On hump day, an underperforming industrial stock suddenly came alive. 3D Systems' (DDD +13.89%) share price raced nearly 23% higher on Wednesday following news that it had signed a new contract with a branch of the U.S. military. That increase absolutely left the S&P 500 index, with its 0.2% gain on the day, in the dust.
Taking to the skies
Just after the market close on Tuesday, 3D Systems announced that it had been awarded a contract by the Air Force to supply it with a large-format metal 3D printer advanced technology demonstrator. The contract is the latest phase in a program the company has been involved in since 2023 that is aimed at developing next-generation 3D printing capabilities for the Air Force.
Image source: Getty Images.
3D Systems said its new contract is worth $7.65 million. Under it, the company will continue work on the program in two of its facilities -- one in San Diego, California, and the other in Rock Hill, South Carolina. The anticipated date of completion of this phase is Sept. 27, 2027.
In its press release trumpeting the new arrangement, 3D Systems did hesitate to point out that it has done work for the Department of Defense since 2019.
"We've successfully demonstrated a number of innovative technologies under this program and it's exciting to see those technologies mature both for this large-scale system as well as our commercially available printers," said company Vice President of Aerospace and Defense Michael Shepard.
NYSE: DDD
Key Data Points
Good work if you can get it
Although this current phase of the Air Force arrangement amounts to just a drop in the bucket of 3D Systems' revenue (which totaled over $440 million in 2024), it's nevertheless encouraging.
The company is obviously doing a solid job providing our military with innovative manufacturing capabilities, and we can expect it to continue drawing revenue from that highly reliable customer -- the federal government.
