Austal shares rise as second buyer eyes U.S. operations

Shares of Austal (ASX:ASB) advanced on Monday after the Australian shipbuilder said it had engaged in preliminary talks with U.S.-based Wildcat Infrastructure regarding a possible bid for its U.S. operations, making the firm a second prospective suitor in a sale process that already includes South Korea's Hanwha.

Austal shares climbed 2.3% to A$4.43 in early trading, after touching A$4.50, their strongest level since August 12. The stock outpaced the broader S&P/ASX 200, which was also higher but by a smaller amount at the time.

In a Monday filing with the ASX, Austal said it had held an "initial, preliminary discussion" with Wildcat Infrastructure following media reports about a possible proposal. The company stressed that it has not received a formal offer from Wildcat.

The development introduces a second potential buyer as Austal weighs the future of its U.S. operations.

Hanwha Defence USA submitted a preliminary, non-binding and conditional proposal in August to acquire Austal's U.S. entities and operations for an enterprise value of US$1.05 billion to US$1.20 billion, excluding Austal's Australian-listed shares and operations in Australia, the Philippines and Vietnam.

Hanwha, which has accumulated a 19.9% stake in Austal, was given four weeks to conduct due diligence on the U.S. operations. The South Korean group has been expanding its U.S. shipbuilding footprint since acquiring Philadelphia-based Philly Shipyard in 2024.

The emergence of Wildcat comes just after Austal reported a sharply weaker U.S. operation for fiscal 2026. The company posted a A$53.6 million net loss, while its U.S. division recorded an A$202.8 million EBIT loss, largely reflecting provisions tied to loss-making contracts. In contrast, the Australasian division delivered record EBIT of A$85.3 million, up 137% from a year earlier.

Austal's U.S. business remains strategically important to Washington, with its Mobile, Alabama shipyard producing vessels for the U.S. Navy and Coast Guard.