AL3 signs $500K parts order for US Navy nuclear submarines
Our 3D metal printing Investment AML3D (ASX: AL3) just signed an initial production parts order for parts that will go inside US Navy nuclear submarines.
AL3’s 3D metal printers help print complex metal parts for shipbuilding, aerospace and defence - harder, better, faster, stronger than traditional casting or forging
AL3 recently announced its FY26 revenues where it had:
- Record FY26 revenue of $12.5M - up 70% on last year.
- $78M in sales pipeline (near-term order opportunities), AND
- $16.8M in orders carried over to FY27 - so next year should be another record year for AL3).
It's 3D metal printer was even used on the US Navy's website just last month:
(source)
So it has built up some strong momentum and today announced:
(source)
The order is worth ~AU$0.5M and comes from Austal USA Advanced Technologies, part of the ASX-listed shipbuilder $1.9BN Austal.
AL3 will 3D print three large, high pressure copper-nickel fluid control components at its US technology centre in Stow, Ohio.
As a reminder, AL3 makes money from two main streams - selling its ARCEMY 3D metal printing systems, AND printing parts for customers on a contract basis.
Today's order is from the parts printing side of the business.
The key bit for us is that this order moves the procurement of these components from traditional manufacturing across to AL3's 3D printing tech.
So now that the first is being completed and all of the background work ticked off, we would like to think there will be many more parts in the pipeline to come via this 3D printing route instead.
This is the direct result of the parts qualification and test programs AL3 has been running for the US Navy over several years, to be able to get its foot inside the door.
(There weren't any images of the actual parts in today's announcement either as this stuff is likely classified, which would be a sign of how deep AL3 now sits inside the US defence world)
We are also hoping this first production order is the start of many more parts orders to come.
The US Navy has forecast demand 1,600 3D printed components by 2030 and AL3 already has 16 systems deployed to support the US Navy's submarine industrial base.
That figure was included in a quote at the end of today's announcement:
(source)
This is on top of the up to 100 additive manufacturing systems it sent a letter to AL3 about (which we covered last year: US Navy Letter of Intent: AL3 “pivotal” to US Navy’s forecast demand of 100 x 3D printing systems.)
AL3 gets 50% of the order upfront, with the balance on delivery, testing and commissioning, expected by the end of Q3 FY27.
So we wait to see how many of those 1,600 specific parts the NAVY is forecasting that AL3 will be able to manufacture for the US Navy in coming years.
Today's order adds to AL3's record FY26 momentum of $12.5M revenue (up 70%), $16.8M of orders carried into FY27 and a ~$78M sales pipeline.
See that here: AL3: Record $12.5M revenue, $78M in sales pipeline, US Navy keen and entry in UK/EU defence space.
What's next for AL3?
🔄 More system sales into the US market
We want to see more orders from the six US naval base companies named in the Navy's LOI.
And hopefully new channels after last week's US Navy announcement.
🔄 US facility expansion
AL3 has flagged that it will be doubling the capacity of its Ohio facility.
AL3 plans to invest $12M to expand production capabilities.
We don't expect things to suddenly take off but a few system sales every few weeks/months would be a great outcome here.
🔄 UK and European market entry
AL3 has appointed distributors in the UK and Germany, and is running alloy testing with BAE Systems.
We think the alloy testing contracts are precursors for system sales/manufacturing deals - these testing contracts are where the bigger guys test AL3’s tech before buying.
Sales into Europe or the UK could change the way the market sees AL3’s future growth potential.
AL3 explicitly said in today’s announcement that it “has the cash reserves to fund a $5 million investment in a UK Technology Centre to support UK and European demand” (source)
