Austal Ltd Market Update and Proposal to Sell Austal USA
Key points
- Austal's Australasia business expected FY2026 EBIT of approx. $62 million
- Austal USA expected non-cash EBIT loss of approx. $(175) million
- Austal Group FY2026 EBIT expected loss of approx. $(113) million
- Receipt of non-binding conditional offer from Hanwha to acquire Austal USA
- Proposal does not include Austal's core Australasia operations
Full summary
Austal Ltd has provided a market and trading update for its FY2026. The Australasia business is expected to report an EBIT of approximately $62 million, demonstrating strong performance. However, Austal USA is expected to report a non-cash EBIT loss of approximately $(175) million due to reassessed recoverability of contractual claims. This results in an expected Group EBIT loss of approximately $(113) million for FY2026. Austal has also received an indicative, non-binding conditional offer from Hanwha Defence USA, Inc. to acquire the business operations of Austal USA for an enterprise value of US$1.05 - 1.20 billion, subject to due diligence and regulatory approvals.
Guidance
FY2026 Group EBIT expected loss of approx. $(113) million
Outlook
The company is assessing the proposal from Hanwha and will provide further updates as appropriate.
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