• Austal announces A$200m institutional placement to fund expansion of Mobile, Alabama shipyard
• Net proceeds will be used to partly fund the FA2 infrastructure expansion project
• Positive outlook with record A$14.2bn order book, expected increase in orders through proposed Strategic Shipbuilding Agreement

Austal Limited (ASX:ASB) announces that it is undertaking an equity raising by way of a non-underwritten A$200 million institutional placement (Placement) of new fully paid ordinary shares and a non-underwritten Share Purchase Plan (SPP) for eligible Austal shareholders of up to a maximum of A$20 million. The net proceeds raised by the Equity Raising will contribute to Austal's funding of the Final Assembly 2 (FA2) infrastructure expansion project at its Mobile, Alabama shipyard, a highly strategic site for the US Navy. Construction of FA2 recently commenced and comprises a new assembly building, waterfront improvements and a new ship lift system, which will enable the delivery of current and future pipeline of large steel vessels for the US Navy and US Coast Guard. Total capital investment in FA2 is estimated to be US$300 million, to be phased over FY25 - FY27, and will be funded through a combination of net proceeds from the Equity Raising, and new debt facilities. Austal reconfirms its EBIT guidance for FY25 of not less than A$80 million. With a record order book of A$14.2 billion (including options), an expected increase in orders through the proposed Strategic Shipbuilding Agreement with the Australian government as early as 2H FY25 and an increased volume of work in Asia, Austal is well positioned for future growth.

Austal reconfirms its EBIT guidance for FY25 of not less than A$80 million.

With a record order book of A$14.2 billion (including options), an expected increase in orders through the proposed Strategic Shipbuilding Agreement with the Australian government as early as 2H FY25 and an increased volume of work in Asia, Austal is well positioned for future growth.