Austal (ASB) AI Stock Analysis

• Market Cap: AU$3.16B
• Dividend Yield: N/A
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 31.8
• Beta (1Y): 1.31
• Revenue Growth: 24.13%
• EPS Growth: 474.03%
• Country: US
• Employees: 4,324
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.16
• Shares Outstanding: 422,050,230
• 10 Day Avg. Volume: 1,685,650
• 30 Day Avg. Volume: 1,370,479
• PEG Ratio: 0.05
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 11.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$7.98
• Price Target Upside: 6.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: AU$8.00 ▲(6.38% Upside)

Austal's strong financial performance is the most significant factor, supported by robust revenue growth and cash flow generation. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation, which tempers the overall score.

Positive Factors

Free Cash Flow Strength

Sustained, large free cash flow expansion provides durable funding for capital-intensive shipbuilding, supports working capital for multi-year contracts, enables reinvestment in facilities and sustainment capabilities, and reduces reliance on external financing during award cycles.

Low Financial Leverage

A conservative leverage profile gives Austal capacity to absorb contract timing swings and cost overruns, improves bonding and credit terms for large defense programs, and preserves optionality to pursue new-build awards or sustainment contracts without stressing the capital structure.

Revenue Growth and Margin Improvement

Midteens revenue growth with improving gross and net margins implies expanding demand and better mix or pricing power. Over the medium term this trend supports higher recurring sustainment revenue, economies of scale on program delivery, and a firmer earnings base.

Negative Factors

Contract Timing and Execution Risk

Heavy reliance on large, lumpy government awards means revenue and margins can swing with award timing and milestones. Execution risk on complex ship programs (costs, schedules) can erode profitability and cash flow for months, impacting medium-term financial predictability.

Low Operating Profitability

Very low EBIT margin limits the firm's ability to absorb program overruns, invest in productivity upgrades, or expand sustainment services without compressing returns. Structural operational efficiency improvements are required to convert revenue growth into durable operating profits.

Moderate Return on Equity

A mid-single-digit ROE indicates modest returns given the capital intensity of shipbuilding. Persistently moderate ROE can constrain long-term shareholder value creation and suggests the company must improve margins, asset turnover, or capital allocation to raise sustained equity returns.

Austal Business Overview & Revenue Model

Company Description

Austal Limited engages in the design, manufacture, and support of vessels for commercial and defense customers worldwide. It operates in four segments: USA Shipbuilding, USA Support, Australasia Shipbuilding, and Australasia Support. The company designs, constructs, and supports passenger ferries, vehicle passenger ferries, and offshore and windfarm vessels; naval and other defense vessels; and patrol boats for government law enforcement and border protection agencies. It also develops and integrates advanced vessel control and information management systems, including MARINELINK, an integrated monitoring and control system; and motion control systems and interceptors. In addition, the company provides life capability management and vessel support services, such as crew training and instruction, vessel servicing, repair and maintenance, integrated logistics support, vessel sustainment, and information management systems support to naval, government, and commercial operators; and refit services and manages annual dockings. Austal Limited was founded in 1988 and is headquartered in Henderson, Australia.

How the Company Makes Money

Austal generates revenue primarily through the construction and sale of naval vessels, including patrol boats, frigates, and other military ships, as well as commercial ships such as ferries and offshore support vessels. The company secures contracts through competitive bidding processes with government and defense agencies, which often involve significant multi-year projects. Key revenue streams include shipbuilding contracts, repair and maintenance services for existing vessels, and ongoing support contracts that provide long-term revenue stability. Additionally, strategic partnerships with defense organizations and collaboration on joint ventures enhance its market position and contribute to its financial performance.

Austal Financial Statement Overview

Summary

Austal demonstrates strong financial performance with notable revenue growth and improved profitability margins. The balance sheet is stable with low leverage, and cash flow generation is robust, supporting future growth initiatives. While operational efficiency could be enhanced, the company is well-positioned in the Aerospace & Defense industry.

Income Statement

Austal's income statement shows a strong revenue growth rate of 15.62% in the latest year, indicating a positive trajectory. The gross profit margin improved to 12.59%, and the net profit margin increased to 4.92%, reflecting enhanced profitability. However, the EBIT margin remains relatively low at 0.69%, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.20, indicating prudent leverage management. The return on equity is moderate at 6.86%, showing decent profitability from equity investments. The equity ratio of 44.42% suggests a stable capital structure, though there is potential to enhance asset utilization.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth rate of 83.89%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.55 indicates efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.52 further underscores the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.82B	1.82B	1.47B	1.59B	1.43B	1.57B
Gross Profit	229.92M	229.60M	172.51M	99.10M	230.28M	222.56M
EBITDA	174.29M	199.76M	127.64M	56.76M	153.96M	160.69M
Net Income	89.73M	89.73M	14.88M	-13.77M	79.56M	81.06M
Balance Sheet
Total Assets	2.95B	2.95B	2.09B	1.93B	1.69B	1.45B
Cash, Cash Equivalents and Short-Term Investments	583.93M	583.93M	173.51M	179.20M	240.11M	346.90M
Total Debt	266.99M	266.99M	281.06M	240.46M	234.12M	204.60M
Total Liabilities	1.64B	1.64B	1.09B	885.12M	675.97M	615.78M
Stockholders Equity	1.31B	1.31B	1.00B	948.82M	924.28M	774.04M
Cash Flow
Free Cash Flow	211.40M	210.68M	-82.96M	-41.91M	-127.42M	30.18M
Operating Cash Flow	406.32M	406.32M	-13.05M	86.71M	37.50M	107.33M
Investing Cash Flow	-149.23M	-149.23M	-12.70M	-102.78M	-127.51M	-85.05M
Financing Cash Flow	153.76M	153.76M	19.52M	-38.06M	-38.33M	-46.31M

Austal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ASB, the sentiment is Positive. The current price of 7.52 is below the 20-day moving average (MA) of 7.77, above the 50-day MA of 7.05, and above the 200-day MA of 6.59, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 48.57 is Neutral, neither overbought nor oversold. The STOCH value of 8.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ASB.

Austal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPH	68 Neutral	AU$985.12M	14.62	10.32%	10.58%	16.61%	3.07%
ASB	64 Neutral	AU$3.16B	31.80	7.54%	―	24.13%	474.03%
MGH	64 Neutral	AU$1.97B	26.05	9.26%	1.30%	15.14%	-7.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VEE	57 Neutral	AU$100.52M	30.86	5.66%	1.28%	-14.88%	-56.89%
EOS	54 Neutral	AU$1.96B	56.16	-28.75%	―	-72.88%	―
OEC	42 Neutral	AU$23.28M	-5.41	-42.31%	―	-34.48%	-26000.00%

Austal Corporate Events

Austal Moves to Rectify ASX Governance Breach on Audit Committee Independence

Austal has disclosed that it was in breach of ASX Listing Rule 12.7 after its Audit & Risk Committee was chaired by a director later deemed non‑independent, following the February 2025 resignation of former independent chair Sarah Adam‑Gedge. The company explained that although the board continued to view then chair Brent Cubis as capable of exercising independent judgment despite his affiliation with a major shareholder, it had failed to appoint an alternative independent chair promptly, resulting in non-compliance with governance requirements for S&P/ASX 300 entities. Austal has since restored compliance by appointing independent non‑executive director Sue Murphy as chair of the Audit & Risk Committee on 18 December 2025 and highlighted additional safeguards, including rigorous conflict-of-interest declarations, potential temporary changes in committee leadership, and ongoing engagement with external auditor Deloitte, to ensure independent oversight of financial reporting and risk management.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.86 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Group Ceases to Be Substantial Shareholder in Austal

State Street Corporation, through subsidiaries including State Street Global Advisors and State Street Bank and Trust Company, has lodged a notice stating it has ceased to be a substantial shareholder in Austal Limited as of 26 December 2025. The change in holding, disclosed under section 671B of the Corporations Act, signals an exit from a substantial position by a major global institutional investor, potentially altering Austal’s share register composition and reducing the presence of passive institutional capital in the stock, though the filing provides no detail on the size of the divestment or the consideration involved.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.86 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Wins A$135m Extension for Additional Evolved Cape-Class Patrol Boats

Austal has secured a contract extension worth more than A$135 million to build two additional Evolved Cape-class Patrol Boats for the Australian Border Force, lifting the total number of these vessels ordered to 14. The deal deepens Austal’s long-running relationship with the Australian Border Force and Royal Australian Navy, reflects continued confidence in the Evolved Cape-class platform, and further embeds the company’s role in Australia’s border security architecture and sovereign shipbuilding base. Construction of the new boats will take place at Austal’s Henderson shipyard in Western Australia, supported by a national supply chain, while Austal continues to provide in-service support for both Cape-class and Evolved Cape-class fleets and progresses delivery of the Guardian-class Patrol Boat program.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.86 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Secures $1.029 Billion Australian Army Shipbuilding Contract

Austal Limited has secured a $1.029 billion contract to design and build 18 Landing Craft Medium (LCM) vessels for the Australian Army as part of the Strategic Shipbuilding Agreement with the Commonwealth of Australia. This contract marks the first step in advancing Australia’s sovereign naval shipbuilding capability at Austal’s Henderson facility in Western Australia, with construction commencing in 2026 and running through to 2032. The project is expected to create significant opportunities for local industries and businesses, enhancing the nation’s defence capabilities while laying the groundwork for future large-scale shipbuilding initiatives.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.86 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Global Advisors Ceases Substantial Holding in Austal Limited

Austal Limited has announced that State Street Global Advisors Europe Limited has ceased to be a substantial holder in the company as of December 12, 2025. This change in substantial holding may impact Austal’s shareholder structure and could influence future voting outcomes and corporate decisions.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.86 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Gains Approval for Increased Hanwha Stake Amid Strong Financial Performance

Austal Limited has received approval from the Foreign Investment Review Board and the Federal Treasurer for Hanwha Corporation to increase its equity shareholding in Austal from 9.9% to 19.9%. This decision is subject to conditions regarding sensitive information access and board nominations. Austal is in a strong financial position with a record revenue of $1.8 billion and an EBIT of $113 million in FY25, and it anticipates continued growth with a forecasted EBIT of $135 million in FY26. The company has a robust order book exceeding $13 billion and is expanding its US shipbuilding capacity. Hanwha’s increased stake may lead to partnerships and board positions, which Austal will evaluate for potential benefits to shareholders.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.86 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Corporation Ceases Substantial Holding in Austal Limited

Austal Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of December 9, 2025. This change in substantial holding may impact Austal’s shareholder structure and could influence future voting outcomes and corporate decisions.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.86 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Corporation Ceases Substantial Holding in Austal Limited

Austal Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders of voting securities in the company as of December 3, 2025. This change in substantial holding may impact Austal’s shareholder structure and influence, potentially affecting its strategic decisions and market perception.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.86 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Limited Announces Change in Substantial Holding

Austal Limited has announced a change in substantial holding, as State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of November 27, 2025. This change in holding may impact Austal’s shareholder structure and could have implications for the company’s governance and strategic decisions moving forward.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.86 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Corporation Ceases Substantial Holding in Austal Limited

Austal Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of November 24, 2025. This change in substantial holding may impact Austal’s shareholder composition and could influence its market strategies and investor relations.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.86 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Corporation Ceases Substantial Holding in Austal Limited

Austal Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of November 12, 2025. This change in substantial holding could impact Austal’s shareholder dynamics and influence in the market, potentially affecting its strategic decisions and stakeholder relationships.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.86 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Secures Strategic Shipbuilding Tasking for LCM Design

Austal Limited has been awarded a project-specific Tasking Statement under the Strategic Shipbuilding Agreement by the Commonwealth of Australia, appointing Austal Defence Australia as the Design Authority for the Landing Craft Medium (LCM) with a value of approximately A$15 million. This tasking allows Austal Defence Australia to advance the LCM design, with expectations of further tasking for design and construction in late 2025, potentially enhancing Austal’s industry positioning and stakeholder engagement.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.50 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Corporation Ceases to be a Substantial Holder in Austal Limited

Austal Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders of voting securities in the company as of October 28, 2025. This change in substantial holding may impact Austal’s shareholder structure and could influence future voting outcomes and corporate decisions.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.50 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Limited Secures Shareholder Support at Annual General Meeting

Austal Limited’s Annual General Meeting saw the approval of several key resolutions, including the adoption of the remuneration report and the election of board members. The meeting also approved the issuance of share rights to various executives, reflecting strong shareholder support and potentially enhancing the company’s executive alignment with shareholder interests.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.86 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Expands Submarine Manufacturing Capabilities with Major Investments

Austal’s 2025 Annual General Meeting highlighted significant developments, including a US$450 million investment by the US Government to build a new Module Manufacturing Facility (MMF3) to enhance the production of US nuclear submarines. This expansion is expected to significantly boost Austal’s revenue and operational capacity. Additionally, Austal secured $220 million in funding for constructing Final Assembly 2 (FA2), a crucial infrastructure project for assembling various naval vessels, supported by a $488 million debt refinance, demonstrating robust financial backing and strategic growth initiatives.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$7.86 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.