Q3 2026 results: revenue up 35% to $4.1 million as backlog hits $13.4 million
In its third quarter 2026 earnings release, Amaero recorded revenue of $4.1 million, up 35% from $3.1 million in the third quarter of 2025. The quarter ended 30 September 2026 and delivered the company’s first quarterly results as a U.S.-domiciled, Nasdaq-listed company (Nasdaq: AMRO; ASX: 3DA).
Nine-month revenue reached $11.5 million, up 170%, while backlog stood at $13.4 million at 30 September 2026, up 96% from year-end 2025. The release also introduced fourth quarter 2026 revenue guidance. All figures are in US dollars under U.S. GAAP.
Headline metrics for the period:
- Q3 2026 revenue: $4.1 million, up 35% year-on-year
- Nine-month revenue: $11.5 million, up 170% from $4.3 million
- Trailing twelve-month revenue: $13.5 million, up 191% from $4.7 million
- Backlog: $13.4 million, up 96% from $6.9 million at 31 December 2025
Hank J. Holland, Chairman and CEO
“In the third quarter, revenue increased 35% year-over-year to $4.1 million, and revenue for the first nine months of 2026 increased 170% year-over-year to $11.5 million. We also returned to titanium production following our facility safety review…”
Growth came from both product lines, and the backlog includes $4.4 million tied to a U.S. Department of War (DoW) contract.
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Revenue mix and contract wins driving the order book
Product line performance
Metal powders revenue rose 19% to $3.2 million, an increase of $0.5 million. PM-HIP components revenue more than doubled from $0.4 million to $0.9 million, including the first revenue recognised under the company’s Low-Rate Initial Production (LRIP) contract with Bechtel Plant Machinery, Inc. (BPMI).
The revenue reconciliation shows the split in US$ thousands:
| Product line | Q3 2026 | Q3 2025 | Nine months 2026 | Nine months 2025 |
|---|---|---|---|---|
| Metal powders | $3,201 | $2,679 | $9,396 | $3,537 |
| PM-HIP components | $912 | $371 | $2,114 | $732 |
| Total revenue | $4,113 | $3,050 | $11,510 | $4,269 |
The company said the metal powders increase reflects the continued ramp of its atomization capacity following the commissioning of its second EIGA Premium atomizer in June 2025, and expansion of new and existing customer relationships.
Defence contracts and backlog
Backlog rose 180% from $4.8 million a year earlier. Two contracts stood out in the quarter:
- DoW contract: a $4.5 million award in July 2026 for the development of alternative refractory alloy powders to reduce cost and dependence on foreign sources of critical raw materials. Two high-temperature alloys have been down-selected and produced on the company’s gas atomization technology, and the 13-month program is expected to be completed in August 2027.
- BPMI contract: the company’s first LRIP contract, valued at $0.3 million, supporting the U.S. submarine industrial base and moving PM-HIP from development into low-rate initial production.
PM-HIP (Powder Metallurgy Hot Isostatic Pressing) is a manufacturing method for large near-net-shape components, used by the defence, space, aviation, commercial nuclear and medical industries. Refractory alloys are high-temperature metals, and the DoW program targets lower cost and less reliance on foreign sources of critical raw materials.
Gross margin pressure and the capacity build-out
The quarter’s margins were weak. Cost of revenue was $8.5 million, producing a gross loss of $4.4 million versus a gross loss of $0.1 million a year earlier.
Net loss was $9.1 million, or $0.38 per basic and diluted share, compared with $4.1 million or $0.20 per share a year earlier. Adjusted EBITDA, a non-GAAP measure, was $(7.1) million. Operating expenses were $4.4 million, including $0.6 million of costs related to the Redomiciliation from Australia to Delaware and the IPO.
Following safety incidents, titanium powder production was paused for approximately six weeks. The company concluded a comprehensive safety review with Jensen Hughes and implemented the resulting improvements, and production resumed in late July 2026. There were no purchase order cancellations and no employee attrition during the pause.
The July production restart announcement came just ahead of the quarter’s close and framed the pause as a contained interruption, with the Jensen Hughes remediation measures built permanently into daily operations.
Optimisation of the new sieving system reduced titanium throughput and yields. The company said titanium production was below installed capacity, a portion of production labour and fixed production costs was not absorbed into inventory, and lower yields increased the cost of titanium powder sold.
Management does not expect fixed production costs to increase in proportion to revenue, and expects future revenue growth to drive operating leverage and improvement in gross margin.
Capacity at quarter end included:
- Third EIGA Premium atomizer commissioned in June 2026, bringing the fleet to three atomizers (two titanium, one refractory)
- Annual capacity of approximately 680 metric tons, comprising approximately 480 titanium and 200 refractory
- Titanium throughput capacity expanded by approximately 100% with the custom sieving system commissioned in August 2026, together with the third atomizer
Q4 2026 revenue guidance and balance sheet after the IPO
Guidance
Amaero expects fourth quarter 2026 revenue of $4.5 million to $5.0 million, up 121% to 146% from $2.0 million. Combined with nine-month revenue, this implies full year 2026 revenue of $16.0 million to $16.5 million, up 154% to 162% from $6.3 million in 2025.
Titanium volumes matter for the revenue outlook because of the FY2027 titanium supply agreement, a binding minimum commitment with equal quarterly shipments and discounted pricing on any excess volumes.
| Period (US$ in millions) | Current period | Prior period | Y/Y growth |
|---|---|---|---|
| Fourth Quarter 2026 (Oct. to Dec.), guidance | $4.5 to $5.0 | $2.0 | 121% to 146% |
| Second Half 2026 (Jul. to Dec.), includes Q4 guidance | $8.6 to $9.1 | $5.1 | 69% to 79% |
| Full Year 2026 (Jan. to Dec.), includes Q4 guidance | $16.0 to $16.5 | $6.3 | 154% to 162% |
IPO, cash and funding
Funding developments after the quarter ended:
- U.S. IPO completed 16 October 2026, with 4,705,883 shares sold at $4.25 per share
- Underwriters’ option partially exercised on 19 October 2026, with 306,814 additional shares issued at the public offering price
- Aggregate net proceeds of $17.0 million, after underwriting discounts and commissions and estimated offering expenses
- Nasdaq trading began 15 October 2026, while CHESS Depositary Interests continue to be quoted on the ASX as “3DA”
Amaero intends to use up to approximately $10.0 million of net proceeds to purchase capital equipment over the next 12 months, with the remainder for general corporate purposes, including working capital, operating expenses, and research and development.
Cash and cash equivalents were $19.3 million at 31 October 2026, compared with $4.96 million on the 30 September 2026 balance sheet. Nine-month net cash used in operating activities was $19.2 million, with payments for property, plant and equipment of $13.9 million.
On 7 October 2026, the company amended its EXIM Bank Credit Agreement. The pledged collateral requirement fell from 20% to 10% of the outstanding loan balance, releasing approximately $2.1 million of restricted cash, and the first testing date for the minimum liquidity covenant moved from 30 September 2027 to 30 September 2028.
What happens next for Amaero
The release stated the following milestones and dates:
- Argon gas recycling plant: remains on track for commissioning in Q1 2027.
- Fourth EIGA Premium atomizer: remains on track for commissioning in June 2027.
- DoW refractory alloy powder development program: expected to be completed in August 2027.
- Webcast replay: available on the company’s investor relations website through 23 November 2026.
The company held its inaugural earnings call as a Nasdaq-listed company on 9 November 2026. Management said it remains focused on bringing its next wave of capacity online, deepening partnerships with defence and aerospace customers, and converting its backlog into revenue.
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