The company has delivered a 12-month share price return of 114.9%, and according to Shaw and Partners' analyst team, there's more upside to be had.

So what does the company do?

As the Shaw team explains:

Shape is a national construction services specialist focused on commercial fit outs, refurbishments, modular construction, façade remediation, and select new build projects. Founded in 1989 and listed on the ASX in 2021, SHA operates across all Australian states and maintains strong client loyalty, with about 81% of revenue from repeat clients.

Shape's most recent first-half results indicate a company that is travelling well.

The company reported first-half revenue of $553.3 million, up 16% on the previous corresponding period, and net profit of $14 million, up 49%.

Shape Chief Executive Officer Peter Marix-Evans said it was a strong result:

Our diversification strategy continues to deliver tangible results, particularly our expansion into non-office sectors. Additionally, during the half, project wins in the education sector increased 170% to $153.5 million, driven by a combination of fitout and refurbishment work in the tertiary category and modular projects in schools. We also saw momentum in emerging sectors, with the industrial and data centres sectors achieving a combined $137.4 million in project wins, compared with $7.0 million in 1HFY25, and further expansion into aged care with project wins of $57.5 million.

The company said it was well-placed going into the second half with backlog orders up 33% and a diversified pipeline of projects.

The Shaw team said the company had done a good job of diversifying its work streams.

Aided by acquisitions, Shape has diversified its sector exposure into more resilient sectors including healthcare, defence, education, hospitality, and retail, and has expanded into solutions that capture more of the project lifecycle such as design & build and aftercare/facilities maintenance. This strategic shift contributed to its impressive financial results.

Shaw said Shape had a market-leading position in high margin fit out and a strong pipeline and net cash position.

Shares looking cheap

The Shaw analysts recently upgraded their price target for Shape from $7.40 to $8.25 per share, compared with $6.49 currently.

Shape also pays a dividend yield of 3.07%.

Shape was valued at $541.9 million at the close of trade on Tuesday.

The post After more than doubling over the past year one broker sees more upside for this ASX small-cap stock appeared first on The Motley Fool Australia.

At the time of writing, shares in the fitout and construction services specialist are trading around $6.51, down from a high of $7.59 in mid-February following the release of its latest half-year results.

Despite that modest pullback, the company's first-half FY26 result showed continued revenue growth, improving margins, and expanding opportunities in new markets.

Let's take a closer look at what's driving the company's momentum.

Strong revenue and profit growth in 1H FY26

Shape reported revenue of $553.3 million for the six months to December, representing a 16% increase compared with the prior corresponding period.

Profitability also improved significantly during the half:

• Operating earnings (EBITDA) rose 45% to $21.4 million
• Net profit after tax (NPAT) climbed 49% to $14 million
• Earnings per share (EPS) increased to 16.8 cents

Management attributed the result to a diversified order book, disciplined cost management, and strong project execution.

Margins also improved during the period, with gross margin lifting to 9.8% from 9.1% in the prior corresponding period.

In addition, the company declared an interim dividend of 14 cents per share, which represented a 40% increase on the prior year's payout.

Diversification strategy starting to pay off

A key theme in Shape's strategy is diversification beyond its traditional office fitout market.

The company is increasingly targeting sectors such as education, industrial, data centres, aged care, and retail, which management believes can provide more stable demand and improved margins.

For example, project wins in the education sector surged 170% to $153.5 million during the half.

Meanwhile, emerging segments are also gaining traction. The industrial and data centre sectors delivered $137.4 million in project wins, compared with just $7 million a year earlier.

Another growth area is "Modular by SHAPE", the company's modular construction business. Revenue from this division reached $38.7 million in the first half, already exceeding the $16.4 million generated for the entire FY25.

Acquisition expands addressable market

Shape also completed the acquisition of Arden Group in December 2025, a national retail fitout and maintenance specialist.

Management believes this deal could open new opportunities, particularly in multi-site rollout projects across fuel and convenience retail networks.

The acquisition is also expected to provide recurring maintenance revenue and cross-selling opportunities, potentially improving the group's overall margin profile over time.

A strong pipeline heading into the second half

Looking ahead, the company appears well-positioned for the remainder of FY26.

Shape reported a backlog of $686.1 million, 33% higher than the prior year, along with an identified project pipeline of approximately $3.8 billion.

Management also noted that the Arden acquisition only contributed one month of earnings in the first half, meaning the second half of the financial year should reflect a fuller contribution.

Combined with growing demand in areas such as modular construction and data centres, this could support further growth in revenue and earnings.

Foolish bottom line

Shape's recent results highlight a company that is expanding its capabilities, improving margins, and diversifying into new markets.

While the share price has eased from its February highs, the underlying business continues to show steady operational progress.

For investors watching the small-cap construction space, Shape Australia's growing pipeline, expanding modular division, and new retail capabilities could make the company one to keep on the radar as FY26 unfolds.

The post This ASX small cap could be in a sweet spot for construction demand appeared first on The Motley Fool Australia.

The fast-rising stock in question is Shape Australia Corporation Limited (ASX: SHA).

In early afternoon trade on Monday, shares in the Australian fitout and construction services specialist are up 0.2%, changing hands for $6.01 apiece.

This sees the Shape share price up an impressive 109.4% since this time last year.

After that kind of outperformance, you might think the train has left the station when it comes to buying this ASX All Ords share.

But the analysts at Ord Minnett would disagree.

Should you buy the ASX All Ords share today?

Ord Minnett initiated coverage on Shape shares on 12 December with a buy recommendation.

The broker noted that Shape's national footprint, comprehensive service offering, and quality focus make it stand out in its sector.

So, what exactly does the ASX All Ords share do?

Ord Minnett explains:

The company specialises in transforming existing commercial, government, education, healthcare, and retail spaces into modern, functional, and aesthetically pleasing environments that meet the evolving demands of their occupants.

As for the three reasons that Shape shares can keep charging higher in 2026, the broker noted:

• Shape's defensive qualities have it well-positioned to withstand and excel throughout the economic cycle
• The company's track record of quality execution and how this drives future growth
• Shape's capital-lite model and how this maximises its returns

Taking a look back, Ord Minnett also highlighted the strong annual revenue growth the ASX All Ords share has achieved over the past four years.

According to the broker:

Since listing in [late] 2021, the business has grown its revenue from $572.0m in FY21 to $952.3m in FY25, delivering a normalised EPS CAGR growth of 64% p.a. over that time.

And the past year has been particularly strong for the company. Ord Minnett noted:

2025 has been a defining year for SHAPE – the company has been buoyed by a record orderbook of $492.0m entering FY26 that continues to diversify its end markets, a revenue step change in FY26 (revenue +19.5% vs pcp), and a highly accretive acquisition (OMLe ~13% in FY27, given bought at 4x EV/EBITDA whilst SHA trades on 9x) that expands SHAPE's EBITDA profile and diversifies its revenue streams.

As for its buy rating on the ASX All Ords share, Ord Minnett concluded:

We expect FY26 to be another year of strong topline growth as the company capitalises on a strong backlog orderbook and key project wins in FY25, as well as EBITDA margin expansion through operating leverage and M&A.

Noting that the investment in Shape shares comes with higher risk, Ord Minnett has a $7.10 price target on the stock.

That's more than 18% above current levels.

The post Up 109% in a year, 3 reasons to buy this ASX All Ords share today appeared first on The Motley Fool Australia.

SHAPE Australia Corporation Ltd (ASX: SHA) has been quietly expanding its presence in the construction sector. Once best known for high-end office fitouts, the company is now diversifying into new markets and capabilities and the numbers suggest the strategy is gaining traction.

A company in transition

For more than 35 years, SHAPE has delivered fitouts and refurbishments for clients across Australia. Today, it also provides modular builds, façade remediation, new construction, and specialist services such as defence projects. Its client base spans commercial offices, healthcare, education, government, and hospitality.

This diversification has broadened SHAPE's reach and reduced reliance on the traditional office sector. Services like Design & Build and Aftercare & Facilities Maintenance (AFM by SHAPE) are also gaining traction, providing recurring revenue opportunities and deeper client relationships.

Financial performance

The company's FY25 results highlight strong momentum:

• Revenue: $956.9 million, up 14% on the prior year.
  
• Operating earnings (EBITDA): $32.7 million, up 26%.
  
• Net profit after tax (NPAT): $21.1 million, up 32%.
  
• Dividends: 22.5 cents per share, up from 17 cents.
  
  

SHAPE ended the year with $128.3 million in cash and marketable securities, providing flexibility for growth and project delivery. Its backlog orders stood at $492.4 million, supported by a healthy $4.0 billion identified pipeline, up 25% year-on-year.

Management also notes that gross margins typically expand as projects near completion. With most of its contracts being shorter in duration, SHAPE is structurally positioned to benefit from this dynamic.

Investors have already begun to take notice. The SHAPE share price has surged more than 69% over the past 12 months, highlighting the market's growing confidence in its strategy.

Of course, past performance is never a guarantee of what comes next. However, momentum like this can sometimes indicate a company that is executing well and beginning to gain broader recognition.

Operational achievements

FY25 saw $981.6 million in new project wins, including significant contracts in education and health. Regional expansion also played a role. New offices in Geelong and Townsville were established, with regional operations generating $128 million in revenue. The Gold Coast operation delivered 185% revenue growth, underlining the potential in non-metro markets.

Clients and culture

One of SHAPE's greatest strengths is its client loyalty. The company consistently achieves a Net Promoter Score of +85 to +88, with around 86% of projects rated as "Perfect Delivery". More than 80% of work comes from repeat clients, a sign of trust and satisfaction in its service.

This culture has been recognised with industry awards, while safety performance and people development remain ongoing priorities.

Foolish takeaway

SHAPE Australia may not be a household name, but it is building a strong case as a small-cap growth story. With double-digit profit growth, a sizeable pipeline, expanding regional footprint, and deep client relationships, the company is positioning itself to benefit from long-term demand in sectors like education, health, and defence.

For investors seeking opportunities beyond the ASX 200 giants, SHAPE could be one to watch as it continues to scale.

The post This Australian stock could be the hidden gem of the decade appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

BWP Trust (ASX: BWP)

The BWP share price is up 2% to $3.65. This morning, this Bunnings Warehouse focused property company announced its distribution for the six months ended 30 June. It stated: "In accordance with the Trust's constitution the distributable amount will be distributed. The estimated distribution, based on unaudited accounts, is 9.45 cents per unit. It is expected that there will be no conduit foreign income included in the distribution."

Metcash Ltd (ASX: MTS)

The Metcash share price is up 3% to $3.81. Investors have been buying this wholesale distributor's shares following the release of its full year results. Metcash reported an 8.9% increase in revenue to $17.3 billion, or 7.2% to $19.5 billion when including charge-through sales. On the bottom line, its underlying profit after tax slipped 2.4% to $275.5 million. However, this was in line with its guidance range of $273 million to $277 million. A fully franked final dividend of 9.5 cents per share was declared. Metcash also reported that it has started FY 2026 strongly.

Resolute Mining Ltd (ASX: RSG)

The Resolute Mining share price is up 5% to 62.5 cents. This may have been driven by a broker note out of Ord Minnett this morning. According to the note, the broker has upgraded the gold miner's shares to a buy rating with an improved price target of $1.00. Based on its current share price, this implies potential upside of 60% for investors over the next 12 months. It made the move after lifting its earnings estimates for the medium term.

SHAPE Australia Corp Ltd (ASX: SHA)

The SHAPE Australia share price is up 6.5% to $4.14. This morning, the national fit-out and construction services specialist released a trading update that went down well with investors. SHAPE revealed that net profit after tax is expected to be between up $20.5 million to $21.5 million. The midpoint of this guidance range represents an increase of 31% year on year. SHAPE's CEO, Peter Marix-Evans, commented: "SHAPE delivered strong improvements across key financial and operational metrics in FY25. Starting the year with a robust project backlog, we were well-positioned to grow revenue and deliver strong profit outcomes. That momentum has continued throughout the year, with strong project wins secured, laying a solid foundation for continued growth in FY26."

The post Why BWP, Metcash, Resolute Mining, and SHAPE shares are pushing higher today appeared first on The Motley Fool Australia.