This ASX defence stock just jumped on big US Navy news

Army man and woman on digital devices.

AML3D Ltd (ASX: AL3) shares have been bouncing around on Wednesday.

At one stage, the ASX defence stock was up 5.5% to 19 cents.

Its shares have since pulled back and are trading flat.

What’s going on with this ASX defence stock?

Investors were bidding the wire additive manufacturing company’s shares higher this morning after the release of a promising announcement.

According to the release, Austal Ltd (ASX: ASB) and AML3D have completed the order for delivery of the first portable ARCEMY small edition to the US Navy’s Additive Manufacturing Centre of Excellence (AM CoE).

Austal USA, which runs the AM CoE, ordered the portable ARCEMY, mounted in a 20-foot (~6 meter) shipping container to allow for fast and flexible deployment. The portable ARCEMY will be used to accelerate technological development and component manufacturing at Danville and add to the existing fleet of two custom large scale ARCEMY X systems.

ARCEMY uses wire additive manufacturing to provide advanced, automated, on-demand, point-of-need 3D manufacturing solutions. The ASX defence stock believes these solutions are more efficient, cost-effective, and have better ESG outcomes compared to traditional casting, forging, and billet machining processes.

It is expected the flexible deployment profile of the portable ARCEMY will also demonstrate its potential use for forward deployment by multiple branches of the US military.

ARCEMY technology is already used to manufacture components that meet US military specifications.

The release notes that the successful completion of factory acceptance testing and installation of this first portable ARCEMY triggers the final 50% payment of the ~A$1.2 million order.

‘Huge opportunity’

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

It is exciting to continue to build our relationship with Austal USA. The success of this first portable, containerised system demonstrates how AML3D can flex its technology to meet multiple US military and industrial manufacturing use cases. The addition of the portable ARCEMY brings Austal USA’s fleet of customised ARCEMY systems to three at the US Navy’s Danville Center of excellence.

And we still are only just beginning to access the huge opportunity to support the US Navy’s Maritime Industrial Base outlined in the Letter of Intent we received from the US Navy that indicated a need for up to 100 additive manufacturing systems and 3,400 additively manufactured parts by 2030.

Austal USA’s vice president, Don Hairston, commented:

At Austal USA, our growing relationship with AML3D reflects a shared vision to redefine what’s possible in advanced manufacturing. The introduction of a containerized, fully deployable additive manufacturing system is a game-changer—it not only increases our capability at the U.S. Navy AM CoE, but it also allows us to demonstrate production directly at the point of need.

Together, we’re not just enhancing supply chains—we’re transforming them, delivering next-generation capability exactly where and when it matters most.

The post This ASX defence stock just jumped on big US Navy news appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.