AUSTIN ENGINEERING LIMITED (ANG)
Share Price Analysis and Chart

07/11/2025

1

Buy

$0.30

53.85%

In a business update, Austin Engineering downgraded profit guidance due to challenges across all three key segments. FY26 underlying EBIT is now expected at $30-34m vs $40-46m previously.

In Chile, ongoing production issues, excess steel wastage, and complications from shifting work to Indonesia have led to reduced output and suspended new orders until terms improve. Indonesia has been affected by Chile-related disruptions, deferred local orders, and weaker Australian coal demand.

In North America, strong revenue growth was offset by margin pressure from costly contract labour and inefficiencies.

The company is implementing corrective measures under the new CEO, including leadership changes, but Bell Potter reckons operational issues appear more entrenched than expected.

The broker lowered FY26 EPS forecast by -23.1% and FY27 by -11%. Target trimmed to 30c from 50c.

Buy maintained.

FORECAST
Bell Potter forecasts a full year FY26 dividend of 1.50 cents and EPS of 3.60 cents.
Bell Potter forecasts a full year FY27 dividend of 1.50 cents and EPS of 4.80 cents.

27/08/2025

1

Buy, High Risk

$0.60

207.69%

FY25 revenue of $380.8m for Austin Engineering was a 22% year-on-year rise. Underlying earnings (EBITDA) of $55.8m  came in ahead of Shaw and Partners’ forecast.

Profit rose 70% to $40.4m, also above the broker's estimates, though reported results were weaker due to outsourcing costs linked to the large Chile OEM contract. Operating cash flow fell sharply to $2.6m, highlights the analyst, while net debt increased to $12.8m.

Performance was mixed by region, with strong margin growth in Asia Pacific and solid revenue gains in North America, offset by sharply lower earnings in South America.

A Chile Recovery Plan has been introduced by management, including leadership changes and production reallocation to Batam (Indonesia) to stabilise operations, observes the analyst.

Shaw lifts its FY26-FY28 EPS forecasts by 4.7%, 4.5% and 4.0%, respectively.  The broker retains its Buy, High Risk rating and 60c target. 

FORECAST
Shaw and Partners forecasts a full year FY26 dividend of 1.50 cents and EPS of 4.70 cents.
Shaw and Partners forecasts a full year FY27 dividend of 1.70 cents and EPS of 5.50 cents.