Executes Key Growth Initiatives and Advances Commercial Momentum in December 2025 Quarter
Capital Investment Execution, Defense Validation and Conversion of Strategic Partnership
Underpin Progress Toward Scaled Commercial Production
MCDONALD, Tenn., Jan. 20, 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, is pleased to provide shareholders and investors with an update on the Company's activities for the quarter ended 31 December 2025.
Highlights
-- Revenue for first half of FY2026 equals A$7.7 million, an increase of
366% over same period in FY2025.
-- Provided updated financial guidance with estimated revenue in FY2026 of
A$18 million to A$20million, an increase of 372% to 425% over FY2025.
Contracted revenue of A$9.7 million has been secured for second half of
FY2026. December ending cash and restricted cash balance equals A$52.6
million, an increase of A$1.7 million over September ending balance.
-- Executed key capital investments to support U.S. manufacturing scale-up,
entering into purchase contracts for a dedicated Argon recycling plant
and a fourth advanced EIGA Premium atomizer, supporting increased powder
production capacity and materially lower unit costs as the Company
prepares for scaled commercial production.1
-- Achieved material capital efficiency and unit cost optimization outcomes,
securing the Argon recycling plant at approximately 60% below earlier
cost estimates, improving capital efficiency and accelerating the
Company's pathway toward a structurally lower cost base.
-- Continued disciplined capital deployment aligned with the Company's
growth strategy, supported by a strong cash position and non-dilutive
EXIM Bank financing structured to align with equipment delivery,
commissioning and production ramp-up schedules.
-- Received formal validation from the United States Navy with a Letter of
Support, recognizing Amaero's PM-HIP manufacturing process as a viable
and scalable alternative to traditional casting and forging supply chains
supporting the U.S. maritime and defense industrial base.2
-- Converted a strategic partnership into an initial commercial supply order,
receiving a A$4.6 million refractory powder purchase order from Titomic
Limited under the parties' five-year exclusive supply and development
agreement, marking an important step toward recurring commercial supply
in FY2026.3
-- Reported continued operational momentum during the quarter including
increases in powder shipments and atomization output, reflecting improved
utilization of existing capacity and ongoing manufacturing optimization
initiatives ahead of additional capacity coming online.
-- Continued to advance a diversified portfolio of commercial opportunities,
progressing engagement across defense, aerospace, space, medical, and
industrial markets, underpinned by increasing recognition of Amaero's
U.S.-based refractory and titanium alloy powder production coupled with
proprietary PM-HIP manufacturing of near-net-shape parts.
Hank J. Holland, Amaero's Chairman and CEO, commented:
"The December Quarter represented a continuing transition from the build out and commissioning phase to commercialization and scaling revenue phase. Having established strong technical validation, customer engagement and financial capacity, our focus has shifted firmly toward scaling production, reducing unit costs and converting opportunities into sustainable commercial outcomes.
"During the Quarter, we executed key capital investments that materially advance our U.S. manufacturing capability, achieved meaningful improvements in capital efficiency and received strong external validation from the United States Navy for our PM-HIP manufacturing approach. Importantly, we also began to convert strategic partnerships into commercial supply, as evidenced by the purchase order received from Titomic under our long-term exclusive agreement.
"Entering calendar 2026, we expect that headwinds that resulted from the FY2025 continuing resolution and the 43-day government shutdown will turn to positive tailwinds that accelerate commercial opportunities. From a national policy perspective and from an investor perspective, there is strong thematic support in the United States for companies that are focused on re-shoring and scaling defense industrial base, critical minerals, and sovereign manufacturing and supply chains. Amaero is increasingly positioned as a critical enabler of advanced manufacturing supply chains across defense, aerospace and industrial markets. With a strengthened balance sheet, expanding production capability and a growing pipeline of qualified opportunities, we remain resolutely focused on disciplined execution, operational excellence and unlocking long-term value for our shareholders."
Strategic and Operational Progress
During the Quarter, Amaero continued to execute on its strategy to establish a scaled, cost-competitive U.S. domestic manufacturing platform for high-value refractory and titanium alloy powders and near-net-shape PM-HIP components.
The Company entered binding purchase contracts for a dedicated Argon recycling plant and its fourth advanced EIGA Premium atomizer. These investments are expected to materially expand production capacity while delivering significant operating cost reductions, including an estimated reduction in Argon costs of approximately 80% once fully commissioned. The Argon recycling plant was secured at a cost approximately 60% below earlier estimates, improving expected capital efficiency and accelerating progress toward competitive commercial production.
Manufacturing optimization initiatives continued during the Quarter, with a focus on process, safety and quality controls to support consistent output as additional capacity is commissioned.
Defense and Government Engagement
In December 2025, Amaero received a Letter of Support from the United States Department of the Navy, recognizing the Company's PM-HIP manufacturing process as a viable and scalable alternative to traditional casting and forging supply chains.
This recognition followed extensive technical engagement and reinforces Amaero's alignment with U.S. sovereign manufacturing priorities, particularly in addressing supply-chain constraints and long lead times across the maritime and defense industrial base.
Commercial Progress
Amaero continued to transition strategic relationships into early commercial outcomes during the Quarter. In December, the Company received a A$4.6 million purchase order from Titomic Limited for refractory alloy powders under the parties' existing five-year exclusive supply and development agreement. Shipments under this order are scheduled for FY2026 and represent an important step toward establishing a recurring commercial supply.
In parallel, the Company continued to advance a diversified pipeline of commercial opportunities across defense, aerospace, space, medical and industrial applications, reflecting growing customer engagement with Amaero's U.S.-based manufacturing capabilities.
Financial Position and Capital Investment
Amaero maintained a strong financial position throughout the Quarter, supporting continued execution of its growth and capital investment program. Capital deployment remained aligned with previously announced initiatives, with EXIM Bank financing structured to match equipment delivery, commissioning and production ramp-up schedules.
Financial Guidance
On 15 January 2026, Amaero provided an update to its FY2026 financial guidance.(4) The Company estimated FY2026 revenue to equal A$18 million to A$20 million, an increase of 372% to 425% over FY2025. The Company has secured contracts for second half of FY2026 equal to A$9.7 million. The December ending cash balance was estimated at A$52.6 million, an increase of A$1.7 million from September ending balance.
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.
This announcement has been authorized for release by the Board of Directors
_______________________________
(1) (ASX Announcement, 11 December 2025, Amaero Accelerates Growth Initiatives with Major Equipment Orders) (2) (ASX Announcement, 5 December 2025, United States Navy Issues Letter of Support)
(3) (ASX Announcement, 19 December 2025, Amaero Receives A$4.6M Refractory Powder Order from Titomic)
(4) (ASX Announcement, 15 January 2026, Updated FY2026 Financial Guidance and December Quarter Activity)
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 Ltd
Amaero Ltd (ASX:3DA, OTC:AMROF) is a dual-listed 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 utilized 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 large, 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.
Appendix 4C
Quarterly cash flow report for entities
subject to Listing Rule 4.7B
Name of entity Amaero Ltd formerly known as Amaero International Limited ------------------------------------------------------- ABN Quarter ended ("current quarter") 82 633 541 634 31 December 2025 ---------------- ----------------------------------- Year to date Current quarter (6 months) Consolidated statement of cash flows $A'000 $A'000 --------------------------------------- ----------------- ------------------ Cash flows from operating 1. activities 1.1 Receipts from customers 3,517 7,053 1.2 Payments for (a) research and development (279) (396) (b) product manufacturing and operating costs (4,154) (11,393) (c) advertising and marketing (122) (239) (d) leased assets (367) (737) (e) staff costs (1,930) (4,854) (f) administration and corporate costs (3,820) (6,767) Dividends received (see note 1.3 3) - - 1.4 Interest received 440 695 Interest and other costs of 1.5 finance paid (111) (139) 1.6 Income taxes paid (1) (1) Government grants and tax 1.7 incentives - - 1.8 Other (15) 19 ------------- -------------- 1.9 Net cash from / (used in) (6,843 ) (16,760 ) operating activities ----- -------------------------------- ------------- -------------- Year to date Current quarter (6 months) Consolidated statement of cash flows $A'000 $A'000 --------------------------------------- ----------------- ------------------ Cash flows from investing 2. activities 2.1 Payments to acquire or for: (a) entities - - (b) businesses - - (c) property, plant and equipment (6,012) (17,400) (d) investments - - (e) intellectual property - - (f) other non-current assets - (2,543) 2.2 Payments from disposal of: (a) entities - - (b) businesses - - (c) property, plant and equipment - - (d) investments - - (e) intellectual property - - (f) other non-current assets - - Cash flows from loans to 2.3 other entities - - Dividends received (see note 2.4 3) - - Other (provide details if 2.5 material)* (1,771) (1,771) Net cash from / (used in) investing activities * Includes (1) A$709k relating to the release of restricted cash held in escrow following completion of the Tennessee facility construction project, with funds returned to the Company's operating bank account, and (2) A$2,480k relating to cash transferred to a restricted account in connection with EXIM Bank loan drawdowns 2.6 during the quarter. (7,782) (21,713) ------------------------------- ------------- -------------- Cash flows from financing 3. activities Proceeds from issues of equity securities (excluding 3.1 convertible debt securities) 470 50,470 Proceeds from issue of 3.2 convertible debt securities - - Proceeds from exercise of 3.3 options 2,753 3,697 Transaction costs related to issues of equity securities or convertible debt 3.4 securities (37) (3,709) 3.5 Proceeds from borrowings 11,315 17,532 3.6 Repayment of borrowings - - Transaction costs related to 3.7 loans and borrowings (18) (79) 3.8 Dividends paid - - 3.9 Other (Lease Deposit) - - 3.10 Net cash from / (used in) 14,484 67,912 financing activities ------------------------------- ------------- -------------- Year to date Current quarter (6 months) Consolidated statement of cash flows $A'000 $A'000 -------------------------------------- ----------------- ------------------- Net increase / (decrease) in cash and cash equivalents 4. for the period Cash and cash equivalents at 4.1 beginning of period 48,360 19,219 4.2 Net cash from / (used in) (6,843 ) (16,760 ) operating activities (item 1.9 above) 4.3 Net cash from / (used in) (7,782 ) (21,713 ) investing activities (item 2.6 above) 4.4 Net cash from / (used in) 14,484 67,912 financing activities (item 3.10 above) 4.5 Effect of movement in (628 ) (1,067 ) exchange rates on cash held ------------- --------------- 4.6 Cash and cash equivalents at 47,590 47,590 end of period ------ ------------------------------ ------------- --------------- Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the Current quarter Previous quarter 5. accounts $A'000 $A'000 ----- ------------------------------------ --------------- ---------------- 5.1 Bank balances 17,553 48,360 5.2 Call deposits - - 5.3 Bank overdrafts - - 5.4 Other* 30,037 - --------------- ---------------- Cash and cash equivalents at end of quarter (should equal item 4.6 above) * Money market fund (cash 5.5 equivalent, <90-day maturity) 47,590 48,360 ----- ------------------------------------ --------------- ---------------- Payments to related parties of the entity and their Current quarter 6. associates $A'000 ------ ----------------------------------------------------- --------------- Aggregate amount of payments to related parties and
6.1 their associates included in item 1 518
---------------
6.2 Aggregate amount of payments to related parties and -
their associates included in item 2
---------------
Note: if any amounts are shown in items 6.1 or 6.2,
your quarterly activity report must include a description
of, and an explanation for, such payments.
------------------------------------------------------------------------------
Financing facilities Note: the
term "facility" includes all
forms of financing
arrangements available to the
entity. Add notes as necessary Total facility
for an understanding of the amount at quarter Amount drawn at
sources of finance available end quarter end
7. to the entity. $A'000 $A'000
-------------------- ---------------
7.1 Loan facilities - -
-------------------- ---------------
7.2 Credit standby arrangements - -
-------------------- ---------------
7.3 Other (please specify) * 34,082 25,288
-------------------- ---------------
7.4 Total financing facilities 34,082 25,288
-------------------- ---------------
Unused financing facilities available at quarter end
7.5 * 8,794
---------------
7.6 Include in the box below a description of each facility
above, including the lender, interest rate, maturity
date and whether it is secured or unsecured. If any
additional financing facilities have been entered
into or are proposed to be entered into after quarter
end, include a note providing details of those facilities
as well.
As announced on 26 February 2025: Credit Agreement
Signed for US$22.8 Million Loan from Export-Import
Bank.
A fixed interest rate of 5.43% per annum was locked
in upon execution of the credit agreement, resulting
in a total effective interest rate of approximately
7.2% per annum. Interest payments commence on 30 September
2026 and are payable quarterly thereafter. Principal
is repaid in twenty-eight quarterly instalments, with
the first instalment due on 30 September 2027 and
the final instalment due on 30 June 2034.
The loan commitment reflects an advance of 75% loan-to-cost
ratio on capital equipment that has been or will be
installed in Amaero's manufacturing and corporate
headquarters in McDonald, Tennessee, as well as a
contingency reserve and capitalized loan fees.
During the quarter, the Company completed two draws
totaling A$12.545 million under the facility, comprising
net cash proceeds of A$11.145 million and a non-cash
exposure fee of A$1.400 million.
*Amount Subject to conditions
----- -----------------------------------------------------------------------
8. Estimated cash available for future operating activities $A'000
------ ----------------------------------------------------------- ---------
Net cash from / (used in) operating activities (item
8.1 1.9) (6,843)
8.2 Cash and cash equivalents at quarter end (item 4.6) 47,590
8.3 Unused finance facilities available at quarter end 8,794
(item 7.5)
------
8.4 Total available funding (item 8.2 + item 8.3) 56,384
------
8.5 Estimated quarters of funding available (item 8.4 8.24
divided by item 8.1)
------
Note: if the entity has reported positive net operating
cash flows in item 1.9, answer item 8.5 as "N/A".
Otherwise, a figure for the estimated quarters of
funding available must be included in item 8.5.
--------------------------------------------------------------------------
8.6 If item 8.5 is less than 2 quarters, please provide
answers to the following questions:
8.6.1 Does the entity expect that it will continue to have
the current level of net operating cash flows for
the time being and, if not, why not?
Answer: N/A
-----------------------------------------------------------
8.6.2 Has the entity taken any steps, or does it propose to
take any steps, to raise further cash to fund its
operations and, if so, what are those steps and how
likely does it believe that they will be successful?
Answer: N/A
-----------------------------------------------------------
8.6.3 Does the entity expect to be able to continue its
operations and to meet its business objectives and,
if so, on what basis?
Answer: N/A
-----------------------------------------------------------
Note: where item 8.5 is less than 2 quarters, all
of questions 8.6.1, 8.6.2 and 8.6.3 above must be
answered.
Compliance statement
1. This statement has been prepared in accordance with accounting standards
and policies which comply with Listing Rule 19.11A.
2. This statement gives a true and fair view of the matters disclosed.
Date: .................. 19 January
2026....................................
Authorized by: ...............The Board of
Directors..........................
(Name of body or officer authorizing release -- see
note 4)
Notes
1. This quarterly cash flow report and the accompanying activity report
provide a basis for informing the market about the entity's activities
for the past quarter, how they have been financed and the effect this has
had on its cash position. An entity that wishes to disclose additional
information over and above the minimum required under the Listing Rules
is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with
Australian Accounting Standards, the definitions in, and provisions of,
AASB 107: Statement of Cash Flows apply to this report. If this quarterly
cash flow report has been prepared in accordance with other accounting
standards agreed by ASX pursuant to Listing Rule 19.11A, the
corresponding equivalent standard applies to this report.
3. Dividends received may be classified either as cash flows from operating
activities or cash flows from investing activities, depending on the
accounting policy of the entity.
4. If this report has been authorized for release to the market by your
board of directors, you can insert here: "By the board". If it has been
authorized for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee -- eg
Audit and Risk Committee]". If it has been authorized for release to the
market by a disclosure committee, you can insert here: "By the Disclosure
Committee".
5. If this report has been authorized for release to the market by your
board of directors and you wish to hold yourself out as complying with
recommendation 4.2 of the ASX Corporate Governance Council's Corporate
Governance Principles and Recommendations, the board should have received
a declaration from its CEO and CFO that, in their opinion, the financial
records of the entity have been properly maintained, that this report
complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has
been formed on the basis of a sound system of risk management and
internal control which is operating effectively.
ASX Listing Rules Appendix 4C (17/07/20)
+ See chapter 19 of the ASX Listing Rules for defined terms
(END) Dow Jones Newswires
January 20, 2026 08:00 ET (13:00 GMT)