Austal (ASB) H1 2026 earnings summary

Executive summary

• Revenue for H1 FY2026 reached $1.1 billion, up 34% year-over-year, with EBIT at $60.3 million and NPAT at $30.5 million, reflecting strong growth driven by major defense contracts and a record $17.7 billion order book.

• Strategic Shipbuilding Agreement and new contracts, including Landing Craft Medium and Heavy, underpin long-term value creation and secure revenue and jobs for the next decade.

• Significant investments in shipyard expansion and manufacturing capacity in both the US and Australia, supported by a $100 million loan from Export Finance Australia.

• Business is now 96% defense-weighted, with a growing balance between US and Australasia operations.

Financial highlights

• Group revenue increased by 34.4% year-over-year to $1,109.4 million, with all segments experiencing growth and EBIT margin improving to 5.4%.

• EBITDA rose to $93.9 million, up 18.7% year-over-year; NPAT increased to $30.5 million.

• Australasia Shipbuilding revenue up 83%, with EBIT surging to $29.2 million from $1.9 million; US Shipbuilding revenue up 29%, but EBIT declined due to margin compression and onerous contracts.

• Support segment contributed majority of earnings, with an EBITDA margin of 17.9% and AUD 41.1 million.

• Cash balance at period end was $371.6 million, down from $583.9 million at June 2025, due to capital investment and timing of milestone payments.

Outlook and guidance

• Strong outlook in both US and Australasia, with continued defense expenditure and a $17.7 billion order book expected to drive growth.

• Management expects margins to recover as US programs stabilize and new contracts ramp up, targeting 7%-10% EBIT range.

• Additional growth opportunities from AUKUS, submarine modules, and technology business.