Australian Securities Exchange-listed Austin Engineering has reaffirmed its fiscal 2025 full-year earnings and revenue projections on the back of strong first-half results and a 22% year-on-year improvement in its order book.
The manufacturer of mining truck dump trays and digging tools is guiding for FY25 revenue of about A$350 million (versus $313.2 million in FY24) and earnings before interest and tax (EBIT) of about $50 million ($38.6m).
Revenue for the six months to December 31, 2024, was up 18.5% yoy at $170.2m, led by a 52% yoy rise in the USA. Austin said underlying EBITDA of $25.3m was 22% higher yoy, with APAC region EBITDA up 117% yoy and USA EBITDA 35% stronger yoy. Underlying NPAT for the latest period was $17.4m.
Austin said strong demand in the Americas underpinned a 22% yoy order book boost to $224m.
“The performance of the APAC region has been an outstanding success, delivering an underlying EBITDA margin of 21%, and is now on a solid path for the future,” Austin CEO David Singleton said. “We believe that APAC has now returned to being a cornerstone of strength in Austin.
“Our business in the USA is very well managed delivering yet another powerful increase in revenue, profit and order book. This success story will continue to strengthen, following the investments made in growing capacity and because of the environment in which it operates.
“Chile is equally entering a period of rapid growth that we are investing in and we believe it will emerge as a bigger and more capable business.
“We are particularly pleased with the growing order book, up 22% following the investments in this area that we presented to the market a year ago. This increase will drive further revenue growth in the business.”
Singleton said the new USA administration was a positive for the region’s mining and energy sectors, with a strong focus on domestic production, including critical minerals and energy technologies.
“As previously announced Austin has put in place measures to protect its North American business from any tariffs placed by the USA on Canada and Mexico and any levies placed by those countries on the USA. We are manufacturing Canadian orders in country using sub and final-assembly contractors, and we ceased imports from Mexico several months ago. We are not impacted by USA tariffs on steel, sourcing all of our USA steel domestically. All activities around shielding the business from impacts of any US-related tariffs have been completed in the first half of the year.”
Austin’s share price is down about 19% this year, capitalising the company at $264m.
