Amaero Inc. has been awarded a production contract valued at $344,000 by Bechtel Plant Machinery, Inc. (BPMI), a defense prime contractor, to produce piping in support of critical submarine industrial base needs. The contract marks a progression from development and demonstration phases to low-rate-initial-production (LRIP) for Amaero. This award positions the company to commence receiving production contract awards for critical components, leveraging its established capabilities in powder metallurgy-hot isostatic pressing (PM-HIP) technology.

Strategic Collaboration and Progress

Over the past two years, Amaero has closely collaborated with BPMI and the U.S. Navy to advance development, demonstration, first article, and LRIP projects. Prior to this announcement, the company did not disclose six contracts that were previously awarded by BPMI. The successful progress of these prior contracts has been instrumental in securing the current production award. The U.S. Navy recently announced support for PM-HIP as a mature manufacturing technology and a viable alternative for large casting and forging supply chain challenges.

PM-HIP Technology and Market Position

Amaero has established a market leadership position in PM-HIP manufacturing of near-net-shape components using proprietary state-of-the-art numerical and metallurgical methods. The company’s simulation tools and engineering team have demonstrated success in meeting the demanding requirements for production components in defense, energy, and industrial applications. PM-HIP is a near-net-shape manufacturing process capable of producing large and complex components such as valves, fittings, manifolds, structural components, and pressure vessels, which would typically be produced using casting or forging.

Demand and Future Outlook

BPMI has previously announced estimated demand for up to 400 PM-HIP components per year to support current and near-term shipbuilding needs. Addressing the significant ramp-up in naval vessel production demand, PM-HIP offers shorter lead times, improved manufacturing flexibility, and greater inspection confidence while maintaining the high material performance standards of forgings. The following table summarizes the key details of the contract and the associated demand:

Executive Commentary

Hank J. Holland, Amaero’s Chairman and CEO, commented: "Amaero’s differentiated numerical modeling, metallurgical and technical manufacturing competency has positioned the Company as an industry leader. The United States Navy has ambitious plans to grow its sovereign shipbuilding capability and capacity. PM-HIP is an important supplementary manufacturing modality that addresses critical bottlenecks and vulnerabilities in the maritime industrial base supply chain. We are appreciative of the close collaboration with BPMI and the U.S. Navy and look forward to advancing the qualification of more critical submarine components."

Nathan Weiderspahn, BPMI’s Executive Manager, Industrial Base Management, added: "Amaero’s progress in PM-HIP development reflects the type of technical rigor and collaboration needed to strengthen our submarine industrial base with innovative manufacturing methods. This contract award is another meaningful step in expanding production capacity and capability for critical components, supporting the Navy’s long-term shipbuilding objectives."

Amaero Inc. has completed the commissioning of its 3rd advanced Electrode Induction Melting Inert Gas Atomizer (EIGA Premium) ahead of schedule at its flagship Tennessee manufacturing facility. This expansion increases the company's annual production capacity to approximately 200 tons for refractory alloys and approximately 480 tons for titanium alloys, solidifying its position as the largest capacity U.S. domestic producer of spherical refractory and titanium alloy powders. The enhanced capacity is designed to meet growing demand from the defense, space, aerospace, nuclear, and medical industries.

Capital Investment and Capacity

The completion of the 3rd atomizer marks the end of Amaero's 3-year, A$72 million capital investment plan, which was finalized on schedule and on budget. The company now operates three EIGA atomizers, with one dedicated to refractory alloys and two dedicated to titanium alloys. This infrastructure supports Amaero's role as a leading U.S. domestic PM-HIP (Powder Metallurgy Hot Isostatic Pressing) manufacturer of near-net-shape critical components.

Safety and Production Restart

In collaboration with Jensen Hughes, a global leader in safety and risk-based engineering, Amaero conducted a comprehensive review of process, system, and facility safety. Following safety incidents in May, titanium powder production was paused to implement planned remediation and improvements. The company anticipates that titanium production will restart in July, maintaining a 'safety first' approach while working to resume supply quickly.

Future Expansion and Corporate Moves

Amaero has expanded its capital investment plans to accelerate growth, including the installation of a 4th EIGA atomizer scheduled for June 2027 and an Argon recycling plant set for commissioning in 1Q CY2027. Additionally, the company has completed its re-domiciliation to the United States ahead of schedule. This move positions Amaero for a potential U.S. initial public offering and listing in late CY2026 or early CY2027, subject to equity capital market conditions. A PCAOB audit with BDO USA is proceeding on schedule.