Austal Limited (ASX: ASB) has signed a $100 million loan agreement with Export Finance Australia (EFA), the Australian export credit agency, to expand its shipbuilding facilities in Mobile, Alabama. The financing will boost Austal’s capacity to build vessels for the US Navy and US Coast Guard.
The loan, previously approved as part of Austal’s A$488 million refinancing package announced in June 2025, will fund construction of the new Final Assembly 2 (FA2) project. According to the company, this milestone enables Austal to execute its $13.1 billion orderbook, including US Coast Guard Offshore Patrol Cutters (OPCs) and US Navy ocean surveillance ships.
Alongside FA2, Austal is also advancing the MMF3 project (construction of a third submarine module facility). Both initiatives are part of a comprehensive growth strategy supported by a mix of debt, equity, and operating cash flows.
The expansion is backed by both the Australian and US governments under the recently signed Strategic Shipbuilding Agreement. Australia’s Trade and Tourism Minister Don Farrell emphasized that Austal’s growth demonstrates the global potential of Australian defense companies in exports, investment, and defense cooperation.
The financing coincides with strong progress in Austal’s OPC program for the US Coast Guard. In July, the service exercised contract options worth $314 million for long-lead materials and logistics for three additional cutters.
Construction on the first cutter, Pickering (WMSMS 919), is scheduled to begin with a keel laying in December, while work on the second, Icarus (WMSMS 920), started in August. Under the June 2022 contract, Austal USA may build up to 11 OPCs with a potential value of $3.3 billion. The 110-meter vessels will perform a wide range of missions — from law enforcement and counter-narcotics to migrant interdiction and search and rescue.
The new Mobile facility will cover 180 acres and provide over 1.5 million sq. ft. of covered manufacturing space, including a modern assembly hall and a Pearlson-designed shiplift capable of handling vessels over 18,000 long tons.
Founded 35 years ago, Austal has delivered more than 350 ships to 122 commercial and defense customers in 59 countries, and is now the world’s largest builder of aluminum vessels and Australia’s leading defense exporter.
