Story perspectives

Hanwha Offers $1.1 B for Austal USA Amid DOD Dispute

8/12/2026

Summary

Hanwha Bids Austal

Hanwha Defense USA offered to acquire Austal USA for $1.05 billion to $1.2 billion.
The transaction would cover only Austal’s U.S. entities and its Mobile shipyard, excluding Australian, Philippines and Vietnam operations and public shares.
The deal requires approval from the Committee on Foreign Investment in the United States (CFIUS), the Counterintelligence and Security Agency and U.S. antitrust regulators.
Austal USA expects an EBIT loss of $125 million to $175 million in fiscal 2026.

Summary

Austal Faces Loss

Austal USA is facing unresolved contract disputes with the U.S. Department of Defence over three surface-ship programs, prompting a revised outlook to a loss.
U.S. defence officials have told Austal that no financial relief will be provided, shifting the 2026 forecast from a AU$77.6 million profit to a AU$79.73 million loss.
Austal continues to earn profit from its contract to supply components for the U.S. Navy’s nuclear submarine program.

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Hanwha Bids Austal

Hanwha Defense USA offered to acquire Austal USA for $1.05 billion to $1.2 billion.
The transaction would cover only Austal’s U.S. entities and its Mobile shipyard, excluding Australian, Philippines and Vietnam operations and public shares.
The deal requires approval from the Committee on Foreign Investment in the United States (CFIUS), the Counterintelligence and Security Agency and U.S. antitrust regulators.
Austal USA expects an EBIT loss of $125 million to $175 million in fiscal 2026.

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