Austal Limited (ASX:ASB) Begins Landing Craft Production Under Major Defence Programmes

Aditi Sarkar

11 November 2026 04:33 PM AEDT

Austal Limited (ASX:ASB) Begins Landing Craft Production Under Major Defence Programmes

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Highlights

• Austal announced the commencement of production on its Australian Army landing craft projects on 11 November 2026.

• Two February contracts covered 18 Landing Craft Medium vessels and eight Landing Craft Heavy vessels for Australia.

• The combined AUD 5 billion programme involves construction work at the Henderson shipyard in Western Australia.

• The heavy landing craft programme is scheduled to extend through final delivery in 2038 under the announced timetable.

Shipbuilding work has moved into a new stage for Austal Limited (ASX:ASB). On 11 November 2026, the defence contractor announced that production had commenced on its Australian Army landing craft projects, building on contracts worth a combined AUD 5 billion signed earlier in the year.

Production Moves Into Focus

Austal lodged a release titled “Austal commences production on $5B Landing Craft Projects” at approximately midday AEDT on 11 November 2026. The notice was not categorised as price-sensitive in the ASX announcement listing. Its headline establishes a production milestone, while detailed implementation milestones for the first vessels were not specified in the available account.

Two Contracts Behind the Programme

The contracts announced in February 2026 comprise an approximately AUD 1 billion agreement to design and build 18 Landing Craft Medium vessels and a separate AUD 4 billion agreement for eight Landing Craft Heavy vessels. Both programmes are associated with the Henderson shipyard in Western Australia. The heavy vessels use the Damen LST100 design and have capacity to carry more than 500 tonnes of equipment, including long-range precision strike weapons. The heavy craft programme was described as providing employment and Earnings activity extending over 12 years.

Henderson Build-out and Delivery

Construction on the heavy programme was scheduled to start in 2026, with the eighth and final vessel due for delivery to the Commonwealth in 2038. Initial work was planned for the Henderson Common User Facility ahead of a move to a permanent site. The combined programme was expected to support more than 1,100 direct jobs and 2,000 indirect jobs. The shipyard also serves non-defence users, so facilities and access arrangements form part of the delivery setting.

Global Operations and Financial Position

Austal designs, builds and sustains defence and commercial vessels, with major businesses in Australia and the United States. FY26 Revenue was approximately AUD 2.03 billion, compared with AUD 1.82 billion in the preceding financial year. The group reported a net loss of about AUD 53.6 million, versus a net profit of approximately AUD 89.7 million in FY25. At about 2:40pm AEDT on 11 November, shares traded near AUD 4.61, up about 2.9% on turnover of roughly 712,000 shares. The 52-week range stood at AUD 3.33–8.82, with Market Value around AUD 1.9 billion. The announcement and share-price rise occurred on the same day, without establishing causation.

FAQs

Q: What production milestone did Austal announce?

A: Commencement of Australian Army landing craft production.

Q: How many vessels are included in the two contracts?

A: Eighteen medium vessels and eight heavy vessels.

Q: What is the combined contract value?

A: Approximately AUD 5 billion.

Q: When is the final heavy vessel scheduled for delivery?

A: 2038.

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