# Austal (ASB.AU)

Canonical: https://gigainvestors.com/s/ASB.AU

Analysis as of: 2026-10-16T07:43:32.739Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 3.85 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 2

- Operating margin variation: 2.22×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.03×

- FY2018: 0.04×

- FY2019: 0.04×

- FY2020: 0.06×

- FY2021: 0.07×

- FY2022: 0.05×

- FY2023: -0.02×

- FY2024: -0.02×

- FY2025: 0.00×

- FY2026: -0.07×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 8.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 5.5%

- ROIC, second-lowest year: -2.1%

- Typical minus recent gross margin: 8.9 pp

- Typical gross margin (annual median): 10.9%

- Recent gross margin (lower of latest and 3-year median): 2.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.8%

- ROIC including acquisitions, ten-year median: 2.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 5.9%

- FY2018: 6.1%

- FY2019: 11.1%

- FY2020: 16.2%

- FY2021: 13.6%

- FY2022: 5.2%

- FY2023: -2.1%

- FY2024: -1.4%

- FY2025: 0.7%

- FY2026: -9.7%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: -2.33×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD -272M

- Net income, five-year total: AUD 117M

- Return on incremental invested capital: -0.8%

- Working capital / revenue, annual change: 1.9 pp

- Working capital / revenue, change between three-year averages: 12.9 pp

- Working capital / revenue, final three-year average: 23.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: -0.90×

- FY2023: 2.61×

- FY2024: -0.68×

- FY2025: 0.70×

- FY2026: 4.04×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.1% vs -1.4%

- Per-share earnings: 0.04 to 0.04 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.6%

- Ordinary dilution, 5-year annual growth: 3.1%

- Market cap gain: AUD 1.1B

- Cumulative retained earnings: AUD 230M

- Diluted shares, 10-year annual growth: 1.6%

- Diluted shares, 5-year annual growth: 3.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -1.0%

- Per-share value change: AUD -0.00

- Per-share value, starting three-year median: AUD 0.04

- Per-share value, ending three-year median: AUD 0.04

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 61M

- Cumulative net income, 10 years: AUD 403M

- ROIC, first three-year median: 6.1%

- ROIC, last three-year median: -1.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.04

- FY2018: AUD 0.11

- FY2019: AUD 0.17

- FY2020: AUD 0.25

- FY2021: AUD 0.22

- FY2022: AUD 0.22

- FY2023: AUD -0.04

- FY2024: AUD 0.04

- FY2025: AUD 0.21

- FY2026: AUD -0.13

### accounting: pass

- Sloan accruals: -3.7%

- Receivables to sales index (DSRI): 1.12×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 5.5%

- FY2018: -2.3%

- FY2019: -7.8%

- FY2020: -5.3%

- FY2021: -1.8%

- FY2022: 2.5%

- FY2023: -5.2%

- FY2024: 1.3%

- FY2025: -10.7%

- FY2026: -3.7%

## Holders

## Price story

Down 50% since Aug 2025 · sales +11.3%

Story as of 2026-10-16T10:00:12.750Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +11.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 1.3B 

- FY2018: AUD 1.4B 

- FY2019: AUD 1.9B 

- FY2020: AUD 2.1B 

- FY2021: AUD 1.6B 

- FY2022: AUD 1.4B 

- FY2023: AUD 1.6B 

- FY2024: AUD 1.5B 

- FY2025: AUD 1.8B 

- FY2026: AUD 2.0B 

### Gross margin · FY2026

gross margin 2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 8.9% 

- FY2018: 9.4% 

- FY2019: 10.3% 

- FY2020: 11.5% 

- FY2021: 14.2% 

- FY2022: 16.1% 

- FY2023: 6.3% 

- FY2024: 11.7% 

- FY2025: 12.6% 

- FY2026: 2.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are AUD 2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:32.739Z); FY2026: revenue 2028961000; grossProfit 39928999; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ASB.AU: Austal Limited engages in the design, manufacture, and support of vessels for commercial and defense customers in the United States, Australia, Europe, Asia, and South America. It operates in four segments: USA Shipbuilding, USA Support, Australasia Shipbuilding, and Australasia Support. The company offers vessel construction / shipbuilding revenue includes the design and construction of both defence and commercial vessel platforms; and defence vessels include advanced naval and other defence vessels and commercial vessels including passenger ferries, vehicle passenger ferries, offshore and windfarm vessels, as well as patrol boats for Australian Border Force and the Royal Australian Navy. It also develops, integrates, and maintain sophisticated vessel command and control systems, communications and radar systems as well as information management systems, such as MARINELINK, an integrated monitoring and control system; and motion control systems and interceptors. In addition, the company offers life capability management and vessel support services, including crew training and instruction, vessel servicing, repairs and maintenance, integrated logistics support, vessel sustainment and information management systems support; and comprehensive refit services and management of annual dockings to naval, government and commercial operators. Austal Limited was incorporated in 1987 and is headquartered in Henderson, Australia.

### Why customers stay

Margins ranged from 2% to 12.6% during 2024–26; it earns 5.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:32.739Z); FY2024: grossProfit / revenue = 11.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:32.739Z); FY2025: grossProfit / revenue = 12.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:32.739Z); FY2026: grossProfit / revenue = 2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:32.739Z); 10-year return on capital observations [[2017,0.05869100506714215],[2018,0.06148783145193536],[2019,0.11050594310590185],[2020,0.16176889969328603],[2021,0.13557555793811252],[2022,0.0515507195505062],[2023,-0.021485457021234833],[2024,-0.013955521533438917],[2025,0.006551187808579458],[2026,-0.09668800609505317]]; median 0.055120862308824174. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 8 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:32.739Z); FY2018: growth capex 0; upkeep 22929000; owner earnings 53407000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:32.739Z); FY2019: growth capex 0; upkeep 41542000; owner earnings 61514000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:32.739Z); FY2020: growth capex 0; upkeep 18361000; owner earnings 114344800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:32.739Z); FY2021: growth capex 0; upkeep 77152000; owner earnings 38133400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:32.739Z); FY2025: growth capex 122513000; upkeep 73131000; owner earnings 62499400. Growth capex / owner earnings = 1.9602268181774545.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:32.739Z); Dividend observations: [[2017,12260000],[2018,12791000],[2019,19211000],[2020,20586000],[2021,31277000],[2022,28870000],[2023,28972000],[2024,10873000],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 12.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ASB.AU SharesStats.PercentInsiders = 12.328 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.8 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:32.739Z); Closing price 3.85 AUD; reporting-to-trading FX 1; FY2026 annual sales per share 4.826582252584733; price multiple 0.7976658841643581. FY2026 cash earnings/share -0.5147313191496656. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 1.54 per share

- 2016-11: AUD 1.89 per share

- 2016-12: AUD 1.74 per share

- 2017-01: AUD 1.60 per share

- 2017-02: AUD 1.90 per share

- 2017-03: AUD 1.73 per share

- 2017-04: AUD 1.72 per share

- 2017-05: AUD 1.81 per share

- 2017-06: AUD 1.83 per share

- 2017-07: AUD 1.81 per share

- 2017-08: AUD 1.71 per share

- 2017-09: AUD 1.56 per share

- 2017-10: AUD 1.77 per share

- 2017-11: AUD 1.70 per share

- 2017-12: AUD 1.82 per share

- 2018-01: AUD 1.82 per share

- 2018-02: AUD 1.83 per share

- 2018-03: AUD 1.82 per share

- 2018-04: AUD 1.78 per share

- 2018-05: AUD 1.84 per share

- 2018-06: AUD 1.86 per share

- 2018-07: AUD 1.71 per share

- 2018-08: AUD 1.90 per share

- 2018-09: AUD 1.97 per share

- 2018-10: AUD 1.79 per share

- 2018-11: AUD 1.86 per share

- 2018-12: AUD 1.95 per share

- 2019-01: AUD 2.00 per share

- 2019-02: AUD 2.22 per share

- 2019-03: AUD 2.25 per share

- 2019-04: AUD 2.67 per share

- 2019-05: AUD 2.93 per share

- 2019-06: AUD 3.41 per share

- 2019-07: AUD 4.05 per share

- 2019-08: AUD 4.22 per share

- 2019-09: AUD 4.34 per share

- 2019-10: AUD 4.18 per share

- 2019-11: AUD 4.20 per share

- 2019-12: AUD 3.82 per share

- 2020-01: AUD 3.93 per share

- 2020-02: AUD 3.48 per share

- 2020-03: AUD 2.91 per share

- 2020-04: AUD 3.36 per share

- 2020-05: AUD 3.34 per share

- 2020-06: AUD 3.23 per share

- 2020-07: AUD 3.30 per share

- 2020-08: AUD 3.54 per share

- 2020-09: AUD 3.28 per share

- 2020-10: AUD 2.71 per share

- 2020-11: AUD 2.92 per share

- 2020-12: AUD 2.67 per share

- 2021-01: AUD 2.57 per share

- 2021-02: AUD 2.37 per share

- 2021-03: AUD 2.24 per share

- 2021-04: AUD 2.41 per share

- 2021-05: AUD 2.26 per share

- 2021-06: AUD 2.05 per share

- 2021-07: AUD 2.16 per share

- 2021-08: AUD 1.96 per share

- 2021-09: AUD 1.88 per share

- 2021-10: AUD 1.88 per share

- 2021-11: AUD 1.83 per share

- 2021-12: AUD 1.95 per share

- 2022-01: AUD 2.01 per share

- 2022-02: AUD 1.92 per share

- 2022-03: AUD 1.89 per share

- 2022-04: AUD 2.02 per share

- 2022-05: AUD 1.98 per share

- 2022-06: AUD 1.80 per share

- 2022-07: AUD 2.68 per share

- 2022-08: AUD 2.57 per share

- 2022-09: AUD 2.28 per share

- 2022-10: AUD 2.49 per share

- 2022-11: AUD 2.44 per share

- 2022-12: AUD 2.08 per share

- 2023-01: AUD 1.66 per share

- 2023-02: AUD 1.81 per share

- 2023-03: AUD 1.73 per share

- 2023-04: AUD 1.66 per share

- 2023-05: AUD 1.97 per share

- 2023-06: AUD 2.37 per share

- 2023-07: AUD 2.20 per share

- 2023-08: AUD 1.95 per share

- 2023-09: AUD 1.88 per share

- 2023-10: AUD 1.70 per share

- 2023-11: AUD 1.88 per share

- 2023-12: AUD 2.03 per share

- 2024-01: AUD 2.03 per share

- 2024-02: AUD 2.05 per share

- 2024-03: AUD 2.20 per share

- 2024-04: AUD 2.30 per share

- 2024-05: AUD 2.39 per share

- 2024-06: AUD 2.49 per share

- 2024-07: AUD 2.62 per share

- 2024-08: AUD 2.34 per share

- 2024-09: AUD 2.91 per share

- 2024-10: AUD 3.31 per share

- 2024-11: AUD 3.19 per share

- 2024-12: AUD 3.10 per share

- 2025-01: AUD 3.83 per share

- 2025-02: AUD 4.25 per share

- 2025-03: AUD 4.19 per share

- 2025-04: AUD 5.31 per share

- 2025-05: AUD 5.52 per share

- 2025-06: AUD 6.28 per share

- 2025-07: AUD 6.56 per share

- 2025-08: AUD 7.77 per share

- 2025-09: AUD 7.74 per share

- 2025-10: AUD 6.79 per share

- 2025-11: AUD 6.56 per share

- 2025-12: AUD 6.69 per share

- 2026-01: AUD 6.98 per share

- 2026-02: AUD 5.17 per share

- 2026-03: AUD 4.77 per share

- 2026-04: AUD 4.12 per share

- 2026-05: AUD 4.02 per share

- 2026-06: AUD 4.05 per share

- 2026-07: AUD 3.61 per share

- 2026-08: AUD 4.14 per share

- 2026-09: AUD 4.49 per share

- 2026-10: AUD 3.75 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 1.88 per share, central AUD 2.09 per share, high AUD 2.37 per share

- FY2018: low AUD 1.93 per share, central AUD 2.15 per share, high AUD 2.43 per share

- FY2019: low AUD 2.90 per share, central AUD 3.73 per share, high AUD 4.26 per share

- FY2020: low AUD 3.52 per share, central AUD 4.52 per share, high AUD 5.14 per share

- FY2021: low AUD 2.66 per share, central AUD 3.19 per share, high AUD 3.58 per share

- FY2022: low AUD 2.02 per share, central AUD 2.22 per share, high AUD 2.49 per share

- FY2023: low AUD 1.57 per share, central AUD 1.73 per share, high AUD 1.95 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations