How SHAPE Australia’s $3.8b Pipeline Fuels Its 16% Revenue Surge
SHAPE Australia Corporation Limited has reported a robust first half of FY26, with significant gains in revenue, profits, and project pipeline, underpinned by strategic sector diversification and a key acquisition.
- Revenue up 16% to $553.3 million
- EBITDA increased 45% to $21.4 million
- Net profit after tax rose 49% to $14 million
- Project pipeline expanded to $3.8 billion
- Acquisition of Arden Group enhances facilities maintenance capabilities
Strong Financial Performance
SHAPE Australia Corporation Limited (ASX – SHA) has delivered a compelling set of results for the first half of fiscal year 2026, showcasing solid growth across key financial metrics. Revenue climbed 16% to $553.3 million, while earnings before interest, tax, depreciation, and amortisation (EBITDA) surged 45% to $21.4 million. Net profit after tax (NPAT) rose by nearly half, reaching $14 million, reflecting improved operational efficiency and margin expansion.
The company also declared a 14.0 cent dividend per share, marking a 40% increase, signalling confidence in sustained cash flow generation and shareholder returns.
Diversified Growth Strategy
SHAPE’s growth is anchored in a diversified portfolio spanning multiple sectors and regions. The office sector remains the core revenue driver, accounting for over half of total income, but the company has strategically expanded into education, health, retail, aged care, and industrial sectors. Notably, project wins in aged care soared to $57.5 million from just $2.7 million in the prior corresponding period, highlighting successful penetration into new markets.
Geographically, SHAPE continues to deepen its presence beyond metropolitan hubs, with regional offices in the Gold Coast, Newcastle, Tasmania, Geelong, and Townsville contributing over $60 million in revenue. Victorian market share also increased, reflecting targeted regional expansion efforts.
Capability Expansion and Innovation
The company’s capability mix is evolving, with modular construction revenue reaching $38.7 million in 1HFY26, surpassing the full-year FY25 total. This growth is driven by higher utilisation and expanded production capacity, positioning SHAPE to meet increasing demand for efficient, offsite building solutions.
Additionally, SHAPE’s aftercare and facilities maintenance division secured a significant two-year contract for eight commercial buildings in Melbourne’s CBD, underscoring the company’s push into recurring revenue streams and long-term client partnerships.
Strategic Acquisition Bolsters Market Position
In December 2025, SHAPE completed the acquisition of Arden Group, a national specialist in fitout, multi-site rollouts, and facilities maintenance, particularly in retail fuel and convenience sectors. Arden’s $35 million revenue and experienced 80-person team complement SHAPE’s existing capabilities, enhancing its ability to pursue larger, multi-site projects and strengthen recurring maintenance revenues.
This acquisition aligns with SHAPE’s inorganic growth strategy and is expected to improve earnings and margin profiles while expanding its national footprint.
Outlook and Market Positioning
Looking ahead, SHAPE maintains a robust project pipeline valued at $3.8 billion and backlog orders of $686.1 million, providing strong revenue visibility into the second half of FY26. The company plans to continue targeting growth in non-office sectors such as education, health, defence, and aged care, supported by macroeconomic trends like population growth and government infrastructure investment.
SHAPE also intends to expand its modular construction and design & build services, alongside geographic growth in strategically selected regional markets. The company’s disciplined approach to expansion and focus on short-duration projects aim to mitigate traditional construction risks and capitalise on market opportunities.
Bottom Line?
With a fortified pipeline and strategic acquisition, SHAPE is well-positioned to sustain its growth trajectory amid evolving market dynamics.
Questions in the middle?
- How will SHAPE integrate Arden Group’s operations and realise synergies?
- What impact will rising modular construction demand have on margins and capacity?
- Can SHAPE maintain its strong project win rate amid increasing competition?
