Austin Engineering Limited (ASX: ANG) posted a 67.5% drop in earnings before interest and tax (EBIT) to $10.8 million for the 2026 fiscal year, as revenue fell 12.7% to $329.0 million. The global mining equipment manufacturer reported a net profit after tax of $7.6 million, down 72.7% from the prior year, reflecting weaker demand across key markets.
Operating cash flow surged more than tenfold to $26.7 million, while free cash flow turned positive at $19.9 million, compared with a negative $5.7 million in FY25. The company achieved a 99% EBITDA-to-free cash flow conversion rate, underscoring strong cash generation despite earnings pressure. EBITDA declined 52.5% to $20.4 million, with the margin contracting to 6.2% from 11.4%.
The balance sheet strengthened, with net debt improving to $5.8 million from $12.8 million and net working capital falling 26.1% to $50.6 million. Inventory levels dropped 36.7% to $55.7 million, contributing to the reduction in net debt. Total assets declined to $251.2 million, while net assets stood at $133.6 million.
Regional performance varied, with APAC generating 44.7% of revenue at $147.1 million, though EBITDA margin fell to 16.9%. North America contributed 38.6% of revenue at $127.0 million, with productivity improving to 80% by June 2026. South America reported a $54.9 million revenue decline, including a $21.0 million contribution from a legacy OEM contract that remained loss-making until renegotiation in March 2026.
Product mix shifted as truck bodies declined to 62% of revenue, while buckets rose to 10% and services accounted for 12%. Commodity exposure remained diversified, with copper and iron ore each contributing 25% of revenue. The order book stood at $132.9 million at year-end, with an additional $32 million secured since July 1, 2026.
For FY27, Austin Engineering guided underlying EBIT from continuing operations to $17 million to $21 million, excluding foreign exchange movements. The company suspended dividends after paying $7.1 million in FY26 and completing a $1.2 million share buyback.
