Shimmick sees FY25 revenue up 10%-15%
Financial Outlook: Shimmick (SHIM) anticipates a gross margin of 9%-12% and an adjusted EBITDA of $15M-$25M for FY25, highlighting strong liquidity and a lower-risk portfolio moving into 2025.
Growth Strategy: The company plans to leverage an expanded pipeline of opportunities, enhance project performance, and invest in its workforce, aiming for sustained growth following the resolution of legacy issues in 2024.
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Shimmick Secures $256 Million in New Infrastructure Projects
- Total Project Value: Shimmick has secured approximately $256 million in new infrastructure projects in California and Texas, indicating a successful advancement of its expansion plans within the water and electrical infrastructure sectors.
- California Project: The company was awarded the Vista Grande Drainage Basin Improvements Project valued at about $180 million, which will modernize the region's stormwater infrastructure through the construction of a large underground drainage tunnel and new conveyance structures, thereby enhancing drainage efficiency during heavy rainfall events.
- Flood Protection Initiative: Shimmick also secured the Napa River/Napa Creek Flood Protection Project, valued at approximately $32 million, aimed at bolstering flood protection in the area and further solidifying its position in California's infrastructure market.
- Texas Expansion: In Texas, Shimmick was selected as a subcontractor for the Walnut Creek Wastewater Treatment Plant Expansion Project, valued at around $44 million, showcasing the company's competitiveness in risk-managed construction projects.
Shimmick Corporation Q4 2025 Earnings Call Highlights
- Significant Revenue Growth: Shimmick Corporation reported consolidated revenue of $493 million for 2025, with a gross margin of 7% and adjusted EBITDA of $5 million, reflecting substantial progress in its transformation, particularly with core project revenue constituting 75% of total revenue.
- Strong Backlog: As of Q4 2025, Shimmick's backlog reached $793 million, with expectations for a book-to-burn ratio above 1 in Q1 2026, indicating the company's sustained competitiveness in core sectors like water and electrical construction.
- Operational Efficiency Improvements: Enhancements in project controls, procurement, and analytics led to an increase in gross margin from negative 20% to 10% in Q4 2025, while G&A expenses decreased by 32% year-over-year, laying a solid foundation for future profitability.
- Optimistic Outlook: Management forecasts revenue growth of 12% to 22% for 2026, equating to approximately $550 million to $600 million, with adjusted EBITDA projected to increase between 200% and 500%, demonstrating confidence in future market opportunities and operational discipline.
Shimmick Q4 Earnings Miss Expectations
- Disappointing Earnings: Shimmick reported a Q4 non-GAAP EPS of -$0.07, missing expectations by $0.03, indicating challenges in profitability that could affect investor confidence.
- Revenue Decline: The company’s Q4 revenue of $100 million represents a 3.8% year-over-year decline, falling short of the expected $109 million, reflecting weak market demand that may hinder future growth.
- Fiscal Year 2026 Outlook: Shimmick anticipates consolidated revenue between $550 million and $600 million for FY 2026, with a midpoint year-over-year growth of 17%, indicating cautious optimism for future growth but requiring close monitoring of market conditions.
- EBITDA Growth Expectations: The company expects consolidated adjusted EBITDA to range from $15 million to $30 million, with a midpoint year-over-year growth of 350%, suggesting potential in cost control and operational efficiency that could lay the groundwork for future profitability.
Wednesday's Underperforming Sectors: Computer Peripherals and Construction Stocks
Market Performance: Construction shares are lagging behind the market, down approximately 2.3% overall.
Leading Declines: Sterling Infrastructure and Shimmick are the primary contributors to this decline, with losses of about 7.5% and 5.6%, respectively.
Sector Laggards: The report also mentions that computer peripherals are among the sectors experiencing declines on the same day.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
Shimmick Corporation (SHIM) Reports Q2 Loss, Tops Revenue Estimates
Quarterly Performance: Shimmick Corporation reported a quarterly loss of $0.14 per share, better than the expected loss of $0.16, with revenues of $128.4 million surpassing estimates by 6.03%. The company has exceeded consensus EPS and revenue estimates three times in the last four quarters.
Market Outlook: Despite underperforming the market with a 15.4% decline this year, Shimmick's future stock performance will depend on management's commentary and earnings estimate revisions, currently holding a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Shimmick Preferred Bidder on $156 Million in New Infrastructure Contracts Across California
New Contracts Awarded: Shimmick Corporation has been selected as the preferred bidder for four contracts totaling approximately $156 million, with a significant portion allocated to electrical work, reflecting the company's growing demand for integrated infrastructure solutions.
Project Details: The projects include vital upgrades in wastewater infrastructure and electrical distribution systems across various locations in California, aimed at enhancing operational safety, reliability, and modernizing essential services.
Shimmick Secures $256 Million in New Infrastructure Projects
- Total Project Value: Shimmick has secured approximately $256 million in new infrastructure projects in California and Texas, indicating a successful advancement of its expansion plans within the water and electrical infrastructure sectors.
- California Project: The company was awarded the Vista Grande Drainage Basin Improvements Project valued at about $180 million, which will modernize the region's stormwater infrastructure through the construction of a large underground drainage tunnel and new conveyance structures, thereby enhancing drainage efficiency during heavy rainfall events.
- Flood Protection Initiative: Shimmick also secured the Napa River/Napa Creek Flood Protection Project, valued at approximately $32 million, aimed at bolstering flood protection in the area and further solidifying its position in California's infrastructure market.
- Texas Expansion: In Texas, Shimmick was selected as a subcontractor for the Walnut Creek Wastewater Treatment Plant Expansion Project, valued at around $44 million, showcasing the company's competitiveness in risk-managed construction projects.
Shimmick Corporation Q4 2025 Earnings Call Highlights
- Significant Revenue Growth: Shimmick Corporation reported consolidated revenue of $493 million for 2025, with a gross margin of 7% and adjusted EBITDA of $5 million, reflecting substantial progress in its transformation, particularly with core project revenue constituting 75% of total revenue.
- Strong Backlog: As of Q4 2025, Shimmick's backlog reached $793 million, with expectations for a book-to-burn ratio above 1 in Q1 2026, indicating the company's sustained competitiveness in core sectors like water and electrical construction.
- Operational Efficiency Improvements: Enhancements in project controls, procurement, and analytics led to an increase in gross margin from negative 20% to 10% in Q4 2025, while G&A expenses decreased by 32% year-over-year, laying a solid foundation for future profitability.
- Optimistic Outlook: Management forecasts revenue growth of 12% to 22% for 2026, equating to approximately $550 million to $600 million, with adjusted EBITDA projected to increase between 200% and 500%, demonstrating confidence in future market opportunities and operational discipline.
Shimmick Q4 Earnings Miss Expectations
- Disappointing Earnings: Shimmick reported a Q4 non-GAAP EPS of -$0.07, missing expectations by $0.03, indicating challenges in profitability that could affect investor confidence.
- Revenue Decline: The company’s Q4 revenue of $100 million represents a 3.8% year-over-year decline, falling short of the expected $109 million, reflecting weak market demand that may hinder future growth.
- Fiscal Year 2026 Outlook: Shimmick anticipates consolidated revenue between $550 million and $600 million for FY 2026, with a midpoint year-over-year growth of 17%, indicating cautious optimism for future growth but requiring close monitoring of market conditions.
- EBITDA Growth Expectations: The company expects consolidated adjusted EBITDA to range from $15 million to $30 million, with a midpoint year-over-year growth of 350%, suggesting potential in cost control and operational efficiency that could lay the groundwork for future profitability.
Wednesday's Underperforming Sectors: Computer Peripherals and Construction Stocks
Market Performance: Construction shares are lagging behind the market, down approximately 2.3% overall.
Leading Declines: Sterling Infrastructure and Shimmick are the primary contributors to this decline, with losses of about 7.5% and 5.6%, respectively.
Sector Laggards: The report also mentions that computer peripherals are among the sectors experiencing declines on the same day.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
Shimmick Corporation (SHIM) Reports Q2 Loss, Tops Revenue Estimates
Quarterly Performance: Shimmick Corporation reported a quarterly loss of $0.14 per share, better than the expected loss of $0.16, with revenues of $128.4 million surpassing estimates by 6.03%. The company has exceeded consensus EPS and revenue estimates three times in the last four quarters.
Market Outlook: Despite underperforming the market with a 15.4% decline this year, Shimmick's future stock performance will depend on management's commentary and earnings estimate revisions, currently holding a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Shimmick Preferred Bidder on $156 Million in New Infrastructure Contracts Across California
New Contracts Awarded: Shimmick Corporation has been selected as the preferred bidder for four contracts totaling approximately $156 million, with a significant portion allocated to electrical work, reflecting the company's growing demand for integrated infrastructure solutions.
Project Details: The projects include vital upgrades in wastewater infrastructure and electrical distribution systems across various locations in California, aimed at enhancing operational safety, reliability, and modernizing essential services.
