How SHAPE Australia Boosted Profit 32% While Expanding Modular Construction

Strong Financial Performance Amid Strategic Transformation

SHAPE Australia Corporation Limited has delivered a standout financial year for FY25, underscoring the success of its strategic evolution from a fitout and refurbishment specialist into a diversified construction services leader. The company reported a 14.1% increase in revenue to $956.9 million, buoyed by a robust project backlog and a broadening of its service offerings.

Profitability metrics were equally impressive, with EBITDA climbing 26.3% to $32.7 million and net profit after tax (NPAT) surging 31.9% to $21.1 million. Earnings per share rose sharply by 32.8% to 25.52 cents, reflecting operational efficiencies and disciplined cost management that saw overheads decline as a percentage of revenue.

Geographic and Sector Expansion Drive Growth

SHAPE’s growth strategy has been underpinned by geographic expansion, with new regional offices established in Geelong and Townsville complementing existing hubs in Newcastle, Gold Coast, and Hobart. These regional operations contributed nearly $129 million in revenue and $89 million in project wins during FY25, signaling strong local market traction.

Sector diversification has also been a key driver, with project wins in non-office sectors; including health, education, retail, hotels, and Defence; increasing by 25% to $497.3 million. Defence sector wins alone rose 17% to $74.6 million, highlighting SHAPE’s growing reputation in complex and secure project delivery.

Innovative Service Offerings Gain Momentum

SHAPE’s investment in modular construction has paid dividends, with project wins more than doubling to $78 million. The company’s modular facilities in Victoria and South Australia have been pivotal in delivering rapid, cost-effective solutions across multiple states. Additionally, the Design & Build service, launched in FY24, generated $50 million in revenue, while facade remediation and aftercare services continued steady growth.

Operational excellence is reflected in SHAPE’s safety performance, with Total Recordable Injury Frequency Rate (TRIFR) improving to 5.7 and Lost Time Injury Frequency Rate (LTIFR) halving to 0.7, both outperforming industry averages. Employee engagement remains high, with a 7% workforce increase and a gender diversity ratio maintained at 29%.

Financial Strength Supports Shareholder Returns

SHAPE’s balance sheet remains robust, with cash and marketable securities rising 30% to $128.3 million, providing flexibility to capitalize on market opportunities and maintain strong supplier and client confidence. The company declared a fully franked final dividend of 12.5 cents per share, lifting total dividends for FY25 by 32.4% to 22.5 cents per share.

Board renewal is underway with the retirement of long-serving Non-Executive Director Michael Barnes and the anticipated appointment of Peter Massey, whose expertise in mergers and acquisitions is expected to support SHAPE’s ongoing growth ambitions.

Outlook – Sustained Growth with Strategic Focus

Looking ahead, SHAPE remains confident in its ability to navigate evolving market dynamics. The company’s solid $492 million backlog and $4 billion pipeline, combined with its diversified service portfolio and geographic footprint, position it well to capture opportunities across both office and non-office sectors. Continued focus on innovation, safety, and sustainability will be critical as SHAPE seeks to enhance shareholder value and maintain its status as a preferred national construction partner.