Austin Engineering (ASX:ANG) might temporarily suspend its dividend in the fiscal year 2026 as it grapples with operational volatility in its Indonesian and Chilean businesses, Euroz Hartleys said in a note on Wednesday.

The company cut its revenue guidance for fiscal year 2026 to AU$370 million to AU$380 million, down from its previous guidance of AU$390 million to AU$410 million, according to a Wednesday filing with the Australian bourse.

The mining equipment maker is facing pressure from an original equipment manufacturer (OEM) contract signed in 2024, which has led to the suspension of new orders until commercial terms recover.

Following the company's outlook slash, the brokerage revised its fiscal 2026 estimates to the lower end of the guided range. It now expects the firm to record revenue of around AU$372.6 million.

"We expect earnings to be significantly skewed to [the second half of 2026], as operational improvements implemented during the [first half of 2026] and delayed orders contribute," the brokerage firm commented.

Euroz Hartleys downgraded its rating to speculative buy from buy and cut its price target to A$0.40 per share from A$0.70.