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Austal
(Sydney:ASB)
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Rating:64Neutral
Price Target:
AU$4.00
â–Ľ(-4.99% Downside)
Action:Reiterated
Date:07/18/26
The score is driven by strong financial performance (growth, low leverage, and robust free cash flow) and a generally positive earnings outlook supported by a record order book. These positives are materially offset by weak technicals (price below all key moving averages with negative MACD) and execution/accounting risks highlighted on the earnings call, while valuation is only moderately supportive (P/E ~14).
Positive Factors
Record order book / program visibility
A $17.7bn order book covering ~76 ships provides multi-year revenue visibility and steady production scheduling. This reduces top-line cyclicality, supports long-term workforce and capacity planning, and underpins medium-term revenue and margin recovery as programs progress to higher-efficiency phases.
Negative Factors
Onerous U.S. contracts compressing margins
A small number of loss-making or onerous fixed-price U.S. contracts materially depress shipbuilding margins. Such program-specific cost overruns can persist through build cycles, reducing group EBIT until contracts are remediated or pricing/production stabilises, and they raise operational execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Record order book / program visibility
A $17.7bn order book covering ~76 ships provides multi-year revenue visibility and steady production scheduling. This reduces top-line cyclicality, supports long-term workforce and capacity planning, and underpins medium-term revenue and margin recovery as programs progress to higher-efficiency phases.
Read all positive factors
Austal (ASB) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.80B
Dividend YieldN/A
Average Volume (3M)2.61M
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. Volume2,457,291
30 Day Avg. Volume2,613,459
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 primarily makes money by (1) designing and building new vessels under contract and (2) providing lifecycle support services to keep vessels operating over time.
1) New vessel construction (project/contract revenue):
- Revenue is earned thr...
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
75
Positive
Balance Sheet
70
Positive
Cash Flow
80
Positive
| 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 Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$2.83B | 22.36 | 22.77% | 2.98% | 29.43% | 50.05% | |
68 Neutral | AU$894.39M | 17.67 | 9.25% | 3.47% | 11.40% | 22.22% | |
64 Neutral | AU$1.80B | -33.99 | -4.18% | ― | 11.28% | -153.91% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | AU$4.20B | 19.30 | 11.01% | 3.39% | -7.37% | 59.81% | |
56 Neutral | AU$119.38M | 2,950.00 | -0.16% | 1.06% | -16.65% | -101.32% | |
50 Neutral | AU$126.70M | -109.64 | -1.51% | 2.78% | 42.47% | -144.81% |
* Industrials Sector Average
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Austal Corporate Events
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...
Austal Names Gene Miller President of Austal USA to Drive $17bn Order Book
May 27, 2026
Austal has appointed Eugene (Gene) Miller as President of Austal USA, following his tenure as Interim President since February 2026 and earlier roles as Vice President of Operations and Chief Operating Officer. He now leads more than 3,000 shipbui...
Austal Lifts Value of New Patrol Boat Contract to A$150.3 Million After Correction
May 4, 2026
Austal Limited has corrected the value of a newly announced contract to build two additional Evolved Cape-class Patrol Boats for the Australian Border Force, revising the figure from approximately A$136 million to about A$150.3 million. The compan...
Austal Wins A$136m Contract for Additional Patrol Boats for Australian Border Force
May 4, 2026
Austal Limited has secured a A$136 million contract extension to build two additional Evolved Cape-class Patrol Boats for the Australian Border Force, raising the total number of these vessels ordered for the agency to six. The deal follows delive...
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.