WA shipbuilder Austal has downgraded its earnings guidance for the year by 18 per cent, after a mistake in its US subsidiary, Austal USA's guidance.
WA shipbuilder Austal has downgraded its earnings guidance for the year by 18 per cent, after a mistake in its US subsidiary, Austal USA's guidance.
The Paddy Gregg-led manufacturer told the market on Thursday it would downgrade its guidance from the $135 million it forecast in mid-December to $110 million.
"Austal Limited advises that in preparation of its half year accounts, the Company identified that some incentives related to its T-ATS program were recognised by its US Subsidiary, Austal USA, in line with percentage of completion," the statement from Austal said.
"These incentives had already been recognised in Austal USA's forecast at full value for the remaining part of the program.
"The US$17.1 million (approx) overstatement had been included in the company's FY2026 EBIT guidance. As a result, Austal is updating its EBIT guidance for FY2026 to approximately A$110m."
If the forecast is correct, it would mean a decrease from $113 million EBITDA in FY25—a record result for the company.
Austal Limited was the focus of the Foreign Investment Review Board for the large part of last year due South Korean chaebol Hanwha's push to double its stake in the firm.
It led to Treasurer Jim Chalmers approving the Korean company's move in December.
Chalmers' decision, originally due in September, allowed Hanwha to increase its ownership from 9.9 per cent to 19.9 per cent, subject to several conditions.
Those conditions include that Hanwha not increase its stake beyond 19.9 per cent.
Also included in the conditions would be limits on Hanwha's access to sensitive information, limits on the storage of sensitive information and "stringent" criteria on any Hanwha nominee to Austal's board.
Details on the exact information Hanwha would be limited on accessing were not given.
Austal shares (ASX:ASB) were down 3 per cent at time of print to $6.31 per share.
