ASX small-cap stock Titomic Ltd (ASX: TTT) has surged 15% from the open on Wednesday after announcing it has received significant new orders from a top US defence and aerospace company.
Investors have reacted positively to the news and are buying shares en masse today. At the time of writing, the ASX small-cap stock is trading 20% higher at 21 cents apiece.
Meanwhile, the broader S&P/ASX 200 Index (ASX: XJO) – which mainly looks at large-cap shares, is up less than 1% on the day.
Let's examine the company announcement.
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ASX small-cap stock surging
Titomic announced it secured purchase orders worth $577,000 from a major US aerospace and defence firm. It did not disclose the name of the entity.
This order increases the total contract value with this client to over $1 million, bringing the total number of orders received since March to $8 million.
Managing Director Herbert Koeck hailed the development as a "steady advancement" for Titomic.
Titomic's receipt of these additional purchase orders from this global U.S. aerospace and defence prime highlights the Company's progress and strategic positioning in the aerospace and defence industries.
Aerospace and defence are demanding and competitive, and we are breaking new ground with our cold spray technology as our aerospace and defence customers continue to collaborate closely on several potential high-value-added projects..
The ASX small-cap stock has also secured recent wins with sales to Triton Systems and OMIC R&D. Meanwhile, it has launched a joint venture with Repkon in 2024 as well.
What else has Titomic been up to?
The company has been securing major contracts with US defence companies for the use of its niche products. The US currently has the world's highest defence budget, at more than US$916 billion in 2023.
For reference, global military spending was US$2.4 trillion in 2023, according to Statista.
But Titomic's momentum isn't confined to the US. The company recently made strides in Europe's defence sector as well.
Back in March, it received a major order from the Royal Netherlands Army, valued at 772,000 Euros for ten units of its D523 System. This order is the largest D523 sale to date.
The D523 System is designed for onsite metal repairs and coatings using low-pressure cold spray. It will be deployed by the Royal Netherlands Army for support amid the tensions in Europe.
Koeck called this order a "pivotal moment" for the company, saying it opens up "significant revenue opportunities".
Foolish takeaway
Titomic's latest achievements highlight its strategic advancements and growing influence in global defence and aerospace markets.
As geopolitical tensions remain high, there has been growing interest in shares within these domains. Titomic's stock is up more than 875% in the past 12 months, having climbed more than 350% this year alone.
