excellent post from Hank on LinkedIn this morning…
“May you live in interesting times.” Like it or not, we live in very interesting (fast changing and dangerous) times.
With recent trips to meet with defense prime on missile defense program, meetings on U.S. Navy programs, meetings on Capitol Hill with U.S. Senators and Congressmen, it’s an exciting time with a NEW sense of urgency.
Our corporate strategy and capital investments have been driven by demand pull and are aligned with critical and urgent demand … it’s the right time and U.S. domestic production is the right place.
The Trump Administration has clearly communicated that DoD priority programs include hypersonics, missile defense and maritime / submarine industrial base. This is coupled with TOP priority to re-shore and scale U.S. domestic supply chains.
Defense primes are communicating a new imperative to accelerate demonstrable progress and to fast track onboarding new suppliers. Amaero International Ltd (ASX:3DA) is very well positioned to provide domestic and differentiated capabilities that address critical gaps in supply chain.Moreover, it’s timely that Amaero recently completed its final equity capital raise and closed $23 million loan with Export-Import Bank of the United States. We are fully funded and well positioned to transition to commercialization in FY2026.
On a cautionary note, the consensus views that FY2025 budget is expected to pass prior to CR expiration on March 14. I think it’s HIGHLY unlikely and almost a certainty that the FY2025 budget approval will be delayed. In the near-term, this is a negative and likely leads to delays in contracts and revenue. “New starts” and “re-starts” are prohibited at DoD during CR … so contracts will likely be delayed.
Investment themes including defense industrial base, advanced manufacturing, advanced materials and U.S. domestic supply chains are front and center in U.S. investor’s minds. Strong secular tailwinds will lead to demand / revenue and will lead to attractive valuation multiples.
3DA Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
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