Austal (ASB) H1 2026 earnings summary

Executive summary

• Revenue for H1 FY2026 reached $1.1 billion, up 34.4% year-over-year, with EBIT rising 41% to $60.3 million and NPAT up 21% to $30.5 million, driven by major defense contracts and a record $17.7 billion order book.

• Strategic Shipbuilding Agreement and new contracts, including Landing Craft Medium and Heavy, underpin long-term value creation and secure revenue and jobs for the next decade.

• 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 US and Australia, including a $100 million loan for US shipyard capabilities.

Financial highlights

• Group revenue increased 34.4% year-over-year to $1,109.4 million, with all segments experiencing growth; EBIT margin improved to 5.4%.

• EBITDA rose to $93.9 million, and 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 capital expenditure; total cash and cash equivalents were $371.6 million at December 2025.

• Australasia Shipbuilding revenue up 83%, with EBIT surging to $29.2 million from $1.9 million; U.S. shipbuilding revenue up 29.8% to $671.1 million, but EBIT declined due to margin compression and onerous contracts.

• No interim dividend declared, with capital prioritized for infrastructure and capacity expansion.

Outlook and guidance

• Strong outlook in both U.S. and Australasia, with continued defense expenditure and major contract awards expected to drive growth.

• Management expects margins to recover as U.S. 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.