Austal (ASB) H2 2025 earnings summary

Executive summary

• EBIT doubled to $113.4 million, with NPAT up 503% to $89.7 million, reflecting strong operational execution, new contract wins, and major manufacturing capacity expansion in the US and Australia.

• Revenue rose 24% to $1,823.3 million, driven by new shipbuilding programs and defense contracts in the USA and Australia.

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

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

• No dividend declared to maintain balance sheet strength during expansion.

Financial highlights

• Revenue increased to $1,823.3 million (+24.1%); EBIT rose to $113.4 million (+100.8%); NPAT jumped to $89.7 million (+503.2%).

• EBIT margin improved to 6.2% from 3.8% year-over-year; EBITDA margin at 10.2%.

• Net operating cash flow was $406.3 million, reversing a $13.0 million outflow in FY2024.

• Net cash position at year-end was $453.1 million, up from $3.9 million a year earlier.

• Capital expenditure rose to $194.9 million, supporting expansion in shipyard facilities and technology.

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 future contract wins and 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.

• Up to $1.2 billion in capex planned for US shipyard expansion and ongoing investment in modern facilities and technology.