Austin Engineering (ASX:ANG) has successfully renegotiated its Chilean original equipment manufacturer (OEM) agreement, replacing a previously unprofitable deal with improved pricing and payment terms aimed at enhancing profitability, according to a Thursday filing with the Australian bourse.

The company had suspended new orders under the old contract, with remaining orders to be completed by April, per the filing.

Deliveries under the updated contract are anticipated to begin in May, with an initial purchase order of around AU$6.7 million, primarily affecting fiscal year 2027, the filing said.

The volume under the re-negotiated contract is immaterial for the current fiscal year and does not affect the company's existing guidance, the filing added.