Austal Limited has won a significant contract worth A$4 billion (USD $2.82 billion) from the Commonwealth of Australia. This deal is to build eight Landing Craft Heavy vessels, each measuring 100 meters, making it one of the largest shipbuilding contracts in the company's history.
The ships will be built at the Henderson Defence Precinct in Western Australia, following a contract signed with Defence Industry Minister Pat Conroy. These vessels will be based on the LST-100 design from Damen Shipyards Group, which is becoming increasingly popular for modern amphibious operations.
Each vessel will weigh 3,900 tonnes and will have the capacity to carry over 500 tonnes of cargo. This includes up to six Abrams tanks, 11 Redback infantry fighting vehicles, or 26 HIMARS launchers. Additionally, the ships will be equipped with Australian military communication systems and self-defense features, making them a key component of Australia’s strategy for coastal mobility.
Paddy Gregg, the CEO of Austal Limited, stated that this contract adds to a record number of orders for the company and solidifies its role as Australia’s sovereign shipbuilder and a reliable partner for the Australian Defence Force.
“This contract shows a major investment in Australia’s shipbuilding capabilities, and Austal Defence Australia is prepared to deliver these advanced vessels to meet the needs of the ADF,” Gregg said.
Besides its military applications, this program will have a positive impact on industry. Conroy highlighted that the vessels will be constructed using Australian steel, underscoring Canberra’s commitment to ongoing naval shipbuilding and providing thousands of skilled jobs in Western Australia and South Australia.
Construction is expected to begin in 2026, following the Landing Craft Medium program, ensuring a steady stream of production at Henderson. The eighth and last vessel is expected to be delivered by 2038.
The LST-100 design is also gaining international recognition. In late 2025, the U.S. Navy chose this same design for its Medium Landing Ship program, which aims to support the Marine Corps’ operations throughout the Indo-Pacific region.
Austal is the largest defense exporter in Australia and the only shipbuilder listed on the ASX. The company has made a steady transition from building high-speed ferries to major defense projects. Its current portfolio includes U.S. Navy Littoral Combat Ships, Expeditionary Fast Transports, Offshore Patrol Cutters for the U.S. Coast Guard, and work on submarine modules related to the Virginia and Columbia-class programs.
With rising security tensions in the region increasing demand for amphibious capabilities and coastal maneuverability, the Heavy Landing Craft program positions Australia and Austal at the forefront of naval modernization in the Indo-Pacific.