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. Releasing its Q1 FY26 results, the company has reaffirmed its guidance for FY26 revenue to be between $30-35m. Amaero reported Q1 FY26 revenue of $4.7m which included powder sales of $4.1m and $0.6m in sales from powder metallurgy hot isotastic pressing (PM-HIP) manufacturing, which was an increase of 445% over the previous corresponding period (pcp). Q1 revenue was below previous guidance of $5.5m (provided on 13 August) but the company noted the miss was mainly due to unfilled orders resulting from a manufacturing shortfall and that the company commenced the current quarter with a backlog of unfilled orders of approximately $0.5m. Cash receipts for the quarter were $3.5m with operating cash outflows of $9.9m, driven in large part by product manufacturing and operating costs of $7.2m. Further investment of $11.4m was made in plant and equipment. With $50m raised in the quarter, Amaero ended September with $50.9m in cash and restricted cash, and $12.9m in debt drawn on its EXIM facility. We have adjusted our forecasts following the quarterly result, bringing our FY26 forecasts down by $5m to $30.3m, which puts us at the bottom end of the company’s guidance range. Our DCF valuation has been trimmed to $0.83/share from $0.95/share, fully diluted. This represents potential capital upside of 204% on the current share price. A -/+15% sensitivity analysis gives us a valuation range of $0.35-$1.20/share.