SHAPE Australia wins roughly $800m DigiCo contract for SYD1 expansion
SHAPE Australia says its backlog has passed $1.5 billion after DigiCo Infrastructure REIT handed it an approximately $800 million contract for the next stage of its SYD1 data centre in Sydney.
SHAPE Australia (ASX: SHA) said its backlog of contracted work was above $1.5 billion as at 19 October, after DigiCo Infrastructure REIT (ASX: DGT) awarded it a contract of about $800m in October. The award took SHAPE's project wins past $1.4 billion.
The work is the next phase of DigiCo's SYD1 data centre project, which follows SHAPE's earlier delivery of a 20-megawatt Stage 1 upgrade at the same site. Both sides ran an early contractor involvement process to define scope, design and pricing, and then settled on a fixed-cost deal. SHAPE expects the job to add about $200m of revenue in each of FY27 and FY28, on top of its earlier forecasts.
DigiCo has confirmed the customer contract is executed, and that grid capacity, water access and State Significant Development Approval are all in place. The REIT said funding comes from existing liquidity, debt facilities and proceeds from selling its US assets.
SHAPE has put together a delivery team of more than 50 specialists, and has agreed pricing and terms with major subcontractors that line up with its head contract obligations. James Fitzgerald, general manager for New South Wales, is responsible for delivery, with executive reviews covering progress, cost, cash flow and risk. Management is keeping separate resources for the core business. Chief executive Peter Marix-Evans said the contract was "an important milestone for the Company, building on our successful Stage 1 delivery and detailed planning with the client".
In the September quarter SHAPE won $504.6 million of projects, compared with $336m a year earlier. Its order backlog at 30 September was $762.7m, 21 per cent above the $628.4m recorded at the end of June.
Modular construction brought in $20.6m of first-quarter revenue, against $14.5m in the prior corresponding period. Modular by SHAPE opened a manufacturing facility and branch in Perth during October, its third nationally, and has since won an education project after securing a place on a WA government modular building panel. SHAPE also reported more than $1.7 billion of known opportunities over the following 120 days, and a wider pipeline above $4.5 billion as at 19 October.