Amaero Provides Updated FY2026 Financial Guidance and December Quarter Activity
MWN-AI** Summary
Amaero Ltd (ASX:3DA) has provided an update on its FY2026 financial guidance, highlighting a revised revenue expectation of A$18 million to A$20 million. This adjustment comes in light of strong underlying demand but also reflects delays in U.S. government contracting activities due to funding uncertainties and government shutdowns. This revised forecast significantly lowers the previously communicated guidance of A$30 million to A$35 million, yet still represents impressive growth of 372% to 425% compared to FY2025.
For the December quarter, Amaero anticipates revenues of approximately A$3.1 million, marking a remarkable 390% increase from the same period in the prior year. The company projects that the first half of FY2026 will yield about A$7.7 million in revenue. Additionally, Amaero has secured contracted revenue of A$9.7 million for the second half of FY2026, with expectations to recognize around A$2.5 million in Q3 and A$7.2 million in Q4.
As of December 31, 2025, Amaero's cash balance stood at approximately A$52.6 million, which includes about A$5 million of restricted cash. This represents a net increase of A$1.7 million from the previous quarter. The company is also striving for positive Adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (AEBITDA) by 2027, based on its revised revenue outlook.
Operationally, Amaero is advancing its production capabilities with significant capital investments, including a new Argon recycling plant and additional atomization equipment. Furthermore, it has garnered validation for its manufacturing processes from the United States Navy, enhancing its strategic positioning. The outlook for 2026 remains optimistic, with expectations of increased contracting momentum following the resolution of the recent funding challenges.
MWN-AI** Analysis
Amaero Ltd (ASX:3DA, OTCQX:AMROF) has recently revised its FY2026 financial outlook and provided insights into its December quarter performance, which has significant implications for investors. With updated revenue guidance of A$18 million to A$20 million, representing a growth of 372% to 425% over FY2025, despite downward revisions from previous targets, the company demonstrates strong underlying demand for its high-value refractory and titanium alloy powders.
The anticipated A$3.1 million revenue for the December quarter shows a robust 390% year-over-year increase, suggesting solid operational momentum, even though there were delays linked to U.S. government contracting activities. Notably, the company has already secured A$9.7 million in contracted revenue for the upcoming half of FY2026, backed by significant customer engagement across various sectors, including defense and aerospace.
Investors should take note of Amaero's strong cash position—approximately A$52.6 million as of December 31, 2025—which not only provides a buffer against operational fluctuations but also enables continued investment in growth initiatives. The expectation of positive AEBITDA by 2027 reflects a conservative yet promising growth trajectory.
Challenges in contracting due to U.S. government funding uncertainties could present risks, but these are offset by anticipated increases in defense budgets and procurement reforms. The expected quick resolution of federal budget appropriations should bolster contracting momentum moving forward.
In conclusion, while near-term revenue revisions may raise caution flags, the sustained demand and expanded production capabilities position Amaero favorably for long-term growth. Investors looking to enter or increase their holdings in the advanced manufacturing sector may consider the company as a high-potential opportunity, particularly against the backdrop of rising defense spending and domestic manufacturing initiatives.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
MCDONALD, Tenn., Jan. 15, 2026 (GLOBE NEWSWIRE) -- Amaero Ltd (ASX:3DA) (OTCQX: AMROF) (“Amaero” or the “Company”), a leading U.S. domestic producer of high-value refractory and titanium alloy powders for additive and advanced manufacturing of components utilized by the defense, space, and aviation industries, today provides an update to its FY2026 financial guidance and December quarter activity.
Highlights
- Updated FY2026 revenue guidance of A$18 million to A$20 million, reflecting strong underlying demand and timing impacts from delayed U.S government contracting activity. This compares with prior guidance of FY2026 of A$30 million to A$35 million.1
- FY2026 revenue guidance implies growth of 372% to 425% over FY2025.
- December quarter revenue expected to be approximately A$3.1 million, a 390% increase over prior corresponding period.
- First half FY2026 revenue expected to total approximately A$7.7 million, a 366% increase over prior corresponding period.
- Contracted revenue of A$9.7 million secured for the second half of FY2026. Based on program planning, it’s estimated that approximately A$2.5 million of contracted revenue would be recognized in Q3 and approximately A$7.2 million would be recognized in Q4.
- Cash balance as of 31 December 2025 estimated at approximately A$52.6 million, including restricted cash of approximately A$5.0 million. The end cash balance reflects an increase of approximately A$1.7 million over the September quarter end.
- Positive AEBITDA2 expected in calendar year 2027, reflecting the revised revenue profile and continued investment in capacity and qualification programs.3
Operational and Financial Update
Amaero continues to experience strong demand across its powder production and PM-HIP manufacturing business, supported by increasing customer engagement across defense, aerospace, energy and advanced manufacturing markets.
For the December quarter of FY2026, the Company executed on key growth initiatives and advanced commercial momentum, including:
- Advanced U.S manufacturing scale-up through execution of major capital equipment orders with Argon recycling plant and a fourth advanced EIGA Premium atomizer.
- Continued to demonstrate highly disciplined allocation of capital with the Argon recycling plant secured at approximately 60% below earlier cost estimates.
- Non-dilutive EXIM Bank financing structured to align with equipment delivery, commissioning and production ramp-up schedules.4
- Received formal validation from the United States Navy recognizing Amaero’s PM-HIP manufacturing process as a viable and scalable alternative to traditional casting and forging supply chains.5
- Converted strategic partnership with Titomic Limited into initial commercial supply order for A$4.6 million of refractory alloy powders.6
The revision to FY2026 revenue guidance primarily reflects timing delays in contract awards and revenue recognition associated with extended U.S government funding uncertainty and a temporary federal government shutdown during the December quarter. Importantly, these delays have not impacted demand or long-term program pipelines.
Outlook
Amaero enters calendar year 2026 with a strong balance sheet, contracted revenue visibility, and expanded production capabilities. The Company expects improved contracting momentum following the anticipated resolution of U.S federal budget appropriations, alongside continued policy support for domestic advanced manufacturing and supply chain resilience.
Amaero remains focused on disciplined execution, advancing commercial contracts, and scaling production in line with customer demand, with the objective of achieving sustainable positive EBITDA.
Hank J. Holland, Amaero’s Chairman and CEO, commented:
“We are pleased to have secured contracts for anticipated revenue in the second half of FY2026 that total A$9.7 million. Based on realized revenues in 1H and contracted revenue for 2H, we have updated our revenue estimate for FY2026 to A$18 million to A$20 million, an increase of 372% to 425% over FY2025. For the powder production line of business in 2H FY2026, we have contracts to atomize 6 different refractory alloys and we estimate that titanium powder production will increase by approximately 30% over 1H FY2026. As for the PM-HIP manufacturing line of business, we have 12 different contracts with defense, aerospace, and energy customers.
Though we have strong momentum going into CY2026, we had headwinds in the 1st half of CY2025 from full-year Continuing Resolution for FY2025 federal budget and headwinds in Q2/Q3 FY26 due to the record 43-day government shutdown that delayed contracting and revenues. Notwithstanding the headwinds over the past 12 months, the political stalemate resulted in expected increases to the defense budget and in significant reforms to acquisition and procurement policies of the federal government and the Department of War. We expect that the defense budget for FY2026 will be passed by the United States Congress in late January or early February. Securing appropriations coupled with the Administration policies that are focused on streamlining defense contracting and buttressing sovereign manufacturing and supply chains are expected to result in positive tailwinds in CY2027.”
_____________________
1 ASX Announcement, 3 September 2025, Updated Financial Guidance for FY2026
2 Adjusted Earnings before interest, tax, depreciation and share-based compensation.
3 Investor Presentation dated 21 August 2025
4 ASX Announcement, 11 December 2025, Amaero Accelerates Growth Initiatives with Major Equipment Orders
5 ASX announcement, 5 Dec 2025, United States Navy Issues Letter of Support
6 ASX announcement 19 December 2025, Amaero Receives A$4.6M Refractory Powder Order from Titomic
This announcement has been authorized for release by the Board.
Amaero Ltd
Hank J. Holland Chairman
and CEO
hank.holland@amaeroinc.com
Media & Investor Enquiries in United States
Jane Morgan
Director
jm@janemorganmanagement.com.au
Media & Investor Enquiries in United States
Shannon Devine
MZ Group
amaero@mzgroup.us
About Amaero
Amaero Ltd (ASX:3DA, OTCQX: AMROF) is a dual ASX and OTC-listed company with manufacturing and corporate headquarters located in Tennessee, U.S. Amaero is a leading U.S. domestic producer of high-value refractory and titanium alloy powders for additive and advanced manufacturing of components utilised by the defense, space, aviation, and medical industries. The technical and manufacturing team brings decades of experience and know-how with pioneering work in gas atomization of refractory and titanium alloys. The Company has commissioned advanced gas atomization technology with an industry leading yield of AM powder. The Company is also a leader in PM-HIP (Powder Metallurgy Hot Isostatic Pressing) manufacturing of near-net-shape powder parts with forged-equivalent material properties and microstructure for a variety of alloys. PM-HIP manufacturing is helping alleviate the strained domestic supply chain for large scale castings and forgings.
FAQ**
How does Amaero International AMROF plan to address the timing delays in U.S. government contracting that impacted their FY2026 revenue guidance to A$million to A$20 million?
Given the ambitious growth projection of 37to 425% over FY2025, what specific strategies is Amaero International AMROF implementing to sustain this momentum in the defense and aerospace sectors?
What are the implications of the U.S. Navy's recognition of Amaero International AMROF's PM-HIP manufacturing process for future contracts and partnerships in the defense industry?
In light of the forecast for positive EBITDA in calendar year 2027, how is Amaero International AMROF planning to optimize its production capabilities and manage production costs going forward?
**MWN-AI FAQ is based on asking OpenAI questions about Amaero International (OTC: AMROF).
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