SHAPE Australia (SHA) H1 2025 earnings summary

Executive summary

• Achieved record half-year revenue of $479.0 million, up 15% year-over-year, with strong growth in EBITDA and NPAT driven by diversification, operational execution, and geographic expansion in Gold Coast, Tasmania, and Newcastle.

• EBITDA rose 21% to $14.8 million, and net profit after tax increased 26% to $9.4 million, reflecting operational excellence and disciplined cost management.

• Declared a 10.0 cents per share dividend, up 25%, maintaining a payout ratio of approximately 90%.

• Maintained a robust backlog order book of $516.0 million, up 13%, and a healthy identified pipeline of $3.4 billion.

• Strategic focus on non-office sector expansion, service offering growth (notably modular and Design & Build), and geographic reach while retaining a leading position in the commercial office market.

Financial highlights

• Revenue reached a record $479.0 million for the half, up from $416 million in the prior period; EBITDA of $14.8 million (+21%), and net profit after tax of $9.4 million (+26%).

• EPS up 26% to 11.4 cents; net tangible assets per share rose to 30.70 cents.

• Backlog orders at $516.0 million (+13%), with project wins totaling $531.5 million across 170 projects.

• Cash and marketable securities totaled $118.9 million, with $84.29 million in cash and $35 million in highly liquid bonds.

• Gross margin stable at 9.1%, slightly above expectations.

Outlook and guidance

• Entered 2HFY25 with a strong pipeline exceeding $3.4 billion and robust order backlog expected to support continued revenue growth.

• Focus remains on maintaining commercial office market share while expanding in non-office sectors such as health, education, retail, and defence.

• Expectation of continued margin improvement as higher-margin verticals (e.g., modular) expand.

• Growth strategy includes service offering expansion (notably modular and Design & Build) and further geographic expansion.

• Macro trends like population growth and government investment expected to support sector growth.