SHIPBUILDER Austal is reporting a record order book of $14.2 billion.
In a company announcement on 20 February it said orders at 31 December 2024 included contract options but excluded Australian defence future programs yet to be awarded.
There was an additional $270 million for a recent contract to build a hydrogen ready ferry for Swedish company Gotlandsbolaget.
There was also a US$450 million contract from General Dynamics Electric Boat to build a new submarine module fabrication and outfitting facility and US$152 million contract from the US Navy to invest in infrastructure that supports the Navy’s goal of annually delivering one Columbia class and two Virginia-class submarines.
The report to the Australian Stock Exchange said Austal was well positioned to add further defence project opportunities in the USA, as well as in Australia through the Strategic Shipbuilding Agreement (SSA).
The company recorded Earnings Before Interest and Tax (EBIT) of $42.7 million (FY2024 H1: $32.1 million), on revenue of $825.7 million (FY2024 H1: $717.7 million).
The report said EBIT was significantly higher than both the first half and second half results in FY2024, and was ahead of expectations. The growth in earnings reflected an increase in revenue in USA shipbuilding and a recovery in Australasian shipbuilding operations.
Austal chief executive officer Patrick Gregg said Austal had delivered a very strong start to the 2025 financial year with EBIT and revenue performance ahead of expectations for the half.
“We continued to grow the order book with new defence and commercial contract awards, improve operating margins, and significantly increased our net cash position by $209 million,” Mr Gregg said.
“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.
“The outlook for the second half is very positive with potential for the order book to grow further if the Australian Government contracts programs through the Strategic Shipbuilding Agreement, and we continue to see operational improvements on our US build programs and through the increased volume of commercial work in Asia.
“We now expect FY2025 EBIT to be not less than the $80 million we guided at the AGM.
“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.”
