Latest Earnings Overview for Australian 3D Printing Firms Titomic and AML3D

Australian 3D printing manufacturing firms Titomic (ASX: TTT) and AML3D (ASX: AL3) reported their financial results for the period from July to December 2023, marking the first half of their 2024 fiscal year. Their earnings reflect progress in strategic sales and partnerships, with Titomic securing important deals in aerospace and manufacturing and AML3D expanding its footprint in the defense sector. Both Titomic and AML3D demonstrated revenue growth during this period, with Titomic achieving a notable increase in sales and AML3D recording a significant cash inflow, the highest in its history. However, despite these financial improvements, both companies continue to see their stock prices trading at all-time lows of under A$0.1 (less than a dime in U.S. currency) and reported net losses.

Titomic’s Aerospace Financial Growth

Melbourne-based manufacturer Titomic reported a robust first half, highlighted by significant sales and partnerships. Earnings details reveal a 59% rise in customer sales receipts, totaling A$2.3 million ($1.5 million), and the company received 75 orders from customers. Titomic sold its flagship product, the high-pressure cold spray system, to Turkey’s Sabanci University for A$2.4 million ($1.6 million). Additional sales included an Integrated Spray Booth (ISB) system sold to centuries-old Canadian utility service provider EPCOR for A$520,000 ($338,860) and another one installed and commissioned by Netherlands tech and innovation center Perron038 for another A$710,000 ($462,352).

Moreover, the company’s growing relationship with aerospace giants Airbus and Boeing also highlights its market strength. Airbus selected Titomic as a supplier with contributions worth A$650,000 ($423,575), and Boeing placed manufacturing orders for A$320,000 ($208,529).

Other notable revenue contributions include a manufacturing partnership with end-to-end advanced manufacturing service provider Stärke Advanced Manufacturing Group in South Australia and a contribution to Australia’s SpIRIT satellite project, an initiative to develop and launch a space telescope, marking their second venture into low-Earth orbit.

The financials are also encouraging, with a 51% revenue increase to A$4.2 million ($2.7 million) and an improved net loss of A$5.9 million ($3.8 million), which compared to the previous period’s A$7.2 million ($4.7 million), indicates an improved financial position, although still at a loss.

Titomic said it’s keeping a strict cost discipline, which is reflected in the improved underlying operating loss of A$3.6 million ($2.3 million), a 39% improvement from the A$6 million ($3.9 million) loss reported in the first half of the previous year. This financial performance indicates that Titomic is managing to increase its revenue and control costs more effectively, leading to a reduced net loss and a stronger overall financial health.

AML3D’s Defense Sector Earnings

On the other side, AML3D has carved a niche in metal fabrication with its patented Wire Additive Manufacturing (WAM) technology. The company’s record cash receipts of A$4.8 million ($3 million) and significant order book, primarily fueled by its U.S. “Scale up” strategy, show a successful first half. Noteworthy achievements include a A$2.2 million ($1.4 million) order for a custom-built ARCEMY system for Australia’s global shipbuilder Austal and a A$2 million ($1.3 million) contract to 3D print components for the U.S. Navy.

During this period, AML3D’s revenue increased by more than nine fold to A$1.5 million ($986,732), from just A$146,115 ($95,216) in H1 2023, and gross profit rose from A$37,705 ($24,570) to A$714,427 ($465,559). Despite this growth in revenue and gross profit, the company reported a total loss of A$3.4 million ($2.2 million) for the period, which is larger than the loss of A$2.6 million ($1.7 million) reported in the previous half-year period.

As far as the geographical distribution of AML3D’s revenue goes, the company noted significant growth in the U.S. market, with revenues increasing from a mere A$1,400 ($912) in H1 2023 to A$1.4 million ($912,317) in H1 2024. In contrast, the Australian market showed a modest increase in revenue, and the income from Singapore decreased. This shift indicates a major expansion of AML3D’s business in the U.S., in line with a recent announcement that promises expansion plans in Ohio and a fresh capital infusion to support the move. In fact, preliminary steps in establishing U.S. operations were taken in H1 2024, with the appointment of Sean Ebert as CEO, supported by Pete Goumas in the new role of President of U.S. Operations. Furthermore, the increased interest in AML3D machines in the U.S. can be attributed mostly to demand in the defense and maritime sectors, which have begun scaling their additive manufacturing operations.

AML3D’s U.S. “Scale up” strategy leverages AML3D’s successes in supporting the U.S. Navy’s submarine industrial base to drive additional sales into the wider U.S. Navy supplier base. The first ARCEMY order by a U.S. Navy supplier was secured during this period, when Laser Welding Solutions leased, with the option to buy an ARCEMY 2600 edition system. The 2600 edition is AML3D’s smallest, industrial-scale, metal 3D printing system capable of producing Nickle-Aluminium-Bronze (NAB) components for U.S. Navy applications.

Building on these strategic initiatives, it becomes clear that companies like Titomic and AML3D are key in demonstrating Australia’s evolving strengths in the additive manufacturing sector. Their partnerships, innovative products, and global outreach not only highlight the country’s progress in this sector but also set the stage for more success in the future and influence in the global 3D printing ecosystem.