Austal records statutory net loss in FY26

• Austal recorded full-year revenue of $2.03 billion for FY26, an 11% hike from $1.82 billion in FY25.
• The group moved to a net loss after tax of $53.6 million, down from an $89.7 million net profit in FY25.
• Earnings were impacted by non-cash onerous contract provisions in its United States operations, while Hanwha submitted a buyout proposal for Austal USA.

Austal (ASX:ASB) moved to a net loss after tax of $53.6 million, down from an $89.7 million net profit in FY25.

The group reported full-year revenue of $2.03 billion for FY26, up 11% from the prior-year period.

The revenue increase was driven by active shipbuilding programmes across Australia and the United States, compared to the $1.82 billion revenue generated in the prior financial year.

"In Australia, the execution of the Strategic Shipbuilding Agreement has delivered a record Australasian order book with a $5+ billion, 12-year build programme for Landing Craft Medium and Heavy, plus the General Purpose Frigate is a very real and valuable future opportunity," said Austal CEO Patrick Gregg.

The company stated that an EBIT loss of $125.2 million reflected previously disclosed non-cash provisions on onerous contracts within its US division.

Following the announcement, the Austal share price was unchanged at $4.10.

During the financial year, the company secured major defence contracts, including a $1.03 billion landing craft medium programme and a landing craft heavy contract with a value approved at approximately $4 billion.  

Additionally, South Korean firm Hanwha submitted a conditional, non-binding proposal to acquire Austal USA for an enterprise value between US$1.05 billion and US$1.2 billion.