Austal Limited (ASX:ASB) has reported a sharp lift in earnings, with revenue climbing 24.1% to A$1.8 billion for the year ended June 30, ahead of market estimates of A$1.75 billion.
Earnings before interest and tax doubled to A$113.4 million, while net income surged 503% to A$89.7 million, comfortably beating forecasts of A$59.6 million.
Chief executive Patrick Gregg said: “Austal delivered a significantly improved financial result in FY25 in what has been a transformational year for the company. We have seen important inflection points on earnings performance, the balance sheet repositioned for a major expansion in manufacturing capacity, and further growth potential in our near record order book following the recent approval of Austal as Australia’s Strategic Shipbuilder.
“We have worked closely with our customers to improve performance and returns from programs that are transitioning from start-up to steady state and this has resulted in a strong improvement in group earnings.”
The A$2.8 billion company also confirmed a contract with the Commonwealth Navy to construct 24 Tier 2 surface combatants at its Henderson facility in Western Australia. Austal’s order book stands at A$13.1 billion, close to record levels.