Austal's annual profit beats Street view, stock hits record high (updated)

Austal

29/08/2025 02:31

Updates with background, details on results, analyst comments in paragraphs 4-8

Aug 29 (Reuters) - Australia's Austal ASB.AX reported a six-fold increase in its annual profit on Friday, boosted by higher U.S. shipbuilding contracts, sending its shares to a record high.

The shipbuilder and defence vessel maker posted net profit after tax of A$89.7 million ($58.3 million) for fiscal year 2025, up from A$14.9 million a year ago and above Visible Alpha consensus estimate of A$67.9 million.

Shares of the company rose to a record high, advancing as much as 19.6% to A$8.070 by 0043 GMT.

The firm said its U.S. segment was successful in securing around A$890 million of new contracts over the year to support the U.S. Navy's submarine programs.

"With positive momentum at both USA and Australasia operations, revenue and earnings growth is anticipated for FY2026," it said.

Analysts at Citi noted that the business "has an abundance of work with a lower than historical risk profile given greater contract diversity."

The firm did not declare a dividend for the year on Friday, stating the decision was "to maintain balance sheet strength during significant capex program to increase shipbuilding capacity and capability."

    South Korea's Hanwha Corp 000880.KS, which currently owns 9.9% of Austral, has been pursuing the firm since 2024, when the Australian shipbuilder rejected its A$1.02 billion bid, citing regulatory hurdles.

($1 = A$1.5389)

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Sumana Nandy and Mrigank Dhaniwala)

 ((Shivangi.Lahiri@thomsonreuters.com;))