AML3D Ltd Shares Face Decline Amid Market Conditions
AML3D Ltd (ASX: AL3) shares are currently experiencing a decline alongside the broader market on Tuesday. As of the time of writing, the ASX defence stock is trading at 20 cents, reflecting a drop of 2.5%. Despite this downturn, some analysts believe that this could present an attractive buying opportunity for investors.
Bell Potter, a prominent broker, has expressed optimism about the company’s future potential. The firm suggests that AML3D’s shares could potentially double in value from their current levels. This positive outlook is based on recent developments and the company’s ongoing progress in its operations.
Recent Performance and Orders
Bell Potter highlights that AML3D recently released its third-quarter update, which indicated continued momentum across various aspects of the business. The company reported an increase in installed capacity, system sales, and parts manufacturing. During the third quarter of FY26, the company secured an additional $12.5 million in orders, bringing the total year-to-date orders to $20 million. This figure includes the $9 million in orders that were already on hand at the beginning of FY26.
Notable orders during this period included a $9.9 million contract from Newport News Shipbuilding for four ARCEMY systems and a $2.6 million order from the US Navy for submarine components. These developments underscore the growing demand for AML3D’s technology within the defence sector.
Strategic Investments and Expansion
In addition to these orders, AML3D continues to invest in expanding its capacity in the United States, enhancing its presence in the UK-Europe region, and advancing its research and development initiatives in Australia. The company’s focus on these areas is expected to drive further growth and innovation.
The broker also emphasizes the importance of demand for AML3D’s systems from the US Navy. A recent appointment of a new US defence advisor, Larissa Smith, former Director of Additive Manufacturing for the US Navy, has been seen as a positive step in strengthening this relationship.
Letter of Intent and Future Prospects
In July 2025, AML3D announced the receipt of a Letter of Intent from the US Navy, which recognized its Wire Additive Manufacturing (WAM) technology as critical to meeting demand. The LOI highlighted the need for 100 WAM system installations and identified around 400 components for the US Navy Maritime Industrial Base that could be produced using WAM technology in 2026, with the number expected to rise to 1,600 components by 2030.
This letter of intent indicates a strong potential for growth and expansion beyond the maritime sector. Bell Potter notes that there is potential for the Navy LOI to extend to land-based assets, and AML3D is also exploring opportunities to deploy its technology in non-defence industrial manufacturing sectors.
Investment Outlook
According to Bell Potter’s analysis, the company’s technology is well-suited for maritime applications, providing it with strong leverage into the growing demand from the US Navy’s Maritime Industrial Base and the US SHIPS Act. The broker expects AML3D to increase the deployment of ARCEMY systems in the US and Europe, boost prototyping activities, and eventually commence commercial-scale production of components over the FY26-27 period.
Bell Potter has maintained its speculative buy rating and a price target of 40 cents for AML3D, which represents a doubling of its current share price of 20 cents. This recommendation is based on the company’s strategic investments and the positive momentum observed in its operations.
Conclusion
While AML3D Ltd shares are currently facing a decline, the company’s recent performance, strategic investments, and potential for growth suggest that it could be an attractive investment opportunity. Investors should carefully consider the company’s prospects and the broader market conditions before making any decisions.
