@harrisonfinney Likely imo to be revenue/profit from the...

@harrisonfinney Likely imo to be revenue/profit from the expensed design services component that their US consolidated accounting/tax policies must routinely allow for. Therefore not strictly speaking tendering or construction.

Contracts awarded by USG agencies are frequently fragmented out into components from what I’ve seen. Design services award (developing the concept/mod) is regularly the precursor contract to (if the design/mod is liked) the open bid component, and (if successful) the construction award, and then (if successful again) the much later option exercise. They flagged this likely impact/upgrade at the time the contract was awarded by USCG but still had to quantify it.

Incidentally it was also awarded on Jun 30 by USCG so within that Austal USA reporting period. This isn’t their first experience with a multi-year, multiple output, optioned contract in the US so I sincerely doubt it won’t pass muster with their auditors or regulators. Best thing to do is email IR for clarification of the accounting policy if you’re particularly concerned and it’s holding you back from investing here.