Amaero (ASX: 3DA) has secured a significant A$7.8 million minimum commitment for titanium alloy powder supply for FY2027, indicating robust market demand and supporting its plan to double production capacity.
Amaero signed the Master Purchasing Agreement with a private equity-backed manufacturing technology and advanced materials customer.
The supply period runs from July 2026 to June 2027, with shipments structured equally across each quarter.
Importantly, this FY2027 contract approximates Amaero's total titanium powder sales for FY2026.
Pricing for the minimum commitment is fixed, with discounts available for orders exceeding this amount.
Production Capacity Doubling Planned
To meet anticipated demand, Amaero expects to increase its titanium powder production by approximately 100% in FY2027 compared to FY2026.
This expansion is supported by the commissioning of two EIGA Premium atomisers, with a third expected to be commissioned in June 2026.
Amaero has stated its satisfaction with the counterparty's capacity to perform under the agreement, and expects FY2027 orders to surpass the minimum commitment.
Re-domiciliation to US Continues
Amaero is progressing its planned re-domiciliation from Australia to the United States via schemes of arrangement.
An amendment to the scheme implementation deed clarifies consideration for optionholders, aiming for a mid-June 2026 effective date.
This strategic move aims to provide the company with access to larger US capital markets and potentially position it for a future US IPO, aligning with its US-based operations in Tennessee.
Funding and Revenue Outlook
In February 2026, Amaero reported a H1 FY2026 loss of A$15.35 million on revenue of A$7.76 million.
Despite this, the company significantly strengthened its liquidity through an A$50 million placement and EXIM Bank borrowings.
Previous FY2026 revenue guidance was revised down to A$18-20 million in January 2026 (from an earlier range of A$30-35 million) due to US government contracting delays and a federal government shutdown.
However, underlying demand and long-term program pipelines were stated to be intact.
Amaero expects positive adjusted EBITDA in calendar year 2027.
