AL3 ends quarter with $29M of orders in hand and $26.5M cash

ASX:AL3

Published 28-APR-2026 10:41 A.M.

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Our 3D metal printing Investment AML3D (ASX: AL3) released its March Quarterly Report yesterday.

Here were the two standout numbers for us:

$29M in orders in hand for the FY (as at 31 March 2026)
$26.5M cash in the bank

That order book is the highest AL3 has ever reported and if the last few months are anything to go by, we could see things get even stronger going into the end of the FY.

Over the last few months AL3 announced:

$9.9M, 4x ARCEMY systems for Newport News Shipbuilding (a division of $20BN Huntington Ingalls - the largest military shipbuilder in the US)
$2.6M, 5x US Navy submarine components (parts no longer supported by their original equipment manufacturers)

We covered both of the larger orders in more depth, where we went into more of the current macro environment and why we think AL3 is in a great position to continue:

The Newport News order in particular is the key one to watch having now expanded its ARCEMY fleet from 2 systems to 6 in just six months.

Which to us is a clear sign that they like what they have seen from the initial order so we wait to see if once these have been commissioned, will they add even more?

That kind of repeat and expansion pattern from a tier-1 US Navy supply chain operator is what we are wanting to see.

It’s also consistent with the kind of growth AL3 said the US Navy’s Letter of Intent forecast back in July 2025 (the LOI flagged demand for up to 100 ARCEMY systems across the US Marine Industrial Base).

We covered that back then, so it’s a positive sign to see it playing out: US Navy Letter of Intent: AL3 “pivotal” to US Navy’s forecast demand of 100 x 3D printing systems.

Here’s how the March quarter appeared on the cash flow statement:

Customer receipts: $2.2M for the quarter (consistent with the previous 3 quarters)
YTD customer receipts: $6.9M (up 20% on the prior comparable period 12 months ago)
Net cash used in operating activities: $2.058M for the quarter / $4.051M YTD
Cash and cash equivalents at quarter end: $26.5M

A few other things worth flagging:

1. Product manufacturing & operating costs rose to $2.4M.

Which is to be expected, because AL3 is actually building the units that are sitting in the order book, so we can see the order book is starting to flow through into actual production activity.

2. AL3 is funding the Stow expansion out of cash on hand.

AL3 invested $0.8M as the first tranche of the planned $12M US capacity expansion at its Stow, Ohio facility this quarter, so this expansion is fully funded.

3. The R&D pipeline is being funded too.

AL3 invested another $0.27M in the AIDR (ARCEMY Increase Deposition Rates) project, taking cumulative FY26 spend on the program to $1M (out of a $2.24M total budget).

This is the project aimed at making ARCEMY units faster and more productive, important for AL3’s competitive position as more systems get deployed.

US Advocacy - Larissa Smith joins AL3

Another bit of news that we saw in the quarterly was the appointment of Larissa Smith as AL3’s new US Defence advisor.

Larissa was (until very recently), the Director of Additive Manufacturing for the US Navy itself.

(source)

So Larissa is now on AL3’s side of the table and is someone who knows all of the ins and outs of the exact part of the US navy that AL3 has been targeting.

We think that this is actually a pretty big win for AL3 and could help with the US expansion plans.

UK/Europe and AUKUS updates

The quarterly confirmed that AL3’s UK/Europe push is also progressing along, something we haven’t had a specific update on in a while.

AL3 confirmed:

A $1.2M BAE Systems UK material feasibility and test block program is progressing
Early-stage ARCEMY system sales negotiations underway in the UK
Confidential component manufacturing carried out for a UK defence prime supplier
Two-year distribution agreements in place with Arc Additive Limited (UK & Europe) and DMFG Solutions GmbH (Europe)

AL3 stated that the commissioning of a UK ARCEMY system here is the trigger for its $5M investment into a European Technology Centre (which will most likely be UK-based).

And on the Australian side, AL3 has now completed the final commissioning of the $1M Curtin University ARCEMY enterprise system in Perth.

This is timed neatly with the Australian Government’s $12BN AUKUS Defence Precinct development south of Perth.

(source)

We note, AL3 is already recognised by Austrade as one of Australia’s largest exporters under AUKUS.

What's next for AL3?

More US Navy system sales 🔄

With 100 systems forecast across the Marine Industrial Base and only a handful deployed so far, the pipeline from HII alone may become substantial.

We want to see more orders from the six US naval base companies named in the Navy's LOI. (source)

US facility expansion 🔄

AL3 is investing $12M to expand its Ohio production capabilities which is required to keep up with its growing sales.

The additional four systems ordered by Newport News systems will ship from its Ohio US technology center.

UK and European market entry 🔲

AL3's CEO has flagged early-stage demand in their UK and European markets and we think that NATO's 5% GDP defence spending target could create a new wave of opportunity.

Back in April last year AL3 announced it had started alloy testing with BAE Systems (capped at 123BN who are a multinational aerospace, arms and information security company), so we are hoping successful testing leads to sales into the UK/EU…

Ultimately, we want to see AL3 make a first sale into Europe or the UK.