Quick Take: H1FY25 ASX:SHA - Stocks Under The Hood

SHAPE Australia – 2025 Interim Results Summary

Overview

SHAPE Australia Corporation Limited (ASX: SHA) delivered a strong first-half performance, with record revenue growth of 15.4% and a 25.6% increase in net profit after tax (NPAT). The company continues to expand its presence in non-office sectors, new geographic locations, and service offerings, positioning itself for sustained growth.

Financial Performance (Per Share Basis Where Applicable)

Metric	31 Dec 2024	31 Dec 2023	% Change
Revenue ($’000)	478,985	415,201	+15.4%
EBITDA ($’000)	14,789	12,239	+20.8%
Operating Cash Flow ($’000)	31,978	17,557	+82.1%
Earnings Before Tax ($’000)	13,656	10,846	+26.0%
Normalised EPS (cents)	11.36	8.99	+26.4%
Net Tangible Assets per Share (cents)	30.70	24.05	+27.7%

Key Highlights and Concerns

Record revenue of $505.6M (including associate revenue), supported by strong project wins of $531.5M.
Gross margin remained stable at 9.1%, indicating strong cost control.
Significant growth in non-office sectors, particularly Defence, Education, and Healthcare, contributing $168.1M in revenue.
Cash and marketable securities increased by 21.5% to $118.9M, enhancing financial flexibility.
Challenges in facade remediation projects, with a significant decline in project wins in this segment.

Outlook Commentary

SHAPE expects continued revenue growth in 2H FY25, supported by a strong order backlog of $516M.
Expansion in Gold Coast, Newcastle, and Tasmania is set to drive geographic growth.
The Defence sector rebound presents a strong pipeline of work opportunities.
The company is focused on enhancing its modular and design & build services to diversify revenue streams.

Guidance Statements

The company declared a fully franked interim dividend of 10.0 cents per share, up from 9.0 cents in the previous period.
Management remains optimistic about maintaining margin stability while growing revenue across diversified segments.
SHAPE anticipates strong client retention and repeat business, as reflected in its high Net Promoter Score (NPS) of +88.

Result vs. Market Expectations

The results were broadly in line with market expectations, with higher-than-expected profit growth.
Positive cash flow and increased dividend could support further share price appreciation.
Investors will likely focus on continued expansion in non-office sectors and improvement in new business segments.

Market Positioning

SHAPE’s share price heading into the report was steady, with limited volatility.
The market will be keen on management’s execution of its geographic and service expansion strategy to drive future earnings growth.

Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.

Quick Take: H1FY25 ASX:SHA