How SHAPE Australia Doubled Modular Revenue Amid $336M Project Surge
SHAPE Australia kicks off FY26 with a 40% jump in project wins and a 17% rise in backlog orders, driven by strong modular construction growth and regional momentum.
- Project wins increase 40% to $336 million in Q1 FY26
- Backlog orders grow 17% to $577.2 million
- Modular construction revenue doubles to $14.5 million
- Victorian operations secure $116 million in wins, including largest state project
- Robust pipeline of $1.6 billion in known opportunities over next 120 days
Strong Start to FY26
SHAPE Australia Corporation Limited (ASX – SHA) has reported a robust trading update for the first quarter of FY26, continuing the positive momentum established in the previous financial year. The company secured $336 million in project wins during Q1, marking a substantial 40% increase compared to the same period last year. This surge underscores SHAPE’s effective strategy in converting opportunities into secured contracts.
Backlog and Pipeline Expansion
Backlog orders have climbed 17% to $577.2 million, up from $492.4 million at the end of FY25. This growing backlog provides a solid foundation for revenue visibility and operational planning. Meanwhile, the company’s pipeline of known project opportunities remains strong at approximately $1.6 billion over the next 120 days, with an overall pipeline reaching $4.2 billion. These figures highlight SHAPE’s sustained ability to identify and pursue high-quality projects across its diverse portfolio.
Modular Construction and Regional Highlights
SHAPE’s modular construction division has emerged as a key growth driver, doubling its revenue to $14.5 million in Q1 compared to the prior corresponding period. This growth reflects the company’s strategic focus on diversification and innovation within the construction sector. Regionally, Victorian operations stood out by securing $116 million in project wins, including SHAPE’s largest project to date in the state. This achievement signals a resurgence in the Victorian office market and demonstrates SHAPE’s agility in allocating resources to capitalize on regional opportunities.
Outlook and Strategic Focus
CEO Peter Marix-Evans expressed confidence in the company’s trajectory, emphasizing the importance of attracting and retaining skilled personnel to meet the demands of an expanding project pipeline. With a strong backlog and a diversified portfolio spanning commercial, defence, education, health, hospitality, and retail sectors, SHAPE is well-positioned to deliver continued growth and operational excellence throughout FY26.
Bottom Line?
SHAPE’s expanding backlog and pipeline set the stage for sustained growth, but execution on large projects and workforce retention will be key to maintaining momentum.
Questions in the middle?
- How will SHAPE manage resource allocation to sustain growth across regions and divisions?
- What risks could impact the conversion of the $1.6 billion pipeline into secured contracts?
- How will modular construction evolve within SHAPE’s broader strategy and market demand?
