Austal Limited

ASB.AX

Aerospace & Defense · Industrials

Price

A$4.14

-0.12 (-2.82%)

Market Cap

A$1.74B

Exchange

Australian Securities Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Weak

Growth

Exceptional

Cash Flow

Good

Stability

Strong

Valuation

Strong

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Share count rising — dilution

+6.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 361.5M (2021) → 385.1M (2025)

Winston Score History

The full picture

Austal Limited is an Australian shipbuilder that designs and builds military and commercial vessels. Its main products are aluminum ships, including patrol boats, ferries, and high-speed military vessels. Its biggest customer is the United States Navy, and it also sells ships to the Australian Defence Force and other government clients around the world.

Austal earns money by winning government contracts to build ships and then providing ongoing maintenance and support services for those vessels. It operates shipyards in Australia and the United States, with its US facility in Mobile, Alabama being a major hub for Navy work. Its competitive position comes from its expertise in aluminum ship construction and its established relationships with the US and Australian defense departments. The key risk is that its revenue depends heavily on winning large government contracts, which can be delayed, reduced, or cancelled based on defense budget decisions.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+32.8% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

>+1,000% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

A$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

46.1%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

A$585M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Austal Limited grew revenue 33% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

13.3%

Thin — 13.3% gross margin

Profit after running costs

Operating Margin

4.7%

Thin — 4.7% operating margin

Return on the money invested

ROCE

7.0%

Weak — 7.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+33.6%

Fast-growing sales (+33.6% YoY)

Profit growth

EPS YoY

+215.5%

Earnings growing fast (+215.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

111%

Turns 111% of profit into real cash

Spare cash per sale

FCF Margin

-9.2%

Burning cash (-9.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.21

Conservative — low debt load (0.21)

Covers its interest

Interest Cover

5.97x

Adequate interest coverage (6.0x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

17.1x

Fair value — P/E 17.1

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+5.5

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (17.1 → 11.5)

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Dividends

Not applicable for this business.

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