Update on Treasurer's decision regarding Hanwha
| Stock | Austal Ltd (ASB.ASX) |
|---|---|
| Release Time | 12 Dec 2025, 10:57 a.m. |
| Price Sensitive | Yes |
Austal receives approval for Hanwha stake increase
- Treasurer approves Hanwha's increase in Austal shareholding from 9.9% to 19.9%
- Austal remains focused on delivering value for all shareholders as Australia's sovereign shipbuilder
- Austal reports record revenue and EBIT, with strong earnings growth forecast
Austal Ltd has announced that the Australian Treasurer, Jim Chalmers, has approved an application from HAA Pty Ltd, an entity controlled by South Korean shipbuilder Hanwha Corporation, to increase its direct equity shareholding in Austal from 9.9% to 19.9%. Hanwha currently holds a 9.9% direct equity shareholding in Austal, and a further 9.9% economic interest through a cash settled total return swap. Austal CEO Paddy Gregg stated that the company respects the Treasurer's decision and that the Board and management are firmly focused on delivering value for all Austal shareholders as Australia's sovereign shipbuilder, a major contributor to the US defence industrial base, and with significant growth opportunities at its US and Australasia operations. Austal notes that the Treasurer's approval is subject to strict conditions regarding Hanwha's access to and storage of sensitive information and who Hanwha may nominate to the Austal board. Austal has not yet been formally advised of these conditions or the approval itself. The company has reported a record $1.8 billion in revenue and $113 million in EBIT for FY25, with continued strong earnings growth forecast, including EBIT guidance of $135 million in FY26. Austal's order book exceeds $13 billion, which is expected to be significantly enhanced upon signing of Landing Craft Medium and Landing Craft Heavy programs in Australia, providing strong visibility into future earnings. The company also has a strong net cash position of $450 million and has secured funding arrangements to finance significant expansion of its US shipbuilding capacity.
Austal reported record revenue of $1.8 billion and EBIT of $113 million in FY25, and is forecasting continued strong earnings growth with EBIT guidance of $135 million in FY26.