ASX 300 industrial stock, Austal Ltd (ASX: ASB), has soared 17.1% to a five-year high of $4.18 per share on Friday.

The price surge comes on the back of the defence and commercial shipbuilder's 1H FY25 report released today.

Let's check out the details.

Double profit sends ASX 300 industrial stock 17% higher

Here are the highlights of the report:

• Net profit after tax (NPAT) of $25.1 million, up 108.9% year-over-year (yoy)
• Revenue of $825.7 million, up 15.1% yoy
• Earnings before interest and tax (EBIT) of $42.7 million, up 33% yoy
• Margin of 5.2%, up from 4.5% yoy
• Net cash position of $212.6 million on 31 December, up from $3.9 million on 30 June
• No dividend to maintain balance sheet strength and capex capacity

What else happened in 1H FY25?

Austal said it now has a record order book worth $14.2 billion in hand, assuming options forall vessels are exercised.

This includes two major US contracts worth about US$600 million awarded in September.

The first is a US$450 million contract awarded by General Dynamics Electric Boat to build a new module fabrication and outfitting facility at Austal's Mobile shipyard (MMF3).

The second is a US$150 million contract from the US Navy to enhance ancillary infrastructure and facilities adjacent to Austal USA's facilities and around the Mobile area.

Austal said both contracts support the US Navy's plan to deliver one Columbia-class submarine and two Virginia-class submarines per year.

Announcements relating to both of these contracts caused a step-change in this ASX 300 industrial stock's share price, as shown below.

Austal says the two contracts were significant contributors to its substantially higher revenue in 1H FY25.

Its newly strengthened net cash position will help fund the company's planned capex program to increase manufacturing capacity and drive continued growth over the next 10 years.

What did Austal management say?

Austal CEO Patrick Gregg said:

Austal delivered a very strong start to the 2025 financial year with EBIT and revenue performance ahead of expectations for the half.

We continued to grow the order book with new defence and commercial contract awards, improve operating margins, and significantly increased our net cash position by $209 million.

Gregg said Australia is developing a deeper defence relationship with the United States:

It is an exciting time for the Company as the long-term investment made in developing deep defence relationships in the United States and Australia, founded on product innovation, technology and demonstrated shipbuilding and support capabilities, is starting to deliver increased returns.

What's next for Austal?

Austal has updated its full-year FY25 EBIT guidance to no less than $80 million.

Gregg said:

The outlook for the second half is very positive with potential for the order book to grow further if the Australian Government contracts programs through the Strategic Shipbuilding Agreement, and we continue to see operational improvements on our US build programs and through the increased volume of commercial work in Asia.

Austal also released an investor presentation today.

Austal share price snapshot

This ASX 300 industrial stock has risen by 90% over the past 12 months.

This compares to a 15% increase for the S&P/ASX 200 Industrials Index (ASX: XNJ) and a 9% lift in the S&P/ASX 300 Index (ASX: XKO).