SHAPE Australia (SHA) H1 2026 earnings summary

Executive summary

• Revenue for 1HFY26 reached $553.3 million, up 16% year-over-year, with EBITDA rising 45% to $21.4 million and net profit after tax up 49% to $14.0 million, reflecting strong project outcomes and cost control.

• Project wins totaled $742 million, up 39%, and backlog orders increased 33% to $686.1 million, supporting strong revenue visibility.

• The acquisition of Arden Group in December 2025 expanded capabilities in facilities maintenance, retail fitout, and national rollout programs, with integration progressing well.

• Earnings per share increased 48% to 16.8 cents, and declared dividends per share rose 40% to 14.0 cents.

• Gross margin improved to 9.8%, and overheads as a percentage of revenue decreased to 6.9%, indicating operational efficiency.

Financial highlights

• Cash and marketable securities stood at $136.4 million, up 6% year-over-year, with restricted cash at $24.4 million as of 31 December 2025.

• Identified project pipeline reached $3.8 billion, up 18% from the prior period.

• Tender conversion rate remains strong at 48% by number.

• Operating cash flow to EBITDA conversion at 151%.

• Declared and paid dividends reflect strong cash generation and capital management.

Outlook and guidance

• Entering 2H FY26 with a robust $3.8 billion pipeline and $686.1 million order backlog, prioritizing sector diversification, regional expansion, and capability growth, especially in modular and aftercare services.

• Modular market expected to grow, with organic expansion prioritized and facility utilization near peak in Victoria and South Australia.

• Arden's higher-margin profile anticipated to positively impact group margins in H2.

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

• Order book multiplier expected to trend below 2 due to larger project composition.