SHAPE’s DigiCo contract pushes FY27 project wins past $1.4 billion

DigiCo Award Resets SHAPE’s FY27 Scale

SHAPE Australia Corporation Limited (ASX:SHA) has turned a strong first quarter into a much larger FY27 order book, with an approximately $800 million DigiCo data centre contract taking project wins above $1.4 billion and backlog orders above $1.5 billion as at 19 October. SHAPE said the contract is expected to contribute approximately $200 million of revenue in each of FY27 and FY28, above its pre-DigiCo forecasts for those years.

The award builds on SHAPE’s earlier work at DigiCo’s SYD1 campus. The company has now assembled a dedicated delivery team of more than 50 people, combining personnel from the 20 MW Stage 1 upgrade with newly recruited data centre specialists. The project was awarded through an Early Contractor Involvement process, allowing SHAPE and DigiCo to scope, design and price the next phase before committing to a fixed price.

Q1 Wins Build Backlog Before Major Award

Even before the DigiCo contract was counted, SHAPE secured $504.6 million of projects in the first quarter, compared with $336 million in the prior corresponding period. Quarter-end backlog reached $762.7 million, up 21% from $628.4 million at 30 June. The subsequent award therefore represents a substantial addition to an already expanding book of secured work, rather than the sole explanation for the quarter’s momentum.

The DigiCo project was first reported as an approximately $800 million expansion contract in the company’s earlier DigiCo award, which described the planned expansion of the SYD1 campus. DigiCo has since confirmed execution of the customer contract, while SHAPE said approved grid capacity, water access and State Significant Development Approval are in place.

Modular Expansion Adds a Second Growth Engine

SHAPE’s diversification push is also producing measurable revenue. Modular construction delivered $20.6 million in Q1 revenue, up from $14.5 million a year earlier, while Modular by SHAPE opened its third national facility in Perth and secured its first project through a Western Australian Government modular panel for the Department of Education.

Regional operations, including Tasmania, also contributed to project wins. The company said its 120-day pipeline of known opportunities had grown beyond $1.7 billion, with the total pipeline exceeding $4.5 billion as at 19 October. Those figures exclude Arden Fitout & Maintenance and Australian Professional Shopfitters, an important qualification when comparing the pipeline and backlog with the group’s full operating footprint.

Delivery Capacity Becomes the Next Test

SHAPE said pricing and terms had been secured on all major subcontracts back-to-back with its head contract commitments. General Manager NSW James Fitzgerald will be accountable to Chief Executive Officer Peter Marix-Evans for delivery, supported by executive reviews of progress, cost, cash flow and risk, as well as Board reporting.

The numbers are favourable, but the filing does not provide updated earnings, margin or cash flow guidance. The practical question now is how smoothly SHAPE can convert an unusually large data centre award into revenue while expanding modular manufacturing, adding staff and preserving the performance of its core fitout business. The company reached 1,000 employees in October; its ability to deploy that capacity without execution slippage will matter as much as the headline backlog.