Government-owned shipbuilder ASC has turned a profit of more than $20 million after a $3.8 million loss last year.
In its annual report, the company reported improved performance across its two main business areas, servicing of Collins submarines and construction of the navy's three new air warfare destroyers.
ASC, formerly the Australian Submarine Corporation, has been slated for privatisation, although the government has given no clear indication when.
Chairman Bruce Carter said ASC turned a profit of $21.9 million on revenue of $1.029 billion.
ASC performance on the AWD project, running more than two years late and perhaps $1 billion over budget, has attracted strong criticism, including from former defence minister David Johnston who said he wouldn't trust the company to build a canoe.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
It's now reporting significant improvements, with a 30 per cent productivity boost on ship two and a further 10 per cent on ship three.
ASC has also improved performance on sub maintenance, with the HMAS Farncomb the first to undergo the new two-year full cycle docking under the new system where boats operate for 10 years before major servicing.
ASC will likely play a significant role in the new submarines project, probably as Australian construction partner of whichever of the three contenders, from Germany, France and Japan, wins the competitive evaluation process.
ASC officials have visited each contender country and met with their senior management.
