Austal (ASX:ASB) has been awarded a contract valued at approximately $4 billion by the Commonwealth Department of Defence.
The deal commissions the construction of eight landing craft heavy vessels.
The agreement falls under the strategic shipbuilding agreement and solidifies Austal's status as a premier partner for the Australian Defence Force.
The 100-meter vessels will be based on the proven Damen LST100 design and are set to be constructed at Austal’s facilities in Henderson, Western Australia.
While work is scheduled to commence later this year, the project represents a long-term commitment to national security, with the final ship slated for delivery in 2038.
Austal CEO Paddy Gregg highlighted the economic and strategic weight of the announcement, noting that it creates a "record order book" for the company.
Beyond the immediate financial windfall, the project is expected to generate thousands of highly skilled jobs in Western Australia and provide a steady, long-term demand signal for the local defence supply chain.
By investing in the "uplifting of capability" at the Henderson shipyard, the contract ensures that Australia remains self-reliant in maintaining and expanding its naval fleet for decades to come.
At the time of reporting, Austal's share price was $6.31.