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Highlights

  • Austin Engineering posted an 18.5% YoY revenue increase in H1FY25, with underlying EBITDA and NPAT growing 22% and 16%, respectively.
  • The company is projecting a 12% rise in FY25 revenue and a 30% surge in EBIT, backed by order book and international demand.
  • A CEO transition is set for July 2025, while Thorney Investment Group has increased its stake.

Austin Engineering Limited (ASX:ANG) is an international engineering company that manufactures and designs hauling and loading solutions. For the six months ending 31 December 2024 (H1FY25), Austin Engineering delivered:

  • Revenue: AUD 170.2 million, up 18.5% YoY from AUD 143.6 million in 1HFY24.
  • Underlying EBITDA: AUD 25.3 million, marking a 22% increase from AUD 18.5 million in the previous corresponding period.
  • Underlying NPAT: AUD 17.4 million, rising 16% (AUD 15 million) from the prior year.

Half-yearly growth was driven by North and South America, where OEM orders rose by 8%. Net interest expenses also declined by 10%, further enhancing profitability.

The company posted an EBITDA margin of 10.7% in H1FY25, outperforming the industry median of 8.5%, whereas gross margins declined from 24.2% in H1FY24 to 18.8% in H1 FY25.

Outlook

The company has projected a 12% YoY rise in FY25 (financial year 2025) revenue, aiming to reach approximately AUD 350 million and 30% YoY increase in underlying EBIT, reaching AUD 50 million. This growth is expected to be driven by a multi-year high-order book and international demand for high-ROI mining products.

Furthermore, Chile is expected to recover in the second half of FY25. This anticipated turnaround is largely attributed to improvements in product mix and cost management strategies.

Balance Sheet and Liquidity Update

The company has improved its financial structure over the past two years. Total debt has decreased from AUD 59.9 million in H1FY23 to AUD 48.8 million in H1FY25,a reduction of nearly 19%.

Additionally, the company’s current ratio improved from 1.22x in H2FY23 to 1.25x in H1FY25.

Leadership Transition and Investor Confidence

On 1 May 2025, Austin announced a leadership transition with Sybrandnt (Sy) Van Dyk set to take over as CEO and Managing Director from David Singleton, effective 1 July 2025.

Through an ASX update dated 22 May 2025, the company informed that Thorney Investment Group had increased its stake in Austin from 19.33% to 20.38% as of 20 May 2025.

Share performance of ANG

ANG shares closed at AUD 0.38 per share on 27 May 2025. In the last three months, ANG’s share price has decreased by almost 12.64%, and in a year, it has dropped by 30.91%.

52-week high of ANG is AUD 0.67, recorded on 1 August 2024 and 52-week low is AUD 0.345, recorded on 23 May 2025.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 27 May 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.