From Experimental Tool to Production Backbone
Additive manufacturing is entering a new phase as defense and aerospace customers increasingly treat it as a core production technology rather than a lab-scale experiment. This shift is visible in the latest results from Velo3D, which reported first-quarter revenue of USD 13.8 million (approx. RM64.8 million), up 48% year-over-year and 46% sequentially, driven largely by aerospace additive manufacturing and defense 3D printing programs. According to CEO Arun Jeldi, more defense primes and tier‑1 aerospace suppliers are moving beyond pilots into multi‑system production deployments, signaling a broader inflection point for industrial AM adoption. Instead of simply validating part feasibility, manufacturers are now qualifying entire process chains, integrating metal 3D printers into serial production, and tying them to long‑term platforms. This maturation is redefining how hardware, software, and service providers in the AM ecosystem generate value and forecast demand.
Velo3D Revenue Growth Highlights Defense-Led Momentum
Velo3D’s latest financials illustrate how mission‑critical sectors are translating additive manufacturing interest into tangible revenue growth. The company’s gross margin climbed to 17.2%, up from 7.5% a year earlier, reversing negative margins from the prior quarter as higher machine utilization and manufacturing efficiencies took hold. Net loss narrowed sharply to USD 7 million (approx. RM32.9 million), compared with a USD 25 million (approx. RM117.6 million) loss in the same period last year, while adjusted EBITDA and operating expenses also improved. Behind those numbers is a clear pattern: more customers are standardizing Velo3D systems for production of high‑value parts in aerospace additive manufacturing and defense 3D printing programs. The company has maintained full‑year revenue guidance of USD 60 million to USD 70 million (approx. RM282.2–RM329.2 million) and expects gross margins to move above 30% in the second half, underscoring management’s confidence that industrial AM adoption is becoming structurally embedded in procurement pipelines.
RPS Model Signals a Shift to Long-Term Production Contracts
A key driver of Velo3D’s momentum is its Rapid Production Solution (RPS), a business model built around long‑duration manufacturing agreements rather than one‑off printer sales. In the latest quarter, RPS accounted for roughly 25% of revenue, and about half of the company’s USD 30 million (approx. RM141.1 million) backlog is tied to RPS‑related business. Under this model, defense and aerospace customers deploy fleets of Velo3D systems as part of ongoing production programs, aligning capacity with multi‑year contracts instead of sporadic capital purchases. CEO Arun Jeldi describes RPS as “transformational” because it deepens integration with customer workflows, increases recurring utilization, and improves revenue visibility. For defense 3D printing in particular, these agreements mirror traditional long‑term platform support deals, but with the added agility of digital inventories and on‑demand production, reinforcing additive’s role in resilient, responsive supply chains.
Defense Procurement Underscores Confidence in Mission-Critical AM
Recent contract wins underline growing confidence in additive manufacturing for mission‑critical defense and aerospace applications. During the quarter, Velo3D announced an USD 11.5 million (approx. RM54.1 million) production contract with a defense prime contractor and a USD 9.8 million (approx. RM46.1 million) five‑year deal with the Defense Logistics Agency under the Joint Additive Manufacturing Acceptability program. The company also became the first additive manufacturing vendor qualified for Army ground vehicle applications, a milestone that signals rigorous validation of its technology. These awards indicate that procurement agencies are no longer treating AM as a discretionary innovation budget item; instead, they are embedding it in long‑term sustainment, readiness, and modernization strategies. As reshoring and supply chain risk concerns persist, defense buyers are incentivized to lock in advanced manufacturing partners with proven industrial AM adoption, supporting durable growth for suppliers able to meet stringent qualification requirements.
Scaling Capacity as Industrial AM Adoption Accelerates
To keep pace with escalating demand from aerospace additive manufacturing and defense 3D printing programs, Velo3D is preparing a significant manufacturing expansion in California that could eventually support up to 100 production systems. Management expects to have more than 40 production machines operating by the end of 2026, a clear bet on sustained industrial AM adoption. This scaling effort coincides with financial restructuring: the company ended the quarter with USD 16.6 million (approx. RM78.1 million) in cash, reduced its debt by roughly 70% through debt‑to‑equity conversions, and subsequently raised another USD 50 million (approx. RM235.2 million) via equity financing. Investors have responded positively, with shares surging after the earnings release as the market priced in revenue growth, improving margins, and a robust defense backlog. Together, these moves point to an industry transitioning from fragmented pilot activity toward consolidated, financially disciplined growth anchored in long‑term production demand.