Austal Limited has reported strong financial growth in the first half of the 2025 financial year, with earnings exceeding expectations and a record order book supporting future expansion.
The shipbuilding company recorded an Earnings Before Interest and Tax (EBIT) of $42.7 million, driven by increased revenue from its US shipbuilding operations and a recovery in Australasian shipbuilding activities.
The company also strengthened its cash position, aided by key infrastructure contracts in the United States, as revealed in an ASX announcement.
Austal CEO Patrick Gregg described the results as a robust start to the financial year, noting improvements in operating margins and a growing order book.
He highlighted the company’s strong financial standing, pointing to its $14.2 billion in contracted work and a growing pipeline of defence and commercial projects.
“Austal now has record work in hand of $14.2 billion, and a strengthening balance sheet to support investment in manufacturing capacity and drive continued growth over the next decade,” he stated.
Recent contract wins have played a major role in Austal’s financial position, including a significant infrastructure deal with General Dynamics Electric Boat and a separate agreement with the US Navy.
These projects are expected to enhance Austal USA’s manufacturing capabilities and support the U.S. Navy’s shipbuilding goals.
Gregg emphasized that the company is well positioned for continued growth, with expectations that full-year EBIT will meet or exceed guidance.
He pointed to potential upside from further defence contracts in Australia through the Strategic Shipbuilding Agreement and increased commercial work in Asia.
“It is an exciting time for the Company as the long-term investment made in developing deep defence relationships in the United States and Australia, founded on product innovation, technology and demonstrated shipbuilding and support capabilities, is starting to deliver increased returns.”
Looking ahead, Austal said further growth opportunities could emerge with the completion of the Strategic Shipbuilding Agreement (SSA) and potential future Australian defence contracts.
With a robust cash position of approximately $500 million, supported by milestone payments from US expansion projects, Austal stated it is well-positioned to sustain multi-year growth.
