Austal, an Australian company, reported a sixfold increase in annual profit, thanks to increased U.S. shipbuilding orders, which sent its shares up to a new record high.

The shipbuilder, which also makes defence vessels, posted a net profit of A$89.7 (US$58.3 million), up from A$14.9 a year earlier and well above the Visible Alpha consensus of A$67.9 millions.

The company's shares rose to an all-time high of A$8.070, up 19.6% by 0043 GMT.

The company said that its U.S. division was successful in securing new contracts worth around A$890,000,000 to support the U.S. Navy’s submarine programs.

It said that revenue and earnings are expected to grow in FY2026, "with positive momentum at both USA operations and Australasia operations," the report stated.

Citi analysts noted that "the business has an abundance of contracts with a risk profile lower than in the past due to greater contract diversification."

The firm didn't declare a dividend on Friday. It stated that the decision was made "to maintain the balance sheet strength while undergoing a significant capex program in order to increase shipbuilding capability and capacity."

Hanwha Corp., the South Korean company that currently owns 9.9% in Austral, is pursuing the firm ever since 2024 when the Australian shipbuilder refused its A$1.02billion bid citing regulatory obstacles.

(source: Reuters)