Amaero awarded A$6.5M U.S. Department of War contract for refractory alloy powders
Amaero Inc. (ASX:3DA) has been awarded a A$6.51 million contract from the United States Department of War (DoW) for the development of alternative refractory alloy powders. The contract runs for 13 months, with the programme to be completed in August 2027.
Valued at US$4.5 million (based on an AUD:USD exchange rate of 0.6869), the award converts two years of collaboration with the U.S. government into contracted revenue. It also reinforces Amaero’s position as a defence supply-chain partner focused on critical high-temperature materials.
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Inside the contract: value, timeline and revenue recognition
The contract includes monthly progress payments based on project milestones, providing structured revenue as the programme advances. Amaero expects approximately 40% of the revenue to be recognised during Q3 and Q4 CY2026, with a further approximately 50% recognised across Q1 and Q2 CY2027.
The stated objective of the programme is to reduce the cost of refractory alloy powders while also reducing dependencies on foreign sources for critical raw materials. For investors, this aligns the work with broader U.S. priorities around domestic supply-chain resilience.
| Contract feature | Detail | Investor significance |
|---|---|---|
| Contract value | A$6.5M (US$4.5M) | Material revenue for a company of Amaero’s size |
| Term | 13 months to August 2027 | Defined delivery window with milestone accountability |
| Payment structure | Monthly, milestone-based | Recurring cash inflows tied to progress |
| Revenue timing | ~40% CY2026 / ~50% CY2027 | Near-term visibility from Q3 CY2026 |
| Counterparty | U.S. Department of War | Deepening U.S. government relationship |
Why refractory alloys matter
High-temperature refractory alloys are metals engineered to withstand extreme heat and stress. They are critical for thermal protection systems and propulsion systems used in hypersonic and space components. The flagship example is Niobium C103 (C103).
C103 has been a well-established material system for high-temperature aerospace applications since the Apollo lunar mission in 1969. Its appeal stems from a high strength-to-weight ratio, excellent ductility and service capability above 2000°C, making it suitable for rocket nozzles, thrusters and hypersonic components.
Developing alternative alloys that can be interoperable with C103 has become an increasingly important consideration. Despite its exceptional high-temperature strength, C103’s use in modern engineering design is constrained by price inflation and price volatility.
The material is composed of approximately 89% Niobium, 10% Hafnium and 1% Titanium. Over the past three years, the price of Hafnium has increased by over 700%, and it is currently selling for approximately US$12,500 per kilogram. This cost and supply pressure creates demand for interoperable alternatives, which is the opportunity Amaero is addressing.
What Amaero will deliver
In consultation with the DoW, U.S. national laboratories, and defence and space prime contractors and suppliers, Amaero will down select two alternative high-temperature development refractory alloys. The programme moves through a defined technical workflow.
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Atomise the refractory alloys using its advanced gas atomisation technology.
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Manufacture test parts via its PM-HIP process.
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Collaborate with strategic suppliers to 3D print coupons and test the alternative development alloys.
Importantly, the gas atomisation technology used for development purposes is described by the company as an established, mature technology that is readily scalable for production. This helps de-risk the path from development work toward potential commercial output.
Strategic positioning and the investment case
The development programme further establishes Amaero as a thought leader with leading technology and know-how for the atomisation of spherical refractory alloy powders. These powders are essential to advanced thermal protection systems and propulsion applications in hypersonic and space components.
According to management, Amaero commissioned the only EIGA Premium in the U.S., described as the most advanced gas atomisation technology for refractory alloy powders. For investors, the award delivers milestone-based defence revenue, a deepening relationship with the U.S. government, and alignment with domestic supply-chain reshoring priorities.
The DoW award adds a second active U.S. government revenue stream alongside the U.S. Navy submarine production contract secured in June 2026, which marked Amaero’s formal transition from development work into live production within the submarine industrial base.
Hank J. Holland, Chairman and CEO
“Over the past two years, Amaero has collaborated closely with the U.S. government and the Department of War (“DoW”). In response to the DoW’s supply chain challenge, Amaero commissioned the only EIGA Premium in the U.S., the most advanced gas atomization technology for refractory alloy powders. As high-temperature refractory alloy powders are essential to thermal protection systems and propulsion systems in hypersonic and space platforms, it’s essential that we develop the next generation refractory alloy powders. The A$6.5 million award from DoW positions Amaero to down select the most promising alternative refractory alloys and to establish the necessary print and test data to advance maturity and adoption. We appreciate being selected as a trusted and strategic partner with unique technical and production capabilities and we look forward to collaborating with DoW to advance the next generation refractory alloy powders.”
What comes next
The programme runs for 13 months, with completion targeted for August 2027. Near-term revenue visibility begins in Q3 and Q4 CY2026, when Amaero expects to recognise approximately 40% of the contract value.
Amaero is a U.S. domestic producer headquartered in Tennessee, supplying high-value refractory and titanium alloy powders for additive and advanced manufacturing across the defence, space, aviation and medical industries. The contract provides a defined framework for delivery, with progress measured against agreed project milestones throughout the term.
The DoW contract sits alongside the A$7.8 million titanium powder supply agreement secured for FY2027, which carries equal quarterly shipment commitments and represents a separate contracted revenue line covering Amaero’s titanium production capacity rather than its refractory alloy programme.
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