Hanwha Makes Offer for Austal USA
Austal USA’s forecast A$175 million EBIT loss and a US$1.05 billion to US$1.2 billion Hanwha offer could reshape the shipbuilder’s business mix.
- On Tuesday, Australian shipbuilder Austal announced an expected FY26 group EBIT loss of around $113 million, while revealing a non-binding offer from Hanwha Defence USA to acquire its U.S. operations for up to $1.20 billion.
- Austal USA faces a forecast EBIT loss of approximately $175 million due to revised contract recoverability on shipbuilding programmes, prompting the South Korean conglomerate to pursue expansion into the American defence market.
- Shares surged more than 16% on Tuesday, marking their best intraday jump since mid-February, as investors reacted positively to the potential deal involving Hanwha, which currently holds a 19.9% stake in Austal.
- This conditional offer excludes Austal's core operations in Australia, the Philippines, and Vietnam, allowing the company to focus on its high-performing Australasian business, forecast to deliver approximately $62 million in EBIT.
- Hanwha Defense USA Spokesman James Hewitt stated the conglomerate has made it a priority to "significantly contribute to revitalising American shipbuilding," while Austal's board granted four weeks for due diligence.
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34 Articles
Hanwha Defense USA bids over $1 billion for Austal USA acquisition
South Korean subsidiary Hanwha Defense USA has made a preliminary, non-binding offer to acquire Austal USA for a little over $1 billion, according to an Austal financial statement. Any agreement will depend on a “thorough evaluation” of the Australian shipbuilding subsidiary’s operations and financials, Hanwha Defense USA spokesman James Hewitt stated Tuesday. “Hanwha has made it a priority to significantly contribute to revitalizing American sh…
The South Korean conglomerate Hanwha is betting on increasing military spending by offering the purchase of the Australian Austal shipbuilding operations in the United States, worth up to $1.2 billion, including debts. Exclusive material for subscribers. To have full access, access the material link and register.
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