InvestSMART

Austal Limited (ASX:ASB)

ALERT: Price-sensitive ASX Announcement for ASB
Current share price for ASB : $4.110 -2.31 (-35.98%)+
Announcement
Release
12 Dec 2025 10:57AM
Price at Release
$6.420
Full Release
download
Summary
Austal Limited has announced that the Treasurer and the Foreign Investment Review Board have approved Hanwha Corporation's application to increase its direct equity in Austal from 9.9% to 19.9%. Hanwha currently holds a 9.9% direct equity shareholding and an additional 9.9% through a cash-settled total return swap. Austal’s CEO, Paddy Gregg, emphasized the company's aim to focus on delivering shareholder value as a major contributor to sovereign shipbuilding in Australia and the US defense industrial base. The Treasurer's decision comes with strict conditions on Hanwha's access to sensitive information and potential board nominations. Austal is experiencing strong financial performance with a record $1.8 billion in revenue and $113 million EBIT in FY25, with promising future growth opportunities and a strong order book. Hanwha has expressed interest in partnering with Austal on shipbuilding projects and seeking board representation, which Austal will evaluate for potential benefits.
Key Points
  • Treasurer and FIRB approve Hanwha's stake increase in Austal from 9.9% to 19.9%.
  • Hanwha holds direct and swap-based equity interests in Austal.
  • Approval comes with strict conditions regarding sensitive information and board nominations.
  • Austal reports record $1.8 billion revenue and $113 million EBIT for FY25.
  • Projected EBIT growth to $135 million in FY26.
  • Strong financial position with $450 million net cash and $13 billion order book.
  • Hanwha seeks partnership and board position with Austal.
  • Austal's strategic focus on sovereign shipbuilding and US defense contributions.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.