- 01DigiCo’s ~$800m award lifts SHAPE’s backlog above $1.5b.
- 02Adds ~$200m revenue in each of FY27 and FY28.
- 03Q1 project wins rose to $504.6m; modular revenue grew 42%.
SHAPE Australia (ASX: SHA) has lifted its contracted project backlog above $1.5 billion following a major data centre award, extending the momentum generated during the first quarter of financial year 2027.
The construction and fitout specialist won $504.6 million of projects in the September quarter, compared with $336m in the corresponding period a year earlier.
Its order backlog stood at $762.7m at 30 September, an increase of 21% from the $628.4m recorded at the end of June.
An approximately $800m contract awarded in October by DigiCo Infrastructure REIT (ASX: DGT) subsequently pushed project wins beyond $1.4 billion and backlog above $1.5 billion as at 19 October.
Data Centre Work Expands
The DigiCo contract covers the next phase of the SYD1 data centre project, following SHAPE’s delivery of a 20-megawatt Stage 1 upgrade at the site.
The parties used an early contractor involvement process to scope, design, and price the expansion before agreeing to a fixed-cost arrangement.
SHAPE expects the contract to contribute approximately $200m of additional revenue in each of FY27 and FY28, above its forecasts before the award.
DigiCo has confirmed that the customer contract is executed, with grid capacity, water access, and State Significant Development Approval in place, while funding is available through its existing liquidity, debt facilities, and US asset sale proceeds.
A specialist delivery team of more than 50 people has been assembled, with major subcontract pricing and terms agreed to align with SHAPE’s head contract commitments.
Modular Business Builds Scale
Modular construction generated first-quarter revenue of $20.6m, up from $14.5m in the prior corresponding period, as diversification continued to support activity outside the traditional office market.
The Modular by SHAPE operation opened its Western Australian manufacturing facility and branch in Perth during October, becoming the group’s third facility nationally.
It has already won an education project after gaining a place on a WA government modular building panel supporting the Department of Education.
Regional operations contributed further project wins during the quarter, including work in Tasmania, while the expanding business reached a workforce milestone of 1,000 people in October.
Broad Opportunity Pipeline
SHAPE reported more than $1.7 billion of known project opportunities over the following 120 days and a broader pipeline exceeding $4.5 billion as at 19 October.
General manager for New South Wales James Fitzgerald is responsible for delivering the DigiCo expansion, supported by executive reviews covering progress, cost, cash flow, and risk.
The project’s contribution will be delivered alongside SHAPE’s existing construction and fitout operations, with management maintaining separate resources for its core business.
“The DigiCo contract is an important milestone for the Company, building on our successful Stage 1 delivery and detailed planning with the client,” chief executive officer Peter Marix-Evans said.
“We have established a dedicated team and clear executive oversight to manage delivery and commercial risk, while maintaining the resources supporting our core business.”
Get the wire before the market opens.
The ASX small-cap stories that matter, filed before 9am AEST. Curated by the Small Caps desk.