Company - Apple reached a record high this year, driven by strong iPhone demand, prompting investment banks to upgrade their ratings [3] - Amazon's cloud services experienced an outage lasting over 12 hours, affecting multiple websites [3] - OpenAI is tightening regulations on Sora in response to various pressures, committing to enhance safeguards against AI-generated deepfakes [3] - OpenAI's investors clashed with the White House AI affairs head, asserting that Anthropic is a "reliable party" [3] - "Woodstock" investor supports Elon Musk's high compensation plan, predicting it will be approved by a significant margin [3] - The U.S. Transportation Secretary indicated that SpaceX's lunar mission is behind schedule, leading to a restart of contract bidding [3] Industry - The U.S. and Australia signed a key mineral agreement valued at $8.5 billion [2] - The European Central Bank's committee member Nagel stated that a wait-and-see approach on interest rates could be maintained [3] - The U.S. Treasury Department and Argentina's central bank signed a $20 billion currency stabilization agreement [3] - A technology ETF focused on Chinese companies attracted hundreds of millions in investment amid rising tensions [3] - Bitcoin rose by 2.5%, regaining the $111,000 mark [3]

Financial Data and Key Metrics Changes - The company reported a doubling of EBIT from FY 2024 to $113,400,000 for FY 2025, indicating strong business performance [7][14] - Revenue increased by 24.1% year on year, driven by new programs transitioning from design to construction [15][8] - The order book reached $13,000,000,000, securing revenue for years to come [8][6] Business Line Data and Key Metrics Changes - U.S. Shipbuilding revenue increased by 28%, primarily due to revenue from OPC, CATs, and submarine contracts [15][16] - Australasia Shipbuilding experienced a 60% growth, attributed to the appointment as the Commonwealth of Australia's sovereign shipbuilder [16][18] - U.S. Support revenue contracted by 9% due to changes in the deployment of LCS vessels [15][16] Market Data and Key Metrics Changes - The defense sector continues to dominate, accounting for 97% of the company's revenue [20] - The company is seeing a return of commercial orders post-COVID, with a ramp-up in production expected [12][13] Company Strategy and Development Direction - The strategic shipbuilding agreement positions the company as the prime contractor for surface combatant vessels in Australia, enhancing sovereign shipbuilding capabilities [25][24] - The company is focusing on capitalizing on increased defense expenditure in both the U.S. and Australia, with significant CapEx investments planned [26][27] - The company aims to leverage the AUKUS agreement for growth in submarine modules and technological capabilities [27][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for both the U.S. and Australian markets, highlighting a transformational year for the company [3][28] - The company anticipates continued growth in revenue and earnings, supported by a near-record EBIT and a robust order book [26][28] - Management acknowledged the challenges in U.S. shipbuilding margins but expects improvements as contracts transition [35][34] Other Important Information - The company has a strong cash position of $583,000,000, enabling it to invest in growth projects [22][21] - The workforce is growing, with nearly 4,500 employees globally, and recruitment strategies are in place to support future growth [5][60] Q&A Session Summary Question: Outlook for 2026 and margin expectations in U.S. segments - Management indicated that while there may be some volatility in margins, they expect revenue and profitability to increase as contracts transition [35][34] Question: Details on the strategic shipbuilding agreement and revenue ramp-up - Management confirmed that they are working on the landing craft medium program and expect to finalize contracts for both medium and heavy landing crafts soon, potentially adding $5,000,000,000 to the order book [38][37] Question: Opportunities for collaboration with other prime contractors in the U.S. - Management stated that they are open to working with partners to utilize their capacity and capabilities, particularly in submarine modules and other programs [42][41] Question: Performance expectations for Australasia in FY 2026 - Management expressed optimism for steady growth in profits as new programs come online, although they do not expect to double EBIT again [50][51] Question: Update on REAs and cash flow implications - Management indicated that they expect to finalize REAs soon, which will provide a significant cash injection [72][71] Question: Government involvement and potential partners for landing crafts - Management noted that the government has a strategic interest in the company, and they are working closely with them to ensure successful project execution [81][80]