AL3 sells large scale modular 3D printing systems to industrial manufacturers. Its product, ARCEMY, provides a better solution to manufacturing parts for complex industrial machinery.
$0.170
Opened: 27-Jun-2024
Shares Held at Open: 6,777,530
What does AL3 do?
AML3D (ASX:AL3) is a technology company that specialises in robotic, automated 3D printing of metal parts that are delivered at the point-of-need - meaning the parts are made closest to where customers need them.
The parts that AL3 makes are made stronger, faster and more efficiently than conventional manufacturing processes.
What is the macro theme?
Additive Manufacturing, a form of 3D printing, is now a key pillar of the US strategy to build resilience into its manufacturing supply chain.
Additive manufacturing is a new way in which we believe complex industry product parts will be built as the countries move to localise strategic supply chains.
Compared to traditional casting and forging, additive manufacturing is harder, better, faster, stronger.
Our Big Bet for AL3
“AL3 re-rates to a $500M market cap on achieving significant sales growth across an expanding range of industries and jurisdictions”
NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done, many risks involved - just some of which we list in our AL3 Investment Memo. Success will require a significant amount of luck. There is no guarantee that our Big Bet will ever come true.
Why did we invest in AL3?
3D printing product at the forefront of manufacturing innovation
AL3 sells large scale modular 3D printing systems to industrial manufacturers. Its product, ARCEMY, provides a better solution to manufacturing parts for complex industrial machinery.
Blue-chip client base including US Department of Defence
AL3 has a range of high-profile customers including the US Navy, US Department of Defence, Austal (the Australian military shipbuilder) as well as oil & gas giants Chevron and Exxon. These customers provide validation for AL3’s product in future sales as well as a network of potential smaller suppliers for AL3 to target.
Tiny EV for AL3 with proven tech with sales
At 7.3c AL3 has a market cap of ~$22M, with ~$8M in the bank has an Enterprise Value of ~$14M. AL3 is already at ~A$6.6M in revenue for the first 9 months of FY24. AL3 has invested over ~$30M building out its tech.
New sales strategy already driving revenue growth
AL3 has moved from a “sell the 3D printed parts” to a “sell the 3D printing system” strategy. This new strategy means bigger contracts for AL3 and gives customers what they want because the parts are made closer to where they are needed.
“Sell the 3D printing system” strategy opens up yearly recurring revenue
For new orders of the ARCEMY system, AL3 will now build in ARCEMY services to include software and services fees on a recurring revenue basis. This includes software licensing fees, hardware maintenance, and tech support. This is an untapped stream of revenue for AL3 and a potential source of upside for the company as the company grows.
Strong US focus as AM Forward Program rolls out
In 2023 AL3 commenced its US focused strategy. The US spends more on its defence than the next 9 countries combined and as such is easily the most lucrative defence market jurisdiction to operate in. In 2022, the US has also launched the AM Forward Program to support 3D Printing across the industrial manufacturing sector. We think that the US is the right place for AL3 to grow its business.
US distribution partner Philips has proven its ability to sell AL3’s product
AL3 has a value added reseller agreement with ~$35BN capped Philips Corporation. Philips’s sales team has already helped AL3 make two US sales, including an ARCEMY sale to the US Navy Centre of Excellence which we see as the first signs that Philips is an engaged partner and we expect their sales team to help drive the marketing of AL3’s products.
US Navy to help to push AL3 to its parts suppliers
the early signs are there. We want to see AL3 expand into smaller US Navy parts suppliers who are following the US Navy’s lead. In September 2023, a Navy parts supplier called Laser Welding Solutions leased the ARCEMY product from AL3 - we hope the first of many contracts for AL3 from this type of smaller organisation.
What do we expect AL3 to deliver?
Objective #1: Hit $12M in revenue
According to the March quarterly AL3 will hit ~$7M revenue for FY24
We think that if they can back that up with beating $12M revenue in FY25 it would be a huge result.
Objective #2: More sales of ARCEMY
We want to see AL3 sign more large contracts via sales of their ARCEMY system (3D printing system).
AL3 already has good traction with the US Navy via the US Department of Defence and we alos want to see an expansion in jurisdictions and industries.
It also has a value added reseller agreement with ~$35BN capped Philips Corporation which has a large reach in the US
Milestones
total 8x new ARCEMY contracts
New ~$1M contract (New customer in US defense industry)
New ~$1M contract (Aerospace)
New ~$1M contract (O & G)
New ~$1M contract (New customer in non-US jurisdiction)
Objective #3: Prove recurring revenue from ARCEMY Services Deals
AL3 has built a recurring revenue component into its business model.
For each client that purchases the ARCEMY facility, AL3 has built in ongoing fees for providing ongoing support which includes software license fees of $150K a year, hardware maintenance fees of $50k a year, and tech support of $50k a year.
Milestones
Add new recurring revenue of $500K
Add new recurring revenue of $1M
Stretch target: Add new recurring revenue of $1.5M
Objective #4: More sales from manufacturing and prototype deals
In addition to the ARCEMY product, AL3 sells specific 3D printed parts to various organisations.
These sales contracts are generally smaller and proof of concept that will hopefully lead to repeat business.
Product testing and certifications expand the library of products that AL3 can sell in this way.
Milestones
5 new manufacturing / prototype deals
10 new manufacturing / prototype deals
New product certification 1
New product certification 2
What could go wrong?
Sales risk
There is always the possibility that AL3 does not close more sales, and its financial performance suffers as a result.
Partner risk
AL3’s value added reseller partner Phillips may not close additional sales, or may not be fully engaged, and as a result AL3 may struggle to increase its market penetration across the US defense industry or other jurisdictions and industries as quickly as we hope.
Funding and dilution risk
If AL3 is unable to sell enough of its products and services and move towards sustained profitability it may need to raise additional capital to sustain itself. This funding may be secured via a capital raise at a discount, and incur dilution to existing holders of AL3 shares.
Technology and Intellectual Property risk
AL3 will need to continue to improve its technology to retain its edge in the market. Additionally, it is possible that uptake of additive manufacturing may not occur at the necessary pace to deliver the growth we want to see. In terms of Intellectual Property (IP), AL3 has patents in many jurisdictions but AL3 may need to expand its patent portfolio and competing products may enter the market. While unlikely, there is also the possibility of industrial espionage.
Key personnel risk
AL3 is expanding in the US and will need to hire key personnel to drive this shift. Hiring processes could take longer than expected, or alternatively key personnel may leave the company.
Accreditation risk
The reputation of AML3D’s products and services is largely dependent on retaining Lloyd’s Register and ISO 9001 accreditation. The loss of these accreditations would significantly impact the demand for AML3D’s products and services.
Market risk
There is always a possibility that the broader market sells off dragging AL3 shares with it. Or alternatively there could be sector specific pain ahead for the tech industry, hurting companies like AL3.
What is our investment plan?
We plan to hold a position in AL3 for the next 3-5 years (and beyond) as it progresses its plan to gain significant market penetration in the large US market. We eventually may look to take some profits by selling up to ~20% of our holding (in line with our holding policy and escrow conditions) if the share price materially rerates on the company successfully delivering on the key objectives listed above.
Disclosure: Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 6,777,530 AL3 shares at the time of publishing this Investment Memo. The Company has been engaged by AL3 to share our commentary on the progress of our Investment in AL3 over time.
$1.2M AL3 system sale into US Navy - US Navy wants another 99
Jul 21, 2025
Jul 21, 2025 |
8 min
Our 2024 Tech Pick of the Year AML3D (ASX: AL3), just made a sale for the US Navy’s additive manufacturing Centre of Excellence in Danville, Virginia. … 14 days after the US Navy said AL3 would play a “pivotal role” in bolstering the Navy’s advanced manufacturing capabilities.
US Navy Letter of Intent: AL3 “pivotal” to US Navy’s forecast demand of 100 x 3D printing systems.
Jul 7, 2025
Jul 7, 2025 |
17 min
The US Navy just issued AML3D (ASX:AL3) a “Letter of Intent”. (yes, THE US Navy) The letter outlines the US Navy’s forecasts of what it needs in the 3D printing space and basically tells AL3 to “get ready to deliver it” - because AL3 will play “a pivotal role in achieving these targeted needs”.
AL3: USA “Big Beautiful Bill” vote in a few days to unlock US $1BN in funding… for tech like AL3’s?
Jun 30, 2025
Jun 30, 2025 |
11 min
The US “Big Beautiful Bill” is set to allocate over a US$1BN to improve US ship building processes and efficiency. The multi-trillion dollar Big Beautiful Bill is expected to be voted in by July 4th - and will enact Trump’s “make ship building great again” Executive Order. Our Investment AML3D (ASX: AL3)’s metal 3D printing tech quickly and cheaply “3D prints” complex industrial parts for the ship building and defence industry.
Trump announces tariffs to revive US shipbuilding - AL3 3D prints metal ship parts fast… in the USA.
Apr 3, 2025
Apr 3, 2025 |
12 min
Today was Trump's “Liberation Day”, where he announced reciprocal tariffs on global trading partners to increase US domestic competitiveness. Our 2024 Tech Pick of the Year AML3D (ASX: AL3) stands to benefit from the push by the US administration to rebuild and modernise the US manufacturing industry and industrial bases.
AL3 makes large sale, enters new market: US utilities
Dec 10, 2024
Dec 10, 2024 |
13 min
AML3D (ASX: AL3) has already delivered $14M of contract wins in the defence industry. It has also signed deals in the aerospace industry - including with Boeing. Now AL3 has won a $2.3M competitive tender in the US energy/utilities industry.
AL3 sells $1.7M system to US defence contractor
Nov 18, 2025
Nov 18, 2025 |
2 min
Our 3D printing Investment AML3D (ASX: AL3) just sold a $1.7M 3D printing system to FasTech LLC.
AL3 makes $4.5M sale to the “USA’s largest shipbuilder”
Oct 20, 2025
Oct 20, 2025 |
3 min
Our 3D printing Investment AML3D (ASX: AL3) just made its biggest sale yet into the US military shipbuilding industrial base.
AL3 signs expansion deal into EU market
Aug 6, 2025
Aug 6, 2025 |
3 min
Our 3D printing Investment AML3D (ASX: AL3) Just added a second European distributor, this time in Germany. This two-year, non-exclusive distribution deal follows last week's announcement of a UK based distributor, Arc Additive. We think these distribution agreements are a key step in AL3's broader European expansion strategy.
AL3’s 3D printing system now operational at the USA’s biggest public utility.
Aug 4, 2025
Aug 4, 2025 |
2 min
Our 3D printing Investment AML3D (ASX: AL3) now has a $2.27M 3D system operational at the Tennessee Valley Authority - the largest public utility in the USA. This is the first system that AL3 has been delivered from its US Technology Centre located in Stow Ohio
AL3 accelerates entry into the EU and UK markets
Jul 28, 2025
Jul 28, 2025 |
3 min
Our 2024 Tech Pick of the Year Investment AML3D (ASX: AL3) just signed a distribution agreement to fast track its push into the EU/UK markets.
Sunday Edition: 23rd November
Nov 23, 2025
Nov 23, 2025 |
14 min
Only a few weeks til Christmas now. What might it take for a Santa rally to happen this year? (A Christmas miracle after Friday’s broad sell off? At least global markets bounced back on Friday night promising a positive Monday on the ASX) Below is a summary and links for everything else we wrote about last week, along with some other interesting content we found in relation to our Portfolio.
A Fragile Peace: US and China Race Toward Tech and Resource Control
Nov 1, 2025
Nov 1, 2025 |
9 min
Aside from the almighty small end barf on Tuesday this week, things started looking up again in the back half of the week. Silver, gold (and in current times, US critical minerals) will perform better during times of global uncertainty. Over the last two weeks the market appeared to be pricing in a potential “global new normal” post the Trump-Xi meeting. …but what we got instead was a “12 month truce”.
Sunday Edition: 26th October
Oct 26, 2025
Oct 26, 2025 |
17 min
Below you can read about every stock we wrote about this week: But first… The most interesting thing we watched this morning is this interview with the US Secretary for Energy Chris Wright: We think the US critical minerals theme is going to be one of the biggest themes of 2026. (and probably remain strong during the remaining 3 years of the Trump administration… and maybe even another term.)
Small Caps Take a Breather, Setting the Stage for What’s Next
Oct 25, 2025
Oct 25, 2025 |
12 min
“It’s a healthy pullback that needed to happen” Yeah, yeah, shut up… We all hate hearing that when our glorious paper gains have been clipped. But unfortunately there is some merit to it in the bigger scheme of things. (if everything goes up too hard and too quickly, the eventual pull back will be more painful)
Sunday Edition: 21st September
Sep 21, 2025
Sep 21, 2025 |
10 min
Silver’s big Friday night price run to a new 14 year record all happened AFTER the ASX closed for the week. So ASX silver stocks have not had a chance to react to it yet… until trading re-opens on Monday morning at 10AM AEST. … only about 15 hours to go now.
