Austal (ASB) AGM 2024 summary

Opening remarks and agenda

• Founder John Rothwell welcomed attendees, reflected on 37 years of company history, and introduced new chair Richard Spencer.

• Richard Spencer outlined meeting formalities, including webcast participation and voting procedures.

• CEO Paddy Gregg led the meeting, outlining the transition from past challenges to a new growth phase and emphasizing strong customer relationships in the US and Australia.

Board and executive committee updates

• Richard Spencer, former US Secretary of the Navy, was introduced as the new chair, succeeding John Rothwell.

• Board members introduced: Sarah Adam-Gedge (Deputy Chair, Audit and Risk), Chris Indermaur (Nomination and Remuneration, retiring), Lee Goddard, Kath Toohey, Brent Cubis, and CEO Paddy Gregg.

• Chris Indermaur was thanked for six years of service as he steps down.

• DOJ/SEC resolution allows renewed focus on future growth.

• Transition from LCS program in the US to a diversified portfolio with 13 programs.

Financial performance review

• Turnaround from AUD 4.8 million EBIT loss in FY23 to AUD 56.5 million positive EBIT in FY24.

• FY2024 revenue was $1,469m, down 7.3% from FY23, but EBITDA rose to $123.7m and EBIT to $56.5m.

• Net profit after tax improved from a loss of AUD 14 million in FY23 to a profit of AUD 14.9 million in FY24.

• Order book surged to AUD 12.7 billion, up AUD 1.1 billion from the prior year.

• Cash position strengthened to AUD 396 million, aided by a front-end loaded contract for a submarine module facility, but operating cash flow was negative at $(13.0)m, with year-end cash at $173.5m.

• Guidance for FY25 EBIT set at AUD 80 million, reflecting continued growth.

• Share price growth lagged behind operational and order book growth.