Why this $1.5 billion ASX stock is jumping 6% today

IperionX Ltd (ASX: IPX) shares are climbing on Monday after the titanium developer released its March quarter update.

At the time of writing, the IperionX share price is up 6.50% to an intraday high of $4.345. By comparison, the S&P/ASX 300 Index (ASX: XKO) is down 0.2% to 8,704 points.

Here’s a closer look at what came through for the 3 months to 31 March.

What happened during the quarter?

The main change this quarter is that the company is now running its Virginia Titanium Manufacturing Campus around the clock.

According to its release, it has moved past the testing phase and is now producing titanium more consistently, with both of its key technologies in use.

Titanium powder output increased across the quarter, reaching around 4.2 metric tonnes in March. That equates to roughly 50 tonnes per year on an annualised basis.

While still early, volumes are moving in the right direction as the systems move towards a steady run rate.

The company is targeting around 200 tonnes per year of titanium powder capacity by the end of CY2026.

Capacity expansion continues

Alongside the production ramp, the company is adding more capacity across its manufacturing process.

A new 300-ton SACMI press, used to shape titanium powder into solid parts, was commissioned during the quarter. This should help produce more complex components and lift output.

In addition, hydrogen sintering furnaces (HSPT), part of its process for turning powder into finished metal products, are scheduled for commissioning in the June quarter. These are expected to reduce bottlenecks and increase production further down the line.

Additional equipment is also being installed to expand powder metallurgy capability and support higher volumes over time.

Early commercial activity building

Customer activity is still in the early stages, with most work focused on testing, approvals, and small production runs.

Management noted growing interest across aerospace, defence, automotive, and consumer markets.

The company is focusing first on higher-value titanium parts. These products should carry better margins if production continues to scale.

Several customer programs are moving through testing and early production. However, larger orders still depend on customer approvals and product qualification.

IperionX also flagged increased demand for spherical titanium powders. These are mainly used in 3D printing and advanced manufacturing.

Strong US support and balance sheet

IperionX continues to benefit from US Government backing tied to domestic supply chain development.

During the quarter, the company progressed work under multiple programs, including the Industrial Base Analysis and Sustainment (IBAS) award.

Cash at the end of the period stood at US$48.2 million. The company also has access to additional government funding through reimbursable programs.

Based on current plans, management expects to finish FY2026 with cash in the range of US$36 million to US$40 million.

The post Why this $1.5 billion ASX stock is jumping 6% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.