Austal's stock hits record high as yearly profit beats estimates

Austal reported a six-fold increase in its annual profit on Friday, boosted by higher US shipbuilding contracts, sending its shares to a record high.

The shipbuilder and defence vessel maker posted net profit after tax of AU$89.7 million ($58.3 million) for fiscal year 2025, up from AU$14.9 million a year ago and above Visible Alpha consensus estimate of AU$67.9 million.

Shares of the company rose to a record high, advancing as much as 19.6 per cent to AU$8.070 by 00:43 GMT.

The firm said its US segment was successful in securing around AU$890 million of new contracts over the year to support the US Navy's submarine programs.

"With positive momentum at both USA and Australasia operations, revenue and earnings growth is anticipated for FY2026," it said.

Analysts at Citi noted that the business, "has an abundance of work with a lower than historical risk profile given greater contract diversity."

The firm did not declare a dividend for the year on Friday, stating the decision was, "to maintain balance sheet strength during significant capex program to increase shipbuilding capacity and capability."

South Korea's Hanwha Corp, which currently owns 9.9 per cent of Austral, has been pursuing the firm since 2024, when the Australian shipbuilder rejected its AU$1.02 billion bid, citing regulatory hurdles.

(Reporting by Shivangi Lahiri in Bengaluru; Editing by Sumana Nandy and Mrigank Dhaniwala)