Austal (ASB) H2 2025 earnings summary

Executive summary

• Achieved a transformational year with FY25 revenue of $1.8bn, up 24.1% year-on-year, EBIT doubling to $113.4m, and NPAT surging to $89.7m, reflecting strong operational execution and new contract wins.

• Order book reached $13.1bn, growing at a 25% CAGR since FY20, underpinned by major US and Australian defence contracts and the Strategic Shipbuilding Agreement.

• Significant cash generation and strengthened balance sheet, with net cash of $453.1m and net assets up 30% year-over-year.

• Major expansion in manufacturing capacity underway, including new facilities in the US and Australia to support future growth.

• Board and leadership changes, operational turnaround, and continued contract delivery recognized by investors through share price appreciation.

Financial highlights

• Revenue increased to $1,823.3m from $1,468.9m (+24.1%); EBIT rose to $113.4m from $56.5m (+100.8%).

• NPAT jumped to $89.7m from $14.9m (+503.2%); EPS up to 23.6cps from 4.1cps.

• Operating cashflow of $406.3m, a turnaround from negative $13.0m in FY24.

• EBIT margin improved to 6.2% (up 240bps); EBITDA margin at 10.2%.

• Net cash position of $453.1m, up from $3.9m in FY24.

Outlook and guidance

• Revenue and earnings growth expected to continue, with guidance increased twice during the year and supported by a robust order book and government contracts.

• Strategic Shipbuilding Agreement and AUKUS partnership to drive future contract wins and expansion.

• Ongoing investment in modern facilities and technology, with up to $1.2bn in capex planned for US shipyard expansion.

• U.S. segment expected to see margin and profitability improvement as legacy contracts wind down and new programs ramp up.

• Australasia set for steady growth as Landing Craft Medium and Heavy programs come online, with low risk and stable profit recognition.