Austin Engineering has reported a 26 per cent increase in revenue ($143.6 million in total) for the first half of the 2023–24 financial year (H1 FY24).
Revenue was driven by continued order book strength enabled by the expansion of a select number of Austin’s manufacturing facilities.
Austin’s order book at the end of the period increased by 16 per cent to $184 million, bolstered by the company’s strong customer relations focus and new lightweight product lines.
“In the first half of the year, we’ve seen initiatives put in place under our Austin 2.0 strategy really reset the operational efficiency of the company and deliver strong financial and operational results, particularly in regard to revenue generation and margin improvement,” Austin Engineering managing director and chief executive officer David Singleton said.
“Expansion of capacity and manufacturing upgrades to our key facilities, coupled with design improvements to our products are generating broader customer interest and building our market share in the provision of heavy mining equipment.”
The global engineering company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 70 per cent to $20.8 million and its net profit after tax equalled $15 million, a 36 per cent increase from its original guidance. As a result, Austin remains on-track to be debt-free in FY24.
The company said its Australian operations were profitable during the period due to investments made in retooling its operations to focus on new and rebuilt mining buckets.
This was a key focus of Austin’s following its acquisition of Mainetec, a Mackay-based engineering and fabrication company, in 2022.
During H1 FY24, Mainetec successfully delivered one new dipper bucket on time to an east coast customer and immediately received a second order that is now being built.
Mainetec also provided the design concept for a new dipper bucket being built in Batam for a USA delivery later in the year.
“The integration of Mainetec buckets into our offering coupled with the establishment of a large, dedicated bucket facility in Perth is leading to transformational growth in this segment in Australia, for both new builds and rebuilds,” Singleton said.
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