Austal (ASB) H1 2026 earnings summary

Executive summary

• Revenue for H1 FY2026 reached $1.1 billion, up 34% year-over-year, with EBIT at $60.3 million and NPAT at $30.5 million, both showing significant growth.

• Order book reached a record AUD 17.7 billion, driven by major defense contracts in Australia and the U.S., including new Landing Craft and Strategic Shipbuilding Agreement.

• Business is now 96% defense-weighted, with a growing balance between U.S. and Australasia operations.

• Significant investments in shipyard expansion and manufacturing capacity in both the U.S. and Australia, including a $100 million loan for US shipyard capabilities.

• Over 4,600 employees globally, with revenue and workforce growing alongside the expanding order book.

Financial highlights

• Group revenue increased 34.4% year-over-year to $1,109.4 million, with all segments experiencing growth.

• EBIT rose 41% to $60.3 million; EBITDA increased to $93.9 million; NPAT up to $30.5 million.

• Australasia Shipbuilding revenue up 83%, with EBIT surging to $29.2 million from $1.9 million.

• U.S. Shipbuilding revenue up 29% to $801.4 million, but EBIT declined to $38.9 million due to margin compression and onerous contracts.

• Cash balance at $371.6 million at period end, down due to capital investment and delayed milestone payments.

Outlook and guidance

• Positive outlook with continued growth expected in both U.S. and Australasia as new programs ramp up and major contracts are secured.

• EBIT margins in shipbuilding expected to return to 7%-10% range as programs stabilize.

• Significant capex in Mobile, AL and Henderson, WA to support future submarine and steel ship programs.

• Additional growth opportunities anticipated from AUKUS partnership and increased defense spending in US and Australia.

• No specific cash flow guidance provided, but major projects are on or ahead of schedule and within budget.