Austal posts 21.4% HY profit increase driven by Defence contract
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The news: Austal has reported a 21.4% increase in half-year net profit after tax to $30.5 million, from $25.1 million a year prior, driven by a shipbuilding agreement with the Australian government.
The numbers: The shipbuilder and defence prime contractor reported revenue of $1.1 billion, up 34.4% from $825.7 million year-on-year, while earnings before interest and tax rose 41.3% to $60.3 million.
Order book had reached a new record of $17.7 billion including contract options, from $13.1 billion the prior year.
The company did not declare a dividend, citing its focus on its capex program.
The context: Austal CEO Patrick Gregg attributed the positive earnings to the company’s Strategic Shipbuilding Agreement with the Australian government, alongside a $4 billion contract to build Landing Craft Heavy vessels for the Department of Defence during the period.
Austal expects EBIT for FY26 to be around $110 million and flagged additional growth opportunities related to the AUKUS agreement.
The source: ASX
