Austal (ASB) H2 2025 earnings summary

Executive summary

• Achieved a transformational year with revenue up 24.1% to A$1,823.3 million and EBIT more than doubling to A$113.4 million, driven by new shipbuilding programs, cost efficiencies, and major contract wins in the US and Australia.

• Net profit after tax surged 503% to A$89.7 million, with EPS rising to 23.6cps.

• Order book reached near-record A$13.1 billion, reflecting a 25% CAGR since FY20, underpinned by major defence contracts and the Strategic Shipbuilding Agreement.

• Significant operational milestones included infrastructure expansion, major contract wins, and approval as Australia's Strategic Shipbuilder.

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

Financial highlights

• EBIT doubled year-on-year to A$113.4 million, with EBIT margin improving to 6.2% from 3.8%.

• Group revenue increased 24.1% year-on-year to A$1,823.3 million, with U.S. shipbuilding up 28% and Australasia shipbuilding up 60%.

• Net profit after tax was A$89.7 million, up from A$14.9 million (+503.2%).

• Net cash position improved to A$453.1 million, supported by strong operational performance, equity raise, and debt refinance.

• Operating cash flow reached A$406.3 million, enabling debt repayment and significant capital expenditure.

Outlook and guidance

• Revenue and earnings growth expected to continue, with guidance increased twice during the year and further growth anticipated for FY2026.

• Strategic Shipbuilding Agreement and AUKUS partnership to drive medium-term momentum and contract diversity.

• 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.

• Support and sustainment revenue targeted to reach A$500 million by FY27.