Austal (ASB) AI Stock Analysis

• Market Cap: $3.37B
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 34.0
• Beta (1Y): 0.95
• Revenue Growth: 24.13%
• EPS Growth: 474.03%
• Country: AU
• Employees: 4,324
• Sector: Industrials
• Sector Strength: 73
• Industry: Aerospace & Defense
• EPS (TTM): 0.16
• Shares Outstanding: 421,180,050
• 10 Day Avg. Volume: 1,337,687
• 30 Day Avg. Volume: 1,065,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 9.38
• Enterprise Value/Ebitda: 12.38
• 1Y Price Target: $7.34
• Price Target Upside: -10.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: AU$8.50 ▲(3.91% Upside)

Austal's overall stock score is driven by strong financial performance and positive technical indicators. The company's robust revenue growth and cash flow generation position it well for future growth. However, the high P/E ratio suggests the stock may be overvalued, which is a potential risk for investors.

Austal Business Overview & Revenue Model

Company Description

Austal Limited (ASB) is a global shipbuilding company headquartered in Australia. The company specializes in the design and construction of defense and commercial vessels. Austal operates in key sectors including defense, where it builds naval ships such as frigates and patrol boats, and commercial, where it constructs ferries and other high-speed vessels. Austal is recognized for its innovative use of aluminum in shipbuilding, offering lightweight and fuel-efficient maritime solutions.

How the Company Makes Money

Austal makes money primarily through shipbuilding contracts and services. The company generates revenue by designing and constructing ships for governmental defense agencies and commercial operators worldwide. Key revenue streams include the sale of new ships, maintenance and support services, and through partnerships with defense departments, particularly in the United States, Australia, and other allied nations. Austal often secures long-term contracts for shipbuilding and maintenance, which provide sustained income. Additionally, by leveraging its expertise in aluminum vessels, Austal has established a competitive edge in producing high-speed ferries and naval ships, contributing significantly to its earnings.

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: 8.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 8.18 is above the 20-day moving average (MA) of 7.11, above the 50-day MA of 6.57, and above the 200-day MA of 4.83, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 71.72 is Negative, neither overbought nor oversold. The STOCH value of 88.75 is Negative, 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
ASB	73 Outperform	$3.37B	33.95	7.54%	―	24.13%	474.03%
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
EOPSF	―	$910.52M	44.47	-28.75%	―	―	―
OBTEF	―	$28.17M	27.78	-42.31%	―	―	―
MGH	69 Neutral	AU$1.62B	21.38	9.26%	1.54%	15.14%	-7.23%
IPH	68 Neutral	AU$1.14B	16.98	10.32%	8.28%	16.61%	3.07%
VEE	66 Neutral	AU$163.18M	54.05	5.66%	0.82%	-14.88%	-56.89%

Austal Corporate Events

Austal Ltd Updates Director Onboarding Process to Ensure Compliance

Austal Ltd addressed a late filing of the Appendix 3X due to an administrative oversight in the onboarding process of new directors. The company has reviewed and updated its procedures to prevent future occurrences, ensuring compliance with the Australian Securities Exchange’s disclosure obligations.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$4.07 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Limited Appoints New Director with No Prior Securities Interests

Austal Limited has announced the appointment of Richard Boyce Massey Gibb as a director, effective June 3, 2025. The initial director’s interest notice indicates that Gibb currently holds no relevant interests in securities or contracts related to the company, suggesting a fresh start in his role without prior commitments that could influence his decisions.

The most recent analyst rating on (AU:ASB) stock is a Buy with a A$3.33 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

State Street Corporation and its subsidiaries have ceased to be substantial holders in Austal Limited as of July 9, 2025. This change in substantial holding may impact Austal’s shareholder composition and influence within the market, potentially affecting its strategic decisions and stakeholder interests.

The most recent analyst rating on (AU:ASB) stock is a Buy with a A$3.33 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Limited Sees Shift in Substantial Holdings

Austal Limited has announced a significant change in its substantial holdings, with various financial institutions such as Citibank NA, UBS Securities Australia Ltd, and State Street Global Advisors Europe Limited acquiring substantial voting power in the company. This development indicates a strategic shift in the ownership structure, potentially impacting Austal’s decision-making processes and its market positioning. The involvement of major financial entities suggests a vote of confidence in Austal’s future prospects, which could influence stakeholder perceptions and the company’s operational strategies.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$4.07 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 Status

Austal Limited has announced a change in its substantial holding status, indicating that a subsidiary of State Street Corporation has ceased to be a substantial holder in the company as of July 7, 2025. This change may impact Austal’s shareholder structure and could have implications for its market positioning and stakeholder interests.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$4.07 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Corporation Becomes Substantial Holder in Austal Limited

Austal Limited has announced a significant change in its shareholder structure, with State Street Corporation and its subsidiaries becoming substantial holders. This development indicates a strategic move by State Street to increase its influence and control over Austal’s voting shares, potentially impacting Austal’s future decisions and operations.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$4.07 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

State Street Global Advisors Limited, a subsidiary of State Street Corporation, has ceased to be a substantial holder in Austal Limited as of June 30, 2025. This change in substantial holding may impact Austal Limited’s shareholder structure and influence within the company, potentially affecting its strategic decisions and market positioning.

The most recent analyst rating on (AU:ASB) stock is a Buy with a A$3.33 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Secures $488 Million for U.S. Expansion, Strengthening Growth Prospects

Austal Limited has secured $488 million in credit facilities as part of its $1.2 billion capital expansion program in the United States, aimed at enhancing its shipbuilding and submarine capabilities. This refinancing replaces existing syndicated facilities, offering better pricing, longer tenors, and increased financial flexibility, positioning Austal for growth and supporting its $14.5 billion order book. The move strengthens Austal’s balance sheet, enabling efficient construction of ongoing projects and pursuit of new opportunities.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$4.07 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 Austal’s voting securities as of June 23, 2025. This change in substantial holding could impact Austal’s shareholder structure and influence within the company, potentially affecting its strategic decisions and market positioning.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$4.07 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

State Street Corporation Becomes Substantial Holder in Austal Limited

State Street Corporation and its subsidiaries have become substantial holders in Austal Limited, a company involved in shipbuilding and defense contracting. This development indicates a significant investment and interest in Austal’s operations, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$2.55 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Awaits Confirmation on Hanwha’s Increased Equity Stake Approval

Austal Limited announced that Hanwha Group, a South Korean shipbuilder and significant shareholder, received approval from the Committee on Foreign Investment in the United States (CFIUS) to potentially increase its shareholding in Austal to 100 percent. However, Austal’s understanding of the approval differs from Hanwha’s claims, and the company is seeking written confirmation from CFIUS. Hanwha currently holds a 9.9 percent equity position in Austal and has applied to Australia’s Foreign Investment Review Board to increase its stake to 19.9 percent, which is still under consideration. The outcome of this decision will ultimately be determined by the FIRB and the Australian Treasurer, impacting Austal’s foreign ownership structure.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$2.55 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.

Austal Limited Strengthens Board with Appointment of Richard Gibb

Austal Limited has appointed Richard Gibb, a seasoned finance executive with extensive international experience, as a non-executive director. Gibb’s expertise in international finance and capital management is expected to enhance Austal’s board as the company expands its operations in the USA and strengthens its role in Australia. The board is also considering adding another non-executive director with manufacturing and contracting experience to support Austal’s growth and strategic objectives.

The most recent analyst rating on (AU:ASB) stock is a Hold with a A$2.55 price target. To see the full list of analyst forecasts on Austal stock, see the AU:ASB Stock Forecast page.