SHAPE Australia (SHA) H2 2024 earnings summary

Executive summary

• Achieved record financial performance in FY 2024, with NPAT up 53% to $16.0m and EBITDA up 33% to $25.9m, despite a 2.7% revenue decline to $838.7m due to project delays and extended tender periods.

• Project wins totaled $947.3m, up 18%, and backlog orders reached a record $457.4m, up 33%, positioning the company for future growth.

• Diversified operations across 13 locations, with strategic expansion into non-office sectors (Hotels, Health, Education, Defence) and new service lines such as aftercare, facilities maintenance, and design & build.

• Maintained high client satisfaction, with a Net Promoter Score of +88 and 84–85% repeat business.

• Cash and marketable securities increased 8.9% to $98.6m, supporting strong liquidity and dividend growth.

Financial highlights

• Gross margin improved from 7.6% to 9.1%, reflecting better trading conditions and project mix.

• EBITDA margin rose to 3.09% from 2.25% year-over-year.

• Earnings per share increased to 19.2c, up 53% year-over-year; total FY24 dividend declared at 17c per share, up 48%.

• Average daily cash and marketable securities balance for FY24 was $74.8m, with a high of $104.3m.

• Return on cash and marketable securities was $3.5m in FY24, up from $2.4m.

Outlook and guidance

• Entering FY25 with the highest backlog order book in company history, supporting a robust revenue pipeline.

• No formal forward profit guidance, but management expects no significant deviation in NPAT margin for FY25.

• Growth targeted in non-office sectors and modular segment, with modular expected to be earnings accretive in FY25.

• Defence sector project wins anticipated to recover as government spending resumes.

• Geographic expansion in Gold Coast, Newcastle, and Tasmania, with regional project wins up 211% and revenue up 60%.