Austin Engineering Limited (AU:ANG)
ASX:ANG
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Austin Engineering
(Sydney:ANG)
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Rating:63Neutral
Price Target:
AU$0.21
â–¼(-18.08% Downside)
Action:ReiteratedDate: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
Sustained revenue growth with a high gross margin indicates durable product pricing power and engineering value. For a mining-equipment supplier, a 66% gross margin plus recurring aftermarket demand supports long-term profitability potential even if operating costs fluctuate.
Negative Factors
Poor Cash Conversion
Very weak cash conversion presents a structural liquidity risk: earnings are not translating into cash, constraining reinvestment and increasing reliance on debt or equity to fund operations. Improving working capital is essential to sustain growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Gross Margin
Sustained revenue growth with a high gross margin indicates durable product pricing power and engineering value. For a mining-equipment supplier, a 66% gross margin plus recurring aftermarket demand supports long-term profitability potential even if operating costs fluctuate.
Read all positive factors
Austin Engineering (ANG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$112.04M
Dividend Yield7.14%
Average Volume (3M)2.24M
Price to Earnings (P/E)20.4
Beta (1Y)0.98
Revenue Growth20.27%
EPS Growth-5.38%
CountryAU
Employees1,446
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)<0.01
Shares Outstanding622,451,050
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.01
Revenue Forecast (FY)AU$351.40M
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 generates revenue primarily through the sale of its engineered products and services, which cater specifically to the mining and resource sectors. Key revenue streams include the manufacturing and selling of heavy equipment atta...
Austin Engineering Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q2-2026)
| Next Earnings Date:Sep 01, 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
0.23
Negative
0.22
Negative
0.27
Negative
Market Momentum
-0.01
Negative
32.83
Neutral
20.00
Positive
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 0.19, above the 50-day MA of 0.23, and below the 200-day MA of 0.27, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 32.83 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, 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$616.97M | 4.12 | 10.91% | ― | -4.54% | 43.24% | |
69 Neutral | AU$733.86M | ― | 8.35% | 4.17% | -21.57% | -34.09% | |
67 Neutral | AU$521.56M | 7.39 | 22.89% | 2.51% | -3.08% | -16.35% | |
65 Neutral | AU$2.81B | 10.17 | 20.27% | 2.65% | 7.20% | 32.60% | |
64 Neutral | AU$2.53B | 8.10 | 7.79% | 3.20% | 12.18% | -73.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | AU$112.04M | 20.44 | 12.51% | 7.14% | 20.27% | -5.38% |
* Industrials Sector Average
AU:ANG
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Austin Engineering Corporate Events
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....
Austin Engineering Sets 26 February Date for Half-Year FY26 Results Briefing
Feb 5, 2026
Austin Engineering will release its financial results for the half year ended 31 December 2025 on 26 February 2026, followed by a webcast briefing for analysts and investors hosted by CEO and Managing Director Sy van Dyk and CFO David Bonomini. Th...
Austin Engineering Cancels 400,000 Shares Following On-Market Buy-Back
Jan 13, 2026
Austin Engineering Limited has cancelled 400,000 ordinary fully paid shares following completion of an on-market buy-back, effective 13 January 2026. The reduction in issued capital reflects an ongoing capital management strategy that may improve ...
Austin Engineering COO Sees 1.05m Incentive Options Vest as Performance-Based Tranches Lapse
Jan 8, 2026
Austin Engineering has confirmed that 1,050,000 incentive options granted to Chief Operating Officer Vincent D’Rozario have vested after meeting retention and earlier share price performance hurdles, and can now be exercised at $0.35 per sha...
Austin Engineering Updates on Buy-Back Program
Dec 16, 2025
Austin Engineering Limited has announced an update on its ongoing on-market buy-back program, with a total of 2,533,152 ordinary fully paid securities bought back as of December 17, 2025. This buy-back initiative is part of the company’s str...
Austin Engineering Announces Cessation of Securities
Dec 16, 2025
Austin Engineering Limited announced the cessation of 4,233,152 ordinary fully paid securities due to an on-market buy-back, effective December 16, 2025. This strategic move is likely to impact the company’s capital structure and could influ...
Austin Engineering Updates on Share Buy-Back Program
Dec 14, 2025
Austin Engineering Limited has announced an update on its ongoing share buy-back program, with a total of 323,152 ordinary fully paid securities bought back on the previous day, adding to the 1,810,000 securities already repurchased. This buy-back...
Austin Engineering Updates on Share Buy-Back Program
Dec 10, 2025
Austin Engineering Limited has announced an update regarding its ongoing on-market buy-back program. As of December 11, 2025, the company has repurchased a total of 1,810,000 ordinary fully paid securities, including 310,000 bought back on the pre...
Austin Engineering Updates on Market Buy-Back Program
Dec 8, 2025
Austin Engineering Limited has announced an update regarding its ongoing on-market buy-back program. As of December 9, 2025, the company has repurchased a total of 1,500,000 ordinary fully paid securities, with 100,000 bought back on the previous ...
Austin Engineering Updates on Buy-Back Program
Dec 7, 2025
Austin Engineering Limited has announced an update on its ongoing on-market buy-back program. As of December 8, 2025, the company has repurchased a total of 1,400,000 ordinary fully paid securities, with 300,000 bought back on the previous day. Th...
Austin Engineering Updates on Share Buy-Back Progress
Dec 4, 2025
Austin Engineering Limited announced an update regarding its ongoing on-market buy-back program, revealing that a total of 400,000 ordinary fully paid securities were bought back on the previous day, adding to the 700,000 securities already acquir...
Austin Engineering Announces Daily Buy-Back Notification
Dec 3, 2025
Austin Engineering Ltd has announced a daily buy-back notification, indicating its intention to repurchase its own securities. This strategic move is likely aimed at optimizing the company’s capital structure and potentially enhancing shareh...
Austin Engineering Initiates Daily Share Buy-Back Program
Dec 2, 2025
Austin Engineering Limited announced a daily buy-back of its ordinary fully paid securities, with 600,000 shares bought back on the previous day. This move is part of the company’s strategy to manage its capital structure and potentially enh...
Austin Engineering Director Increases Shareholding
Nov 28, 2025
Austin Engineering Limited announced a change in the director’s interest, with James Walker acquiring an additional 100,000 fully paid ordinary shares through an on-market purchase. This acquisition increases his indirect holdings to 180,000...
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.