AML3D LTD (ASX:AL3) - Record FY26 Results Show What Scales Next For AML3D

Now, Sean, for listeners that may be new to the AML3D story, can you just provide a brief overview of the company?

Yeah, well, we're a 3D metal printing company, so we manufacture metal parts using a 3D technology that we've developed in-house.

We're actually one of the largest 3D metal printing companies in the world in terms of the size of parts that we produce.

And we actually combine metallurgical science, robotics and software into a system which we call the Archemy system.

That's our proprietary branded system that we use.

Now, we also sell those systems to customers that want to bring the technology in-house, as well as we produce parts using that technology for customers that want to outsource the work to us.

And the company delivered record revenue of $12.5 million, up 70% on the prior year, and its first half-year EBITDA profit of $608,000.

What changed operationally to turn that corner into profitability?

Well, largely it's been growth in revenue, Andrew.

So we delivered a number of systems in the second half of the year.

So we delivered a system for Austal.

We delivered two systems for HII.

And that actually helped us with our profitability in the second half of the year.

And we also controlled costs fairly tightly in that second half of the year to deliver that profit.

Now, the order book peaked at $29 million through the year, and you're carrying $16.8 million of contracted work into FY27, almost double the prior year's rollover.

How much visibility does that give you into the FY27 revenue?

Reasonably good, actually.

So about half of that $16.8 million will be earned in the second half of the year.

So it gives us visibility on about $8 to $9 million of that.

The rest of it will be earned over a period of two years based on full lease systems that we've sold to HII.

So we've got visibility into a component of revenue that even stretches into FY28.

Now, gross margins came in at 63%.

So what's driving that and is it sustainable as the business scales?

Yeah, we've been very fortunate with our gross margins because we've priced our technology quite well and we found that we've not had any pressure on pricing from our customers that they've all been very accepting of the recommended retail price that we sell our systems at.

So we've maintained that price.