Austal clinches $1.03 billion deal to build 18 LCM vessels for Australia

December 18, 2025, by Fatima Bahtić

Shipbuilder Austal has been awarded a $1.029 billion design and build contract for landing craft medium (LCM) under the Strategic Shipbuilding Agreement (SSA) signed with the Commonwealth of Australia.

As disclosed, the LCM design and build tasking statement contract appoints Austal subsidiary, Austal Defence Shipbuilding Australia (Austal Defence Australia), to complete the detailed design and build 18 LCM units.

The vessels are to be built at Austal’s Henderson, Western Australia, shipyard. Construction of the first LCM is scheduled to commence in 2026, with the 18th and final vessel slated for delivery in 2032.

According to Austal, the LCM, being built for the Australian Army, will be manufactured in steel and capable of projecting loads up to 80 tons.

Austal Limited CEO Paddy Gregg said the first design and build contract awarded under the SSA was a significant milestone for Austal Defence Australia, as the Commonwealth’s strategic shipbuilder in Western Australia.

“This Landing Craft Medium design and build contract awarded to Austal Defence Australia is
the first vessel construction program in the Government’s commitment to delivering continuous
naval shipbuilding at Henderson, Western Australia, enlivening decades of opportunity for
individuals and businesses to engage, collaborate and invest in defence programs,” he added.

“With these 18 Landing Craft Medium and any further vessels planned as part of the Strategic Shipbuilding pilot program, we are developing the shipbuilding capability to build larger, more complex vessels, in Henderson into the future and delivering sovereign shipbuilding capability for Australia,” Gregg noted.

“The Austal Defence Australia team, and our industry and supply chain partners in the Henderson Defence Precinct, across Western Australia and around the nation, are ready to deliver this important new amphibious capability for the Australian Army,” Gavin Stewart, Executive General Manager – Strategic Shipbuilding, Austal Defence Australia, commented.

To remind, Austal entered into an SSA with the Commonwealth of Australia in August this year. The agreement established a framework under which a new, wholly owned subsidiary of Austal Limited, Austal Defence Australia, will design, construct, integrate and deliver key naval shipbuilding programs. This includes 18 landing craft medium, over 8 years, and 8 landing craft heavy.