• Confirms financial statements comply with accounting standards and give true and fair view
• Includes Contractual Relief in updated earnings guidance
• Working to resolve Contractual Relief matter to obtain unmodified audit opinion
• Board considers risk management and internal controls operating effectively

Austal Ltd has responded to an ASX query regarding its half-year report for the period ended 31 December 2025. The company has confirmed that in the directors' opinion, the half-year report complies with relevant accounting standards and gives a true and fair view of Austal's financial performance and position. Austal has also confirmed that the amount of Contractual Relief was included in its updated earnings guidance released in February 2026. The basis for including the Contractual Relief in the guidance was Austal's engagement with senior US Department of Defense representatives, the constructive nature of these discussions, and the company's experience in making similar requests for relief. Austal is working towards resolving the Contractual Relief matter as promptly as possible through ongoing confidential discussions, in order to facilitate the issue of an unmodified audit opinion for future financial statements. The board considers Austal has a sound system of risk management and internal control which is operating effectively. The auditor's qualification arose from an inability to obtain sufficient evidence to meet the auditor's internal policies regarding review opinions, rather than any failure by Austal to adhere to accounting standards. Austal has confirmed it is complying with its continuous disclosure obligations under the ASX Listing Rules.

Austal's updated EBIT guidance for the 2026 full year is approximately A$110 million, which includes the impact of the Contractual Relief.