Hanwha Defense USA (HDUSA) has submitted an indicative, non-binding proposal to acquire the U.S. business operations of shipbuilder Austal Limited for an enterprise value between $1.05 billion and $1.20 billion on a cash- and debt-free basis.
The acquisition offer, announced August 11, focus solely on Austal USA’s corporate entities and shipyard facilities in Mobile, Alabama, as well as its U.S. support operations. Austal’s core Australasian operations, including its 15-year Strategic Shipbuilding Agreement with the Australian Department of Defence, are excluded from the bid and will remain independent.
The bid reflects Hanwha’s aggressive strategy to scale up its defense and commercial industrial base in North America, building on its landmark $100 million acquisition of Philly Shipyard in late 2024.
The proposal comes as Austal released a revised market update projecting an expected FY2026 EBIT loss of approximately $(175) million for Austal USA, driving an overall group EBIT loss of $(113) million. The downturn follows a reassessment of contractual claims on legacy surface ship programs—including the Towing, Salvage & Rescue Ship (T-ATS), Auxiliary Floating Dry Dock Medium (AFDM), and Landing Craft Utility (LCU) lines—after U.S. authorities indicated accelerated contractual relief would not be provided at this time. Austal noted that the loss reflects a non-cash accounting provision rather than an impairment of underlying operational capability, and emphasized that its nuclear submarine module manufacturing for the U.S. Navy remains highly profitable.
The Austal Board has granted Hanwha a four-week due diligence period to review the U.S. business, examine contract details, and engage with primary naval stakeholders, including the U.S. Navy, U.S. Coast Guard, and U.S. Department of War.
In a statement received by Naval News, HDUSA spokesman James Hewitt highlighted the firm’s strategic focus on expanding its American shipbuilding footprint:
“Hanwha Defense USA has made a preliminary, non-binding offer to acquire Austal’s U.S. business. Any deal will be contingent on due diligence that permits a thorough evaluation of Austal USA’s operations and financials, including newly disclosed information. Hanwha has made it a priority to significantly contribute to revitalizing American shipbuilding and is exploring a range of options to expand our footprint in the United States.”
Any final agreement will remain subject to regulatory approvals, including clearances from the Committee on Foreign Investment in the United States (CFIUS) and the Defense Counterintelligence and Security Agency (DCSA).
