What I took from their report:Based on the outcomes of that...

What I took from their report:

Based on the outcomes of that review, EBIT guidance for FY2023 is reduced from earnings of
approximately AU$58 million to an expected range between zero profit to a potential loss of AU$10
million.

So their earnings are now back in the red and they:

1. Still haven't worked out how to price for inflation; which shows their margin is inadequate given they should be benefiting from a strong US dollar...
2. Are relying on contract clauses to mitigate their inability to price for profit
3. Expecting that when contractual clauses are applied it won't disrupt their buyer's willingness to move forward with future builds which aren't guaranteed anyway.

"“It is clear that we need to make changes to some reporting structures and processes so that Austal USA can identify and rectify these sorts of issues in a more timely manner."

Put simply, they don't know how to manage profit margins or risk, their operational expenses haven't improved as they expected AND they magically intend to report scenarios that in their words are otherwise "unprecedented"



Seems like anyone holding will be juggling knives moving forward.