A few stocks from ASX listed companies have been outperformers in the current year. One of the growing companies to invest in is
Austal (ASX: ASB): Order Book Locked, Production Active- Is It Still a Buy?
Austal’s momentum is built on confirmed contracts, global operations and capital-backed expansion. The delivery is visible. The execution is underway. The question now is whether it is still a buy.
Austal is one of the top growth stocks holding a $14.2 billion order book. That includes major US Navy programs such as OPC, TAGOS and LCU. Two ECAPES were awarded in December 2024. Australia’s surface fleet review has flagged additional programs, including landing craft and frigates, indicating potential future contract opportunities.
Guidance for FY25 has been upgraded to no less than $80 million in EBIT. Submarine module production has commenced under a US$450 million contract awarded to General Dynamics Electric Boat.
New capacity is being built. Austal is constructing a shipbuilding facility in Mobile, Alabama, backed by a letter of support from an Australian Government financing agency covering up to 50% of project funding.
Recent financial moves include:
• $200 million capital raise
• $20 million share purchase plan
• Net cash position maintained
ASB, is one of the best growth stocks to buy now, as it remains operational across Australia, the United States, the Philippines and Vietnam.
Regulatory and structural updates progressed during the year.
• DOJ matter concluded
• Leadership changes implemented at Austal USA
• Strategic Shipbuilding Agreement discussions ongoing
Ownership activity is underway, with Hanwha currently holding a 9.9% stake in Austal and having submitted an application to the Foreign Investment Review Board (FIRB) to increase its ownership to 19.9%. Hanwha has stated it received CFIUS approval to pursue full ownership. Austal is seeking written confirmation.
Austal was added to the S&P/ASX 200, effective June 23. Institutional visibility has expanded.
The company has delivered more than 350 vessels to 122 operators across 59 countries. It remains the only foreign-owned prime contractor designing and building ships for the US Navy.
Contracts are secured. Cash is deployed. Infrastructure is scaling.
Austal is not in preparation. It is in motion.
And the buy case is still on the table.
(Source: Company Announcements)
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