Austal (ASX:ASB) fiscal first half results were solid, supported by an unexpected rise in revenue and earnings before interest and tax, positioning the company for a "very bright" medium and long-term outlook, according to a February 21 note by Euroz Hartley.

The company reported fiscal first-half earnings of AU$ 0.069 per diluted share, up from AU$ 0.033 per diluted share a year earlier. Analysts polled by Visible Alpha expected AU$0.066.

Revenue for the six months ended Dec. 31, 2024, was AU$825.7 million, up from AU$717.7 million a year earlier. Analysts surveyed by Visible Alpha expected AU$883.8 million.

Euroz noted that Austal's orderbook has grown to AU$14.2 billion, including options, and expects that a recent commercial ferry win will boost volume in its Asian shipyards, while progress on the strategic ship-building agreement adds further growth potential.

Despite about $750 million remaining in expenditure, Austal has already secured half of the required funding through the submarine module contract, with most of the cash already received, Euroz added.

Additionally, the company has a letter of support from the Australian Government for up to 50% of $300 million for its Final Assembly 2 project, leaving only $150 million to fund, the investment firm said.

Euroz believes that the total sum of opportunities supports Austal becoming an over $3 billion revenue business over the next decade once fully ramped up.

The results have boosted investor confidence in Austal's ability to fund and execute its plans, driving an upward movement in its share price.

Euroz maintained the firm's buy ratings and its price target of AU$4.01.