Austin Engineering Limited (AU:ANG)
ASX:ANG
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Austin Engineering
(Sydney:ANG)
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Rating:63Neutral
Price Target:
AU$0.19
▼(-28.46% Downside)
Action:Reiterated
Date:02/28/26
The score is driven primarily by mixed fundamentals: good revenue growth and a stable balance sheet are outweighed by weak cash conversion and declining margins. Technicals are bearish with the stock below key moving averages, while valuation is a clear positive with a low P/E and high dividend yield. The earnings call adds modest support via improved guidance and order momentum, but H1 profit deterioration and Chile-related execution risk temper confidence.
Positive Factors
Revenue & Gross Margin Strength
Sustained top-line growth with a 66.1% gross margin indicates strong product economics for engineered mining bodies. High gross margins support pricing power and fund R&D, aftermarket capabilities and service capacity, underpinning durable unit economics even if operating costs fluctuate.
Negative Factors
Weak Cash Conversion
Severely weakened cash conversion and a collapsed FCF growth rate limit the firm's financial flexibility. Poor conversion constrains reinvestment in capacity and aftermarket tooling, increases refinancing or working-capital reliance and raises the risk that operational setbacks force cuts to dividends or capital programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Gross Margin Strength
Sustained top-line growth with a 66.1% gross margin indicates strong product economics for engineered mining bodies. High gross margins support pricing power and fund R&D, aftermarket capabilities and service capacity, underpinning durable unit economics even if operating costs fluctuate.
Read all positive factors
Austin Engineering (ANG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$109.04M
Dividend Yield7.14%
Average Volume (3M)2.24M
Price to Earnings (P/E)20.4
Beta (1Y)0.86
Revenue Growth10.91%
EPS Growth-28.61%
CountryAU
Employees1,446
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.03
Shares Outstanding623,110,900
10 Day Avg. Volume1,825,899
30 Day Avg. Volume2,235,483
Financial Highlights & Ratios
PEG Ratio-1.60
Price to Book (P/B)1.36
Price to Sales (P/S)0.52
P/FCF Ratio-28.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.40Price Target Upside53.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.01
Revenue Forecast (FY)AU$351.72M
Austin Engineering Business Overview & Revenue Model
Company Description
Austin Engineering Limited, together with its subsidiaries, engages in the manufacture, repair, overhaul, and supply of mining attachment products, and other associated products and services for the industrial and resources-related business sector...
How the Company Makes Money
Austin Engineering primarily makes money by supplying engineered, made-to-order mining equipment to mining companies and original equipment users, with revenue generated across two main activities: (1) the manufacture and sale of customised dump t...
Austin Engineering Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q2-2026)
| Next Earnings Date:Aug 24, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture. There are strong positives: solid North American growth, improved cash generation and working capital metrics, meaningful post-period order wins, and clear corrective actions (rightsizing, leadership changes and efficiency programs). However, these are offset by meaningful near-term profitability challenges — notably a loss-making OEM contract in Chile, operational inefficiencies across several regions, declining H1 profits (NPAT down sharply) and increased net debt. Management is confident these are controllable operational issues and has provided revised FY guidance and remediation steps, but H1 performance was disappointing.Positive Updates
Stable Group Revenue with Clear Regional Drivers
Group revenue was $170.3 million, down 3% year-on-year (statutory), and broadly in line excluding a prior-year restatement. North America grew 12% to over $71 million and now represents ~42% of group revenue. APAC remained the largest contributor despite a 12% decline to ~$70.6 million, and South America reported $28 million (11% decline).
Negative Updates
Significant Profitability Decline
Statutory net profit after tax fell to $2.0 million in H1 from $13.4 million in the prior corresponding period. Management also reported substantially lower EBITDA/EBIT results and notable year-on-year profit declines across regions.
Read all updates
Q2-2026 Updates
Positive
Negative
Stable Group Revenue with Clear Regional Drivers
Group revenue was $170.3 million, down 3% year-on-year (statutory), and broadly in line excluding a prior-year restatement. North America grew 12% to over $71 million and now represents ~42% of group revenue. APAC remained the largest contributor despite a 12% decline to ~$70.6 million, and South America reported $28 million (11% decline).
Read all positive updates
Company Guidance
Austin revised FY26 guidance to revenue of greater than $350 million and statutory EBITDA (excluding FX) of $14–16 million; having reported H1 revenue of $170.3 million and statutory EBITDA of $3 million, this implies roughly $11–13 million of EBITDA is required in H2 (management also noted an H2 range statement that referenced $11–30 million of H2 EBITDA in the presentation), and management said the H1 one‑off/material items are not expected to repeat. Management pointed to $51 million (and an additional $21 million of APAC tray orders) secured post period to support a stronger H2, expects H2 capex broadly in line with H1 (H1 capex $3.5m), targets improved free cash flow conversion (~45–50% vs H1 FCF $3.1m and operating cash flow ~ $9m), plans to refinance debt due in November (net debt $18.2m; net debt-to-equity ~11.5%), and confirmed the interim fully‑franked dividend of $0.03 per share.Austin Engineering Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 376.89M | 378.94M | 313.24M | 258.30M | 202.93M | 197.58M |
| Gross Profit | 48.09M | 250.46M | 190.50M | 42.82M | 39.99M | 30.93M |
| EBITDA | 30.42M | 41.66M | 47.74M | 20.30M | 32.45M | 12.72M |
| Net Income | 17.79M | 25.99M | 26.08M | 2.85M | 16.81M | -540.00K |
Balance Sheet | ||||||
| Total Assets | 273.50M | 303.33M | 293.00M | 260.87M | 214.14M | 177.35M |
| Cash, Cash Equivalents and Short-Term Investments | 15.81M | 20.06M | 40.19M | 20.17M | 20.78M | 9.82M |
| Total Debt | 64.14M | 52.26M | 46.02M | 55.44M | 36.26M | 28.37M |
| Total Liabilities | 133.20M | 159.31M | 162.66M | 146.67M | 106.82M | 86.59M |
| Stockholders Equity | 140.30M | 144.02M | 130.34M | 114.20M | 107.32M | 90.76M |
Cash Flow | ||||||
| Free Cash Flow | 7.58M | -6.94M | 30.01M | 4.76M | 548.00K | -14.27M |
| Operating Cash Flow | 13.54M | 2.59M | 35.50M | 15.78M | 4.74M | -8.33M |
| Investing Cash Flow | -6.43M | -12.62M | -8.37M | -20.93M | 8.72M | -4.84M |
| Financing Cash Flow | -11.99M | -10.96M | -7.24M | 5.36M | -2.66M | 4.06M |
Austin Engineering Technical Analysis
Negative
0.26
Price Trends
0.18
Negative
0.21
Negative
0.24
Negative
Market Momentum
>-0.01
Positive
41.28
Neutral
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ANG, the sentiment is Negative. The current price of 0.26 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.18, and above the 200-day MA of 0.24, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.28 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ANG.
Austin Engineering Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$542.42M | 4.12 | 10.91% | ― | 5.58% | 20.20% | |
69 Neutral | AU$840.88M | ― | 5.22% | 4.17% | -34.08% | -36.57% | |
67 Neutral | AU$483.68M | 7.39 | 22.89% | 2.51% | 1.87% | -23.48% | |
65 Neutral | AU$2.90B | 10.17 | 20.27% | 2.65% | 26.80% | 40.18% | |
64 Neutral | AU$3.24B | 8.10 | 7.79% | 3.20% | 14.40% | -57.82% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | AU$109.04M | 20.44 | 12.51% | 7.14% | 10.91% | -28.61% |
* Industrials Sector Average
AU:ANG
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Austin Engineering Corporate Events
Austin Engineering Options Lapse, Trimming Potential Equity Overhang
Apr 13, 2026
Austin Engineering Limited has notified the market of a change in its issued capital following the expiry of a class of options. A total of 3,950,000 options, carrying an exercise price of $0.35 and due to expire on April 12, 2026, have lapsed une...
Austin Engineering Seeks ASX Quotation for New Share Issuance
Apr 10, 2026
Austin Engineering Limited has submitted an application to the ASX for quotation of 1,000 ordinary fully paid shares under its ticker ANG. The new securities, issued on April 10, 2026, stem from a dividend or distribution plan and marginally incre...
Austin Engineering Seeks ASX Quotation for 658,803 New Shares
Apr 10, 2026
Austin Engineering Limited has applied to the ASX for quotation of 658,803 additional ordinary fully paid shares under its existing listing. The new ANG securities are being issued on April 10, 2026, expanding the company’s quoted share base...
Austin Engineering switches brokers for ongoing on-market share buy-back
Apr 7, 2026
Austin Engineering Ltd has notified the ASX of a change to its on-market share buy-back arrangements, specifically updating the broker engaged to conduct the buy-back. The company has appointed Shaw and Partners and Morgans Financial Limited to ac...
Austin Engineering Updates Dividend Details and DRP Pricing
Mar 31, 2026
Austin Engineering Limited has confirmed details of a dividend tied to the six‑month period ending 31 December 2025, payable on its ordinary fully paid shares listed under ASX code ANG. The notification updates a February filing to disclose ...
Austin Engineering Director Gains Indirect Stake Through Spouse’s Share Purchase
Mar 16, 2026
Austin Engineering has disclosed a change in director Ian Stone’s relevant interest in the company’s securities, following an on‑market purchase of shares by his spouse, Elizabeth Dalwood. The transaction gives Stone an indirect ...
S&P Dow Jones Revises March 2026 All Ordinaries Rebalance, Confirms New Additions
Mar 10, 2026
SP Dow Jones Indices has updated its March 2026 quarterly rebalance for the All Ordinaries index, reversing earlier plans regarding African Gold Limited and American Rare Earths Limited. African Gold will not be added and American Rare Earths will...
Austin Engineering Defends Earnings Disclosure in Response to ASX Query
Mar 4, 2026
Austin Engineering has responded to an ASX Aware Letter, outlining its view that half-year earnings to 31 December 2025 did not materially diverge from market expectations when assessed against its full-year FY26 guidance and known earnings variab...
Austin Engineering Director Increases On-Market Shareholding
Mar 1, 2026
Austin Engineering has disclosed a change in the shareholding of director Sybrandt van Dyk, indicating an increase in his direct equity stake in the company. The filing notes that van Dyk purchased additional fully paid ordinary shares on market, ...
Austin Engineering Director James Walker Increases Indirect Shareholding
Mar 1, 2026
Austin Engineering Limited has disclosed a change in the relevant interests of director James Walker, who holds his indirect stake through the BT Select Portfolio Plan. The filing indicates that Walker’s indirect holding of fully paid ordina...
Austin Engineering Corrects DRP Pricing in Dividend Update
Feb 26, 2026
Austin Engineering has updated its previously announced dividend notification for the six-month period ending 31 December 2025, linked to its ordinary fully paid shares on the ASX. The revision specifically corrects the dividend reinvestment plan ...
Austin Engineering Issues Cautious FY26 Half-Year Results Presentation
Feb 26, 2026
Austin Engineering has released its FY26 half-year financial results presentation, outlining its recent performance and operational metrics for the period. The document emphasises that the information is general in nature, may include non-IFRS mea...
Austin Engineering Slashes FY26 Guidance as Operational Strains Hit Profitability
Feb 25, 2026
Austin Engineering reported a softer first half of FY26, with revenue edging down to $170.3 million and EBIT falling sharply to $3 million as operational inefficiencies in Chile, North America and Indonesia, plus a legacy OEM contract and delayed ...
Austin Engineering Profit Slumps but Interim Dividend Maintained
Feb 25, 2026
Austin Engineering Limited reported a challenging first half to 31 December 2025, with revenue from continuing operations down 3.0% to A$170.3 million and EBITDA dropping 63.0% to A$8.0 million. Profit from continuing operations after tax fell 85....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.