Amaero Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue was $4.1 million, a 35% increase year-over-year compared to $3.1 million in Q3 2025.
• Nine-month revenue ended September 30, 2026, at $11.5 million, a 170% increase year-over-year compared to $4.3 million in the same period of 2025.
• Trailing twelve-month revenue reached $13.5 million, up 191% from $4.7 million in the twelve months ended September 30, 2025.
• Cost of revenue for Q3 2026 was $8.5 million, resulting in a gross loss of $4.4 million, compared to a gross loss of $0.1 million in Q3 2025.
• Total operating expenses for Q3 2026 were $4.4 million, up from $4.1 million in Q3 2025.
• Net loss attributable to stockholders for Q3 2026 was $9.1 million ($0.38 per share), compared to $4.1 million ($0.20 per share) in Q3 2025.
• Adjusted EBITDA for Q3 2026 was $(7.1) million, compared to $(3.1) million in Q3 2025.
• As of September 30, 2026, cash and cash equivalents were $4.96 million, with total cash, cash equivalents, and restricted cash at $9.63 million.
• Total liabilities as of September 30, 2026, were $45.8 million, including long-term debt of $22.1 million.
• Stockholders' equity as of September 30, 2026, was $39.3 million.

Guidance and Future Outlook:

• Fourth quarter 2026 revenue is guided to be between $4.5 million and $5.0 million, representing 121% to 146% growth from $2.0 million in Q4 2025.
• Full year 2026 revenue is projected to be between $16.0 million and $16.5 million, up 154% to 162% from $6.3 million in 2025.
• Second half 2026 revenue is guided to be between $8.6 million and $9.1 million, up 69% to 79% from $5.1 million in the prior year.
• Management expects future revenue growth to drive operating leverage and improve gross margins as fixed production costs do not increase proportionally with revenue.
• The argon gas recycling plant is on track for commissioning in Q1 2027.
• The fourth EIGA Premium atomizer is on track for commissioning in June 2027.

Business Segments and Product Lines:

• PM-HIP components revenue more than doubled to $0.9 million in Q3 2026 from $0.4 million in Q3 2025, including the first revenue recognized under the Low-Rate Initial Production (LRIP) contract with Bechtel Plant Machinery, Inc. (BPMI).
• Metal powders revenue increased 19% to $3.2 million in Q3 2026 from $2.7 million in Q3 2025.
• Backlog reached $13.4 million as of September 30, 2026, a 96% increase from $6.9 million at year-end 2025 and an 180% increase from $4.8 million in September 2025.
• Backlog includes $4.4 million attributable to a U.S. Department of War (DoW) refractory alloy powder development contract.
• The Company secured a $4.5 million DoW contract in July 2026 for alternative refractory alloy powders, with a 13-month program expected to complete in August 2027.
• The Company secured its first LRIP contract with BPMI valued at $0.3 million in July 2026.
• Titanium powder production resumed in late July 2026 following a six-week pause for safety reviews.
• The Company now operates three EIGA Premium atomizers with an annual capacity of approximately 680 metric tons (480 metric tons titanium, 200 metric tons refractory).
• A custom titanium powder sieving system commissioned in August 2026 expanded titanium throughput capacity by approximately 100%.

Market and Competitive Landscape:

• The Company is positioned at the intersection of U.S. national security priorities, focusing on rebuilding the defense industrial base and reshoring supply chains.
• The DoW contract aims to reduce cost and dependence on foreign sources of critical raw materials.
• The PM-HIP capability has moved from development into low-rate initial production for the U.S. submarine industrial base.
• The Company lists its common stock on the Nasdaq Capital Market under the symbol "AMRO" and its CHESS Depositary Interests on the ASX under "3DA."

Risks and Challenges:

• Gross loss in Q3 2026 was impacted by the restart of titanium production and the optimization of the new sieving system, which resulted in reduced throughput and lower yields during the quarter.
• Fixed production costs, including plant salaried labor, overhead, depreciation, and lease expenses, were not fully absorbed into inventory during the period due to production below installed capacity.
• Forward-looking statements involve risks related to limited operating history, macroeconomic conditions, and the ability to convert backlog into revenue.
• The Company notes that actual results may differ materially from forward-looking statements due to various uncertainties.

Management Commentary and Tone:

• Chairman and CEO Hank J. Holland expressed pleasure at reporting results as a Nasdaq-listed company and pride in the team's ability to manage the facility safety review without customer cancellations or employee attrition.
• Management noted that commercial value is being realized through the application of PM-HIP capability to the submarine industrial base and refractory alloy technology to defense supply chain needs.
• The IPO listing on the Nasdaq Capital Market is viewed as a milestone aligning capital markets presence with U.S. operations and strengthening investment capabilities.
• Management stated a continued focus on bringing new capacity online, deepening defense and aerospace partnerships, and converting backlog into revenue.

Other Key Points:

• The Company completed its U.S. IPO in October 2026, issuing 4,705,883 shares at $4.25 per share, with an additional 306,814 shares issued upon partial exercise of the underwriters' option.
• Aggregate net proceeds from the IPO were $17.0 million.
• Approximately $10.0 million of IPO proceeds are intended for capital equipment purchases over the next 12 months, with the remainder for general corporate purposes.
• On October 7, 2026, the Company amended its EXIM Bank Credit Agreement to reduce pledged collateral from 20% to 10%, releasing $2.1 million in restricted cash and extending the minimum liquidity covenant testing date to September 30, 2028.
• As of October 31, 2026, the Company held $19.3 million in cash and cash equivalents.
• Selling, general, and administrative expenses included $0.6 million in costs related to the redomiciliation from Australia to Delaware and the IPO.
• Stock-based compensation decreased by $0.5 million in Q3 2026 compared to the prior year, primarily due to higher forfeitures.