Highlights
Financial Performance
Amaero reported revenue for the September Quarter of A$4.7 million. Revenue included approximately A$4.1 million from powder sales and A$0.6 million from Powder Metallurgy Hot Isostatic Pressing ("PM-HIP") manufacturing. This reflects a 445% increase from the Q1 FY2025 period.
Though production increased by approximately 240% from Q4 FY2025, the finished powder was insufficient to fill all Q1 FY2026 orders. The Company begins Q2 FY2026 with a backlog of unfilled Q1 orders, totalling A$0.5 million.
Cash used in operating activities was A$9.9 million, including A$4.7 million in inventory purchases. A significant portion of these inventory purchases represented buffer stock built to reduce exposure to potential trade disruptions and tariff policy uncertainty.
The Company ended the September Quarter with a cash and restricted cash balance of A$50.9 million.
After the Reporting Period, the Company received US$5.7 million on 3 October 2025 from draw on Export-Import Bank of the United States ("EXIM Bank") equipment financing loan. The total EXIM Bank loan commitment equals US$22.8 million or US$20.3 million net of exposure fee. After the recent draw, the EXIM Bank loan balance equals US$13.3 million, net of exposure fee. The Company expects to draw the balance of the loan in FY2026.
Scaling Manufacturing Production
In anticipation of scaling manufacturing, the Company engaged a consulting firm to evaluate the manufacturing processes and recommended improvements to scale production, to improve safety and to enhance quality controls.
The Company re-structured the operations team and added Mark Struss, VP, Manufacturing Operations, to manage manufacturing operations. Additional processing equipment has been ordered and will be commissioned in Q2 and Q3 FY2026.
Customer powder shipments increased from 4,900 kg in Q4 FY2025 to 12,410 in Q1 FY2026, a sequential increase of 153%.
Atomization increased from 8,000 kg in Q4 FY2025 to 27,000 kg in Q1 FY2026; an increase of approximately 240%. Production shifted from a single, 8-hour shift, 5 days per week on one atomizer to two, 10-hour shifts, 6 days per week on 2 atomizers. The increased production and processing was insufficient to meet the demand and to fill all orders.
Chairman and CEO re-locates to Chattanooga, Tennessee
As the Company transitions to scaling production and to commercialization, Chairman and CEO, Hank Holland and his family re-located to Chattanooga, Tennessee during the Reporting Period.
C103 Material Improvement Collaboration Completed with Castheon / ADDMAN
Since the initial qualification of C103 with Castheon / ADDMAN in September 2024, Amaero and ADDMAN have collaborated to further improve material properties. Joint testing has validated that Amaero's C103 spherical powder meets ADDMAN's performance specifications, achieving wrought-like material properties. Through continued development, both organizations are translating these advancements into mission-critical reliability that strengthens domestic supply chains. Per the Preferred Supplier Agreement, Amaero will ...
