That's because the team at Bell Potter is bullish on it and sees strong potential returns ahead for investors with a high tolerance for risk.

Which ASX defence stock?

The stock in question is AML3D Ltd (ASX: AL3).

It is a welding, metallurgical science, robotics, and software business, which produces automated 3D printing systems that utilise wire additive manufacturing technology (WAM) to produce metal components and structures.

Bell Potter was pleased to see the ASX defence stock announce new contract wins. This includes an order from the US Navy. It said:

AL3 recently announced $12.5m in new orders, including a $9.9m follow-on order from Newport News Shipbuilding (four ARCEMY X systems) and a $2.6m parts manufacturing order for the US Navy. NNS is a subsidiary of major US defence prime contractor Huntington Ingalls Industries Inc (NYSE: HII), market capitalisation US$14.5b), is AL3's largest order to date and complements two ARCEMY X systems acquired by NNS in October 2025.

The US Navy order through BlueForge Alliance is for five high-demand submarine components which are no longer supported by the incumbent manufacturer. BlueForge Alliance is an industrial base integrator for the US Navy.

This comes at a time when the company's balance sheet is looking particularly strong. It adds:

AL3's balance sheet is strong with cash of $31m and no debt at 31 December 2025. We have incorporated AL3's latest financial results and the new orders into our outlook. The net result is tempering our revenue expectations for FY26, and upgrades to outer years.

Shares tipped to rocket

According to the note, Bell Potter has reaffirmed its speculative buy rating and 40 cents price target on the company's shares.

Based on its current share price of 21 cents, this implies potential upside of 90% for investors over the next 12 months.

Commenting on its recommendation, the broker said:

AL3's technology is particularly suited to maritime applications, giving it strong leverage into demand growth from the US Navy's Maritime Industrial Base and the US SHIPS Act. Over FY26-27, we expect AL3 to increase deployment of ARCEMY systems to the US and Europe, increase prototyping activity and ultimately commence commercial scale production of components.

There is potential for the Navy LOI to expand beyond the Maritime Industrial Base to land-based assets. AL3 will also look to deploy its technology into non-defence sector industrial manufacturing.

The post Is this ASX defence stock the next DroneShield? appeared first on The Motley Fool Australia.

This comes with increased risk compared to blue-chip companies.

However these two ASX small-caps have attracted buy recommendations from Bell Potter. 

AML3D Ltd (ASX: AL3)

AL3 is a welding, robotics, and software business, which produces automated 3D printing systems that utilise Wire Additive Manufacturing technology (WAM) to produce metal components and structures. 

It is particularly useful for the printing of large scale complex industrial parts for the defence, oil & gas and aerospace sectors.

As is expected with penny stocks, AL3 shares have experienced significant volatility over the last year. 

However a new report from Bell Potter suggests it could be set for growth. 

The broker said the company's technology is particularly suited to maritime applications, giving it strong leverage into demand growth from the US Navy's Maritime Industrial Base and the US SHIPS Act. 

This is already coming to fruition with key contracts being secured in the last week. 

Over FY26-27, we expect AL3 to increase deployment of ARCEMY systems to the US and Europe, increase prototyping activity and ultimately commence commercial scale production of components. There is potential for the Navy LOI to expand beyond the Maritime Industrial Base to land-based assets. AL3 will also look to deploy its technology into non-defence sector industrial manufacturing.

The broker has retained its speculative buy recommendation and $0.40 price target on this ASX small-cap. 

From yesterday's closing price, this indicates an upside of 100%. 

Minerals 260 Ltd (ASX: MI6)

MI6 is a Perth-based gold exploration and development company. 

This small-cap has rocketed in the past year, rising 470%. 

This includes a 59% rise year to date. 

Recent analysis from Bell Potter indicates there could be further growth ahead after MI6 reported new drilling results from its fully owned Bullabulling Gold Project in Western Australia.

The latest results come from 5,425 meters of drilling, part of a larger 110,000-meter program.

The drilling found several solid gold intersections, confirming the project's existing resource estimate and discovering additional mineralised areas beyond it.

MI6 offers gold exposure via the 4.5Moz Bullabulling Resource, valuation uplift through discovery success, project advancement and de-risking as the BGP progresses towards production. It holds ~$250m cash, sufficient to fund to Definitive Feasibility Study (DFS), Final Investment Decision (FID), long-lead items and early site works.

The broker has retained its speculative buy recommendation and price target of $0.90. 

This indicates a potential upside of 31% from current levels. 

The post 2 ASX small-cap shares Bell Potter says can race 30-100% higher appeared first on The Motley Fool Australia.

In morning trade, the ASX defence stock is up 20% to 20.5 cents.

Why is this ASX defence stock jumping?

Investors have been buying the additive manufacturing company's shares following the release of an announcement before the market open.

According to the release, the ASX defence stock has received an order for high demand, non-safety critical replacement components used in US Navy submarines.

The release notes that AML3D plans to leverage its proprietary ARCEMY technology to 3D metal print five of the high demand components, which are no longer available from the original manufacturer.

The order has been signed with BlueForge Alliance, which is a US nonprofit, neutral integrator, supporting the strengthening and sustainment of the US Navy's Submarine Industrial Base.

What is it worth?

The ASX defence stock advised that this US Navy submarine components contract is valued at ~A$2.61 million (US$1.84 million). This is payable up front and upon meeting contract milestones.

Management notes that the contract follows successful hydrostatic testing by the US Navy of ARCEMY 3D metal printed components.

Uniquely positioned

The company believes this deal highlights that it is uniquely positioned to address supply chain constraints across the US Navy's Maritime Industrial Base.

It highlights that its WAM technology produces high quality, complex components that match and exceed those supplied by traditional manufacturers with a significant reduction in lead times.

Commenting on the contract, the ASX defence stock's CEO, Sean Ebert said:

Signing this order is a significant milestone for AML3D. It shows our advanced manufacturing technology is key to solving a wide range of critical supply chain challenges for the US Navy's submarine program. This latest contract pertains to complex components that are no longer supported by the original manufacturer and could not be sourced in a time and cost-effective manner from the Navy's traditional supplier base.

AML3D's advanced industrial 3D metal printing technology is increasingly being embedded in the US Navy's Maritime Industrial Base. This contract allows us to continue to build and deepen our longterm, strategic partnership with the US Navy and supports our investment to double capacity at our US Technology Center in Ohio. Our US Scale-up strategy continues to deliver significant growth and value to AML3D and its shareholders. While the latter strategy is being successfully delivered, we at the same time continue to progress our plans to enter into the UK market and other globally significant markets across Europe.

The post Guess which ASX defence stock is jumping 20% on US Navy contract appeared first on The Motley Fool Australia.

The broker is predicting more than 100% upside for the ASX technology company's shares, which we'll get to shortly.

Major new contract win

Firstly, let's look at what they announced this week.

AML3D said they had received a $9.9 million order for four Arcemy X 3D printing systems from US shipbuilder Newport News Shipbuilding, which is a division of HII, which is the largest US military shipbuilder.

AML3D Chief Executive Officer Sean Ebert said it was a major milestone for the company.

The step change in the size and value of this HII ARCEMY order is very much reflective of the strong and growing demand signals that underpin AML3D's continued expansion into the U.S. defense market. It is also a strong endorsement of our U.S. 'Scale up' strategy which included establishing our U.S. technology Center in Stow Ohio and our plans to invest $12 million to expand our U.S. production capabilities. Not only do we expect to see a continued growth in U.S. defense orders we are also looking to continue to expand into other sectors. We have already successfully supplied ARCEMY technology to the Tennessee Valley Authority, the largest public utility in the U.S., and are targeting growth across the U.S. Marine, Energy, Aerospace and Oil & Gas sectors. In addition, we are seeing the emergence of early-stage demand in our UK and European markets that is similar to the demand signals that are driving our success in the U.S.

Shares looking cheap

Shaw and Partners said the new order supports their projection for FY27 revenue at AML3D of $30 million.

They added:

AL3 is set for growth with U.S. reshoring initiatives, strengthened by key partnerships including the U.S. Navy and Boeing.

And they said more announcements were likely:

AL3 has been in discussions with the US Navy/BlueForge Alliance around an A$23mn "Phase 2" expansion of additive manufacturing capacity in the Navy's supply chain. This is likely to involve 10 ARCEMY systems and could be framed by a "take or pay" agreement with the Navy to supply printed components. The contract depends on appropriation of funding under the National Defense and Authorization Act FY26. We believe funds may be made available for this arrangement over the next month catalysing AL3 to make an announcement at that time.

Shaw has a price target of 40 cents on AML3D shares, compared with just 17 cents currently. AML3D was valued at $93.9 million at the close of trade on Tuesday.

The post This ASX technology stock could more than double: broker appeared first on The Motley Fool Australia.

In early trade, the ASX defence stock is up 22% to 16.5 cents.

Why is this ASX defence stock jumping today?

The company's shares are charging higher following the release of an announcement from the metal additive manufacturing company.

According to the release, AML3D has secured an order worth approximately $9.9 million from the largest military shipbuilder in the United States.

The ASX defence stock notes that the order has been placed by Newport News Shipbuilding (NNS), which is a division of Huntington Ingalls Industries (NYSE: HII). It is the largest military shipbuilder in the United States and delivers ships, aircraft carriers, submarines, and defence technologies.

The order is for four custom large-scale ARCEMY X 6700 additive manufacturing systems.

Once delivered, the purchase will bring the total number of ARCEMY X systems deployed at Newport News Shipbuilding to six.

AML3D advised that the systems will be supplied from its U.S. Technology Center in Ohio. All four additional units are expected to be installed and operational during the third quarter of FY 2027.

What is ARCEMY?

The ARCEMY systems that have been ordered are custom systems based on the large scale ARCEMY X 6700 but using a ~11,000kg positioner to create a heavy capacity build capability.

They are used for advanced metal additive manufacturing and will support a variety of shipbuilding applications. This includes the fabrication and replacement of ship components for U.S. Navy contracts.

Management highlighted that increasing the use of ARCEMY technology in U.S. Navy programs is a key part of the company's growth strategy. The ASX defence stock's CEO, Sean Ebert, said:

The step change in the size and value of this HII ARCEMY order is very much reflective of the strong and growing demand signals that underpin AML3D's continued expansion into the U.S. defense market. It is also a strong endorsement of our U.S. 'Scale up' strategy which included establishing our U.S. Technology Center in Stow Ohio and our plans to invest $12 million to expand our U.S. production capabilities.

Not only do we expect to see a continued growth in U.S. defense orders we are also looking to continue to expand into other sectors. We have already successfully supplied ARCEMY technology to the Tennessee Valley Authority, the largest public utility in the U.S., and are targeting growth across the U.S. Marine, Energy, Aerospace and Oil & Gas sectors. In addition, we are seeing the emergence of early-stage demand in our UK and European markets that is similar to the demand signals that are driving our success in the U.S.

The post Guess which ASX defence stock is jumping 22% on US military order appeared first on The Motley Fool Australia.

There's the obvious with the US and Israel launching strikes on Iran over the weekend, but there's also a longer-term trend for countries around the world to increase the share of spending they are attributing to defence, all of which bodes well for Australian defence stocks.

One company which arguably stands to benefit is AML3D Ltd (ASX: AL3), which is focused on the manufacture and sale or lease of its Arcemy 3D printing modules.

The company recently released its first-half results, with revenue slipping 30% to $3.3 million, and the net loss increasing 65% to $4.9 million.

Order book looking strong

This might not sound amazing on the face of it, but the company also said it had an order book of $16.5 million, with $3.25 million of that recognised as revenue in the first half, with delays around raw materials and the extension of timelines pushing revenues into the second half of the year.

The company said in its first half report that it was making good inroads in the defence sector.

AML3D is continuing to diversify its customer base to include core U.S. Defence contracts and expanding into new industrial manufacturing markets. The 1H26 ARCEMY contract with FasTech, a supplier to the Defense and civil industry, is a good example of leveraging AML3D's success supporting the U.S. Navy Maritime Industrial Base (MIB) to broaden into additional markets. This contract builds on the delivery of a custom ARCEMY X system to the Tennessee Valley Authority, the largest federally owned Utility in the US, during 1H26.

AML3D said it also had ambitions to grow in Europe, "to build on the momentum generated by an initial order for materials testing from BAE Systems in the UK''.

The company added:

The expansion into additional Defence and industrial manufacturing markets in the U.S. and entry into Europe represent the next phase of AML3D's growth strategy. They will be underpinned by AML3D's plans to invest in a more than doubling of the capacity in our U.S. operations and the establishment of a European Technology Centre.

AML3D shares looking cheap

The team at Shaw and Partners had a look at the first half result, and they like what they see.

They have a price target of 40 cents per share on AML3D shares and say near-term earnings are not that important, as their valuation "is driven by long-term sales exceeding A$100 million".

AML3D shares are currently changing hands for just 17.7 cents.

The company was valued at $82.9 million at the close of trade on Friday.

The post This under the radar ASX defence company could more than double in value, a broker says appeared first on The Motley Fool Australia.

Before investing in small-cap stocks, it's important to remember they can come with increased volatility. 

Many small-cap companies operate pre-profit, relying on external/government funding for research and development. 

This can create large fluctuations in share price. 

On the flip side, there is always the possibility of small-cap companies becoming the large-cap stocks of the future. 

With this in mind, here are two that have drawn attractive price targets from Bell Potter. 

Biome Australia Ltd (ASX: BIO)

Biome Australia develops and commercialises clinically backed innovative live biotherapeutics (probiotics), marketing 18 products under the 'Activated Probiotics' brand.

Activated Probiotics is a range of live biotherapeutic products aimed to help prevent and support the management of various health concerns. 

Its stock price is down more than 30% over the last 12 months. However, it has risen 7% so far in 2026. 

The team at Bell Potter released a new report on Biome Australia following its quarterly activities and cash flow report.

Bell Potter said the 2Q26 result was excellent. 

Results included: 

• Quarterly EBITDA / operating cash flow passing $1m for the first time
• 2Q26 sales had been pre-released and were up c.41% yoy to c.$6.5m
• Cash receipts were up c.43% to c.$6.2m
• Annualised run rate on sales is now c.$26m, while gross margins are being maintained at >61%

The broker has maintained its buy recommendation and 12-month price target of $1 on this ASX small-cap stock. 

From yesterday's closing price, that indicates an upside of more than 122%. 

We have adjusted our 1H26 estimate to reflect the EBITDA beat, although we are maintaining our FY26 estimates. It is encouraging to see operating leverage begin to flow through to the financial results. Free cash flow generation should be the final hurdle to attracting wider investor interest. We look forward to the HY update that should enable investors to gain further insight into progress on international expansion and brand development through the Mecca partnership.

AML3D Ltd (ASX: AL3)

Bell Potter has also maintained its speculative buy recommendation on ASX small-cap defence stock AML3D Ltd. 

This update came after the company's quarterly report yesterday, which included significant order growth.

AL3's December 2025 quarterly report points to increased system orders in the US, emerging demand signals from the UK and European defence sectors and ongoing R&D in Australia to support the next generation of ARCEMY systems.

Bell Potter said the company's order book is now $16.5m, which includes $9m of orders on hand at the opening of FY26 plus more recently announced orders including $1.7m from FasTech (US contract printer), $4.5m from HII (Newport News Shipbuilding ordering two ARCEMY systems), and $1.2m from Austal (for a rapid deployment system). 

AL3 retained a strong cash position at quarter-end of $29m (prior quarter $31m), with no debt. 

The broker has a price target of $0.40 on this ASX small-cap stock, which indicates an upside of 122%. 

AL3's technology is particularly suited to maritime applications, giving it strong leverage into demand growth from the US Navy's Maritime Industrial Base and the US SHIPS Act. Over FY26-27, we expect AL3 to increase deployment of ARCEMY  systems to the US and Europe, increase prototyping activity and ultimately commence commercial scale production of components.

The post Are these ASX small-cap stocks about to double? appeared first on The Motley Fool Australia.

Since then, this popular ASX defence stock has risen an incredible 575%.

But perhaps you don't need a time machine after all. That's because Bell Potter believes there is a small cap ASX defence stock which has the potential to deliver incredible returns over the next 12 months.

Though, it is a high risk, high reward play, which means it would only be suitable for investors with a high tolerance for risk.

Which ASX defence stock?

The stock that Bell Potter is tipping as a speculative buy is AML3D Ltd (ASX: AL3).

It is a $97 million welding, metallurgical science, robotics, and software business, which produces automated 3D printing systems that utilise wire additive manufacturing (WAM) technology to produce metal components and structures.

Bell Potter highlights that WAM is particularly useful for the printing of large scale complex industrial parts for the defence, oil & gas, and aerospace sectors.

What is the Bell Potter saying?

The broker highlights that there are growing demand signals from the UK and European defence sectors for AML3D's offering, with its order book increasing strongly. It said:

AL3's December 2025 quarterly report points to increased system orders in the US, emerging demand signals from the UK and European defence sectors and ongoing R&D in Australia to support the next generation of ARCEMY systems. AL3's order book is now $16.5m, which includes $9m of orders on hand at the opening of FY26 plus more recently announced orders including $1.7m from FasTech (US contract printer), $4.5m from HII (Newport News Shipbuilding ordering two ARCEMY systems) and $1.2m from Austal (for a rapid deployment system).

Bell Potter also highlights that the ASX defence stock's US expansion strategy is gathering momentum, adding:

AL3 continues to advance its US expansion strategy and while the key orders in this quarterly had previously been reported, the report highlights that the revenues are expected to be forthcoming in the current financial year. Delivery into the July 2025 US Navy LOI is yet to reach critical mass (only the HII order so far) and is the key opportunity for sales growth through HII and other defence sector prime contractors.

UK/Europe is also a key opportunity where system sales should commence and accelerate in the coming quarters. AL3's sales model (upfront payments from customers) has again enabled maintenance of a strong balance sheet.

Big potential returns

According to the note, the broker has retained its speculative buy rating and 40 cents price target on the ASX defence stock.

Based on its current share price of 18 cents, this implies potential upside of 120% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter concludes:

AL3's technology is particularly suited to maritime applications, giving it strong leverage into demand growth from the US Navy's Maritime Industrial Base and the US SHIPS Act. Over FY26-27, we expect AL3 to increase deployment of ARCEMY systems to the US and Europe, increase prototyping activity and ultimately commence commercial scale production of components.

There is potential for the Navy LOI to expand beyond the Maritime Industrial Base to land-based assets. AL3 will also look to deploy its technology into non-defence sector industrial manufacturing.

The post Is this ASX defence stock the next DroneShield? Broker tips 120% upside appeared first on The Motley Fool Australia.

At the time of writing, the ASX defence stock is up over 10% to 21.5 cents.

This means that the metal additive manufacturing technology company's shares are now up over 130% since this time last year.

Why is this ASX defence stock surging today?

Investors have been bidding AML3D's shares higher today after it announced the delivery of a Copper-Nickel component order for the U.S. Navy's Virginia-Class nuclear submarine program.

According to the release, the prototype tailpiece components, which are valued at approximately A$156,000, have been supplied for testing and for in-service trials on board a Virginia-Class nuclear submarine.

Management believes that the successful completion of this component order demonstrates how the ASX defence stock's proprietary additive manufacturing technology supports the establishment of a resilient trilateral AUKUS supply chain.

What is it?

The release notes that AML3D's market-leading advanced additive manufacturing technology is delivering a step change in production efficiency and component quality for the U.S. Navy's Submarine Industrial Base.

It highlights that the Virginia-Class submarine prototype tailpiece components were 3D metal printed in less than five weeks. This compares extremely favourably to an average 17-month lead-time via traditional manufacturing.

Over the past two years, AML3D has partnered with the U.S. Navy's Maritime Industrial Base (MIB) Program and BlueForge Alliance to meet emergent material readiness needs for U.S. submarines, and integrating metallic additive manufacturing as an alternative solution to support critical supply chain gaps and constraints.

Management feels that its successful delivery of this Virginia-Class tailpiece component demonstrates how Australian suppliers are being leveraged to contribute under a tri-lateral industrial base model.

Commenting on the news, the ASX defence stock's CEO, Sean Ebert, said:

AML3D has been working with the U.S. Navy and its partners for close to two years. In that time, we have created a successful model that includes cross-continental coordination, information sharing, and the deployment of our ARCEMY advanced 3D metal printing technology across a network of U.S. defense industry and academic experts. We have also completed several alloy testing and characterisation programs including Copper-Nickel, which allows us to supply components to the U.S. Nuclear submarine program.

Admiral Jonathan Rucker from the U.S. Program Executive Office Attack Submarines adds:

Collaboration in this space is critical to our ability to build and sustain Virginia Class submarines now and for the next many decades. Through partnerships like the one with AML3D, we are creating resiliency and robustness domestically as well as in critical areas of Naval operation.

The post Up 130% in a year, why this ASX defence stock is soaring again today appeared first on The Motley Fool Australia.

In morning trade, the ASX defence stock is up 23% to 16 cents.

Why is this ASX defence stock rocketing?

Investors have been fighting to get hold of the 3D manufacturing solutions provider's shares following the release of an update.

According to the release, AML3D has entered into a manufacturing license agreement with Blue Forge Alliance, (BFA) which will allow the company to substantially expand its access opportunities to manufacture parts for the US Navy.

Importantly, the contract is open ended and has no fixed term.

Management believes this is a major strategic development in its supply relationship with the US Navy. It notes that BFA is a US non-profit, neutral integrator, supporting the strengthening and sustainment of the US Navy's Submarine Industrial Base.

Under the agreement, BFA may facilitate the provision of technical assistance and data on parts and components used in US Navy Submarines to AML3D. This will allow the company to use its proprietary large-scale, industrial ARCEMY Wire-arc Additive Manufacturing metal 3D printing systems to manufacture, test and validate a wider range of US Navy submarine parts and components.

The MLA builds on AML3D's successful relationship with BFA. It also supports the company working with other US Navy submarine suppliers to exchange technical assistance and data to support the production of an expanded range of parts and components.

Management commentary

The ASX defence stock's CEO, Sean Ebert, was pleased with the news. He said:

We are very pleased to see this Blue Forge Alliance Manufacturing License agreement signed, which creates opportunities for AML3D to print more parts for the US Navy. We are looking forward to working with Blue Forge Alliance, the technical teams within the US Navy's Submarine Industrial base and amongst the US Navy's wider supplier network to access the technical knowledge and data needed to 3D-print, test and validate metal parts and components for US Navy submarines.

AML3D's US scale up strategy is designed to support the US Navy's submarine industrial base by directly supplying the US Navy with advanced manufacturing technology, components and services. Importantly, this strategy also includes embedding ARCEMY systems and service contracts within the wider US Navy supply chain. Today's MLA agreement creates many opportunities to develop and deepen relationship that have the potential to further accelerate our US scale up strategy.

Following today's gain, AML3D shares are now up 60% since the start of the year. Though, they still remain down 38% from the 52-week high they surged to at the beginning of July.

The post Why is this ASX defence stock rocketing 23% today? appeared first on The Motley Fool Australia.

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.

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.

The post Why this high-flying ASX defence stock is surging again today appeared first on The Motley Fool Australia.

And that's no hyperbole.

Here's how the AML3D share price has moved as of last Wednesday:

• On 3 July shares closed up 37.8%
• On 4 July shares closed up 25.9%
• On 5 July shares closed up 26.5%
• On 8 July shares closed down 14.0%
• On 9 July shares closed down 21.6%

As for today, shares in the ASX defence stock are once more tearing higher, up 17.2% at 17 cents apiece.

Now that sees the stock up 234% over 12 months.

But it still leaves the AML3D share price down 26.1% since Monday's open.

Time to pounce?

What's been lifting the AML3D share price?

If you're not familiar with the company, the ASX microcap stock is engaged in the design and construction of 3D parts using metal additive manufacturing technology, with a focus on the defence industry.

And the AML3D share price has been enjoying a strong run following a series of new contracts.

Back on 16 August, the company signed a contract valued at more than $2 million with BlueForge Alliance to develop and 3D print a metal replacement component used in United States Navy submarines.

And the new contract announcements have continued apace.

On 1 May, the company reported inking a $350,000 deal with the Australian government for a six-part nozzle assembly in an aerospace defence project.

On 20 May, AML3D announced another deal linked to the US Navy involving the lease of two more of its ARCEMY metal 3D printing systems with option to purchase. That deal has an initial value of $700,000. The AML3D share price closed up 17.9% on the day of the announcement.

Commenting on that deal at the time, AML3D CEO Sean Ebert said it "illustrates how important our advanced manufacturing technology is to the US Defence sector".

He added:

AML3D ARCEMY systems can produce higher quality components, faster and with less waste than traditional manufacturing which is driving demand from the US Navy and the wider US Navy submarine industrial base supply chain.

Price query

Today the company responded to a 5 July price query from the ASX regarding the soaring AML3D share price and surge in trading volume last week.

The ASX had questions about AML3D's announcement on 2 July when the company reported on a new $1.1 million sale of its ARCEMY system to US Navy supplies Laser Welding Solutions.

AML3D replied to the ASX query about the announcement, stating:

Not only was the ARCEMY System sale a material sale for the company, but the election to purchase the previously leased system was directly related to previous announcements on 20 September 2023 and 20 May 2024.

Is the AML3D share price good value now?

The past few days of selling were likely driven by some healthy profit-taking after the huge run higher in the AML3D share price.

Today, it appears that speculative bargain hunters are back in the game, driving shares higher once more.

With the share price still down 26% since Monday's open, it's quite possible investor enthusiasm could send it back to Monday's levels, or higher, in the days ahead. Though that's far from guaranteed.

Longer term, the global defence sector is expected to continue growing strongly amid ongoing and rising tensions around the world.

If AML3D can continue to secure a foothold in that multi-billion-dollar industry with additional and continuing defence contracts, I expect shareholders to be amply rewarded.

The post The AML3D share price has crashed 26% this week. Time to pounce on the ASX defence stock? appeared first on The Motley Fool Australia.

At the time of writing, shares in the emerging ASX defence player are swapping hands at 18.5 cents apiece, a rise of more than 160% in the last month.

Stock prices are typically based on fundamentals, such as a company's sales or earnings. But we do know that from time to time, stocks can fly on other catalysts, such as market-sensitive announcements.

With this meteoric rise in such a short time, many are asking, is AML3D profitable? Here's a look.

Why the sudden interest in AML3D shares?

This Adelaide-based company, which specialises in metal 3D printing for the defence sector, has made several announcements in recent months, which have resulted in enormous growth in the value of AML3D shares.

The company has been busy in the last year, securing a series of lucrative contracts. It most recently sold its 2600 Edition ARCEMY system to Laser Welding Solutions, which supports the US Navy, for $1.1 million.

This builds on another US Department of Defense contract for $1.5 million it secured earlier in the year.

Moreover, the company recently received a $1.12 million grant from the South Australian Economic Recovery Fund to advance its proprietary metal 3D printing technology

Arguably, these developments further cement its reputation in this highly specialised field.

But while these updates are great for AML3D shares, what does it mean for the actual business's profitability?

The company reported more than 935% sales growth in its half-year results. Revenues grew to $1.5 million, up from just $147,115 the year prior.

Gross profit – which is considered sales minus costs of goods sold – came to $714,000 for the half. But stock prices aren't sensitive to gross profits. It's the after-tax earnings that matter.

After all costs and operating expenses, AL3MD's net loss after tax was $3.4 million, or 1.4 cents per share, versus negative 1.3 cents per share in H1 FY23.

As such, ALM3D is not currently profitable.

Financials and future outlook

Looking ahead, there could be reasons to be optimistic about AML3D shares, particularly through its expansion into the US defence sector and ongoing technological advancements.

The company is focused on expanding its footprint with the US Navy and military. ALM3D CEO Sean Ebert said there were many opportunities to do this.

He said "continuing momentum" was driving the company's US growth. As such, it is looking at opportunities in "the Navy's submarine industrial base, but also across US-based, global Tier 1 Oil & Gas, Marine and Aerospace companies".

Foolish takeaway

Investors intrigued by AML3D's recent performance and its moves in the defence sector might view the stock as a speculative growth opportunity.

However, it's crucial to stay aware of the inherent risks. This is especially true for companies like ALM3D, which are still navigating their path to profitability.

As always, consider your personal investment strategy and consult with a financial advisor if needed.

The post Up 160% in a month, is ASX defence stock AML3D profitable? appeared first on The Motley Fool Australia.

What kinds of gains are we talking about?

Well, over the past 12 months, the All Ordinaries Index (ASX: XAO) has gained a healthy 8%.

Now, here's how these leading ASX defence shares have performed over that same period:

• Electro Optic Systems Holdings Ltd (ASX: EOS) shares are up 99%
• Codan Ltd (ASX: CDA) shares are up 54%
• AML3D Ltd (ASX: AL3) shares are up 280%
• Droneshield Ltd (ASX: DRO) shares are up 704%

Now those are the kinds of returns you want to see in your portfolio!

What do these companies do?

You may be familiar with these ASX defence shares already.

If not, here's a quick snapshot of what they do.

Electro Optic Systems has two business divisions: Defence Systems and Space Systems. The company's products include remote weapon systems and counter-drone technology. Electro Optic Systems recently inked a defence contract with a Western European nation.

Codan develops rugged electronics solutions for government, corporate, and consumer markets worldwide and has contracts with both the military and law enforcement. Among the favourable market fundamentals that the ASX defence share cited in its half-year reports was "increasing global military and defence spend in the Five Eyes Intelligence community."

AML3D designs and constructs 3D parts using metal additive manufacturing technology. The company recently signed new contracts with the United States Navy.

And Droneshield provides drone detection and disruption solutions to the defence sectors, commercial airports, prisons, and other critical infrastructure. Droneshield has multiple government defence contracts, including with the US.

Can ASX defence shares keep on delivering?

The conundrum with investing in ASX defence shares is that they tend to perform much better during times of high or rising global tensions.

While we ardently hope for world peace to break out, an event that would likely see ASX defence shares sold down, that's unfortunately not the most likely scenario.

Indeed, in addressing the mid-2024 outlook, Ronald Temple, chief market strategist at Lazard, says bluntly, "Geopolitical risk is unlikely to subside."

According to Temple:

The war in Ukraine looks nowhere near resolution and … a Trump presidency may inject even more volatility into the geopolitical landscape given uncertainty over his support for European and Asian allies and his plan to broadly raise US tariffs.

Then there's the potential powder keg in the Middle East as Israel's battle against Hamas drags on.

Temple notes that, "The risk of expansion of the current hostilities to include an expanded confrontation with Hezbollah has increased meaningfully."

But the most worrisome conflict the world faces is a potential shooting war between the US and China.

Temple says:

The most consequential geopolitical risk is a confrontation between China and the United States. Ongoing skirmishes in the South China Sea between China and the Philippines appear to be the most likely source of potential near-term conflict.

We fervently hope wiser, calmer heads will prevail and step away from the brink.

Until then, these top ASX defence shares could well continue to deliver market-beating returns.

The post 'Geopolitical risk is unlikely to subside': Should you pile into ASX defence shares right now? appeared first on The Motley Fool Australia.

It is up almost 70% this week alone.

Comparatively, the benchmark S&P/ASX 200 index (ASX: XJO) has lifted 6.8% over the past 12 months.

Let's dive into what's driving this performance and whether it's a trend that could continue.

Why is the AML3D share price soaring?

The impressive rally in the ALM3D share price is most likely attributed to several positive developments for the company.

This week, AML3D announced a $1.1 million sale of its 2600 Edition ARCEMY system to Laser Welding Solutions, a supplier to the US Navy.

This system will support Laser's alloy qualification program, which has been operational under a lease agreement since September 2023. The deal includes a one-year service and maintenance contract, adding to AML3D's recurring revenue stream.

Earlier in the year, back in February, AML3D reported a 936% increase in half-year revenues to $1.51 million, compared to $146,115 in the prior corresponding period.

In May, the company secured a $350,000 contract with the Australian Government, alongside a $1.54 million order from the US Department of Defence.

AML3D then received a $1.12 million grant from the South Australian Economic Recovery Fund to develop its proprietary metal 3D printing technology.

These achievements have positioned the AML3D share price front and centre of the ASX aerospace and defence basket at the start of FY25.

What's next for AML3D?

While AML3D has been making headlines, it's worth noting that other ASX defence-related stocks, like DroneShield Ltd (ASX: DRO), have also seen significant gains.

DroneShield shares, for instance, have posted a 617% increase over the past year and more than 410% return year-to-date in 2024. It, too, had a number of recent contract wins with the US Government.

The question is, will AML3D's contract wins and rapid revenue growth suggest its share price has a similar potential for future outsized returns as well?

AML3D is focused on getting its advanced manufacturing technology in with the US Navy supply chain. Its announcement on the ARCEMY sale to the Navy on Tuesday made a detailed note of this.

The company's CEO, Sean Ebert, expressed confidence in AML3D's ability to capitalise on opportunities within the US Defence sector, saying:

The continuing momentum within our US scale-up strategy underpins the investment we are making in our US manufacturing hub and headquarters at Ohio. We are looking to maximize the opportunities we have across the US Defence sector, especially the Navy's submarine industrial base, but also across US-based, global Tier 1 Oil & Gas, Marine and Aerospace companies.

Foolish takeaway

AML3D's recent performance and promising outlook could make it an exciting prospect for investors.

However, as with any high-growth stocks, potential investors should remain mindful of the risks and volatility involved. Keep an eye on AML3D's future announcements to gauge whether this upward momentum can be sustained.

The post AML3D share price surges another 38% today! What's going on? appeared first on The Motley Fool Australia.

This is, after all, a company that has exploded by 660% since this time last year. And investors are looking at a 360% return over 2024 to date alone.

Of course, Droneshield shares' ascent has not come unprompted. This aerial defence solutions company has been posting some outstanding numbers in recent months. Investors were chuffed to see Droneshield reveal its first-ever profit back in February, covering the 2023 calendar year.

This saw the company post a 226% rise in revenues to $55.1 million. That was in addition to the maiden profit after tax of $9.3 million, which was a pleasing swing from the previous year's $900,000 loss.

Then, in April, Droneshield further delighted investors with its quarterly cash flow report. This report showed the company posting ten times more revenue over the three months to 31 March 2024 than it did in the same quarter last year – an increase from $1.6 million to $16.4 million.

So you can understand why Droneshield shares have been such enthusiastic winners in recent months.

But perhaps it's time for Droneshield shares to move over. There's another ASX defence stock that has also exploded in value in recent months. Time to check out the AML3D Ltd (ASX: AL3) share price.

AL-who? Could this share be the next Droneshield?

AML3D is a defence company that uses 3D printing technology to enable the production of large-scale and diversified parts manufacturing.

The AML3D share price has also had a time to remember over the past few months. Back in early April, you could have picked up AML3D shares for just 5 cents each. But today, those same shares are going for 10 cents a pop, meaning AML3D had rocketed by 100% in just three months.

Over the past month alone, ALM3D shares are up 67%.

Excitement over AML3D began building in February this year, when the company revealed that its revenues for the half-year ended 31 December rose by a whopping 936% to $1.51 million. That was up from just $146,115 for the prior corresponding half in 2022.

Following that revelation, AML3D reported a new $350,000 contract with the Australian Government for a six-part nozzle assembly in May. This was followed by news of a $1.54 million order from the United States Department of Defence later that month.

Last month, the company announced that it had received another $1.12 million in the form of a grant from the South Australian Economic Recovery Fund in order to help develop AML3D's proprietary metal 3D printing technology.

Everything seems to be going AML3D's way lately. That brings us to today. This Tuesday, there has been another announcement out of AML3D. This one told investors that AML3D has booked a $1.1 million sale of its ARCEMY system to Laser Welding Solutions (LWS), a component supplier to the US Navy.

According to the company, "LWS has been operating this ARCEMY system under a lease agreement since September 20232 for a Nickel Aluminium Bronze… alloy qualification program for the US Navy".

This probably explains why the AML3D share price is up a healthy 4.17% so far today.

So a lot seems to be going right for AML3D shares in recent months. However, the company still has a long way to go if it is to emulate the extraordinary performance of Droneshield shares. Let's see if it can keep growing.

The post Move over DroneShield: This ASX defence stock is up 67% in a month! appeared first on The Motley Fool Australia.

While the All Ordinaries Index (ASX: XAO) is deep in the red, down 1.33% at time of writing, this ASX microcap stock just soared 40%.

Any guesses?

If you said AML3D Ltd (ASX: AL3), go to the head of the virtual class.

Shares in the metal additive manufacturer were trading for 8.8 cents apiece in early morning trade, up from a closing price of 6.3 cents per share yesterday. Shares are currently trading for 7.9 cents apiece, up 25.4%.

Here's what's stoking investor interest.

ASX microcap stock soars on US military contract

Investors are bidding up the AML3D share price after the ASX microcap company reported it has signed a contract with non-profit BlueForge Alliance to develop and 3D print in metal a replacement component used in United States Navy submarines.

AML3D said the component in question is in high demand and no longer available from traditional manufacturers. The company said its technology, which enables the metal 3D printing of these types of non-safety critical components, solves a significant US Navy supply chain challenge.

The non-safety-critical components are made with a nickel-aluminium-bronze alloy material.

The manufacturing contract is valued at just over $2 million. That sum is payable upfront and upon meeting contract milestones. The contract will run for nine months, commencing in September.

Commenting on the contract award sending the ASX microcap stock soaring today, CEO Sean Ebert said:

AML3D is excited to continue to deepen its long-term, strategic partnership with the US Navy's submarine industrial base. The NSC components manufacturing contract is further evidence of the growing momentum in our US scale-up strategy.

With an eye on the future, Ebert said, "AML3D's focus is on the US defence, aviation and maritime sectors."

He noted that the ASX microcap stock "is well positioned to access the many opportunities that will be created as a result of the AUKUS Alliance, in the US, Australia and Europe".

AML3D share price snapshot

With today's big boost factored in, the AML3D share price is up 14% in 2023.

Shares in the ASX microcap stock remain down 38% over 12 months.

The post Guess which ASX microcap stock just soared 40% on a US Navy order appeared first on The Motley Fool Australia.

At the time of writing, the AML3D share price is leaping 19.23% higher on the ASX, trading for 9.3 cents. That's after fetching up to 34% higher during intraday trading.

For comparison, the All Ordinaries Index (ASX: XAO) is currently down 0.19%.

Let's take a closer look at the latest news from the metal additive manufacturer.

This tiny ASX share is leaping 20% on a world-first

Wednesday has proven a good one for this tiny ASX share. The AML3D share price is rocketing after leading marine and industrial classification society DNV gave the company its tick of approval.

The body has granted AML3D's proprietary WAM advanced manufacturing technology an additive manufacturing facility accreditation.

The approval demonstrates the company's WAM technology meets integrity and quality standards for critical components in the oil, gas, and marine industries.

The accreditation allows AML3D to produce parts for critical operations in such industries and issue 'class certification' for components.

That gives the company a significant competitive advantage. It makes it the only wire-feed manufacturer endorsed to supply such high-value parts to DNV's global customer base. As such, it expands the company's range of potential customers across various industries.

AML3D managing director Andrew Sales commented on the news driving the ASX share higher today:

DNV facility accreditation allows us further access into the marine markets for high value essential components.

DNV offers a broad range of customers including a heavy focus on oil and gas sector. [The sector is] a key growth target for AML3D.

This accreditation is a game changer for us.

The post 'Game changer': ASX share you've likely never heard of rockets 20% on world-first accreditation appeared first on The Motley Fool Australia.

At the time of writing, AML3D shares are swapping hands for 18 cents, up 20% for the day.

AML3D ventures into space technology

In today's statement, AML3D advised that it has entered into a supply agreement with a leading North American aerospace company.

The deal will see AML3D produce specialised 3D printed high strength alloy parts for a bespoke prototype.

Little details were offered due to the highly sensitive nature of the contract. As such, the name of the aerospace company was withheld as well as the type of product and associated revenue.

AML3D noted that it was selected because of the high-strength and robust properties of its Wire Additive Manufacturing (WAM) process.

The company's WAM technology uses 3D metal printers to weld metal wire to create near net shapes. This is considered a more sustainable way of manufacturing as compared to machining from billet, reducing material waste by 80%.

In addition, utilising WAM technology significantly reduces the cost of manufacturing as well as the time to build. This allows clients to customise parts for their specific needs.

A number of relationships are being forged with aerospace companies both in Australia and overseas to capture significant growth opportunities.

AML3D managing director Andrew Sales commented:

To have secured a key purchase order for prototype with a globally recognised space exploration company is further validation of our technological capability at AML3D.

…I am confident that the momentum generated from this new aerospace purchase order will deliver a strong pipeline of opportunities in global space exploration part production both here in Australia and internationally, as we continue to demonstrate our capabilities to companies within this particular sector. AML3D has the desire and expertise to play a significant role in this burgeoning industry.

Market opportunity for 3D printing

The addressable market for 3D printing is growing at a fast rate. Particularly given COVID-19 disrupted international supply chains, the industry is now seeking to minimise risk by adopting 3D printing technology. This allows companies to manufacture complex 3D metal parts in-house without relying on global logistics.

As such the total addressable market for 3D printing is estimated to be around US$10 billion. In the next 5 years (2026), the 3D printing market is forecasted to increase to US$63 billion.

AML3D share price snapshot

Regardless of today's strong rise, AML3D shares are down almost 50% since the beginning of the year. When looking at the past 12 months, its shares have fared no better, down by more than 54%.

The company's share price reached a 52-week high of 50 cents last September. This came on the back of its contract with Austal Limited (ASX: ASB) to co-develop components for maritime defence applications. However, since then its shares have continued on a downhill trajectory.

The post AML3D (ASX:AL3) share price leaps 20% on exciting development appeared first on The Motley Fool Australia.

At the time of writing, shares in the advanced 3D parts manufacturer are up 10.26% to 21.5 cents after touching an intraday high of 22.5 cents in early trading.

What did AML3D announce?

Investors are driving the AML3D share price higher today after the company unveiled plans to establish a new research and development (R&D) facility.

In its release, AML3D advised it will set up an arcemy unit at the 'Factory of the Future' in Tonsley, Adelaide. Currently, the state-of-the-art factory is under development by Flinders University and BAE Systems Maritime Australia (BAE).

AML3D's arcemy unit is a portable 3D printing system that can design and deliver additive manufacturing to a wide range of weldable materials and alloys.

AML3D managing director Andrew Sales said the R&D facility would form the basis of a large-scale additive manufacturing capability:

The trials and research projects to be undertaken at the facility in conjunction with BAE Systems Maritime Australia and Flinders University will enable AML3D to further develop its large-scale metal additive manufacturing capability through added features such as in process measurement, monitoring and adjustment that will improve quality.

BAE's continuous naval shipbuilding strategy director Sharon Wilson noted that the facility could pave the way for potential applications in naval shipbuilding. She added:

The establishment of a permanent Line Zero facility will support the development of new manufacturing techniques and technologies within a factory-like environment that will ultimately be adapted to the state-of-the-art digital shipyard at Osborne, and beyond.

AML3D said its collaboration with Flinders University was expected to lead to further technological breakthroughs. Students at the public research university will be able to participate in advancing metal additive manufacturing research projects. This will allow researchers to explore future applications of AML3D's technology.

AML3D share price summary

AML3D shares shot up to 73 cents in September 2020 before heading on a continued downwards trend. Although the company's share price is up 4.88% over the past 12 months, year-to-date it's fallen more than 40%.

AML3D has a market capitalisation of around $21 million, with approximately 99 million shares on its registry.

The post Why the AML3D (ASX:AL3) share price is rocketing 10% today appeared first on The Motley Fool Australia.