Austal (ASB) H1 2026 earnings summary

Executive summary

• Revenue for H1 FY2026 reached $1.1 billion, up 34.4% year-over-year, driven by major defense contracts and a record $17.7 billion order book, securing revenue and jobs for the next decade.

• EBIT increased 41% to $60.3 million, with NPAT up 21% to $30.5 million and EPS at 7.2cps, reflecting strong operational performance and margin improvement.

• Strategic Shipbuilding Agreement and new contracts in both the US and Australia underpin long-term value creation and diversification.

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

• Major contract wins included a $1.029 billion deal for Landing Craft Medium vessels and a $135 million extension for Evolved Cape-class Patrol Boats.

Financial highlights

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

• EBIT margin improved to 5.4% (up 20bps year-over-year); EBITDA margin at 8.5%.

• Net profit after tax was $30.5 million, up from $25.1 million year-over-year.

• Net cash position at $241.4 million, down from $453.1 million at June 2025, due to increased capex and milestone payment timing.

• No interim dividend declared for H1 FY2026, prioritizing capital expenditure for capacity expansion.

Outlook and guidance

• Strong outlook in both US and Australasia, with continued defense expenditure and robust order book expected to drive growth.

• Management expects margins to recover as US programs stabilize and new contracts ramp up, targeting 7%-10% EBIT range.

• FY2026 full-year EBIT expected to be approximately $110 million.

• Additional growth opportunities from AUKUS, submarine modules, and technology business.

• Significant capex investment in shipyard expansion, especially in Mobile, AL, for steel ships and submarine modules.