Revenues up +10X for AL3
+1000% revenue growth is a big jump.
Will there be more growth to come?
It’s looking like that's on the cards.
Our 3D printing Investment and 2024 Tech Pick of the Year, AML3D (ASX: AL3) released its annual report today, which detailed major progress for the company.
These were the headline results:
(Source)
Fast revenue growth is what we like to see here, and the results were in line with our expectations given what we’ve seen from the company so far since we Invested.
We see this a firm validation of AL3’s strategy to enter the US market which has lead to
- An important Manufacturing License Agreement with Boeing Defence and Space
- A growing pipeline of US Navy work
- Sales pushing out to the parts contractors that supply the US Navy
An Ohio facility is just around the corner, set to be operational in the second half of this year.
The facility opens up the opportunity to fulfil “lucrative International Traffic in Arms Regulated
(ITAR) Defence contracts that are limited to US based manufacturers”.
We think the strategy is working - 95% of revenues came from the US market this year.
With extra wins to potentially come in the UK and Australian markets as well, AL3 foreshadowed in this annual report.
AL3 committed to the US push, and their ability to execute this push was a core component of our AL3 investment thesis.
We’ve outlined our investment thesis in our AL3 Investment Memo…
How does this news impact our AL3 Investment Memo?
On target here for Objective #1 so far, with strong momentum in sales.
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.
With key wins, and the prospect of more with the Ohio facility, we’re feeling confident at this stage that AL3 will be able to deliver on the $12M revenue target that we’ve set out.
Source: 27 June 2024 AL3 Investment Memo
Here’s what we think AL3 needs to do to keep up the momentum.
What’s next for AL3?
🔄More sales to US Navy pushing out to wider US defence industrial base (ongoing)
🔄Opening of Ohio facility (next ~3 months)
🔄Expansion into new industries with new clients (such as Oil & Gas, aerospace)
🔄NEW: First product sales from Boeing agreement
Make sure to read our latest AL3 note which profiles AL3’s important agreement with Boeing Defence and Space:
AL3’s Quarterly reveals new agreement with Boeing, and more than 500% growth in cash receipts
