Austal wins US Navy landing craft contract

Australian ship builder Austal has won a $143 million contract with the US Navy to build three Landing Craft Utility vessels, with the potential to expand the work.

The win follows a previous contract for the detail design of the vessels and also includes the option for the construction of an additional nine vessels as well as associated support arrangements, Austal says.

The announcement is a positive turn for the company after it recorded a NPAT loss of $13.6 million for FY23, due to from provisional losses stemming from the construction of steel hulled Navajo class Towing, Salvage and Rescue vessels in the US.

Austal holds multiple ship contracts for the US Navy, including for its TAGOS-25 ocean surveillance ship and the US Coast Guard’s Heritage-class Offshore Patrol Cutter programs.

These latest LCU, steel hull 1700-class vessels have a heavy lift capability with 170 ton payload capacity and will be deployed with the US Navy’s amphibious assault ships to support military operations, such as the delivery of vehicles, troops, and cargo.

Austal CEO Paddy Gregg says this latest contract strengthens the company’s role as a ‘critical capability partner’ to the US Navy.

“The LCU are an essential capability of the US Navy, and we’re proud to be contributing to this important ship building program, with up to 12 vessels to be constructed,” Gregg says.