Austal has reported revenue of more than $2 billion for the 2026 financial year, while its Australasian operations delivered record earnings despite the shipbuilder recording a group-wide loss linked to provisions on US contracts.
According to Austal, group revenue rose 11 per cent to $2.028 billion in the year ended 30 June 2026, driven by the ramp-up of shipbuilding programs in Australia and the United States. However, the company recorded an EBIT loss of $125.2 million and a net loss after tax of $53.6 million, compared with a profit in the previous financial year.
In an ASX announcement, Austal said the result reflected a previously announced non-cash provision relating to onerous contracts at its US operations, following the company’s efforts to secure accelerated contractual relief.
Chief executive officer Patrick Gregg said the company’s Australian business had delivered a strong result.
“FY2026 has been a year of significant strategic achievements for Austal, both in Australia and the US,” Gregg said.
“In Australia, the execution of the Strategic Shipbuilding Agreement has delivered a record Australasian order book with a $5+ billion, 12-year build program.”
Austal’s Australasia segment recorded a 49 per cent increase in revenue to $650.7 million and a record EBIT of $85.3 million, up 137 per cent from the previous year. The result was supported by shipbuilding and sustainment activities across Australia, the Philippines and Vietnam.
During the year, Austal secured major contracts under the Strategic Shipbuilding Agreement, including a $1.029 billion contract for 18 Landing Craft Medium vessels and an approximately $4 billion contract for eight Landing Craft Heavy vessels.
The company said these awards had helped lift its Australasian order book to more than $5 billion, providing a long-term pipeline of work.
In the United States, Austal’s segment reported an EBIT loss of $202.8 million, largely due to the non-cash provision. The company said it had commenced formal contractual processes to seek adjustments related to additional costs on several programs.
Gregg said Austal’s board and management were focused on returning the group to profitability in FY2027.
“Outside of the US, never before has the Australian business been in such an enviable position, with a long-term order book and a strategic agreement that will provide decades of stability and growth,” he said.
Austal also confirmed it had granted Hanwha due diligence following a conditional, non-binding proposal to acquire Austal USA, with the proposal focused solely on the company’s US operations.
The content of this article is based on information supplied by Austal Ltd. For more information, please refer to the official company announcement and communications from Austal. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.
