Austal: Perth-based Aluminium shipbuilding giant is ASX’s thriving defence sector

The Australian Securities Exchange, ASX, has a small but thriving defence sector that is rolling out some impressive technology into larger potential markets; in reality, it means export success.

The most venerable of the ASX’s defence stocks are the remarkable flourishing of Perth-based aluminium shipbuilding giant Austal, from its earlier days making aluminium dinghies in the late 1980s, has grown to become the global leader as an aluminium shipbuilder. It has a feather on its crown as Australia’s largest defence exporter, and the only foreign-owned prime contractor to have designed and built ships for the US Navy.

Austal has built 300 plus vessels for more than 100 commercial and defence operators, spread across 54 countries in the last 30 years.

The company’s order booking value is around $4.3 billion, with 45 vessels under construction or scheduled, and 31 ships to be delivered to the US and Australian Navies and Australian Customs over the next three years.

Austal has delivered 12 of the Spearhead-class Expeditionary Fast Transport (EPF) ships and 12 of the Independence-class Littoral Combat Ship (LCS) class to the US Navy, making a total of 24 ships in just over 10 years, including three this year.