Amaero Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA. The company has announced that the United States Navy has issued a Letter of Support validating Amaero’s PM-HIP (Powder Metallurgy + Hot Isostatic Pressing) manufacturing as a viable and technically-ready alternative to castings and forgings for the maritime industrial base. The Letter of Support also confirms Amaero’s strong and differentiated technical capability in manufacturing near-net-shape parts. We view this as a significant milestone for Amaero because it validates Amaero for defense prime contractor collaboration on US Navy contracts. The Letter of Support follows the announcement from Amaero that it has now ordered its fourth EIGA Premium Atomiser which is scheduled for commissioning in June 2027 and that it had secured a A$9m or 60% capital saving on its Argon recycling plant versus initial estimates. The company says the Argon recycling system is expected to be installed by the end of calendar 2026 with commissioning expected during Q1 CY27, bringing forward operational expense savings by an estimated 12 months and improving early-stage margins and balance sheet strength. Amaero also noted that its three-year, A$72m capital investment plan remained on budget and on schedule to be completed by 30 June 2026. Amaero expects to end the December quarter with ~A$53m cash and ~A$60m in tangible assets. These announcements continue to underpin our confidence that Amaero remains on track to meet our forecast for profitability in FY28 and at-capacity earnings by FY30. Our DCF valuation remains unchanged at $0.82/share fully diluted. This represents potential capital upside of 228% on the current share price. A -/+15% sensitivity analysis gives us a valuation range of $0.34-$1.21/share.