ASX defence stock AML3D Ltd (ASX: AL3) is bucking the broader market malaise and charging higher today.
Again.
Shares in the defence-focused company, which designs and constructs 3D parts using metal additive manufacturing technology, are up 6.3% at the time of writing, trading for 17 cents apiece.
That sees this high-flying ASX defence stock up an eye-popping 146% in just the past month.
Here's what's grabbing investor interest today.
Image source: Getty Images
ASX defence stock lifts on quarterly results
The AML3D share price is marching higher today after the company released its quarterly results for the three months ending 30 June (Q4 FY 2024).
The ASX defence stock reported quarterly customer receipts of $1.64 million. That came from $1.06 million of Australian ARCEMY system milestone payments and component contracts and $580,000 of US 'Scale up' ARCEMY system milestone payments.
Likely stoking investor enthusiasm, AML3D said full FY 2024 customer receipts of $8.3 million soared 488% from the $1.41 million received in FY 2023. The company credited its US 'Scale up' strategy for the big lift.
Management said they are confident AML3D "will report another record revenue performance in FY 2024".
The quarter also saw the ASX defence stock raise $6.8 million (before costs), with strong demand from institutional, professional and sophisticated investors. AML3D said it is now fully funded to establish its US manufacturing hub, increase its strategic position in the US defence sector and maintain its technology advantage.
The company is investing $4.5 million to establish a US manufacturing, sales and corporate hub. In May, AML3D signed a lease for a modern facility in Ohio. The ASX defence stock is also investing another $1.0 million to develop its ARCEMY technology systems to extend its technology advantage.
Together with an increase in the cost of goods linked to the strong order flows, management reported this resulted in an operating cash outflow of $1.31 million over the quarter.
Cash on hand at 30 June was $7.79 million
Now what?
Looking ahead, the ASX defence stock expects the establishment of its US manufacturing hub will "drive a significant increase in US defence contract wins over the short and medium term and accelerate access to additional US Marine, Oil & Gas and Aerospace contracts over the medium term".
Management added:
Once operational, the US manufacturing hub will free up capacity at the company's Australian facilities to support growth outside the US.
The new contract wins to support Australia's DSTG in the June 2024 quarter, combined with strong demand signals from the UK, give AML3D confidence it can replicate the success of the US 'Scale up' strategy in these additional significant global Defence, Oil & Gas, Marine and Aerospace markets.
