Austal US boss leaving after profit-stripping accounting blunder
Michelle Kruger is stepping back from leadership of the flagship shipbuilding business ahead of retiring on June 1, leaving it to be run by its chief operating officer.
Austal’s US boss is leaving the shipbuilder, just days after the disclosure of an accounting blunder that torpedoed its annual profit guidance.
The company revealed on Tuesday that Austal USA’s president of less than two years, Michelle Kruger, was stepping down from leadership of its flagship business ahead of “retiring” on June 1.
Chief operating officer Gene Miller will take the reins at Austal USA as interim chief executive until a permanent replacement for Ms Kruger is named. He will be supported by the chair of the US business, Chris Chadwick, who will temporarily move take up executive duties.
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Austal’s Perth-based chief executive, Paddy Gregg, said Ms Kruger was retiring after “a long and distinguished career in shipbuilding”.
“During her tenure, Austal USA strengthened its foundation and worked closely with our business development teams to secure a record order book, reinforcing the company’s long-term growth outlook,” Mr Gregg said.
However, while the departure is characterised as voluntary, Ms Kruger’s sudden exit follows last week’s disclosure that Austal’s profit guidance for the 2026 calendar year had been slashed by 18 per cent to $110 million after the discovery of an accounting gaffe in the US that overstated its numbers by $24m.
Austal pinned the blame on double-counting of milestone shipbuilding incentives linked to the construction of towing, salvage and rescue support ships for the US Navy by Austal’s US shipyard in Mobile, Alabama, which accounts for up to 80 per cent of group revenues.
The announcement sent Austal’s shares tumbling as much as 28 per cent on Friday.
The stock recovered most of the loss on Monday and closed 2¢ higher at $5.84 on Tuesday.
Austal has launched a global search for the Austal USA president role, with the company saying that Mr Miller will be considered alongside external candidates as part of the process.
But it seems likely that the group will chase a “cleanskin” CEO, or an outside executive untainted by the latest financial setback in the US, as the Mobile shipyard expands to take on bigger and more important contracts for the US Navy.
That could see Austal target experienced senior US executives at major defence contractors for the leadership gig.
“As Austal USA enters its next phase, we are focused on strong execution across our current build and sustainment programs while capturing new growth opportunities,” Mr Gregg said.
“We will be targeting senior leaders with deep manufacturing and operational expertise to lead the business forward.”
Originally published on The Nightly
