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Austal
(Sydney:ASB)
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Rating:52Neutral
Price Target:
AU$4.50
▲(6.89% Upside)
Action:Reiterated
Date:10/29/26
The score is held back primarily by weak financial performance, driven by the 2026 earnings swing to losses and deteriorating free cash flow, despite manageable leverage. Technicals are moderately supportive with the price trading above key moving averages, while valuation remains constrained by a negative P/E. The earnings call provides a meaningful offset with strong backlog and medium- to long-term growth visibility, but U.S. contract uncertainty and profitability recovery remain key risks.
Positive Factors
Large, diversified backlog
The $16.5 billion order book provides substantial multi-year revenue visibility across new construction and sustainment. Its spread across naval, patrol, submarine and commercial programs can support capacity utilization and reduce reliance on any single vessel or customer over the next several years.
Negative Factors
Sharp profitability reversal
The swing to a substantial operating loss shows that contract adjustments and execution issues can overwhelm revenue growth. Until profitability is restored, earnings quality and shareholder returns remain vulnerable, limiting the company’s ability to fund expansion entirely from internal cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, diversified backlog
The $16.5 billion order book provides substantial multi-year revenue visibility across new construction and sustainment. Its spread across naval, patrol, submarine and commercial programs can support capacity utilization and reduce reliance on any single vessel or customer over the next several years.
Read all positive factors
Austal (ASB) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.96B
Dividend Yield3.89%
Average Volume (3M)1.86M
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth11.28%
EPS Growth-153.91%
CountryAU
Employees5,316
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.13
Shares Outstanding423,058,470
10 Day Avg. Volume2,506,972
30 Day Avg. Volume1,861,385
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$5.51Price Target Upside30.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.21
Revenue Forecast (FY)AU$2.37B
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 | 165.49M |
| 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 | 1.87B | 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
4.26
Positive
4.11
Positive
4.59
Positive
Market Momentum
0.02
Negative
63.36
Neutral
84.04
Negative
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 above the 20-day moving average (MA) of 4.12, below the 50-day MA of 4.26, and below the 200-day MA of 4.59, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 63.36 is Neutral, neither overbought nor oversold. The STOCH value of 84.04 is Negative, 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$2.92B | 23.21 | 22.77% | 3.72% | 29.43% | 50.05% | |
66 Neutral | AU$821.81M | 15.66 | 9.25% | 3.76% | 11.40% | 22.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | AU$4.54B | 21.33 | 11.01% | 4.19% | -7.37% | 59.81% | |
56 Neutral | AU$117.39M | 4,596.77 | -0.16% | 2.71% | -16.65% | -101.32% | |
52 Neutral | AU$1.96B | -36.77 | -4.18% | 3.89% | 11.28% | -153.91% | |
50 Neutral | AU$106.62M | -92.77 | -1.51% | 1.30% | 42.47% | -144.81% |
* Industrials Sector Average
AU:ASB
Austal
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Austal Corporate Events
Austal investors back pay policies and incentives at 2026 AGM
Oct 28, 2026
Austal reported the results of its 27 October 2026 annual general meeting, with shareholders strongly backing the company’s remuneration report and key board decisions. The non-binding vote on the remuneration report passed with about 89% su...
Austal Secures A$5bn Defence Contracts and Targets Frigate Deal
Oct 27, 2026
Austal’s chairman told shareholders that activity accelerated in 2026 as the company capitalised on its Strategic Shipbuilding Agreement with the Commonwealth, which designates Austal as builder of Tier 2 surface vessels for more than two de...
State Street Group Ceases to Be Substantial Holder in Austal Limited
Oct 26, 2026
Austal Limited is an Australian shipbuilder focused on defence and commercial vessels, serving government and commercial clients in international maritime markets. Its shares are widely held by institutional investors, reflecting its profile as a ...
Austal Secures $245m NRFC Funding for Landing Craft Heavy Infrastructure
Oct 21, 2026
Austal Limited has secured $245 million in debt funding from the National Reconstruction Fund Corporation to develop new shipbuilding infrastructure for its approximately $4 billion Landing Craft Heavy program. The modules will be built at existin...
Austal Advances Talks on Potential Sale of U.S. Operations to Hanwha
Oct 14, 2026
Austal has given Hanwha Defence USA more time to complete due diligence and submit a formal proposal to acquire the business entities and operations of Austal USA, moving an indicative, non-binding offer towards a potential binding transaction. Th...
Dimensional Entities Ceases to Be Substantial Holder in Austal
Oct 12, 2026
Dimensional Entities has notified Austal Ltd that it has ceased to be a substantial holder in the shipbuilder as of 8 October 2026. The change in status, lodged under Australia’s Corporations Act, reflects alterations in Dimensional’s ...
Vanguard Group Drops Below Substantial Holding Threshold in Austal
Oct 11, 2026
Vanguard Group has notified Austal Limited that it has ceased to be a substantial holder in the shipbuilder, after reducing its voting power to 4.993 percent. The change in Vanguard’s stake alters the company’s institutional investor p...
Austal Seeks ASX Quotation for New Employee Incentive Shares
Oct 7, 2026
Austal Limited has applied for quotation on the ASX of 984,267 new ordinary fully paid shares. These securities were issued on September 30, 2026, under an employee incentive scheme and are not subject to transfer restrictions.The additional share...
Austal Issues New Unquoted Share Rights Under Employee Incentive Plan
Oct 7, 2026
Austal Limited has notified the market of the issuance of 2,410 unquoted share rights under its employee incentive scheme, dated September 30, 2026. These securities, identified under the ASX code ASBAB, are not intended to be quoted on the ASX an...
Austal Updates Director Susan Murphy’s Equity-Based Fee Arrangement
Oct 7, 2026
Austal Limited has reported a change in director Susan Murphy’s interests, with the issue of 2,783 share rights granted in lieu of a portion of her director’s fees as outlined in the company’s remuneration framework. The share ri...
Austal issues share rights to director in lieu of fees
Oct 7, 2026
Austal Limited has reported a change in director Richard Gibb’s interests, with the issue of 2,783 share rights recorded as a direct holding change on 30 September 2026. The share rights carry no cash consideration and were issued in lieu of...
Austal Discloses Director Share Rights Issuance Under Fee Arrangement
Oct 7, 2026
Austal Limited has reported a change in director Brent Cubis’s interests in the company’s securities, in line with ASX listing rule disclosure requirements. The update reflects corporate governance practices aimed at maintaining transp...
Austal Issues Share Rights to Director as Part of Fee Arrangement
Oct 7, 2026
Austal has disclosed a change in director Kathryn Toohey’s interests, reporting the issue of 2,783 share rights on 30 September 2026. These share rights were granted at zero cash consideration as part of director’s fees, in line with a...
State Street Group Ceases to Be Substantial Holder in Austal
Sep 28, 2026
State Street Corporation and a group of its asset management subsidiaries have notified Austal Limited that they have ceased to be substantial shareholders in the company as of 24 September 2026. The change, lodged via an Australian Form 605, indi...
Austal Sets 2026 AGM Procedures and Proxy Voting Rules
Sep 27, 2026
Austal Limited has issued a detailed proxy form and instructions for securityholders ahead of its annual general meeting scheduled for 27 October 2026 in Fremantle, Western Australia. Investors can lodge proxy votes online, by mail, fax, or in per...
Austal Sets In-Person 2026 AGM With Limited Webcast Participation
Sep 27, 2026
Austal Limited has announced details for its 2026 Annual General Meeting, which will be held as an in-person event at the Fremantle Sailing Club in Western Australia on 27 October 2026 at 2:00 p.m. WST. The company emphasised its intention to welc...
State Street Group Ceases to Be Substantial Holder in Austal
Sep 10, 2026
State Street Corporation, through subsidiaries including State Street Global Advisors and related entities in Europe, Australia, the U.S. and the U.K., has lodged a notice that it has ceased to be a substantial holder in Austal Limited. The filing...
Austal Corrects Counterparty Name in Wildcat Infrastructure NBIO Notice
Sep 9, 2026
Austal Limited has issued a clarification regarding its earlier announcement about a non-binding indication of interest received from a Wildcat-led syndicate. The company confirmed that the expression of interest was from Wildcat Infrastructure LL...
Austal Weighs US$1.25–1.35 Billion Bid for Austal USA
Sep 9, 2026
Austal Limited has received a non-binding indication of interest from a syndicate led by Wildcat Resources LLC to acquire its Austal USA business for an enterprise value of between US$1.25 billion and US$1.35 billion on a cash-free, debt-free basi...
Austal Confirms Preliminary Talks With Wildcat Amid Strategic Defence Role
Sep 6, 2026
Austal Limited has acknowledged media reports of a potential proposal from Wildcat Infrastructure, confirming only that it has held an initial, preliminary discussion and has not yet received any formal proposal. The company stated it will update ...
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 ...
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.