How SHAPE Australia’s Arden Acquisition Fuels 48.5% Profit Surge

Strong Financial Momentum

SHAPE Australia Corporation Limited has delivered a compelling half-year result for the period ending 31 December 2025, showcasing significant growth across key financial metrics. Revenue climbed 15.5% to $553.3 million, while net profit after tax surged by 48.5% to $13.995 million. This performance was driven by improved project outcomes, effective risk management, and rigorous cost control measures.

EBITDA rose sharply by 44.5% to $21.4 million, reflecting strong operational leverage. Earnings per share followed suit, increasing 48.2% to 16.8 cents, signalling enhanced shareholder value. Overheads were trimmed slightly as a percentage of revenue, underscoring management’s continued focus on efficiency.

Strategic Acquisition Bolsters Capabilities

In a notable strategic move, SHAPE completed the acquisition of Arden Group in December 2025 for $31.6 million, including contingent consideration. Arden’s expertise in retail fitout and facilities maintenance, particularly across multi-site national rollouts in fuel and convenience sectors, complements SHAPE’s existing portfolio. This acquisition not only broadens SHAPE’s addressable market but also enhances recurring revenue streams through maintenance contracts.

The acquisition contributed $27.2 million in goodwill, reflecting expected synergies and growth potential. Arden’s integration is expected to create cross-selling opportunities and position SHAPE to pursue larger, complex projects with greater scale and efficiency.

Operational Excellence and Growth Strategy

Operationally, SHAPE maintained a disciplined approach with a project mix weighted towards shorter-duration contracts, mitigating exposure to market volatility and cost escalation. Early procurement and strong subcontractor relationships have been pivotal in managing risks amid a challenging market environment marked by elevated insolvencies.

The company’s workforce expanded to 746 employees, reflecting growth and talent retention efforts. Safety metrics improved, with a Lost Time Injury Frequency Rate of 1.3 and Total Recordable Injury Frequency Rate of 5.4, highlighting ongoing commitment to workplace safety.

SHAPE’s growth strategy continues to focus on sector diversification, regional expansion, and capability enhancement. The commercial office sector remains dominant, but emerging sectors such as aged care and data centres are gaining traction. Regional markets like Gold Coast and Tasmania showed strong project win growth, while modular construction revenue exceeded prior full-year results, supported by increased production capacity and staff.

Robust Financial Position and Dividend Policy

SHAPE’s liquidity remains solid with cash and marketable securities totaling $136.4 million, providing flexibility to support operations and growth initiatives. The company secured a $15 million bank loan to fund the Arden acquisition, structured with manageable repayments over three years.

Reflecting confidence in ongoing performance, SHAPE declared a fully franked interim dividend of 14.0 cents per share, up from 12.5 cents in the prior final dividend. The strong order backlog of $686.1 million and a healthy project pipeline underpin positive outlook for the remainder of FY26.