Two ASX potential growth companies associated with defence sector are undergoing positive developments lately. This could put them in the category of best growth stocks to buy now.
AML3D Limited (ASX: AL3)
AML3D Limited (ASX: AL3) has achieved a significant milestone with the successful delivery of prototype Copper-Nickel tailpiece components for the U.S. Navy’s Virginia-Class nuclear submarine program. The components, valued at A$156,000, were manufactured using AML3D’s proprietary additive manufacturing technology and delivered within five weeks—substantially reducing the typical 17-month lead time associated with traditional manufacturing. This achievement underscores AML3D’s role in strengthening the trilateral AUKUS supply chain and addressing critical supply chain gaps in the U.S. Navy’s Maritime Industrial Base (MIB) Program. The successful completion of this order reflects AML3D’s ability to meet emergent material readiness needs while enhancing production efficiency and component quality. Over the past two years, AML3D has partnered with the MIB Program and BlueForge Alliance to develop a cross-continental collaboration model integrating ARCEMY® advanced 3D metal printing technology. This collaboration positions AML3D as a critical supplier for U.S. defense programs.
Additionally, AML3D has announced that its U.S. technology center in Stow, Ohio, is now operational. This facility serves as both the headquarters for AML3D USA Inc. and a manufacturing hub equipped with ARCEMY® systems. The center will see the installation of a second ARCEMY® system in early 2025 to cater to growing customer demand. AML3D’s recent diversification beyond defense is highlighted by a A$2.27 million order for an ARCEMY® X system from the Tennessee Valley Authority (TVA), marking its entry into the U.S. utilities sector. The system, to be commissioned in H2 2025, will support TVA’s power generation repair fleet. This order, secured via a competitive tender process, validates the scalability and versatility of ARCEMY® technology. Since launching its U.S. Scale-Up strategy in February 2023, AML3D has secured ~A$14 million in defense contracts. The TVA order aligns with its strategy to expand into non-defense sectors, leveraging its enhanced U.S. presence to drive growth and capitalize on increasing demand for advanced additive manufacturing solutions.
DroneShield Limited (ASX: DRO)
DroneShield Limited (ASX: DRO) has recently secured significant contracts in Latin America and Europe, marking important milestones in its global expansion. On 6 January 2025, the company announced a $9.7 million order from a military customer in Latin America. This contract, facilitated through a local reseller, will involve the delivery of dismounted, mobile, and fixed-site counterdrone systems (C-UxS), with delivery expected in 1H2025. This marks DroneShield’s first order from this reseller and customer, reflecting the growing demand for its technology in the region. DroneShield has been focusing on scaling its presence in Latin America throughout 2024, and the appointment of a dedicated Sales Director further supports its expansion in the region.
Earlier, on 5 December 2024, DroneShield reported securing an $8.2 million repeat contract from a European government agency. This contract, for dismounted and vehicle-mounted Counter-UxS systems, will be delivered within the next three months, and payment is expected in early 2025. This order follows previous contracts with the same customer in 2024, validating DroneShield’s products and expanding its presence in European markets. The company is now well-positioned to meet growing global demand for its counterdrone systems, a critical defense technology in response to increasing drone threats on the battlefield.
For 2024, DroneShield is targeting a record revenue year, with a forecast of $55.2 million in total revenue, slightly above 2023’s $54.1 million. The company achieved strong cash receipts, totaling $30.5 million for the first three quarters, up 20% from 2023. With a substantial $240 million in inventory and a robust $1.1 billion sales pipeline, DroneShield is well-positioned for continued growth. The company also maintains a healthy cash balance of $238.3 million and has no debt. Its workforce, including 140 engineers, is expanding to support its growing operations, particularly in AI technology development.
Source: Company’s Report
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