of Brett Paduch as Chief Financial Officer [19][20] - Alistair Cray was appointed as Non-Executive Director, enhancing the Board's depth in strategy and governance [21] Industry Outlook - The company is positioned to benefit from increased defense spending, geopolitical risks, and onshoring initiatives, creating a favorable environment for U.S.-based production of advanced materials [22] - Amaero expects a significant revenue increase in FY2026, with contracted revenue for the first half of FY2026 already at approximately 80% of planned revenue [24]