Navy and coastguard shipbuilder Austal Ltd says activity will increase at its Australian shipyards and provide greater stability for workers and revenue.
The defence contractor on Friday reported a net profit of $14.9 million for the 12 months to June 30, a turnaround from a loss of $13.8 million a year earlier, and a record order book of $12.7 billion.
But there was a seven per cent decline in revenue to $1.47 billion on Australian government delays in defence contracts and fewer commercial shipbuilding awards.
Chief executive Patrick Gregg said federal government orders were expected to add billions of dollars of work in the 2025 financial year, with Henderson in Western Australia expected to become a sovereign naval shipbuilding hub.
"We have never seen such a potential pipeline and a real opportunity for continuous naval shipbuilding to provide greater stability to our workforce and revenue," Mr Gregg said.
"The commercial contracts won by Austal in the past six months will ensure our Australasian yards will be busier in FY2025 than they were in FY2024," he said.
Mr Gregg said there would be further opportunities for growth in submarine modules and technology from the AUKUS alliance.
Shipbuilding accounted for more than two-thirds (68 per cent) of total revenue and support grew to 32 per cent from less than a quarter (23 per cent) a year ago.
"Austal is now working on 14 different vessel programs, providing the company with diversity and long runway of work and revenue," he said.
This includes two classes of vessels for the commonwealth, the Evolved Cape Class Patrol Boats for the Royal Australian Navy and the Guardian-class Patrol Boats to be gifted to Pacific Island nations.
Shipbuilding revenue reduced 18 per cent after slower progress on American contracts, as the US division wound down on Littoral Combat Ships and Expeditionary Fast Transports and moved to other programs.
Austal's growing support business delivered 27 per cent growth to $466.6 million, but fell short of a $500 million target.
Some $57 million went to legal costs and a fine to settle an accounting fraud investigation in the United States, where Austal admitted wrongdoing after being accused of inflating profits on ships being built for the US Navy.
No dividend was declared and a "substantial capital expenditure program" was flagged for 2025 in the US.
