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. Amaero has reported Q3 revenue of $2.6m, up 301% on the previous corresponding period (pcp), and cash receipts of $2.2m, up 273% on the pcp. Amaero has reaffirmed its FY26 revenue guidance range of $18-20m, of which $18m is contracted. Amaero said Q4 FY26 contracted revenue would now be $8.4m, up from the $7.2m advised in January. The company highlighted that it expects significant revenue growth in FY27 underpinned by a 100% increase in titanium powder production, with a robust commercial pipeline now in train. Amaero ended Q3 with $38.3m in cash, including $4.9m in restricted cash, and anticipated another $5.8m to be received from the Export-Import Bank by the end of April. Tangible assets are now $72m on the balance sheet, up from $43m in Q3 FY25. We have incorporated the Q3 results into our forecasts but made negligible changes to our forecasts. Our DCF valuation remains unchanged at $0.72/share. This represents potential capital upside of 85% on the current share price. A -/+15% sensitivity analysis gives us a valuation range of $0.42-$0.93/share (unchanged).
