Austin continues sales, profit expansion

Mining equipment manufacturer Austin Engineering has continued its run of strong sales and profit increases in FY24, announcing underlying EBITDA up 48.9 percent to $46.6 million on revenue up 21 percent to $313.2 million.

As the company continued its improvements driven by its Austin 2.0 programme begun in 2021, Austin reported a statutory NPAT of $29.7 million, up 318.3 percent on the previous year and operating cashflow up 131.6 percent to $36.6 million.

The Perth company’s order book as at 30 June 2024 was up 30 percent year-on-year to $187 million with load haul truck tray (pictured) and bucket sales now accounting for 71.3 percent of total sales.

Austin CEO and Managing Director, David Singleton, said: “The results reflect a doubling down on our Austin 2.0 operational strategy, which has led to increases in revenue, forward order book, and a much stronger cashflow position at the end of the year.

“Our improved financial performance has been driven by a series of initiatives designed to enhance operating efficiencies and lower costs across our business units, which has led to a continued growth in margins.

“Customer focus has been a business priority for Austin in FY24.

“We’ve invested in increasing the size of our sales and product support function and added a central marketing capability – this has helped us (with) our order book growing on average 44% percent6 per annum since we implemented Austin 2.0 in 2021.”

Austin has streamlined product design, organised manufacturing here and overseas on a hub and spoke model, and invested in automation and increased manufacturing capacity.

Singleton said: “The cost benefits of our AustBuy bulk procurement program, which leverages our scale in this critical area of cost, has positively impacted our FY24 results, and is a development that will grow in the new financial year as it increases its geographic impact and brings its purchasing power to more areas of our business.

“Collectively, these initiatives have seen EBITDA margins continue to improve.”

Picture: Austin Engineering