Metal additive 3D printing company AML3D (ASX:AL3) has popped 6% on Monday, to 25cps, as the company strengthens its relationship with the U.S. Navy – leaving open the possibility we could be looking at the start of a larger cycle for the smallcap.
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At 25cps, that’s a four-year high for the stock after a short-lived burst above 50 cents per share in 2020, the year the company listed.
The possibility that AML3D could have further to run is borne from the fact defence stocks around the world have kicked off FY26 still on a tear borne from the macro risks of several different geopolitical conflicts.
In my view, it is not particularly poetic to call the world a tinderbox right now; something I wrote about last Monday.
And it is before that backdrop that the company revealed the latest news from its decisive pivot into U.S. defence markets in recent years.
Describing the company’s tech as “pivotal” for the U.S. Navy itself, AML3D has received a Letter of Intent (LOI) from the Navy, which ultimately paves the way for the former to become a regular feature at tender briefings for companies based on the Navy’s needs at any given time.
In other words: A foot in the door for contracts. This comes not long after the company set up digs in Ohio, a move that may prove to be more wise than getting involved in a now-stalled AUKUS.
While the test of whether AML3D can now sit around the psychological anchor price of 25cps will most likely depend on financial results in a not-too-distant future, the move is evidence that Australia’s lesser-known defence stocks broadly are coming out of the woodworks, something I discussed on last week’s HotCopper Wire podcast.
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