Austin Engineering revises FY26 guidance amid operational challenges

Austin Engineering Limited announced a downward revision to its FY26 guidance, now expecting revenue in the range of $370m - $380m and underlying EBIT between $30m - $34m. This adjustment follows a comprehensive business review that identified several operational challenges, particularly in its South American business unit and related to an OEM contract impacting Chile and Indonesia. The company reported a 22.2% year-on-year increase in revenue to $376.7m for FY25, though statutory EBITDA was down on the previous year to $41.7m, with return on equity at 19.7%.

Immediate actions include suspending further orders under the challenging OEM contract, aligning the Indonesian workforce to current demand levels after a major customer deferred work, and improving steel management processes in Chile to address excess wastage. Austin has also appointed new leadership for Americas operations and deployed a US team to enhance processes in Chile. North America’s revenue grew by 54% to $146.7m, but profitability was impacted by subcontractor use.

Strategically, Austin is doubling down on Product Leadership with new offerings like AustIQ, Customer Focus by expanding sales and support, and Manufacturing Excellence through centralized operational systems. The company remains committed to its long-term strategy, emphasizing continuous improvement in productivity, efficiency, and sustainability.