Austal Secures US$100M Export Finance Australia Loan to Boost US Shipbuilding Operations

Austal Limited (ASX: ASB) has finalised a US$100 million loan agreement with Export Finance Australia (EFA), the Australian Government’s export credit agency, to support the company’s shipbuilding operations for the US Navy and US Coast Guard at its Mobile, Alabama shipyard.

The funding will be directed toward the development of Final Assembly 2 (FA2) — Austal’s major new construction facility in Alabama. The EFA facility forms part of Austal’s A$488 million refinancing package announced in June 2025, meaning the total refinancing amount remains unchanged.

The 10-year loan reflects the long-term nature of Austal’s secured US defence contracts, which include the construction of up to 11 US Coast Guard Offshore Patrol Cutters and up to 7 US Navy Ocean Surveillance (T-AGOS) vessels.

Austal CEO Paddy Gregg said the funding marks a major milestone for the company, enabling it to deliver on its $13.1 billion order book and strengthening its role as a key partner in the US defence industrial base.

“Securing Australian Government funding for our US infrastructure expansion is a major milestone for Austal,” Gregg said. “It supports shared defence objectives between Australia and the United States and builds on our recent Strategic Shipbuilding Agreement with the Australian Government.”

Trade and Tourism Minister, Senator Don Farrell, praised the deal as a strong example of Australian defence companies successfully exporting world-class capabilities. “Austal’s expansion shows the strength of Australian businesses to export, invest, and support shared Australian–US priorities such as defence,” he said.

The agreement reinforces Austal’s strategic position as a key contributor to allied naval capability and highlights Australia’s growing role in global defence manufacturing and exports.