AN ACCOUNTING blunder in West Australian-based shipbuilderAustal’s US division has resulted in a US$17.1 million overstatement in the company’s FY2026 EBIT guidance.
In a statement to the Australian Stock Exchange, Austal said in preparation of its half-year accounts, the company had identified that some incentives related to its towing, salvage and rescue ships (T-ATS) program had been double-counted.
The incentives were part of Austal’s contract for the manufacture of US Navy ships in Alabama.
“These incentives had already been recognised in Austal USA’s forecast at full value for the remaining part of the program,” the statement said.
“The US$17.1 million (approximately) overstatement had been included in the company’s FY2026 to approximately A$110 million.”
The embarrassing backtrack resulted in Austal’s stock falling by 25% on Friday to $4.75.