• Accounting error identified in FY24 financial statements related to Austin Chile subsidiary
• FY24 revenue and EBIT overstated due to incorrect revenue recognition
• FY25 revenue and EBIT to increase as a result of correcting the error

Austin Engineering Ltd (ASX: ANG) has identified accounting errors in its Financial Statements for the year ended 30 June 2024 ('FY24 Financial Statements') which relate to its Chile-based subsidiary, Austin Ingenieros Chile Ltda ('Austin Chile'). The Company has identified that Austin Chile incorrectly recognised revenue for certain transactions associated with the production of several trays in the FY24 Financial Statements, which resulted in Austin's reported FY24 revenue and profit being overstated ('Accounting Error'). Austin's management has conducted a review of its internal processes related to tray tracking, warehousing practices, operational data reconciliation and its revenue recognition process to determine the appropriate period to recognise the Transactions. The Company has identified that some of the trays under the Transactions recorded in FY24 should have been recorded in the financial year ended 30 June 2025 ('FY25'). To correct the Accounting Error, Austin will restate the Company's FY24 Financial Statements and other receivables balances, which will be reflected in the Company's FY25 Financial Statements to be lodged by 26 August 2025. The Accounting Error is expected to result in a decrease to the reported FY24 revenue of $4.9 million, and a decrease to FY24 EBIT of $3.3 million. As a result, FY25 revenue is projected to increase by approximately $8.3 million and FY25 EBIT by approximately $5.2 million. Austin does not expect the impact of the Accounting Error to materially affect its overall financial position as it involves reallocating the recognition of the relevant Transactions to the correct financial year.

FY25 revenue is projected to increase from approximately $370 million to $377 million, and FY25 underlying EBIT is projected to increase from circa $41 million to circa $46 million.

Austin is undertaking an immediate review of its processes and controls surrounding contract administration and tray management in the Chile region to strengthen compliance, improve internal controls and data integrity, and continue to improve cross-functional communication to mitigate against any future errors of this nature.