AML3D (ASX: AL3) Wins $2.2 Million Northrop Grumman Order

AML3D has secured an approximately $2.2 million order from Northrop Grumman Marine Systems for a large-scale ARCEMY X metal 3D printing system, adding another major US defence contractor to its customer base.

The contract was awarded following a competitive tender and includes a two-year maintenance and services package. The system will support manufacturing for the US Navy’s submarine industrial base, where AML3D has been building its presence as a supplier of additive manufacturing equipment.

It is AML3D’s first order from Northrop Grumman, a US Navy supplier of components used in naval propulsion, power generation and missile launch systems. The customer relationship broadens AML3D’s exposure within the naval supply chain beyond its existing contracts with Newport News Shipbuilding, Austal USA, Cogitic and Laser Welding Solutions.

AML3D now has contracts covering 17 ARCEMY systems in the United States. That installed and contracted base is an important measure of progress for the company’s US expansion strategy, which is focused on addressing manufacturing constraints affecting submarine and naval shipbuilding programs.

Delivery and payment timetable

The ARCEMY X system will be supplied from AML3D’s US technology centre in Stow, Ohio, and installed at Northrop Grumman’s manufacturing facility in Sunnyvale, California.

Under the contract terms, AML3D will receive 50% of the order value after completing the initial project milestone. Further payments will be tied to subsequent milestones through to final installation, which is expected during the fourth quarter of the 2027 financial year.

The milestone structure means the order value will be recognised and collected progressively rather than entirely upfront. The included two-year services package also extends AML3D’s involvement beyond the equipment installation.

Northrop Grumman Country Executive Australia Rob Denney said AML3D was the first Australian supplier the contractor had engaged for submarine industrial base manufacturing.

“By joining our Australian supply chain, AML3D will play an important role across multiple programs, accelerating SIB manufacturing in the United States,” Denney said.

Building a US defence footprint

AML3D manufactures ARCEMY industrial metal 3D printing systems using its patented Wire Additive Manufacturing process. The technology combines welding, robotic automation, materials engineering and proprietary software to produce metal parts at or near the point of need.

For shareholders, the Northrop Grumman contract provides further evidence that AML3D is converting its US Navy-focused strategy into commercial equipment orders. It also adds a new prime contractor relationship rather than increasing reliance on an existing customer.

The order’s ultimate financial contribution remains linked to delivery milestones, with final installation not expected until late in the 2027 financial year. However, the contract expands AML3D’s position within a customer group that the company has identified as central to its US growth plans.