Latest news with #Austal
Sky News AU
5 hours ago
- Business
- Sky News AU
Major winners and losers on the ASX 200 revealed as the index posts best post-pandemic financial year performance in FY25
Australian banks, technology and gold companies have thrived over the past 12 months as the ASX 200 posted its best performance since a surge in 2021. Despite experiencing strong turbulence from Donald Trump's tariffs and the heated Iran-Israel conflict, the index rose more than 10 per cent in the 2025 financial year. The tech, financial and telecommunications services sectors all jumped about 25 per cent over the past 12 months. An Australian that wisely invested in local ship building and defense company Austal on July 1 2024 will have seen their cash grown more than 150 per cent over the 12 months. Gold miners have thrived with Regis Resources growing 157 per cent, Evolution Mining jumping 126 per cent, Gold Road Resources increasing 94 per cent and West African Resources rising 43 per cent. Investors flocked to gold as a safe haven after Trump's sweeping tariffs rocked global markets. Gold hit a record high of $5425 per ounce in April less than a fortnight after 'Liberation Day', before it settled around the $5200 mark. This is almost a $1000 boost from the beginning of the year. The ASX 200 has been lifted by the index's largest company Commonwealth Bank of Australia, which soared more than 45 per cent in 12 months. However, many analysts believe CBA's evaluation is exorbitant and anticipate a downturn as the major bank's share of the ASX 200 has grown from nine per cent to 12 per cent over the past year. Another major Australian company to thrive over the recent year was Qantas as it continues to recover from its post-pandemic reputational tarnishing, skyrocketing the stock price more than 81 per cent. The Flying Kangaroo's market dominance of the local aviation sector and its stellar financial performance have ensured the carrier continues to give back to shareholders - even delivering the airline's first dividend since before the pandemic. Qantas' share price will come under the microscope over the coming months after Virgin Australia went public and exceeded its IPO by about 13 per cent in one day. Other solid performers in the 2025 financial year were seen in the tech sector. Digital financial services company Zip Co (up 115 per cent), Life360 (up 107 per cent), software company Technology One (up 125 per cent) and many others drove the tech sector as it continues to boom in Australia. While the ASX 200 reported stellar gains over the past 12 months, many Australian companies sank amid a myriad of challenges. International education company IDP Education fell a whopping 76 per cent after a long gradual decline due to caps on foreign students. In June, the company told shareholders it expected earnings to halve from global uncertainty around the intake of international students. "Continued uncertainty has impacted IDP student enrolment pipeline size and conversion rates in the important May and June pipeline build given the timing of the fall intake in the UK, Canada and the US, as well as the second semester intake in Australia," the company said. Mineral Resources, which was plagued by a tax controversy surrounding its outgoing CEO Chris Ellison, fell more than 60 per cent, while Pilbara Minerals sank 56 per cent following diminished demand from China for Australian commodities. Skin grafting company PolyNovo, which continues to be one of the most shorted companies on the bourse, plunged 48 per cent while pathology company Healius struggled with rising costs in the healthcare sector and dropped 47 per cent. Reduced discretionary spending ate into the share price of Webjet and Domino's Pizza as Australians were crippled by tighter budgets. Domino's also sank as it closed 172 outlets in Japan and about 30 elsewhere as pizza-eaters outside Australia and New Zealand turn away from the store. The ASX 200's rise comes as similar surges were seen in the United States and Europe. The Nasdaq Composite rose almost 14 per cent, the S&P 500 added 13 per cent and the Dow Jones finished up about 12.6 per cent while the STOXX Europe 600 index rose 5.5 per cent.
The Age
2 days ago
- Business
- The Age
In a world of conflict, the spoils are rich from gold and guns
The Stockholm International Peace Research Institute (SIPRI) estimated that global military expenditure hit a record $US2.7 trillion ($4.1 trillion) in 2024, an increase of 9.4 per cent in real terms from the previous year, and the steepest annual jump since the Cold War ended. 'If 5 per cent [of GDP] becomes baseline, defence stocks stop being cyclical – they become structural. And that changes everything.' Stephen Innes, SPI Asset Management SIPRI highlighted the 'guns or butter' cost to social programs from the rising spending on weaponry. 'As governments increasingly prioritise military security, often at the expense of other budget areas, the economic and social trade-offs could have significant effects on societies for years to come,' warned SIPRI researcher Xiao Liang. The big beneficiaries from this war trade are traditionally US defence giants, such as Northrop Grumman – maker of the B-2 stealth bombers and intercontinental ballistic missiles – which is now trading near multi-year highs. Virginia-based RTX, which makes the Javelin and Stinger missiles that were used heavily in the Ukraine war, has also hit record highs. But the changing nature of warfare, where computer-guided drones and new technology such as AI are coming to the fire, has thrown up some new winners. Shares of US tech group Palantir have soared more than 400 per cent in a year as the company cements its place in the US industrial military complex. And investors are also noticing the impact in Europe, where Germany's new government signalled a seismic shift in March, with plans to lift strict spending controls to create a €500 billion ($896 billion) fund for defence and security. It has had a massive impact on European stocks. Italy-based aerospace, defence and security firm Leonardo, German sensor technology company Hensoldt, and British aerospace and defence company Babcock International have seen their share prices more than double over the last year. Korea's Hanwha Aerospace is another EU beneficiary, and its share price has soared 200 per cent over the same period. Even Australia benefits, as shown by Hanwha recently acquiring a 9.9 per cent stake in local shipbuilder Austal, with plans to double its investment. Austal shares have tripled since last September, thanks to its contracts with the US Navy. ASX-listed DroneShield – a maker of anti-drone technology – has tripled since February. And right on cue, it announced a $61 million European military order on Wednesday for handheld detection and counter-drone systems. This one deal exceeds its entire revenue for 2024. Three ASX-listed defence ETFs (exchange-traded funds, which invest in defence stocks globally) from VanEck, Betashares and Global X are all up 50 per cent this year. 'Global defence has been one of the few equity segments that have outperformed the market this year. Flows into ASX-listed global defence ETFs have shot up since March,' VanEck's Jamie Hannah said. The surge in the performance of defence stocks has posed a conundrum for some ethical funds and investment mandates, which have generally precluded any military assets. But investors appear to be coming to the conclusion that Citi reached in 2022: 'Defence is likely to be increasingly seen as a necessity that facilitates ESG as an enterprise as well as maintaining peace, stability and other social goods.' In April, UBS Asset Management – which oversees $US1.8 trillion in investments – scrapped prohibitions that prevented its sustainable funds from investing in conventional military weapons manufacturers. Exclusions still apply to more controversial weaponry such as cluster munitions. Hannah says VanEck already screens out these more controversial manufacturers from its ETF. 'It's very much an area where you need to consider what you're investing in,' Hannah said. Meanwhile, the only controversy over the ultimate defensive asset, gold, is whether it has peaked after a spectacular run over the past year to a record high of $US3500 an ounce in April. This month, a European Central Bank report confirmed that its soaring price, along with bullion buying by central banks, means gold is currently the second-biggest reserve holding by central banks behind the US dollar. Citi highlighted the extraordinary rush to gold with a report saying 0.5 per cent of global GDP was being spent on gold – the most in 50 years of data. And central banks have not been the only buyers. This month, VanEck noted that Australia's most recent export figures included $11 billion in 'non-monetary' gold exports to the US – which is gold acquired by private buyers, not reserve banks, for their foreign exchange reserves. 'This volume of gold exports for the quarter is more than the total non-monetary gold we have shipped to the USA in the last four years, and we think this could reflect a massive increase in demand from investors due to a loss of faith in [the US dollar] and US Treasuries,' VanEck's Cameron McCormack said. While some are getting squeamish after this year's 27 per cent gain for the precious metal, others are expecting its golden run to continue. Wall Street giant Goldman Sachs predicts gold will climb to $US3700 a troy ounce by the end of the year, from about $US3330 currently, as central banks keep buying tonnes of it every month. It could rise even further if investors use bullion as a safe space ahead of interest rate cuts and amid rising recession concerns. 'In the event of a recession, Goldman Sachs Research forecasts that gold could rise to as much as $US3880 a troy ounce,' the investment bank says.
Sydney Morning Herald
2 days ago
- Business
- Sydney Morning Herald
In a world of conflict, the spoils are rich from gold and guns
The Stockholm International Peace Research Institute (SIPRI) estimated that global military expenditure hit a record $US2.7 trillion ($4.1 trillion) in 2024, an increase of 9.4 per cent in real terms from the previous year, and the steepest annual jump since the Cold War ended. 'If 5 per cent [of GDP] becomes baseline, defence stocks stop being cyclical – they become structural. And that changes everything.' Stephen Innes, SPI Asset Management SIPRI highlighted the 'guns or butter' cost to social programs from the rising spending on weaponry. 'As governments increasingly prioritise military security, often at the expense of other budget areas, the economic and social trade-offs could have significant effects on societies for years to come,' warned SIPRI researcher Xiao Liang. The big beneficiaries from this war trade are traditionally US defence giants, such as Northrop Grumman – maker of the B-2 stealth bombers and intercontinental ballistic missiles – which is now trading near multi-year highs. Virginia-based RTX, which makes the Javelin and Stinger missiles that were used heavily in the Ukraine war, has also hit record highs. But the changing nature of warfare, where computer-guided drones and new technology such as AI are coming to the fire, has thrown up some new winners. Shares of US tech group Palantir have soared more than 400 per cent in a year as the company cements its place in the US industrial military complex. And investors are also noticing the impact in Europe, where Germany's new government signalled a seismic shift in March, with plans to lift strict spending controls to create a €500 billion ($896 billion) fund for defence and security. It has had a massive impact on European stocks. Italy-based aerospace, defence and security firm Leonardo, German sensor technology company Hensoldt, and British aerospace and defence company Babcock International have seen their share prices more than double over the last year. Korea's Hanwha Aerospace is another EU beneficiary, and its share price has soared 200 per cent over the same period. Even Australia benefits, as shown by Hanwha recently acquiring a 9.9 per cent stake in local shipbuilder Austal, with plans to double its investment. Austal shares have tripled since last September, thanks to its contracts with the US Navy. ASX-listed DroneShield – a maker of anti-drone technology – has tripled since February. And right on cue, it announced a $61 million European military order on Wednesday for handheld detection and counter-drone systems. This one deal exceeds its entire revenue for 2024. Three ASX-listed defence ETFs (exchange-traded funds, which invest in defence stocks globally) from VanEck, Betashares and Global X are all up 50 per cent this year. 'Global defence has been one of the few equity segments that have outperformed the market this year. Flows into ASX-listed global defence ETFs have shot up since March,' VanEck's Jamie Hannah said. The surge in the performance of defence stocks has posed a conundrum for some ethical funds and investment mandates, which have generally precluded any military assets. But investors appear to be coming to the conclusion that Citi reached in 2022: 'Defence is likely to be increasingly seen as a necessity that facilitates ESG as an enterprise as well as maintaining peace, stability and other social goods.' In April, UBS Asset Management – which oversees $US1.8 trillion in investments – scrapped prohibitions that prevented its sustainable funds from investing in conventional military weapons manufacturers. Exclusions still apply to more controversial weaponry such as cluster munitions. Hannah says VanEck already screens out these more controversial manufacturers from its ETF. 'It's very much an area where you need to consider what you're investing in,' Hannah said. Meanwhile, the only controversy over the ultimate defensive asset, gold, is whether it has peaked after a spectacular run over the past year to a record high of $US3500 an ounce in April. This month, a European Central Bank report confirmed that its soaring price, along with bullion buying by central banks, means gold is currently the second-biggest reserve holding by central banks behind the US dollar. Citi highlighted the extraordinary rush to gold with a report saying 0.5 per cent of global GDP was being spent on gold – the most in 50 years of data. And central banks have not been the only buyers. This month, VanEck noted that Australia's most recent export figures included $11 billion in 'non-monetary' gold exports to the US – which is gold acquired by private buyers, not reserve banks, for their foreign exchange reserves. 'This volume of gold exports for the quarter is more than the total non-monetary gold we have shipped to the USA in the last four years, and we think this could reflect a massive increase in demand from investors due to a loss of faith in [the US dollar] and US Treasuries,' VanEck's Cameron McCormack said. While some are getting squeamish after this year's 27 per cent gain for the precious metal, others are expecting its golden run to continue. Wall Street giant Goldman Sachs predicts gold will climb to $US3700 a troy ounce by the end of the year, from about $US3330 currently, as central banks keep buying tonnes of it every month. It could rise even further if investors use bullion as a safe space ahead of interest rate cuts and amid rising recession concerns. 'In the event of a recession, Goldman Sachs Research forecasts that gold could rise to as much as $US3880 a troy ounce,' the investment bank says.
West Australian
4 days ago
- Business
- West Australian
Debt markets help buoy Austal's huge $1.2 billion US expansion
WA shipbuilder Austal has locked in the missing piece of a $1.2 billion funding package needed to finish two new major manufacturing facilities in the the US state of Alabama. The Henderson-headquartered business will have access to $488 million worth of debt from a group of Australian and international banks, as well as Export Finance Australia, as part of a new refinancing deal announced on Friday. The debt sits alongside the $220 million Austal raised in March from investors, including Andrew and Nicola Forrest's investment vehicle Tattarang, after the company capitalised on a bounding run in its stock price. Austal shares are worth about $3.69 more than this time last year as the company stares down a $14.5 billion pipeline worth of work in the US and WA. Its advancements in the US have piqued renewed interest from South Korean defence company Hanwha, which is angling for Federal Treasurer Jim Chalmers to let them crank up their stake in the business up to 19.9 per cent. To deliver contracts for the US Navy and US Coast Guard, Austal is building two major expansion projects in Mobile Alabama. The FA2 facility will allow Austal to assemble large steel vessels, while the MMF3 operation means it can deliver submarine modules. Once completed, the new facilities at Mobile will add 2000 jobs to Austal's 3000-strong US workforce. Chief executive Paddy Gregg said there had been strong support for the refinancing, and that Austal was positioned for 'tremendous growth opportunities'. 'Austal possesses an exceptional pipeline of long-term defence work in the US, which will be complemented by the Strategic Ship Building Agreement in Australia,' he said. 'The company now has a stronger balance sheet with enhanced liquidity at a lower cost, longer tenor, and with superior flexibility to support this growth.' The new debt helping fund the builds replaces Austal's existing facility that was due to expire in 2026. The shipbuilder told the market the new arrangement came with better pricing and fewer covenants. A further $634m is available via other instruments Austal said it had negotiated. Last year Austal won a $US450m ($687.8m) contract towards the facility from General Dynamics Electric Boat.
Business Insider
6 days ago
- Business
- Business Insider
Citi Remains a Hold on Austal (AUTLF)
In a report released today, Sam Teeger from Citi maintained a Hold rating on Austal (AUTLF – Research Report), with a price target of A$6.10. The company's shares closed today at $3.99. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Teeger is a 3-star analyst with an average return of 2.5% and a 42.59% success rate. Teeger covers the Consumer Cyclical sector, focusing on stocks such as ARB Corporation , Lovisa Holdings Ltd., and Collins Foods . The word on The Street in general, suggests a Hold analyst consensus rating for Austal with a $3.82 average price target, representing a -4.14% downside. In a report released on June 11, Petra Capital also maintained a Hold rating on the stock with a A$6.19 price target. The company has a one-year high of $4.28 and a one-year low of $1.39. Currently, Austal has an average volume of 4,322.
