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Austal
(Sydney:ASB)
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Rating:55Neutral
Price Target:
AU$4.50
â–˛(6.89% Upside)
Action:Reiterated
Date:09/06/26
The score is held back primarily by weak financial performance in 2026 (loss-making results and deteriorated cash flow), partially offset by a manageable leverage profile. The earnings call provides a meaningful positive counterweight due to a large and growing order book and guidance focused on returning to profitability, while technicals are moderately supportive but not in a clear long-term uptrend. Valuation remains challenged due to negative earnings and no dividend yield provided.
Positive Factors
Large, diversified backlog
The substantial order book provides multi-year revenue visibility across new construction and sustainment, while its mix of government and commercial customers reduces reliance on any single program. This backlog supports capacity planning and creates a durable base for future growth.
Negative Factors
Sharp profitability deterioration
The reversal from healthy profitability to a significant loss shows that revenue growth is not yet translating reliably into shareholder returns. Thin gross profit increases sensitivity to execution and cost outcomes, making earnings quality and near-term profit visibility materially weaker.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, diversified backlog
The substantial order book provides multi-year revenue visibility across new construction and sustainment, while its mix of government and commercial customers reduces reliance on any single program. This backlog supports capacity planning and creates a durable base for future growth.
Read all positive factors
Austal (ASB) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.82B
Dividend Yield3.89%
Average Volume (3M)2.64M
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth11.28%
EPS Growth-153.91%
CountryAU
Employees4,633
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.13
Shares Outstanding422,074,220
10 Day Avg. Volume2,583,816
30 Day Avg. Volume2,642,537
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)1.39
Price to Sales (P/S)0.84
P/FCF Ratio-5.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$5.08Price Target Upside20.67% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.22
Revenue Forecast (FY)AU$2.60B
Austal Business Overview & Revenue Model
Company Description
Globally, Austal Limited specializes in the design, construction, and ongoing maintenance of diverse maritime vessels for both commercial entities and national defense forces. Its operations are strategically segmented into four key divisions: USA...
How the Company Makes Money
Austal makes money primarily through contracted work for government and commercial customers, with revenue recognized from (1) new shipbuilding programs and (2) sustainment/support services for vessels already in service.
1) New shipbuilding (pro...
Austal Earnings Call Summary
Earnings Call Date:Aug 30, 2026
(Q4-2026)
| Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call had a predominantly positive tone, supported by record revenue above $2 billion, a $16.5 billion group order book, exceptional Australasian revenue and EBIT growth, strong liquidity, positive operating cash flow and continued investment in capacity. These strengths were tempered by the $125 million group EBIT loss, unresolved U.S. contractual matters, lower U.S. support revenue and delays in the OPC program. The substantial Australasian performance and growth outlook significantly outweighed the stated challenges.Positive Updates
Record Group Revenue
FY 2026 revenue exceeded $2 billion, increasing 11% year-on-year according to the CEO and 11.2% to 11.3% according to the CFO. This was only the second time Austal surpassed the $2 billion revenue milestone and was driven by the ramp-up of shipbuilding programs in the U.S. and Australasia, including new Australian defense contracts.
Negative Updates
Group EBIT Loss
FY 2026 EBIT was finalized at a loss of $125 million following year-end closing adjustments at Austal USA. Management said the result was largely driven by a one-time accounting adjustment on U.S. programs including T-ATS, AFDM and LCU.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Group Revenue
FY 2026 revenue exceeded $2 billion, increasing 11% year-on-year according to the CEO and 11.2% to 11.3% according to the CFO. This was only the second time Austal surpassed the $2 billion revenue milestone and was driven by the ramp-up of shipbuilding programs in the U.S. and Australasia, including new Australian defense contracts.
Read all positive updates
Company Guidance
For 2027, Austal said its commitment is to return the business to profitability, while Australasia’s performance is ahead of expectations with continued growth expected into the medium- and long-term outlook; Australian shipbuilding revenue will more than double over the next 5 years, supported by a $16.5 billion order book that continues to grow. The company said the Landing Craft programs are expected to progress over the next 4 or 5 years through steady growth, and it sees 20 or 25 years of continuous work in front of it. Austal is just over 900 employees now and expects to need another 1,000 people over the next 3 or 4 years; MMF 3 should be completed by the end of the calendar year, support over 1,000 jobs, and has about 500 people trained and working on subs modules today.Austal Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
71
Positive
Cash Flow
38
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.03B | 1.82B | 1.47B | 1.59B | 1.43B |
| Gross Profit | 39.93M | 229.60M | 172.51M | 99.10M | 230.28M |
| EBITDA | -75.06M | 199.76M | 127.64M | 56.76M | 153.96M |
| Net Income | -53.60M | 89.73M | 14.88M | -13.77M | 79.56M |
Balance Sheet | |||||
| Total Assets | 3.10B | 2.95B | 2.09B | 1.93B | 1.69B |
| Cash, Cash Equivalents and Short-Term Investments | 311.89M | 583.93M | 173.51M | 179.20M | 240.11M |
| Total Debt | 294.70M | 266.99M | 281.06M | 240.46M | 234.12M |
| Total Liabilities | 1.75B | 1.64B | 1.09B | 885.12M | 675.97M |
| Stockholders Equity | 1.23B | 1.31B | 1.00B | 948.82M | 924.28M |
Cash Flow | |||||
| Free Cash Flow | -290.23M | 210.68M | -82.96M | -41.91M | -127.42M |
| Operating Cash Flow | 62.51M | 406.32M | -13.05M | 86.71M | 37.50M |
| Investing Cash Flow | -326.11M | -149.23M | -12.70M | -102.78M | -127.51M |
| Financing Cash Flow | -15.21M | 153.76M | 19.52M | -38.06M | -38.33M |
Austal Technical Analysis
Positive
4.21
Price Trends
3.95
Positive
4.06
Positive
5.09
Negative
Market Momentum
0.09
Positive
57.58
Neutral
52.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ASB, the sentiment is Positive. The current price of 4.21 is below the 20-day moving average (MA) of 4.24, above the 50-day MA of 3.95, and below the 200-day MA of 5.09, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 52.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ASB.
Austal Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$2.85B | 22.36 | 22.77% | 3.80% | 29.43% | 50.05% | |
66 Neutral | AU$919.87M | 17.67 | 9.25% | 3.26% | 11.40% | 22.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | AU$4.19B | 19.30 | 11.01% | 4.58% | -7.37% | 59.81% | |
56 Neutral | AU$117.39M | 2,950.00 | -0.16% | 3.35% | -16.65% | -101.32% | |
55 Neutral | AU$1.82B | -33.99 | -4.18% | 3.89% | 11.28% | -153.91% | |
50 Neutral | AU$126.01M | -109.64 | -1.51% | 2.47% | 42.47% | -144.81% |
* Industrials Sector Average
AU:ASB
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Austal Corporate Events
Austal Files 2026 Corporate Governance Statement and Appendix 4G with ASX
Aug 30, 2026
Austal Limited has lodged its corporate governance statement for the financial year ended 30 June 2026 with the ASX, confirming board approval and making the document available on its investor website. The filing includes a completed Appendix 4G, ...
Austal Sets Out 2026 Governance Framework and U.S. Security Controls
Aug 30, 2026
Austal has detailed its 2026 corporate governance framework, affirming strong adherence to ASX Corporate Governance Council principles and the ASX Listing Rules. The Board’s charter outlines responsibilities from strategic oversight and risk...
Austal Signals Strong Growth with $16.5bn Order Book and FY26 Revenue
Aug 30, 2026
Austal reported FY26 revenue of $2.03bn, supported by a $16.5bn order book that underscores the company’s status as a rising defence prime contractor in the global maritime industry. Operating five shipyards and eight service centres across ...
Austal Lifts Revenue to $2bn as Australian Defence Order Book Surges
Aug 30, 2026
Austal Limited reported an 11% rise in group revenue to $2.03 billion for FY2026, driven by ramped-up shipbuilding activity in both the U.S. and Australasia and a strong defence order book. However, the group posted an EBIT loss of $125.2 million ...
Austal Posts Revenue Growth but Swings to Loss and Halts Dividends
Aug 30, 2026
Austal Limited reported an 11% increase in revenue from ordinary activities to $2.03 billion for the year ended 30 June 2026, but swung to a net loss attributable to members of $53.6 million, compared with a profit in the prior year. Earnings per ...
Austal Sets Investor Call to Unveil FY2026 Results
Aug 28, 2026
Austal Limited will host an analyst and investor conference call on 31 August 2026 to discuss its financial results for the year ended 30 June 2026. The call, led by Chief Executive Officer Paddy Gregg and Chief Financial Officer Christian Johnsto...
State Street Group Drops Below Substantial Holder Status in Austal
Aug 12, 2026
State Street Corporation and several of its asset management subsidiaries have disclosed that they have ceased to be substantial holders in Austal Limited as of 10 August 2026. The notice lists multiple related entities across the United States, E...
Austal Warns of FY2026 Loss as Hanwha Tables Bid for Austal USA
Aug 10, 2026
Austal has reported a strong performance from its Australasian shipbuilding operations, which are expected to deliver around $62 million in EBIT for FY2026 and continue to generate robust cash flows. This business is supported by a substantial Aus...
Austal Requests Trading Halt Ahead of Market and Trading Update
Aug 7, 2026
Austal Limited has requested a voluntary trading halt in its securities on the ASX, pending the release of a market and trading update. The halt took effect on 7 August 2026 and is expected to remain in place until the announcement is released or ...
Austal Issues Share Rights to Director Susan Murphy as Part of Fees
Jul 6, 2026
Austal Limited has disclosed a change in director Susan Murphy’s interests, reporting the issue of 4,260 share rights on 2 July 2026. These share rights were granted at zero cash consideration as part of her director’s fees, in line wi...
Austal Updates Market on Director Lee Goddard’s New Share Rights
Jul 6, 2026
Austal Limited has reported a change in the interests of director Lee Goddard following the issue of 5,157 share rights. The rights were granted at no cash cost, in lieu of a portion of his director’s fees, and have been recorded as a direct...
Austal Updates Director Equity Interests Through Fee-Linked Share Rights
Jul 6, 2026
Austal Limited has reported a change in the interests of director Brent Cubis, reflecting an issue of share rights linked to his remuneration. The adjustment forms part of the company’s director fee arrangements, indicating Austal’s co...
State Street Group Ceases to Be Substantial Holder in Austal
Jun 24, 2026
State Street Corporation, through several asset management and trust subsidiaries, has ceased to be a substantial holder in Austal Limited, according to a notice filed under Australian Corporations Act disclosure rules. The change reflects a reduc...
State Street Ceases to Be Substantial Holder in Austal
Jun 22, 2026
State Street Corporation, through several asset management and trust subsidiaries, has lodged a notice that it has ceased to be a substantial shareholder in Austal Limited as of 18 June 2026. The filing, made under section 671B of the Corporations...
State Street Ends Substantial Holding in Austal Limited
Jun 18, 2026
State Street Global Advisors and related State Street Corporation subsidiaries have ceased to be substantial shareholders in Austal Limited, according to a notice filed under Australia’s Corporations Act. The change reflects a reduction in t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.