Summary
The fund managers believe that Austin Engineering Ltd is poised for growth due to its strong market position and expanding global footprint. In their opinion, the company's recent investments in innovation and technology will enhance operational efficiency and drive profitability. They note the importance of diversification in its project portfolio, which mitigates risks associated with market fluctuations. Additionally, the fund managers express confidence in the management's strategic vision and ability to navigate challenges in the industry. They highlight the potential for increased demand in key sectors as a significant driver for future revenue growth. Overall, the consensus suggests that Austin Engineering Ltd represents a compelling investment opportunity, particularly for those looking for exposure to the engineering and resources sector.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Source: Trading View
Commentary From The Managers
Tyndall Asset Management
31 Aug 2025
$0.31
Summary
- Austin Engineering underperformed despite delivering results largely in line with market expectations.
- Market frustration stems from a mismatch between underlying earnings and statutory earnings.
- The company has lost market confidence due to manufacturing issues at its Chile plant.
- Investors are currently unwilling to overlook underlying adjustments.
- Tyndall Asset Management continues to hold due to the potential for recovery as operational issues are resolved.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Commentary From The Managers
Tyndall Asset Management
31 Aug 2025
$0.31
- Austin Engineering underperformed despite delivering results largely in line with market expectations.
- Market frustration stems from a mismatch between underlying earnings and statutory earnings.
- The company has lost market confidence due to manufacturing issues at its Chile plant.
- Investors are currently unwilling to overlook underlying adjustments.
- Tyndall Asset Management continues to hold due to the potential for recovery as operational issues are resolved.
Summary
DMX Asset Management
31 Aug 2025
$0.31
- Austin Engineering specializes in manufacturing buckets, trays, and bodies for trucks in the mining industry.
- Operations span Australia, Asia, and the Americas, positioning Austin to benefit from increasing demand for lighter-weight and customized products.
- Despite long-term potential, shares remain under pressure due to a series of disappointments leading to investor exodus.
- Austin's stock fell 13% in August following a messy full-year result that included several 'one-offs' considered more 'ordinary' in nature.
- Cashflow issues were noted as inventory built up, along with a modest restatement of prior year results.
- Austin has appointed a new operationally-focused CEO, Sy van Dyk, who has relevant experience from his previous role at DDH1.
- DMX Asset Management believes Sy is the right leader for Austin's evolution and looks forward to future developments.
- Despite the recent decline, significant value and upside potential remain with this investment position.
Summary
Monash Investors
31 Aug 2025
$0.31
- Austin Engineering experienced a 13% decline in August, impacting Monash Investors by 0.75%.
- This holding has been a major detractor over the past year, previously being the largest holding at twice its current price.
- The company has faced adverse developments, including a recent restatement of prior year financials.
- Results for the 2025 financial year included several ‘one-offs’ that should be recognized as ordinary expenses, with poor cash flow due to inventory build.
- Despite challenges, Monash Investors is forward-focused on Austin's potential.
- The company has a strong balance sheet and is experiencing growth, trading at around six times expected earnings.
- Monash Investors appreciates the leadership of new CEO Sy van Dyk and the support from former CEO David Singleton, who is now a substantial shareholder.
- There is a belief in the capacity to build significant value in the coming years, with potential for strong share price performance as execution improves.
Summary
QVG Capital
30 June 2025
$0.32
- QVG Capital sold their investment in Ausin Engineering due to a negative impact on returns this month.
- Ausin Engineering has been placed in the sin bin following an earnings downgrade for FY25.
- The company flagged a slower recovery of margin in their South American business.
- A poorly negotiated and executed contract with a large mining equipment OEM is expected to lead to losses.
- Projected losses are anticipated for the second half of FY25 and beyond.
Summary
Wilson Asset Management
30 June 2025
$0.32
- Austin Engineering Ltd experienced a 16% decline in share price in June.
- The company issued a trading update, downgrading FY2025 EBIT guidance to $41 million.
- This downgrade was attributed to margin pressure from a significant Chilean truck-body contract.
- Despite the margin challenges, FY2025 revenue guidance was lifted to approximately $370 million, reflecting an 18% year-on-year increase.
- To address margin pressures, the company is implementing measures such as relocating production to Batam and enhancing plant efficiency.
- Wilson Asset Management continues to hold due to the belief that these short-term setbacks are part of transitional challenges.
- Management is expected to drive operational improvements, leading to margin recovery as revenues grow into FY2026.
Summary
DMX Asset Management
30 June 2025
$0.32
- DMX Asset Management notes that Austin Engineering continued to derate, declining another 16% in June.
- Austin upgraded its revenue guidance during the month.
- However, the company warned of lower profits due to short-term operational and cost issues stemming from the growth.
- DMX Asset Management continues to hold its position as they monitor the evolving situation.
Summary
Katana Asset Management
26 June 2025
$0.33
- Katana Asset Management updates their investment thesis on Austin Engineering Ltd (ANG).
- ANG is down 45% financial year-to-date, likely facing the final wave of tax loss selling.
- The primary issue appears to be excessively rapid growth, which has strained production capacity.
- Higher costs from expansion and temporary contractors have significantly impacted margins in Chilean operations.
- Revenue is on track to set another record at $370m, with a stronger outlook for FY26.
- Thorney Group has recently increased their stake to 20.4%.
Summary
Thorney Investment Group
31 May 2025
$0.38
- Thorney Investment Group maintains a positive outlook on Austin Engineering Ltd (ANG) for the medium to long term.
- Recent activity includes TOP and associates increasing their position in ANG.
- This commitment reflects confidence in the company’s future performance.
- Continued engagement indicates a belief in growth potential.
- Thorney Investment Group remains optimistic about ANG's strategic direction.
Summary
Monash Investors
31 May 2025
$0.38
- Monash Investors reports a 13% decline in Austin Engineering's shares this month, impacting overall performance.
- Austin has lost approximately 40% of its value since July 2024, contributing to underperformance.
- Investor concerns stem from a mixed first-half result and soft conditions in the mining services sector.
- Uncertainty surrounds the CEO transition, which is currently in progress.
- Despite recent challenges, the fundamentals of the business remain intact.
- Ongoing research includes management meetings and site visits to facilities in Wyoming and Perth.
- Monash Investors assesses that the quality profile of Austin is undervalued by the market.
- Austin trades at 38 cps with a single-digit multiple of sustainable net earnings and strong growth potential.
- The company has a strong balance sheet with the capacity to fund growth initiatives.
- While short-term profitability may be impacted by economic conditions, the medium to long-term outlook remains attractive.
- Monash Investors continues to hold Austin Engineering, believing it will be a material contributor to the Fund in the future.
Summary
DMX Asset Management
31 May 2025
$0.38
- DMX Asset Management continues to hold its position in Austin Engineering Ltd.
- Austin Engineering has experienced a 13% decline in share value, reflecting recent market trends.
- DMX has added to its holding during this price weakness.
- As of the latest update, shares are down further due to an earnings downgrade.
- Despite operational challenges, DMX believes the company is fundamentally sound.
- Austin Engineering holds a strong market position in a niche sector, supplying truck trays and bodies to the mining industry.
- The company is well-capitalised and well-managed.
- Austin Engineering is growing and is considered cheap based on a single-digit multiple of expected earnings through the cycle.
Summary
DMX Asset Management
30 Apr 2025
$0.44
- DMX Asset Management visited Austin Engineering’s US facility in Wyoming in April.
- Austin is a leading producer of bodies, trays, and buckets for mining industry trucks.
- The company operates across the Americas, Australia, and Asia, with a strong position in the US market.
- Austin’s products are consumables with an approximate lifespan of 4 years.
- Producing a truck tray involves considerable innovation and IP in design and materials.
- Each unit can cost around US$400k, making it economically compelling for miners.
- The site visit enhanced understanding of the qualitative attributes of Austin's business.
- DMX Asset Management believes Austin is an under-rated company with a strong balance sheet.
- The company currently has a low multiple and significant growth potential.
Summary
Monash Investors
28 Feb 2025
$0.44
- Monash Investors continues to hold Austin Engineering despite recent challenges.
- Half year results fell short of expectations, resulting in a 12% share price decline.
- This decline cost 0.8% in NAV terms.
- Austin Engineering is viewed as an under-rated mining services business.
- Supplies consumable equipment (heavy machinery trays & buckets) to the global mining industry.
- While cyclical, it remains a robust business with a compelling value proposition.
- Austin enjoys a strong market position.
- Boasts a robust balance sheet and meaningful growth potential.
- Valuation multiples are considered very attractive after recent de-rate.
Summary
DMX Asset Management
28 Feb 2025
$0.44
- Relatively new holding in Austin Engineering
- Austin Engineering has declined 12%
- DMX Asset Management has continued to build our position here into price weakness
- Price weakness is understandable, considering its weak results
- However, we believe this decline is over-discounting the company's value
- Not fairly reflecting the strength of this market-leading niche business
Summary
DMX Asset Management
30 Nov 2024
$0.54
- DMX Asset Management initiated a small position in Austin Engineering, a key holding for the Monash Fund.
- The investment follows the merger with Monash Investors in July.
- Austin Engineering operates in the mining services sector, producing truck trays and buckets for global miners and OEMs.
- The company has a chequered past due to excessive debt during a mining sector downturn.
- Significant progress has been made in restoring the balance sheet through an equity raise and retention of earnings.
- Operational improvements have been a focus, enhancing overall business efficiency.
- Austin’s production innovation aims to develop a competitive moat and establish a cost-leadership position.
- While truck trays may seem unexciting, the products are market-leading and are essential consumables requiring continuous replacement.
- With a net debt-free balance sheet and a robust business model, Austin Engineering showcases continued growth momentum.
- DMX Asset Management believes a sub-10 times earnings multiple undervalues the business.
Summary
Monash Investors
30 Sept 2024
$0.54
- Austin reported a solid full year result with revenue growing north of 20% and profitability recovering to historic levels.
- Despite a strong result, shares have been a drag on the portfolio during reporting season.
- Market expectations for next year’s revenue guidance exceed that delivered, but we are confident in exceeding guidance.
- We believe the company is being conservative with its projections.
- Austin has a strong forward-order book and further margin expansion expected.
- Austin's perception as a mining services company masks its qualitative attributes including cost leadership and high repeat business nature.
- The company supplies specialised components to heavy transport equipment that require continual replacement.
- Austin’s positive growth trajectory along with its robust balance sheet and strong market position support its status as a top holding for the Fund.
- Attractive valuation at around 10 times earnings enhances its appeal.
Summary
Ryder Capital
30 Sept 2024
$0.54
- Austin Engineering disappointed against overly bullish market expectations.
- It delivered a record result but missed market expectations.
- Austin has a strong order book and incremental growth outlook for FY25.
- Despite a share price decline of -8% over the quarter,
- Ryder Capital continues to hold due to expected performance aligning with conservative FY25 guidance.
- New market opportunities with an OEM and manufacturing capacity upgrades are anticipated to drive growth.
- Austin's undemanding valuation suggests potential for positive performance moving forward.
Summary
Monash Investors
31 Aug 2024
$0.58
- Principal detractors this month included Austin Engineering, which declined 19% following a strong full-year result and guidance for the upcoming year.
- The results were deemed satisfactory by Monash Investors, despite not meeting higher investor expectations.
- Monash Investors remains focused on the medium term, noting Austin's strong balance sheet.
- Significant improvements to Austin's business model over recent years are beginning to yield positive results.
- Austin Engineering enjoys strong operating momentum moving forward.
- The company is currently trading at a relatively low multiple of earnings, approximately 10 times normal and growing earnings.
- Monash Investors maintains conviction in this position, believing the market will eventually recognize the growth potential and value of Austin Engineering shares.
Summary
Thorney Investment Group
30 Aug 2024
$0.54
- Thorney continues to hold its investment in Austin Engineering Ltd (ASX: ANG).
- ANG performed well operationally and in share price during FY2024.
- TOP has realised some profits but remains the largest shareholder of ANG.
- Thorney retains positive sentiment towards ANG.
- ANG is positioned to deliver strong earnings performance in FY2025 and FY2026.
Summary
Wilson Asset Management
3 July 2024
$0.60
- Austin Engineering manufactures and supplies specialised mining products that enhance production for global mining clients.
- It is included in the portfolios of WAM Capital (ASX: WAM), WAM Microcap (ASX: WMI), and WAM Research (ASX: WAX).
- The investment team at Wilson Asset Management believes Austin Engineering could nearly double in value over the next 12 months.
- The company is viewed as transitioning from a micro-cap to a small-cap due to its cheap valuation of 8x price to earnings relative to expected 25% earnings growth in FY2025.
- There is potential for earnings accretive acquisitions, which the team sees as a positive factor.
- CEO David Singleton was appointed in 2021, following a period of rapid expansion and subsequent balance sheet strengthening.
- Previous experience with David at Austal, where shares more than doubled, supports the investment thesis.
- Two of Austin Engineering’s three divisions (North America and South America) have significantly outperformed due to a strong mining industry.
- Revenues in the Asia-Pacific division are strong, but margins are pressured by rising labour costs in Western Australia.
- Management has shifted a significant portion of business from Australia to Indonesia, which operates at higher margins.
- The AustBuy procurement strategy aims to consolidate steel buying, positively impacting margins in FY2025.
- Projected profit could exceed $50 million in the next two years, compared to the guided $30-33 million for FY2024.
- Stronger earnings growth could lead to a valuation rerate from 8x to 10x, potentially increasing the share price by over 58% to above $0.90 per share.
Summary
Ryder Capital
30 June 2024
$0.58
- Ryder Capital exited their investment in ANG entirely due to a revision to their investment thesis.
- At the last financial year end, they held a material market value exposure of over 11%.
- Early in the period, they sold 21.8m shares for an average price of $0.517, realizing a ~94% gain.
- This sale generated a $5.5m net profit excluding dividends received.
- The stock is now trading at approximately $0.35 after several earnings misses.
- Ryder Capital believes their process and action have been confirmed by the stock's performance.
- In the case of Austin Engineering (ANG), it was the largest detractor from a performance perspective.
- The overall investment was not a loss, but a reduction in the mark to market gain.
- They exited the investment early in the financial year at attractive prices below the end of FY24 carrying value.
- This resulted in a mark to market loss for FY25, but substantial profits were realized from the sale.
Summary
Monash Investors
30 June 2024
$0.58
- Austin Engineering Ltd (ASX: ANG) has increased +18% in value.
- Specializes in the production of replacement truck trays and buckets for mining companies.
- Currently experiencing scale economies as it increases its volumes and revenues.
- This growth is contributing to significantly expanding margins.
- Monash Investors continues to hold their position due to these promising developments.
Summary
Monash Investors
30 Apr 2024
$0.51
- Austin Engineering (ASX: ANG) has seen a 3.1% increase in stock value.
- The company supplies replacement trays and buckets for heavy mining machinery.
- Expansion of customer base due to quick payback period for purchasing its gear.
- Increasing capacity to meet growing demand.
- Lowering costs through economies of scale, specialised plants, and group buying.
- Expect further upgrades to revenues and profit margins.
- Monash Investors continues to hold its position in Austin Engineering Ltd.
Summary
Ryder Capital
31 Mar 2024
$0.49
- Austin Engineering witnessed a 48% increase over the quarter.
- Reported 1H24 results aligned with previous trading updates and guidance increases.
- Future outlook provided by Austin Engineering is considered conservative.
- Projected FY24 NPAT guidance is $31m-$33m, representing approximately 24% growth from FY23.
- Expectations for a strong 2H FY24 are supported by a growing pipeline and improved margins.
- Anticipated improvements in cash flow profile.
- Confident in a strong finish to FY24, indicating potential for another robust year in FY25.
- Ryder Capital sees upside potential to its valuation and share price targets.
Summary
Monash Investors
28 Feb 2024
$0.40
- Monash Investors has a newer holding in Austin Engineering (ASX: ANG).
- Austin Engineering upgraded its guidance in January ahead of its first half results.
- In February, Austin further upgraded its full year guidance.
- The company specializes in replacement truck trays and buckets for mining companies.
- Austin is currently achieving scale economies as it grows its volumes and revenues.
- This growth is leading to significantly expanding margins.
- Monash Investors continues to hold because of these positive developments.
Summary
Monash Investors
31 Jan 2024
$0.39
- Monash Investors considers Austin Engineering (ASX: ANG) as a newer holding.
- Austin upgraded its guidance in January ahead of its first half result expected in February.
- The company specializes in manufacturing replacement truck trays and buckets for mining companies.
- It is achieving scale economies as it increases production volumes.
- This growth is leading to significantly expanding margins.
Summary
Wilson Asset Management
31 Jan 2024
$0.39
- Austin Engineering manufactures and supplies specialised mining products, enhancing efficiency for large mining clients globally.
- The company has increased profit guidance for the first half of FY2024 to between $12 million to $14 million, doubling from the prior period.
- Revenue guidance has also been uplifted to between $138 million and $144 million.
- The improved outlook is attributed to growing revenue and ongoing operational improvements under the Austin 2.0 strategy, initiated in 2021.
- This strategy focuses on boosting average operating margins.
- Wilson Asset Management remains optimistic about Austin Engineering's outlook for revenue and earnings growth.
- With the balance sheet projected to move into a net cash position later this year, the company is positioned to pursue earnings accretive acquisitions.
Summary
Ryder Capital
30 Sept 2023
$0.25
- Austin Engineering reported in line with their lowered FY23 earnings guidance
- Disappointing downgrade in May due to timing issue with major customer contract, now resolved
- Company executing strategy to improve margins through restructuring of Perth facility
- Increasing utilisation of manufacturing facility in Batam, Indonesia
- Focusing on strategic growth opportunities in North American market
- Earnings primarily tied to production levels of mining clients
- Positions business well amid weakening macroeconomic outlook
Summary
Ryder Capital
30 June 2023
$0.27
- Ryder Capital has updated its investment thesis on Austin Engineering Ltd (ANG).
- The recent downgrade in May was attributed to revenue timing issues.
- Despite the downgrade, Ryder Capital chose to add to their position.
- Investments were made at attractive prices.
- Ryder Capital continues to hold their position based on these factors.
Summary
Ryder Capital
31 Mar 2023
$0.39
- Austin Engineering is Ryder Capital's second largest listed position.
- Ryder Capital has increased conviction in Austin Engineering since initiating the position in early 2022.
- The Company has achieved meaningful EBITDA growth due to its cost out and manufacturing efficiency program.
- This growth lays the foundations for further margin expansion.
- Austin Engineering has a growing order book into FY24, supported by 'blue chip' mining clients.
- It is targeting the larger Americas market with the acquisition of Mainetec, the domestic leader in mining buckets.
- Strong revenue growth is anticipated, translating into earnings and value for shareholders.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who has invested in Austin Engineering Ltd (ASX:ANG)?
Fund managers including Thorney Investment Group, DMX Asset Management, Monash Investors, Ryder Capital, Katana Asset Management, QVG Capital, Wilson Asset Management and Tyndall Asset Management have invested in Austin Engineering Ltd (ASX:ANG).
Why have investment managers invested in Austin Engineering Ltd (ASX:ANG)?
Fund managers are investing in Austin Engineering Ltd due to its strong market position and growth potential in the mining services sector. Despite recent share price fluctuations and operational challenges, they recognize Austin as a market leader in producing essential consumable products, such as truck trays and buckets, for the mining industry. The company has made significant strides in restoring its balance sheet, achieving a net debt-free status, and enhancing operational efficiencies, which have led to improved profit margins. Fund managers believe that Austin's current valuation, trading at a low earnings multiple, does not accurately reflect its growth trajectory and robust business model. They anticipate continued revenue growth driven by increasing demand, particularly in North America and South America, alongside ongoing innovations and strategic cost management. This combination of a strong balance sheet, market leadership, and attractive valuation multiples makes Austin Engineering a compelling investment opportunity for fund managers.
What happened to Austin Engineering Ltd (ASX:ANG)?
In August 2025, fund managers Tyndall Asset Management, DMX Asset Management, and Monash Investors expressed concerns regarding Austin Engineering Ltd, whose share price hovered around $0.31. Tyndall noted the company's underperformance despite meeting market expectations, attributing it to a disconnect between underlying and statutory earnings, exacerbated by manufacturing issues in its Chile plant. DMX highlighted a 13% decline in share value due to disappointing results and poor cash flow, while recognizing the company's potential for growth in the mining sector under new CEO Sy van Dyk. Monash echoed these sentiments, citing a painful decline and a series of adverse developments, yet remained optimistic about the company's strong balance sheet and future upside, especially with aligned interests from substantial shareholders. Overall, while Austin Engineering faces challenges, its strategic positioning and leadership changes suggest potential for recovery.