Austin Engineering Ltd (ASX: ANG) reported a 72.6% decline in net profit for the 2026 fiscal year, citing operational challenges across multiple regions despite a significant improvement in cash flow.
Group revenue totaled AUD 329 million, down 12.7% from AUD 376.8 million in the prior year. EBITDA fell 52.5% to AUD 20.4 million, while net profit slumped to AUD 7.6 million from AUD 27.7 million. The company’s EBITDA margin narrowed to 6.2% from 11.4%, and EBIT dropped 67.5% to AUD 10.8 million.
Operating cash flow increased sharply to AUD 26.7 million, up from AUD 2.6 million the previous year, supported by a AUD 32.2 million reduction in inventory and disciplined working capital management. Free cash flow turned positive at AUD 19.9 million, compared with a negative AUD 5.7 million in FY2025. Net debt decreased to AUD 5.8 million, while cash at year-end stood at AUD 17.1 million.
The board elected to skip the final dividend to preserve capital, following an interim payment of AUD 0.30 per share fully franked in April. Total dividend payments for the year amounted to AUD 7.1 million, alongside a AUD 1.2 million share buyback.
Revenue declines were broad-based, with APAC down 15% to AUD 147 million, North America down 13.5% to AUD 127 million, and South America down 3% to AUD 54.9 million. South America’s performance was further pressured by a legacy OEM contract in Chile, which generated AUD 21 million in revenue but delivered a negative EBITDA of AUD 5.7 million. Management renegotiated the contract in March 2026, securing improved pricing and payment terms while maintaining margins.
North America faced productivity challenges, with EBITDA of AUD 9.5 million. Workshop productivity improved to 80% in Q4 from 62% in July 2025, and outsourcing of full trade builds declined from 33 units in FY2025 to three in H2 FY2026. Margins in the region expanded to 9.5% in the second half from 5.8% in the first half.
APAC excluding Australia reported EBITDA of AUD 24.9 million with a 16.9% margin, while Australian bucket business revenue rose AUD 17.4 million, increasing its share of APAC product revenue from 10% to 26%. The group’s order book closed at AUD 132.9 million, 10% below the prior year, though management secured an additional AUD 32 million in orders since July 1, 2026.
For FY2027, Austin guided underlying EBITDA from continuing operations to range between AUD 17 million and AUD 21 million, excluding foreign exchange movements. Shares last traded at AUD 0.165, up 4.76% from the prior close.
