Austal shares plunge on earnings guidance downgrade

The news: Shipbuilder Austal was the worst performer on the ASX 200 in morning trade after slashing its full-year earnings guidance on Thursday evening.

The numbers: Austal shares were down 23.6% to $4.82 at 11:25am AEDT.

The company reduced its EBIT guidance for FY26 from $135 million to $110 million, after recognising a USD17.1 million ($24.1 million) overstatement in its previous target.

"The company identified that some incentives related to its [towing, salvage and rescue ship] program were recognised by its US subsidiary, Austal USA, in line with percentage of completion," the company said.

"These incentives had already been recognised in Austal USA's forecast at full value for the remaining part of the program."