AL3 marks entrance to UK defence market with new contract
Today our 3D printing Investment, AML3D (ASX: AL3) released what we think is a very promising update on its market expansion in the UK.
It’s another blue chip customer win - AL3 has secured a $0.83M contract with BAE Systems.
BAE Systems is capped at ~$106BN right now, so we’re hoping this can be the start of a long and fruitful relationship between the two companies.
We see this as an important beachhead for AL3 in the UK, which is ramping up its defence spending in addition to large commitments by the EU to increase defence spending.
We also note that AL3 will also be sourcing 8.5 tonnes of Nickel Aluminium Bronze (‘NAB’) alloy
feedstock as part of the contract.
That’s a lot of metal, and AL3 specialises in making particularly big parts with specialised alloys to create products that are stronger, cause less waste and most importantly, built far quicker than any traditional method.
Two weeks ago we covered how AL3 made a trip to Washington DC in our latest AL3 note:
Trump announces tariffs to revive US shipbuilding - AL3 3D prints metal ship parts fast… in the USA.
We see AL3 as part of a long-term solution to variety of defence forces’ supply chain needs, as well as a key contributor to improving manufacturing across other industries.
With new jurisdictions like the UK starting to open up for AL3, we’re looking forward to more material contracts.
More sales out of the US
For AL3 it’s now all about the US scale up.
We are hoping that with the US facility coming online, it brings with it big new contracts to fulfil (and hopefully big $ revenue amounts attached to those deals).
We are also hoping to see some of those lucrative ITAR contracts that AL3 have mentioned get converted into sales.
In the half yearly presentation, AL3 mentioned there was a $40M+ sales pipeline that the company was going after…
We are also hoping to see some of those lucrative ITAR contracts that AL3 have mentioned get converted into sales.
(Source)
🔄 Further UK/European expansion updates
The majority of AL3’s sales are out of the US, so expansion into a new market is completely new upside from a revenues perspective.
We are looking forward to further newsflow from the company’s push into the UK/European market.
