Shimmick (SHIM)

Search documents
Shimmick Announces New Contracts in California and Washington
Globenewswire· 2025-09-16 12:30
Core Insights - Shimmick Corporation has secured approximately $78 million in new contracts for two significant infrastructure projects, the Santa Monica Pier Bridge Replacement and the Renton Transit Center, showcasing its expertise and growth on the West Coast [1][2]. Project Summaries - The Santa Monica Pier Bridge Replacement Project is valued at $29.6 million and involves replacing the 85-year-old Colorado Avenue Bridge, which is the sole access point to the Santa Monica Pier. The project includes constructing a new bridge, demolishing the old one, enhancing pedestrian access, and restoring the historic Santa Monica Pier Arched Neon Sign. The work is set to begin in Q4 2025 and is expected to be completed before the 2028 Los Angeles Summer Olympics [3]. - The Renton Transit Center Project, valued at $48.2 million, focuses on constructing a modern transit center in Renton, Washington. This project will feature a new bus bay island with eight active bays, a Battery Electric Bus (BEB) equipment yard, and roadway improvements to establish a dedicated bus-only lane. This initiative aims to enhance commuter mobility, reduce congestion, and support long-term sustainability goals for Sound Transit [4]. Company Overview - Shimmick Corporation is a leader in providing turnkey infrastructure solutions across various sectors, including water, energy, climate resiliency, and sustainable transportation. The company combines technical excellence with collaborative project delivery to offer innovative, technology-driven solutions that foster economic growth and empower communities [5].
Shimmick Corporation (SHIM) Reports Q2 Loss, Tops Revenue Estimates
ZACKS· 2025-08-14 22:56
Core Insights - Shimmick Corporation reported a quarterly loss of $0.14 per share, which was better than the Zacks Consensus Estimate of a loss of $0.16, marking an earnings surprise of +12.50% [1] - The company generated revenues of $128.4 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 6.03% and showing significant growth from $90.61 million a year ago [2] - The stock has underperformed, losing about 15.4% since the beginning of the year, while the S&P 500 has gained 10% [3] Financial Performance - Over the last four quarters, Shimmick Corporation has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $132.8 million, while for the current fiscal year, the estimate is -$0.25 on revenues of $491 million [7] Industry Context - Shimmick Corporation operates within the Waste Removal Services industry, which is currently ranked in the bottom 24% of over 250 Zacks industries [8] - The performance of the stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]
Shimmick (SHIM) - 2025 Q2 - Earnings Call Transcript
2025-08-14 22:00
Financial Data and Key Metrics Changes - For Q2 2025, the company reported revenues of $128 million, a 42% increase from $91 million in Q2 2024 [17] - Gross margin improved to $8 million, up 126% from a negative gross margin of $31 million in Q2 2024 [18] - The net loss for Q2 2025 was $8 million, significantly improved from a net loss of $51 million in Q2 2024 [20] - Adjusted EBITDA was nearly flat at negative $234,000 compared to negative $40 million in Q2 2024 [21] Business Line Data and Key Metrics Changes - Revenue from Chimik projects was $113 million, up 35% from $84 million in the previous year [17] - Non-core project revenue increased by 129% to $16 million, driven by a claim settlement from a large non-core loss project [18] - Gross margin on Chimik projects was $15 million, a 226% increase from $5 million in Q2 2024 [19] Market Data and Key Metrics Changes - The company’s total liquidity position at the end of Q2 2025 was $73 million, a $2 million increase from Q1 2025 [21] - The backlog at the end of Q2 2025 was $652 million, with Chimik projects representing 88% of the total backlog [21] Company Strategy and Development Direction - The company is focusing on a revamped strategy aimed at improving margins through projects aligned with core competencies and operational discipline [5][6] - A new electrical subsidiary, Axi Electric, was announced to target growth markets in industrial, advanced manufacturing, and data center construction [10][11] - The company aims to increase the share of electrical work in its backlog to 30% by 2027 from approximately 17% currently [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing improved bidding activity and operational improvements [12][13] - The company is confident in its ability to scale quickly and capitalize on favorable market conditions [13] - Management noted that the operating environment has improved, with bidding activity recovering and a strong pipeline of projects [12] Other Important Information - The company expects to achieve consolidated adjusted EBITDA between $5 million and $15 million for the full year 2025, down from initial guidance of $15 million to $25 million due to negative mix impacts [24] - The company is committed to a disciplined approach to bidding work that aligns with its strategic growth plan [22] Q&A Session Summary Question: Can you discuss the $4.5 billion pipeline and historical win rates? - The pipeline includes a mix of fixed price and negotiated contracts, with historical win rates around 15% for fixed price and 20% for negotiated contracts [30][32] Question: What are the current margins in backlog and future targets? - Current margins are improving, with a gradual increase expected as new work is won, targeting an average margin of around 14% moving forward [34][36] Question: How much non-core work is left for 2026? - There are two remaining non-core projects, with one expected to finish in Q4 2025 and the other in mid to late 2026 [38][39] Question: How is the company managing SG&A expenses? - The company aims to achieve an SG&A percentage of around 7.5% of revenue, with ongoing efforts to improve efficiency [62]
Shimmick (SHIM) - 2025 Q2 - Earnings Call Presentation
2025-08-14 21:00
Financial Performance - Shimmick Corporation reported revenue of $128 million, a 42% year-over-year increase, with $113 million from Shimmick Projects[8] - The company reported a gross margin of $8 million, a 126% year-over-year improvement compared to a gross margin of $(31) million in Q2 2024[8] - Shimmick Projects contributed a gross margin of $15 million, while Non-Core Projects had a gross margin of $(7) million[8] - The company recognized a net loss of $8 million and an Adjusted EBITDA of $(0.2) million, primarily due to Non-Core Projects[8] Backlog and Future Growth - The company's backlog is approximately $652 million as of July 4, 2025, with over 88% being Shimmick Projects[8] - $70 million in New Awards were added to Backlog in July 2025, and the company was selected as the preferred bidder on $164 million for a Transit Center & River Pump Station[8, 12] - Shimmick Projects revenue is expected to be in the range of $405 million to $415 million for the full fiscal year ending January 2, 2026, with an overall gross margin between 9% and 12%[31] - Non-Core Projects revenue is expected to be in the range of $80 million to $90 million, with an overall gross margin between (15%) and (5%)[31] Strategic Initiatives - The company launched Axia Electric, a dedicated electrical subsidiary, targeting growth segments including industrial, data center, and advanced manufacturing[8] - The addressable market for electrical contracting services is $100 billion per year[15]
Shimmick (SHIM) - 2025 Q2 - Quarterly Report
2025-08-14 20:11
[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section provides Shimmick Corporation's unaudited condensed consolidated financial statements and related explanatory notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This table presents the company's financial position, detailing assets, liabilities, and stockholders' deficit Condensed Consolidated Balance Sheets (In thousands) | ASSETS | July 4, 2025 | January 3, 2025 | | :-------------------------------- | :----------- | :------------ | | Cash and cash equivalents | $21,393 | $33,730 | | Restricted cash | 1,274 | 2,065 | | Accounts receivable, net | 46,536 | 42,988 | | Contract assets, current | 57,748 | 46,603 | | Prepaids and other current assets | 13,377 | 15,614 | | **TOTAL CURRENT ASSETS** | **140,328** | **141,000** | | Property, plant and equipment, net | 14,669 | 19,132 | | Intangible assets, net | 5,379 | 6,667 | | Contract assets, non-current | 5,737 | 23,517 | | Lease right-of-use assets | 22,371 | 24,232 | | Investment in unconsolidated joint ventures | 13,990 | 19,016 | | Other assets | 509 | 300 | | **TOTAL ASSETS** | **$202,983** | **$233,864** | | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | CURRENT LIABILITIES | | | | Accounts payable | $57,069 | $46,475 | | Contract liabilities, current | 53,906 | 102,524 | | Accrued salaries, wages and benefits | 28,856 | 28,950 | | Accrued expenses | 39,777 | 38,556 | | Short-term debt | 3,811 | — | | Other current liabilities | 11,335 | 13,759 | | **TOTAL CURRENT LIABILITIES** | **194,754** | **230,264** | | Long-term debt, net | 32,562 | 9,478 | | Lease liabilities, non-current | 15,520 | 15,987 | | Contract liabilities, non-current | 172 | 113 | | Contingent consideration | 4,919 | 4,686 | | Other liabilities | 4,518 | 8,010 | | **TOTAL LIABILITIES** | **252,445** | **268,538** | | STOCKHOLDERS' DEFICIT | | | | Common stock | 353 | 343 | | Additional paid-in-capital | 46,691 | 43,353 | | Retained deficit | (96,506) | (78,211) | | Non-controlling interests | — | (159) | | **TOTAL STOCKHOLDERS' DEFICIT** | **(49,462)** | **(34,674)** | | **TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT** | **$202,983** | **$233,864** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This table outlines the company's financial performance, detailing revenue, expenses, and net loss over specific periods Condensed Consolidated Statements of Operations (In thousands, except per share data) | | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :------------------------------------------------ | :---------------------------- | :----------------------------- | :---------------------------- | :----------------------------- | | Revenue | $128,402 | $90,605 | $250,512 | $210,648 | | Cost of revenue | 120,273 | 121,736 | 237,687 | 257,639 | | Gross margin | 8,129 | (31,131) | 12,825 | (46,991) | | Selling, general and administrative expenses | 15,041 | 18,723 | 29,409 | 34,891 | | Total operating expenses | 15,041 | 18,723 | 29,409 | 34,891 | | Equity in (loss) earnings of unconsolidated joint ventures | (187) | (1,854) | 539 | (1,591) | | Gain on sale of assets | 4 | 3,714 | 70 | 3,688 | | Loss from operations | (7,095) | (47,994) | (15,975) | (79,785) | | Interest expense | 1,313 | 1,496 | 2,313 | 2,393 | | Other (income) expense, net | (42) | 1,899 | (152) | 2,545 | | Net loss before income tax | (8,366) | (51,389) | (18,136) | (84,723) | | Income tax expense | — | — | — | — | | Net loss | (8,366) | (51,389) | (18,136) | (84,723) | | Net income (loss) attributable to non-controlling interests | 159 | — | 159 | (1) | | Net loss attributable to Shimmick Corporation | $(8,525) | $(51,389) | $(18,295) | $(84,722) | | Net loss attributable to Shimmick Corporation per common share Basic | $(0.25) | $(1.83) | $(0.53) | $(3.16) | | Diluted | $(0.25) | $(1.83) | $(0.53) | $(3.16) | [Condensed Consolidated Statements of Stockholders' Deficit](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Deficit) This table details changes in the company's equity, including common stock, additional paid-in capital, and retained deficit Condensed Consolidated Statements of Stockholders' Deficit (In thousands, except share data) | | Common Stock Shares | Common Stock Amount | Additional Paid-in-Capital | Retained Deficit | Non Controlling Interests | Total Stockholders' Deficit | | :-------------------------- | :------------------ | :------------------ | :------------------------- | :--------------- | :------------------------ | :-------------------------- | | **Balance as of April 4, 2025** | 34,331,514 | $344 | $45,155 | $(87,981) | $(159) | $(42,641) | | Net (loss) income | — | — | — | (8,525) | 159 | (8,366) | | Issuance of common stock | 916,910 | 9 | 8 | — | — | 17 | | Stock-based compensation | — | — | 1,528 | — | — | 1,528 | | **Balance as of July 4, 2025** | **35,248,424** | **$353** | **$46,691** | **$(96,506)** | **$—** | **$(49,462)** | | | Common Stock Shares | Common Stock Amount | Additional Paid-in Capital | Retained Earnings (Deficit) | Non Controlling Interests | Total Stockholders' Equity | | :-------------------------- | :------------------ | :------------------ | :------------------------- | :-------------------------- | :------------------------ | :------------------------- | | **Balance as of March 29, 2024** | 25,738,857 | $257 | $25,578 | $13,204 | $(921) | $38,118 | | Net loss | — | — | — | (51,389) | — | (51,389) | | Issuance of common stock | 7,971,062 | 80 | 12,658 | — | — | 12,738 | | Stock-based compensation | — | — | 969 | — | — | 969 | | **Balance as of June 28, 2024** | **33,709,919** | **$337** | **$39,205** | **$(38,185)** | **$(921)** | **$436** | | | Common Stock Shares | Common Stock Amount | Additional Paid-in-Capital | Retained Deficit | Non Controlling Interests | Total Stockholders' Deficit | | :-------------------------- | :------------------ | :------------------ | :------------------------- | :--------------- | :------------------------ | :-------------------------- | | **Balance as of January 3, 2025** | 34,271,214 | $343 | $43,353 | $(78,211) | $(159) | $(34,674) | | Net (loss) income | — | — | — | (18,295) | 159 | (18,136) | | Issuance of common stock | 977,210 | 10 | 20 | — | — | 30 | | Stock-based compensation | — | — | 3,318 | — | — | 3,318 | | **Balance as of July 4, 2025** | **35,248,424** | **$353** | **$46,691** | **$(96,506)** | **$—** | **$(49,462)** | | | Common Stock Shares | Common Stock Amount | Additional Paid-in Capital | Retained Earnings (Deficit) | Non Controlling Interests | Total Stockholders' Equity | | :-------------------------- | :------------------ | :------------------ | :------------------------- | :-------------------------- | :------------------------ | :------------------------- | | **Balance as of December 29, 2023** | 25,493,877 | $255 | $24,445 | $46,537 | $(747) | $70,490 | | Net loss | — | — | — | (84,722) | (1) | (84,723) | | Issuance of common stock | 8,216,042 | 82 | 12,793 | — | — | 12,875 | | Stock-based compensation | — | — | 1,967 | — | — | 1,967 | | Distributions to non-controlling interests | — | — | — | — | (173) | (173) | | **Balance as of June 28, 2024** | **33,709,919** | **$337** | **$39,205** | **$(38,185)** | **$(921)** | **$436** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This table summarizes the cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (In thousands) | | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :---------------------------------------------------- | :---------------------------- | :----------------------------- | | **Cash Flows From Operating Activities** | | | | Net loss | $(18,136) | $(84,723) | | Adjustments to reconcile net loss to net cash used in operating activities: | | | | Stock-based compensation | 3,318 | 1,967 | | Depreciation and amortization | 6,709 | 8,199 | | Equity in (earnings) loss of unconsolidated joint ventures | (539) | 1,591 | | Return on investment in unconsolidated joint ventures | 2,798 | 421 | | Gain on sale of assets | (70) | (3,714) | | Other | 445 | 1,478 | | Changes in operating assets and liabilities: | | | | Accounts receivable, net | (3,548) | 5,659 | | Contract assets | 6,635 | 7,996 | | Accounts payable | 10,593 | (24,508) | | Contract liabilities | (48,618) | (3,963) | | Accrued salaries, wages and benefits | (94) | 1,699 | | Accrued expenses | 1,220 | 5,176 | | Other assets and liabilities | (2,700) | 3,874 | | **Net cash used in operating activities** | **$(41,987)** | **$(78,848)** | | **Cash Flows From Investing Activities** | | | | Purchases of property, plant and equipment | (892) | (7,595) | | Proceeds from sale of assets | 118 | 11,037 | | Unconsolidated joint venture equity contributions | — | (3,460) | | Return of investment in unconsolidated joint ventures | 2,825 | — | | **Net cash provided by (used in) investing activities** | **2,051** | **(18)** | | **Cash Flows From Financing Activities** | | | | Borrowings on credit and loan agreements | 56,558 | 54,200 | | Repayments on credit and loan agreements | (28,329) | — | | Net repayments of Revolving Credit Facility | — | (14,675) | | Other | (1,421) | (1,691) | | **Net cash provided by financing activities** | **26,808** | **37,834** | | Net decrease in cash, cash equivalents and restricted cash | (13,128) | (41,032) | | Cash, cash equivalents and restricted cash, beginning of period | 35,795 | 63,910 | | **Cash, cash equivalents and restricted cash, end of period** | **$22,667** | **$22,878** | | Reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets | | | | Cash and cash equivalents | $21,393 | $22,381 | | Restricted cash | 1,274 | 497 | | **Total cash, cash equivalents and restricted cash** | **$22,667** | **$22,878** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1. Business and Organization](index=9&type=section&id=Note%201.%20Business%20and%20Organization) Shimmick Corporation, founded in 1990, operated as a regional infrastructure contractor before being acquired by AECOM in 2017. In January 2021, it became an independent company, and in November 2023, completed its initial public offering (IPO), listing on Nasdaq under 'SHIM' - Shimmick Corporation completed its initial public offering (IPO) in November 2023, and its stock is listed on the Nasdaq Capital Market under the symbol "**SHIM**"[26](index=26&type=chunk) [Note 2. Basis of Presentation and Summary of Significant Accounting Policies](index=9&type=section&id=Note%202.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) The financial statements are unaudited, prepared in conformity with GAAP and SEC rules, and include normal recurring adjustments. Certain disclosures are condensed or omitted. The company is evaluating the impact of new accounting pronouncements, ASU No. 2023-09 (Income Taxes) and ASU 2024-03 (Expense Disaggregation Disclosures), effective for annual periods beginning after December 15, 2024, and December 15, 2026, respectively - The company is evaluating the effects of ASU No. 2023-09 (Income Taxes: Improvements to Income Tax Disclosures), effective for annual periods beginning after December 15, 2024, and ASU 2024-03 (Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures), effective for annual periods beginning after December 15, 2026[33](index=33&type=chunk)[34](index=34&type=chunk) [Note 3. Revenue, Receivables and Contract Assets and Liabilities](index=11&type=section&id=Note%203.%20Revenue%2C%20Receivables%20and%20Contract%20Assets%20and%20Liabilities) This note details revenue disaggregation by contract and project types, contract balances, and the impact of estimate revisions on gross margin Revenue Disaggregated by Contract Types (In thousands) | Contract Type | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :-------------- | :---------------------------- | :----------------------------- | :---------------------------- | :----------------------------- | | Fixed-price | $102,589 | $82,313 | $205,274 | $195,379 | | Cost reimbursable | 25,559 | 7,876 | 44,574 | 14,381 | | Equipment and labor revenue | 254 | 416 | 664 | 888 | | **Total revenue** | **$128,402** | **$90,605** | **$250,512** | **$210,648** | Revenue Disaggregated by Project Types (In thousands) | Project Type | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :------------- | :---------------------------- | :----------------------------- | :---------------------------- | :----------------------------- | | Shimmick Projects | $112,619 | $83,689 | $205,773 | $173,981 | | Non-Core Projects | 15,783 | 6,916 | 44,739 | 36,667 | | **Total revenue** | **$128,402** | **$90,605** | **$250,512** | **$210,648** | Contract Balances (In thousands) | | July 4, 2025 | January 3, 2025 | Change | | :---------------------------------------------------------------- | :----------- | :-------------- | :----- | | Costs and estimated earnings in excess of billings on uncompleted contracts | $57,748 | $46,603 | $11,145 | | Retainage receivable | 5,737 | 23,517 | (17,780) | | **Total contract assets** | **63,485** | **70,120** | **(6,635)** | | Billings on uncompleted contracts in excess of costs and estimated earnings | (20,383) | (50,490) | 30,107 | | Forward loss reserve | (33,695) | (52,147) | 18,452 | | **Total contract liabilities** | **(54,078)** | **(102,637)** | **48,559** | | **Net** | **$9,407** | **$(32,517)** | **$41,924** | - Revisions in contract estimates resulted in net decreases in gross margin of **$5 million** and **$9 million** for the three and six months ended July 4, 2025, respectively, primarily due to cost increases related to delays and lower productivity on a federal lock and dam Non-Core Project[44](index=44&type=chunk) [Note 4. Joint Ventures and Variable Interest Entities](index=15&type=section&id=Note%204.%20Joint%20Ventures%20and%20Variable%20Interest%20Entities) This note provides financial information for consolidated and unconsolidated joint ventures, including their performance and related party transactions Consolidated Joint Ventures Financial Information (In thousands) | | July 4, 2025 | January 3, 2025 | | :---------------- | :----------- | :------------ | | Current assets | $10,470 | $11,063 | | Total assets | $10,470 | $11,063 | | Current liabilities | $44,216 | $63,512 | | Non-current liabilities | 3,295 | 2,433 | | Total liabilities | $47,511 | $65,945 | | | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :------- | :---------------------------- | :----------------------------- | :---------------------------- | :----------------------------- | | Revenue | $4,091 | $3,354 | $12,229 | $7,358 | Unconsolidated Joint Ventures Financial Information (In thousands) | | July 4, 2025 | January 3, 2025 | | :------------------ | :----------- | :------------ | | Current assets | $48,153 | $60,738 | | Non-current assets | 6,708 | 9,573 | | Total assets | $54,861 | $70,311 | | Current liabilities | $25,032 | $28,351 | | Total liabilities | $25,032 | $28,351 | | | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :------------ | :---------------------------- | :----------------------------- | :---------------------------- | :----------------------------- | | Revenue | $12,651 | $11,169 | $31,469 | $31,625 | | Cost of revenue | 13,579 | 17,894 | 31,599 | 38,825 | | Gross margin | $(928) | $(6,725) | $(130) | $(7,200) | | Net loss | $(928) | $(6,725) | $(130) | $(7,200) | Related Party Revenue from Unconsolidated Joint Ventures (In thousands) | | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :------- | :---------------------------- | :----------------------------- | :---------------------------- | :----------------------------- | | Revenue | $168 | $255 | $440 | $733 | Accounts Receivable, Net from Unconsolidated Joint Ventures (In thousands) | | July 4, 2025 | January 3, 2025 | | :---------------------- | :----------- | :------------ | | Accounts receivable, net | $2,058 | $2,098 | [Note 5. Property, Plant and Equipment and Intangible Assets](index=16&type=section&id=Note%205.%20Property%2C%20Plant%20and%20Equipment%20and%20Intangible%20Assets) This note details the net balances and depreciation/amortization of property, plant and equipment, and intangible assets Property, Plant and Equipment, Net (In thousands) | | July 4, 2025 | January 3, 2025 | | :------------------------------------------ | :----------- | :------------ | | Building and land | $171 | $171 | | Machinery, equipment, and vehicles | 51,967 | 51,227 | | Office equipment, software and construction in progress | 6,876 | 6,876 | | Property, plant and equipment, gross | 59,014 | 58,274 | | Accumulated depreciation | (44,345) | (39,142) | | **Property, plant and equipment, net** | **$14,669** | **$19,132** | Depreciation Expense (In thousands) | | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :------------------ | :---------------------------- | :----------------------------- | :---------------------------- | :----------------------------- | | Depreciation expense | $2,519 | $3,079 | $5,306 | $6,778 | Finite-Lived Intangible Assets, Net (In thousands) | | July 4, 2025 | January 3, 2025 | | :---------------- | :----------- | :------------ | | Trademark | $3,786 | $4,543 | | Customer contracts | 1,593 | 2,124 | | **Total** | **$5,379** | **$6,667** | Estimated Aggregate Remaining Amortization (In thousands) | Year | Amortization Expense | | :--- | :------------------- | | 2025 | $1,289 | | 2026 | 2,577 | | 2027 | 1,513 | | **Total** | **$5,379** | [Note 6. Debt](index=17&type=section&id=Note%206.%20Debt) This note outlines the company's debt structure, including new credit agreements, loan facilities, and recent amendments Total Debt Outstanding, Net (In thousands) | | July 4, 2025 | January 3, 2025 | | :-------------------------- | :----------- | :------------ | | Credit Agreement | $11,140 | $11,503 | | ACF Credit Agreement | 14,384 | — | | Ansley Loan Agreement | 14,499 | — | | Unamortized debt issuance costs | (3,650) | (2,025) | | **Total debt, net** | **$36,373** | **$9,478** | - The Credit Agreement was amended on August 8, 2025, to permit concurrent amendment to the Revolving Credit Facility and waive specified noncompliance regarding non-bonded contracts, providing borrowing capacity up to **$60 million**[54](index=54&type=chunk) - The company entered into an ACF Credit Agreement on March 12, 2025, providing a **$15 million** commitment with interest at adjusted term SOFR plus 4.50%, subject to a 2.0% floor[57](index=57&type=chunk) - The company entered into an Ansley Loan Agreement on March 31, 2025, providing **$15 million** borrowing capacity with a **12.50%** annual interest rate, secured by certain equipment[58](index=58&type=chunk)[59](index=59&type=chunk) [Note 7. Income Taxes](index=19&type=section&id=Note%207.%20Income%20Taxes) This note explains the company's income tax position, including the 0% effective tax rate and the impact of a full valuation allowance - The effective tax rate was **0%** for the six months ended July 4, 2025, and June 28, 2024, due to a full valuation allowance offsetting deferred tax provisions from current year losses[62](index=62&type=chunk)[63](index=63&type=chunk) - A valuation allowance of **$175 million** and **$170 million** was recorded as of July 4, 2025, and January 3, 2025, respectively, to recognize only the portion of the deferred tax asset that is more likely than not to be realized[67](index=67&type=chunk) - The One Big Beautiful Bill Act (OBBBA), signed on July 4, 2025, retroactively reinstates **100% bonus depreciation**, which could materially impact future income tax expense but will be fully offset by the valuation allowance[68](index=68&type=chunk) [Note 8. Stock-Based Compensation](index=21&type=section&id=Note%208.%20Stock-Based%20Compensation) This note details stock-based compensation expense, unrecognized compensation, and activity for stock options and restricted stock units - Total stock-based compensation expense was **$3 million** for the six months ended July 4, 2025, compared to **$2 million** for the six months ended June 28, 2024[71](index=71&type=chunk) Stock Option Activity (Six Months Ended July 4, 2025) | | Number of shares | Weighted average exercise price per share | Weighted average grant date fair value | Weighted average years of remaining contractual term | | :-------------------------- | :--------------- | :-------------------------------------- | :----------------------------------- | :------------------------------------------------- | | Outstanding as of January 3, 2025 | 3,337,150 | $1.26 | $0.66 | 6.3 | | Exercised | (1,245,867) | 1.26 | 0.66 | — | | Forfeited & expired | — | — | — | — | | **Outstanding as of July 4, 2025** | **2,091,283** | **$1.26** | **$0.66** | **5.8** | | Exercisable as of July 4, 2025 | 2,091,283 | $1.26 | 0.66 | 5.8 | Unvested Restricted Stock Units Activity (Six Months Ended July 4, 2025) | | Number of shares | Weighted average grant date fair value | | :------------------------ | :--------------- | :----------------------------------- | | Unvested as of January 3, 2025 | 2,617,110 | $2.88 | | Awarded | 590,252 | 1.47 | | Forfeited | — | — | | Vested | (602,433) | 2.44 | | **Unvested as of July 4, 2025** | **2,604,929** | **$2.66** | [Note 9. Earnings Per Share](index=22&type=section&id=Note%209.%20Earnings%20Per%20Share) This note presents the computation of basic and diluted earnings per share, noting the antidilutive effect of certain securities Computation of Basic and Diluted EPS (In thousands, except per share data) | | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :------------------------------------------ | :---------------------------- | :----------------------------- | :---------------------------- | :----------------------------- | | Net loss attributable to Shimmick Corporation | $(8,525) | $(51,389) | $(18,295) | $(84,722) | | Numerator for basic and diluted EPS | $(8,525) | $(51,389) | $(18,295) | $(84,722) | | Denominator for basic EPS - weighted average shares | 34,635 | 28,086 | 34,471 | 26,817 | | Effect of dilutive securities: | | | | | | Employee stock options | — | — | — | — | | Restricted stock units | — | — | — | — | | Dilutive potential common shares | — | — | — | — | | Denominator for diluted EPS - adjusted weighted average shares and assumed conversions | 34,635 | 28,086 | 34,471 | 26,817 | | Basic earnings per common share | $(0.25) | $(1.83) | $(0.53) | $(3.16) | | Diluted earnings per common share | $(0.25) | $(1.83) | $(0.53) | $(3.16) | [Note 10. Leases](index=24&type=section&id=Note%2010.%20Leases) This note provides details on lease costs, lease assets, lease liabilities, and weighted average lease terms and discount rates Lease Expenses (In thousands) | | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :------------------------------------------ | :---------------------------- | :----------------------------- | :---------------------------- | :----------------------------- | | Operating lease cost - Cost of revenue | $2,236 | $2,397 | $4,493 | $4,749 | | Operating lease cost - Selling, general and administrative expenses | 262 | 245 | 524 | 550 | | Finance lease cost - Amortization of right-of-use assets | 258 | 66 | 287 | 133 | | Finance lease cost - Interest on lease liabilities | 10 | 6 | 43 | 14 | | Short-term lease cost | 159 | 100 | 247 | 182 | | **Total lease cost** | **$2,925** | **$2,814** | **$5,594** | **$5,628** | Lease Assets and Liabilities (In thousands) | | July 4, 2025 | January 3, 2025 | | :-------------------------- | :----------- | :------------ | | Operating lease assets | $20,988 | $24,232 | | Finance lease assets | 1,383 | — | | **Total lease assets** | **$22,371** | **$24,232** | | Current Operating lease liabilities | $5,734 | $6,571 | | Current Finance lease liabilities | 322 | — | | **Total current lease liabilities** | **$6,056** | **$6,571** | | Non-current Operating lease liabilities | $14,446 | $15,987 | | Non-current Finance lease liabilities | 1,074 | — | | **Total non-current lease liabilities** | **$15,520** | **$15,987** | Weighted Average Remaining Lease Term and Discount Rate | | July 4, 2025 | January 3, 2025 | | :------------------------------------ | :----------- | :------------ | | Weighted average remaining lease term (in years): | | | | Operating leases | 4.2 | 4.3 | | Finance leases | 2.7 | — | | Weighted average discount rate: | | | | Operating leases | 7.0% | 6.9% | | Finance leases | 8.8% | — | [Note 11. Commitments and Contingencies](index=25&type=section&id=Note%2011.%20Commitments%20and%20Contingencies) This note outlines the company's commitments, including joint venture liabilities, potential liquidated damages, and significant legal proceedings - In May 2025, a lawsuit was filed against Shimmick and 10 other defendants by the Pipefitters Union, alleging **$4.7 billion** in damages for violations of the California False Claims Act related to improper work assignment and apprenticeship rules on 27 projects. Shimmick denies the claims, and the potential loss is not yet estimable[80](index=80&type=chunk) - The company obtains surety bonds for construction contracts and indemnifies third-party bonding companies for losses, granting them a security interest in accounts receivable, contract assets, and contract rights[82](index=82&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, operational results, liquidity, and capital resources [Overview](index=27&type=section&id=Overview) Shimmick Corporation is a leader in turnkey infrastructure solutions, specializing in water, energy, climate resiliency, and sustainable transportation. The company has a long history in complex water projects and became an independent entity in 2021 after being sold by AECOM, followed by an IPO in November 2023 - Shimmick is an industry leader in delivering turnkey infrastructure solutions across water, energy, climate resiliency, and sustainable transportation, with a focus on critical infrastructure projects[87](index=87&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) [Our History and Initial Public Offering](index=28&type=section&id=Our%20History%20and%20Initial%20Public%20Offering) Shimmick, founded in 1990, was acquired by AECOM in 2017 and then became an independent company in January 2021. It completed its initial public offering (IPO) on November 16, 2023, raising approximately $19 million in net proceeds, and its common stock is listed on Nasdaq under 'SHIM' - Shimmick completed its IPO on November 16, 2023, issuing **3,575,000 shares** at **$7.00 per share**, generating approximately **$19 million** in net proceeds[95](index=95&type=chunk) [Key Factors Affecting Our Performance and Results of Operations](index=28&type=section&id=Key%20Factors%20Affecting%20Our%20Performance%20and%20Results%20of%20Operations) This section discusses key factors influencing the company's performance, including seasonality, backlog, competitive bidding, cost control, and joint venture risks - Revenue is typically **lowest in Q1** and **highest in Q3** due to seasonal weather conditions impacting productivity and project schedules[98](index=98&type=chunk) - Backlog is an uncertain indicator of future revenue and earnings, as contracts are often cancelable, and estimates may prove inaccurate, potentially leading to delays or non-realization of expected revenue[99](index=99&type=chunk) - The company competes for new contracts through competitive bids and 'best value' proposals, focusing on highly technical or specialized scopes of work to gain a pricing advantage and better risk management[103](index=103&type=chunk) - Controlling project costs (payroll, equipment, materials) and SG&A expenses (including new public company costs and stock-based compensation) is crucial for profitability[105](index=105&type=chunk)[107](index=107&type=chunk) - Participation in joint ventures involves sharing expertise, risk, and resources, with liabilities often being joint and several, and requires significant upfront investments[108](index=108&type=chunk) [How We Assess Performance of Our Business](index=31&type=section&id=How%20We%20Assess%20Performance%20of%20Our%20Business) The company evaluates business performance using key financial metrics such as revenue, gross margin, SG&A expenses, joint venture equity, and net loss - Performance is assessed based on Revenue (recognized over time), Gross Margin (revenue minus contract costs, including full loss recognition for fixed-price contracts), Selling, General, and Administrative Expenses, Equity in (Loss) Earnings of Unconsolidated Joint Ventures, and Net Loss[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) This section provides a detailed comparative analysis of the company's financial results for the reported periods [Three Months Ended July 4, 2025 compared to the Three Months Ended June 28, 2024](index=32&type=section&id=Three%20Months%20Ended%20July%204%2C%202025%20compared%20to%20the%20Three%20Months%20Ended%20June%2028%2C%202024) This section compares the company's financial performance for the three months ended July 4, 2025, against the prior year period Selected Financial Data (Three Months Ended, In thousands, except percentage data) | | July 4, 2025 | June 28, 2024 | $ Change | % Change | | :------------------------------------------ | :----------- | :------------ | :------- | :------- | | Revenue | $128,402 | $90,605 | $37,797 | 42% | | Cost of revenue | 120,273 | 121,736 | (1,463) | (1)% | | Gross margin | 8,129 | (31,131) | 39,260 | (126)% | | Selling, general and administrative expenses | 15,041 | 18,723 | (3,682) | (20)% | | Loss from operations | (7,095) | (47,994) | 40,899 | (85)% | | Net loss | $(8,366) | $(51,389) | $43,023 | (84)% | | Net loss attributable to Shimmick Corporation | $(8,525) | $(51,389) | $42,864 | (83)% | Revenue and Gross Margin by Project Type (Three Months Ended, In thousands, except percentage data) | | July 4, 2025 | June 28, 2024 | $ Change | % Change | | :---------------- | :----------- | :------------ | :------- | :------- | | **Shimmick Projects** | | | | | | Revenue | $112,619 | $83,689 | $28,930 | 35% | | Gross Margin | $14,919 | $4,570 | $10,349 | 226% | | Gross Margin (%) | 13% | 5% | | | | **Non-Core Projects** | | | | | | Revenue | $15,783 | $6,916 | $8,867 | 128% | | Gross Margin | $(6,790) | $(35,701) | $28,911 | (81)% | | Gross Margin (%) | (43)% | (516)% | | | | **Consolidated Total** | | | | | | Revenue | $128,402 | $90,605 | $37,797 | 42% | | Gross Margin | $8,129 | $(31,131) | $39,260 | (126)% | | Gross Margin (%) | 6% | (34)% | | | - The **$29 million** increase in Non-Core Projects gross margin was primarily due to the settlement of a claim on a large Non-Core Loss Project, which included a revenue reduction in the prior year that did not reoccur[121](index=121&type=chunk) [Six Months Ended July 4, 2025 compared to the Six Months Ended June 28, 2024](index=33&type=section&id=Six%20Months%20Ended%20July%204%2C%202025%20compared%20to%20the%20Six%20Months%20Ended%20June%2028%2C%202024) This section compares the company's financial performance for the six months ended July 4, 2025, against the prior year period Selected Financial Data (Six Months Ended, In thousands, except percentage data) | | July 4, 2025 | June 28, 2024 | $ Change | % Change | | :------------------------------------------ | :----------- | :------------ | :------- | :------- | | Revenue | $250,512 | $210,648 | $39,864 | 19% | | Cost of revenue | 237,687 | 257,639 | (19,952) | (8)% | | Gross margin | 12,825 | (46,991) | 59,816 | (127)% | | Selling, general and administrative expenses | 29,409 | 34,891 | (5,482) | (16)% | | Loss from operations | (15,975) | (79,785) | 63,810 | (80)% | | Net loss | $(18,136) | $(84,723) | $66,587 | (79)% | | Net loss attributable to Shimmick Corporation | $(18,295) | $(84,722) | $66,427 | (78)% | Revenue and Gross Margin by Project Type (Six Months Ended, In thousands, except percentage data) | | July 4, 2025 | June 28, 2024 | $ Change | % Change | | :---------------- | :----------- | :------------ | :------- | :------- | | **Shimmick Projects** | | | | | | Revenue | $205,773 | $173,981 | $31,792 | 18% | | Gross Margin | $20,186 | $4,134 | $16,052 | 388% | | Gross Margin (%) | 10% | 2% | | | | **Non-Core Projects** | | | | | | Revenue | $44,739 | $36,667 | $8,072 | 22% | | Gross Margin | $(7,361) | $(51,125) | $43,764 | (86)% | | Gross Margin (%) | (16)% | (139)% | | | | **Consolidated Total** | | | | | | Revenue | $250,512 | $210,648 | $39,864 | 19% | | Gross Margin | $12,825 | $(46,991) | $59,816 | (127)% | | Gross Margin (%) | 5% | (22)% | | | - The **$44 million** increase in Non-Core Projects gross margin was primarily due to a claim settlement and the non-recurrence of cost increases for time and design-related schedule extensions experienced in the prior year[136](index=136&type=chunk) [Non-GAAP Financial Measures](index=36&type=section&id=Non-GAAP%20Financial%20Measures) This section presents and reconciles non-GAAP financial measures, Adjusted Net Loss and Adjusted EBITDA, used to assess core operating performance Adjusted Net Loss Reconciliation (In thousands) | | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :------------------------------------------ | :---------------------------- | :----------------------------- | :---------------------------- | :----------------------------- | | Net loss attributable to Shimmick Corporation | $(8,525) | $(51,389) | $(18,295) | $(84,722) | | Transformation costs | 725 | 2,608 | 1,440 | 2,608 | | Stock-based compensation | 1,528 | 969 | 3,318 | 1,967 | | Legal fees and other costs for Non-Core Projects | 1,434 | 2,629 | 1,094 | 5,360 | | Other | 42 | 209 | 233 | 446 | | **Adjusted net loss** | **$(4,796)** | **$(44,974)** | **$(12,210)** | **$(74,341)** | Adjusted EBITDA Reconciliation (In thousands) | | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :------------------------------------------ | :---------------------------- | :----------------------------- | :---------------------------- | :----------------------------- | | Net loss attributable to Shimmick Corporation | $(8,525) | $(51,389) | $(18,295) | $(84,722) | | Interest expense | 1,313 | 1,496 | 2,313 | 2,393 | | Income tax expense | — | — | — | — | | Depreciation and amortization | 3,249 | 3,789 | 6,709 | 8,199 | | Transformation costs | 725 | 2,608 | 1,440 | 2,608 | | Stock-based compensation | 1,528 | 969 | 3,318 | 1,967 | | Legal fees and other costs for Non-Core Projects | 1,434 | 2,629 | 1,094 | 5,360 | | Other | 42 | 209 | 233 | 446 | | **Adjusted EBITDA** | **$(234)** | **$(39,689)** | **$(3,188)** | **$(63,749)** | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the company's liquidity position, capital expenditures, and cash flow activities - As of July 4, 2025, total liquidity was **$73 million**, consisting of **$21 million** in cash and cash equivalents and **$51 million** and **$1 million** availability under the Credit Agreement and ACF Credit Agreement, respectively[158](index=158&type=chunk) Total Debt Outstanding, Net (In thousands) | | July 4, 2025 | January 3, 2025 | | :-------------------------- | :----------- | :------------ | | Credit Agreement | $11,140 | $11,503 | | ACF Credit Agreement | 14,384 | — | | Ansley Loan Agreement | 14,499 | — | | Unamortized debt issuance costs | (3,650) | (2,025) | | **Total debt, net** | **$36,373** | **$9,478** | Cash Flows Analysis (In thousands) | | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :------------------------------------------ | :---------------------------- | :----------------------------- | | Net cash used in operating activities | $(41,987) | $(78,848) | | Net cash provided by (used in) investing activities | 2,051 | (18) | | Net cash provided by financing activities | 26,808 | 37,834 | | Net decrease in cash, cash equivalents and restricted cash | (13,128) | (41,032) | | Cash, cash equivalents and restricted cash, beginning of period | 35,795 | 63,910 | | **Cash, cash equivalents and restricted cash, end of period** | **$22,667** | **$22,878** | [Backlog](index=43&type=section&id=Backlog) This section provides an overview of the company's backlog, disaggregated by customer type, contract type, and expected recognition period - As of July 4, 2025, the company had a backlog of **$652 million**, with over half of these projects in strategic target markets aligned with its strategic plan[181](index=181&type=chunk) Backlog by Customer Type (As of July 4, 2025) | Customer Type | Percentage | | :-------------- | :--------- | | State and local agencies | 70% | | Federal agencies | 12% | | Private owners | 18% | | **Total backlog** | **100%** | Backlog by Contract Type (As of July 4, 2025) | Contract Type | Percentage | | :-------------- | :--------- | | Fixed-price | 84% | | Cost reimbursable | 16% | | **Total backlog** | **100%** | Estimated Backlog Recognized (As of July 4, 2025) | Recognition Period | Percentage | | :----------------- | :--------- | | 0 to 24 months | 85% | | 25 to 36 months | 5% | | Beyond 36 months | 10% | | **Total backlog** | **100%** | [Off-Balance Sheet Arrangements](index=44&type=section&id=Off-Balance%20Sheet%20Arrangements) The company's off-balance sheet arrangements primarily involve joint venture liabilities, where each partner is typically jointly and severally liable for performance guarantees. The maximum potential amount of future payments under these guarantees cannot be estimated due to various uncertainties - In joint ventures, each partner is usually jointly and severally liable for performance guarantees, meaning the company may be liable for the entire risk, but the maximum potential amount of future payments cannot be estimated due to various factors[184](index=184&type=chunk) [Critical Accounting Estimates](index=44&type=section&id=Critical%20Accounting%20Estimates) The preparation of financial statements requires management to make estimates and judgments that affect reported amounts. The company evaluates these estimates and assumptions on an ongoing basis, and there have been no significant changes to its critical accounting estimates from those reported in its Form 10-K - There have been no significant changes in the company's critical accounting estimates from those reported in its Form 10-K[186](index=186&type=chunk) [Emerging Growth Company and Smaller Reporting Company](index=44&type=section&id=Emerging%20Growth%20Company%20and%20Smaller%20Reporting%20Company) Shimmick is an "emerging growth company" (EGC) and a "smaller reporting company" (SRC), which provides exemptions from certain SEC reporting requirements, such as auditor attestation, nonbinding advisory votes on executive compensation, and reduced financial disclosures. The company has elected to use the extended transition period for complying with new or revised accounting standards - Shimmick qualifies as an "**emerging growth company**" (EGC) and a "**smaller reporting company**" (SRC), allowing it to take advantage of scaled disclosures and exemptions from certain reporting requirements[187](index=187&type=chunk)[189](index=189&type=chunk) - The company has elected to use the extended transition period for complying with new or revised accounting standards, which may result in financial statements not being comparable to companies that comply with public company effective dates[188](index=188&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable to Shimmick Corporation as it qualifies as a "smaller reporting company" under the Exchange Act - This item is not applicable as Shimmick Corporation is a "**smaller reporting company**"[190](index=190&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective due to material weaknesses in internal control over financial reporting, with a remediation plan underway - As of July 4, 2025, the company's disclosure controls and procedures were **not effective** due to material weaknesses in internal control over financial reporting[195](index=195&type=chunk) - Material weaknesses relate to the design and operation of internal control over financial reporting, including lack of formal and effective controls over certain financial statement account balances and COSO principles[196](index=196&type=chunk) - Management is executing a remediation plan, which includes designing and implementing new entity-level, information system general, and financial reporting and business process controls, and engaging a third-party advisory firm[198](index=198&type=chunk)[199](index=199&type=chunk) [PART II. OTHER INFORMATION](index=49&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information not included in the financial statements, such as legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 11 – Commitments and Contingencies, within the unaudited condensed consolidated financial statements - Legal proceedings information is detailed in Note 11 – Commitments and Contingencies[202](index=202&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes to the risk factors disclosed in the Form 10-K[203](index=203&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report during the period - None[204](index=204&type=chunk) [Item 3. Defaults Upon Senior Securities](index=49&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities to report during the period - None[204](index=204&type=chunk) [Item 4. Mine Safety Disclosures](index=49&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) There are no mine safety disclosures required for the period - None[204](index=204&type=chunk) [Item 5. Other Information](index=49&type=section&id=Item%205.%20Other%20Information) During the fiscal quarter ended July 4, 2025, no directors or executive officers adopted, modified, or terminated any Rule 10b5-1(c) trading arrangements - No directors or executive officers adopted, modified, or terminated any Rule 10b5-1(c) trading arrangements during the fiscal quarter ended July 4, 2025[204](index=204&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section provides a comprehensive list of all exhibits filed as part of this Form 10-Q Exhibits Filed | Exhibit Number | Description | | :------------- | :---------- | | 10.1 | Amendment No. 6 to Credit, Security and Guaranty Agreement, dated August 8, 2025 | | 31.1* | Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) | | 31.2* | Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) | | 32.1 | Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350 | | 32.2 | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 | | 101.INS | Inline XBRL Instance Document | | 101.SCH | Inline XBRL Taxonomy Extension Schema Document | | 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | | 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | | 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | | 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | | 104 | Cover Page Interactive Data File |
Shimmick (SHIM) - 2025 Q2 - Quarterly Results
2025-08-14 20:09
[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Second Quarter 2025 Overview](index=1&type=section&id=Second%20Quarter%202025%20Overview) Shimmick Corporation announced its financial results for the second quarter ended July 4, 2025, highlighting its role as a leading infrastructure solutions provider in water, climate resilience, energy transition, and sustainable transportation - Company: **Shimmick Corp. (NASDAQ: SHIM)**[1](index=1&type=chunk) - Reporting Period: **Second quarter ended July 4, 2025**[1](index=1&type=chunk) - Core Business: Leading infrastructure solutions provider in water, climate resilience, energy transition, and sustainable transportation[1](index=1&type=chunk) [CEO's Strategic Commentary](index=1&type=section&id=CEO%27s%20Strategic%20Commentary) CEO Ural Yal noted positive results from strategic plan implementation, increased bidding activity, and expected strong backlog growth and improved margins in sustainable infrastructure, particularly electrical work, despite macroeconomic uncertainties and Non-Core Project delays - Strategic plan implementation is showing positive results in **2025**[3](index=3&type=chunk) - Increased bidding activity every month this year, with a 12-month bidding outlook exceeding **$4.5 billion**[3](index=3&type=chunk) - Expectation of strong backlog growth and improved margins in the profitable core business, focusing on electrical work in sustainable infrastructure[3](index=3&type=chunk) - Backlog growth and operational improvements are occurring later than expected due to slower bidding activity from previous macroeconomic uncertainties and challenges on remaining Non-Core Projects[3](index=3&type=chunk) [Key Financial & Operational Highlights](index=1&type=section&id=Key%20Financial%20%26%20Operational%20Highlights) Q2 2025 saw significant revenue growth (**42% YoY**) and a favorable gross margin turnaround, with SG&A decreasing due to the Transformation Plan, the launch of Axia Electric, and substantial backlog growth from new project wins | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :------ | :------ | :--------- | | Revenue | $128 million | $91 million | +42% | | Gross Margin | $8 million | $(31) million | +126% | | Shimmick Projects Gross Margin | $15 million | N/A | N/A | | Non-Core Gross Margin | $(7) million | N/A | N/A | | SG&A Expenses | $15 million | N/A | -20% | | Net Loss | $8 million | N/A | N/A | | Adjusted EBITDA | $(234) thousand | N/A | Nearly flat | | Liquidity (as of Jul 4, 2025) | $73 million | N/A | +$2 million from Q1 2025 | | Backlog (as of Jul 4, 2025) | $652 million | N/A | >88% Shimmick Projects | - Company launched Axia Electric, a dedicated electrical subsidiary specializing in complex electrical and power distribution solutions, targeting growth segments including industrial, data center, advanced manufacturing, and core water/wastewater markets[4](index=4&type=chunk) - Project wins in target markets will contribute to third quarter **2025** backlog, including **$70 million** in new awards added in **July 2025** and selection as preferred bidder on a **$164 million** Transit Center and River Pump Station[4](index=4&type=chunk) [Financial Results](index=2&type=section&id=Financial%20Results) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) Shimmick Corporation reported a significant improvement in Q2 **2025** consolidated financial performance, with revenue increasing by **42%** year-over-year and gross margin turning positive from a substantial loss in the prior year, alongside considerable improvements in net loss and Adjusted EBITDA | Metric (in millions) | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :--------------------------------- | :------------------------------ | :------------------------------- | :---------------------------- | :------------------------------- | | Revenue | $128 | $91 | $251 | $211 | | Gross margin | $8 | $(31) | $13 | $(47) | | Net loss attributable to Shimmick Corporation | $(9) | $(51) | $(18) | $(85) | | Adjusted net loss | $(5) | $(45) | $(12) | $(74) | | Adjusted EBITDA | $- | $(40) | $(3) | $(64) | | Diluted loss per common share attributable to Shimmick Corporation | $(0.25) | $(1.83) | $(0.53) | $(3.16) | | Adjusted diluted loss per common share attributable to Shimmick Corporation | $(0.14) | $(1.60) | $(0.35) | $(2.77) | [Segment Performance](index=2&type=section&id=Segment%20Performance) Shimmick Projects demonstrated strong growth in both revenue and gross margin, reflecting successful execution in critical infrastructure, while Non-Core Projects also saw revenue and gross margin improvements, primarily due to a claim settlement, as the company continues to wind down these legacy operations [Shimmick Projects Performance](index=2&type=section&id=Shimmick%20Projects%20Performance) Shimmick Projects revenue increased by **$29 million** (**34.5% YoY**) to **$113 million**, driven by new water and infrastructure projects and a California Palisades fire clean-up project, with gross margin significantly improving from **5%** to **13%**, increasing by **$10 million** to **$15 million** | Metric (in millions) | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | YoY Change | | :------------------- | :------------------------------ | :------------------------------- | :--------- | | Revenue | $113 | $84 | +$29 (+34.5%) | | Gross Margin | $15 | $5 | +$10 (+200%) | | Gross Margin (%) | 13% | 5% | +8 percentage points | - The **$29 million** increase in revenue was primarily the result of **$18 million** from a California Palisades fire clean-up project and **$18 million** from new water and infrastructure projects ramping up, partially offset by a **$7 million** decrease from lower activity on existing projects and projects winding down[8](index=8&type=chunk) - The **$10 million** increase in gross margin was primarily the result of **$6 million** in gross margin from new water and infrastructure projects ramping up and **$4 million** in gross margin from a California Palisades fire clean-up project[9](index=9&type=chunk) [Non-Core Projects Performance](index=2&type=section&id=Non-Core%20Projects%20Performance) Non-Core Projects revenue increased by **$9 million** (**128.6% YoY**) to **$16 million**, and gross margin improved significantly from **$(36) million** to **$(7) million**, largely due to a claim settlement that reduced prior year revenue, as the company continues to wind down these projects, including the sale of foundation drilling assets | Metric (in millions) | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | YoY Change | | :------------------- | :------------------------------ | :------------------------------- | :--------- | | Revenue | $16 | $7 | +$9 (+128.6%) | | Gross Margin | $(7) | $(36) | +$29 | | Gross Margin (%) | (43)% | (516)% | +473 percentage points | - The increase in revenue and gross margin was primarily the result of the settlement of a claim on a large Non-Core Loss Project, which included a reduction to revenue during the three months ended **June 28, 2024**, and did not reoccur during the three months ended **July 4, 2025**[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) - The Company entered into an agreement to sell the assets of foundation drilling Non-Core Projects in the second quarter of **2024** and continued to wind down remaining work, expecting revenue from these projects to continue to decline during the remainder of the **2025** fiscal year[6](index=6&type=chunk)[10](index=10&type=chunk) - Revenue recognized on Non-Core Loss Projects was **$13 million** and gross margin was **$(3) million** for the three months ended **July 4, 2025**, compared to **$(7) million** revenue and **$(32) million** gross margin for the three months ended **June 28, 2024**[13](index=13&type=chunk) [Operating Expenses and Other Income/Loss](index=3&type=section&id=Operating%20Expenses%20and%20Other%20Income%2FLoss) The company saw a decrease in selling, general and administrative expenses and equity in loss of unconsolidated joint ventures, contributing to improved operating results, though gain on sale of assets decreased due to a prior year's asset sale, and other income/expense increased due to claim settlements, with no income tax expense recorded in either period [Selling, General and Administrative Expenses](index=3&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses) SG&A expenses decreased by **$4 million** in Q2 **2025**, primarily due to the ongoing implementation of the Transformation Plan - Selling, general and administrative expenses decreased by **$4 million** during the three months ended **July 4, 2025**[15](index=15&type=chunk) - The decrease was primarily a result of the continued implementation of the Transformation Plan[15](index=15&type=chunk) [Equity in Loss of Unconsolidated Joint Ventures](index=4&type=section&id=Equity%20in%20Loss%20of%20Unconsolidated%20Joint%20Ventures) Equity in loss of unconsolidated joint ventures decreased by **$2 million** in Q2 **2025**, as elevated costs from schedule extensions in Q2 **2024** did not reoccur - Equity in loss of unconsolidated joint ventures decreased by **$2 million** during the three months ended **July 4, 2025**[16](index=16&type=chunk) - The decrease was primarily due to elevated costs from schedule extensions experienced during the three months ended **June 28, 2024**, which did not reoccur[16](index=16&type=chunk) [Gain on Sale of Assets](index=4&type=section&id=Gain%20on%20Sale%20of%20Assets) Gain on sale of assets decreased by **$4 million** in Q2 **2025**, primarily because of the gain recognized from the sale of foundation drilling Non-Core Projects assets in Q2 **2024** - Gain on sale of assets decreased by **$4 million** during the three months ended **July 4, 2025**[17](index=17&type=chunk) - The decrease was primarily due to the gain recognized on the sale of the assets of foundation drilling Non-Core Projects during the second quarter of **2024**[17](index=17&type=chunk) [Interest Expense](index=4&type=section&id=Interest%20Expense) Interest expense remained approximately flat period over period - Interest expense remained approximately flat period over period[18](index=18&type=chunk) [Other (Income) Expense, Net](index=4&type=section&id=Other%20%28Income%29%20Expense%2C%20Net) Other (income) expense, net, increased by **$2 million** in Q2 **2025**, mainly due to a **$1 million** loss from the settlement of claims with AECOM and other non-recurring costs from Q2 **2024** - Other (income) expense, net increased by **$2 million** during the three months ended **July 4, 2025**[19](index=19&type=chunk) - The increase was primarily due to a **$1 million** loss recognized on the settlement of certain claims with AECOM, as well as other costs incurred during the three months ended **June 28, 2024**, which did not reoccur[19](index=19&type=chunk) [Income Tax Expense](index=4&type=section&id=Income%20Tax%20Expense) No income tax expense was recorded for Q2 **2025** or Q2 **2024**, due to expected and realized tax losses for the respective fiscal years - No income tax expense was recorded for either the three months ended **July 4, 2025**, or **June 28, 2024**[20](index=20&type=chunk) - This was due to an expected tax loss for the fiscal year ending **2025** and a realized tax loss for the fiscal year ended **2024**[20](index=20&type=chunk) [Net Loss and Per Share Data](index=4&type=section&id=Net%20Loss%20and%20Per%20Share%20Data) Net loss significantly decreased by **$43 million** to **$8 million** in Q2 **2025**, driven by increased gross margin and reduced operating expenses, partially offset by a lower gain on asset sales, with diluted loss per common share and Adjusted net loss also showing substantial improvements | Metric | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Change | | :------------------------------------------------- | :------------------------------ | :------------------------------- | :----- | | Net loss | $(8) million | $(51) million | $(43) million decrease | | Diluted loss per common share attributable to Shimmick Corporation | $(0.25) | $(1.83) | $(1.58) decrease | | Adjusted net loss | $(5) million | $(45) million | $(40) million decrease | | Adjusted diluted loss per common share attributable to Shimmick Corporation | $(0.14) | $(1.60) | $(1.46) decrease | | Adjusted EBITDA | $(0.2) million | $(40) million | $(39.8) million decrease | - The **$43 million** decrease in net loss was primarily due to an increase in gross margin of **$39 million**, a decrease in selling, general and administrative expenses of **$4 million**, a decrease in equity in loss of unconsolidated joint ventures of **$2 million**, and an increase in other (income) expense, net of **$2 million**, partially offset by a decrease in the gain on the sale of assets of **$4 million**[21](index=21&type=chunk) [Outlook and Guidance](index=5&type=section&id=Outlook%20and%20Guidance) [Full Year 2025 Guidance Update](index=5&type=section&id=Full%20Year%202025%20Guidance%20Update) Shimmick updated its full-year **2025** guidance, increasing revenue expectations for both Shimmick and Non-Core Projects due to stronger first-half performance, but lowered consolidated Adjusted EBITDA guidance due to an unfavorable gross margin mix impact from the increased Non-Core revenue - Full-year revenue guidance is increasing due to stronger first-half revenue performance in both Shimmick and Non-Core Projects[24](index=24&type=chunk) - Non-Core Projects revenue increase is driven by putting more non-core work in place due to increased efforts towards completing these projects[24](index=24&type=chunk) - Consolidated Adjusted EBITDA guidance is lowered due to an unfavorable gross margin mix impact, as the Non-Core revenue increase is a higher percentage of total revenue for the year[24](index=24&type=chunk) | Metric | Updated Full Year 2025 Guidance | Initial Guidance | Change | | :-------------------------------- | :------------------------------ | :--------------- | :----- | | Shimmick Projects Revenue | $405 million - $415 million | $392 million - $410 million | Increased | | Shimmick Projects Gross Margin | 9% - 12% | N/A | N/A | | Non-Core Projects Revenue | $80 million - $90 million | $50 million - $60 million | Increased | | Non-Core Projects Gross Margin | (15%) - (5%) | N/A | N/A | | Consolidated Adjusted EBITDA | $5 million - $15 million | $15 million - $25 million | Decreased | [Conference Call and Webcast Information](index=5&type=section&id=Conference%20Call%20and%20Webcast%20Information) Shimmick will host a video webcast conference call on **August 14, 2025**, at **5:00 p.m. Eastern Time**, accessible via the Company's Investor Relations website, with a replay available afterward - Shimmick will host a video webcast conference call on Thursday, **August 14, 2025**, at **5:00 p.m. Eastern Time**[25](index=25&type=chunk) - Interested parties can access the live-streamed conference call via the Company's Investor Relations website (**https://investors.shimmick.com/**)[25](index=25&type=chunk) - A copy of the earnings call presentation and a replay of the video webcast will be available through the same link following the conference call[25](index=25&type=chunk) [Company Information](index=6&type=section&id=Company%20Information) [About Shimmick Corporation](index=6&type=section&id=About%20Shimmick%20Corporation) Shimmick Corporation is a California-headquartered industry leader in turnkey infrastructure solutions, specializing in water, energy, climate resiliency, and sustainable transportation, leveraging technical excellence and collaborative project delivery to provide innovative, technology-driven solutions with a track record spanning over a century - **Shimmick Corporation** is an industry leader in delivering turnkey infrastructure solutions that strengthen critical markets across water, energy, climate resiliency, and sustainable transportation[27](index=27&type=chunk) - The company integrates technical excellence with collaborative project delivery methods to provide innovative, technology-driven infrastructure solutions[27](index=27&type=chunk) - Headquartered in California, **Shimmick** has a track record that spans over a century[27](index=27&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements regarding future financial performance, growth prospects, profitability, strategic transformation, and market relationships, which are predictions based on current expectations and projections, subject to risks and uncertainties that could cause actual results to differ materially - This release contains forward-looking statements about expected future financial performance (including revenue, net loss, backlog, and Adjusted EBITDA), growth prospects, profitability, strategic transformation, market relationships, and capital plans[28](index=28&type=chunk) - Forward-looking statements are predictions based on current expectations and projections about future events, and the company undertakes no obligation to update them[28](index=28&type=chunk) - Actual results may differ materially from any future results expressed or implied by these statements due to various risks and uncertainties[28](index=28&type=chunk) - Important factors that could affect actual financial results include the ability to accurately estimate risks/costs, impact of fixed-price contracts, availability of qualified personnel, marketplace competition, inability to obtain bonding, limited operating history as an independent company, relationship with AECOM, dependence on subcontractors, cybersecurity attacks, seasonality, inflation, interest rates, environmental laws, and changes in government policies[29](index=29&type=chunk)[30](index=30&type=chunk) [Investor Relations Contact](index=8&type=section&id=Investor%20Relations%20Contact) Investor relations inquiries can be directed via phone at **1-949-704-2350** or email at **IR@shimmick.com** - Investor Relations Contact Phone: **1-949-704-2350**[35](index=35&type=chunk) - Investor Relations Contact Email: **IR@shimmick.com**[35](index=35&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets decreased from **$233.864 million** at **January 3, 2025**, to **$202.983 million** at **July 4, 2025**, with total liabilities also decreasing, while stockholders' deficit increased, reflecting accumulated losses | Metric (in thousands) | July 4, 2025 | January 3, 2025 | Change | | :-------------------- | :----------- | :-------------- | :----- | | TOTAL ASSETS | $202,983 | $233,864 | $(30,881) | | TOTAL LIABILITIES | $252,445 | $268,538 | $(16,093) | | TOTAL STOCKHOLDERS' DEFICIT | $(49,462) | $(34,674) | $(14,788) | - Cash and cash equivalents decreased from **$33,730 thousand** at **January 3, 2025**, to **$21,393 thousand** at **July 4, 2025**[37](index=37&type=chunk) - Long-term debt, net, increased from **$9,478 thousand** at **January 3, 2025**, to **$32,562 thousand** at **July 4, 2025**[37](index=37&type=chunk) [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations shows a substantial improvement in Q2 **2025** compared to Q2 **2024**, with revenue increasing and gross margin turning positive, and net loss attributable to Shimmick Corporation significantly decreasing for both the three and six-month periods | Metric (in thousands) | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :-------------------- | :------------------------------ | :------------------------------- | :---------------------------- | :------------------------------- | | Revenue | $128,402 | $90,605 | $250,512 | $210,648 | | Cost of revenue | $120,273 | $121,736 | $237,687 | $257,639 | | Gross margin | $8,129 | $(31,131) | $12,825 | $(46,991) | | Selling, general and administrative expenses | $15,041 | $18,723 | $29,409 | $34,891 | | Net loss attributable to Shimmick Corporation | $(8,525) | $(51,389) | $(18,295) | $(84,722) | | Diluted loss per common share | $(0.25) | $(1.83) | $(0.53) | $(3.16) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended **July 4, 2025**, net cash used in operating activities decreased significantly compared to the prior year, with investing activities generating cash primarily from returns on unconsolidated joint ventures, while financing activities provided cash through borrowings | Metric (in thousands) | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | Change | | :---------------------------------- | :---------------------------- | :------------------------------- | :----- | | Net cash used in operating activities | $(41,987) | $(78,848) | $(36,861) decrease in cash used | | Net cash provided by (used in) investing activities | $2,051 | $(18) | $2,069 increase | | Net cash provided by financing activities | $26,808 | $37,834 | $(11,026) decrease | | Net decrease in cash, cash equivalents and restricted cash | $(13,128) | $(41,032) | $(27,904) decrease in net decrease | | Cash, cash equivalents and restricted cash, end of period | $22,667 | $22,878 | $(211) decrease | - Net cash used in operating activities decreased by **$36,861 thousand**, primarily due to a smaller net loss and favorable changes in accounts payable and contract assets, partially offset by a decrease in contract liabilities[41](index=41&type=chunk) - Investing activities shifted from using cash to providing cash, driven by proceeds from the sale of assets and return of investment in unconsolidated joint ventures[41](index=41&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) [Explanatory Notes on Non-GAAP Measures](index=7&type=section&id=Explanatory%20Notes%20on%20Non-GAAP%20Measures) Shimmick uses non-GAAP financial measures like Adjusted Net Loss and Adjusted EBITDA to evaluate core operating performance, excluding items such as stock-based compensation, legal fees for Non-Core Projects, and transformation costs, though these measures are not GAAP substitutes and have limitations, including not reflecting cash requirements or dilutive impacts - Non-GAAP financial measures (**Adjusted EBITDA**, **Adjusted net loss**, and **Adjusted diluted loss per common share**) are used by management and the board to understand and evaluate core operating performance and trends[31](index=31&type=chunk)[43](index=43&type=chunk)[50](index=50&type=chunk) - Adjusted net loss and Adjusted EBITDA eliminate stock-based compensation, legal fees and other costs for Non-Core Projects, and transformation costs (advisory costs for settling claims, exiting Non-Core Projects, and shifting strategy)[42](index=42&type=chunk)[49](index=49&type=chunk) - Limitations of non-GAAP measures include not reflecting changes in working capital needs, the potentially dilutive impact of stock-based compensation, cash capital expenditure requirements for asset replacement, or interest/tax payments[44](index=44&type=chunk)[45](index=45&type=chunk)[51](index=51&type=chunk)[53](index=53&type=chunk) - The company does not provide a reconciliation for forward-looking non-GAAP guidance due to the inability to predict certain U.S. GAAP measures (e.g., legal fees, acquisition-related costs, litigation charges) without unreasonable efforts[33](index=33&type=chunk) [Reconciliation of Adjusted Net Loss](index=13&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Loss) The reconciliation shows that Adjusted Net Loss for Q2 **2025** was **$(4.796) million**, a significant improvement from **$(44.974) million** in Q2 **2024**, after adjusting for transformation costs, stock-based compensation, legal fees for Non-Core Projects, and other items | Metric (in thousands) | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :---------------------------------------- | :------------------------------ | :------------------------------- | :---------------------------- | :------------------------------- | | Net loss attributable to Shimmick Corporation | $(8,525) | $(51,389) | $(18,295) | $(84,722) | | Transformation costs | $725 | $2,608 | $1,440 | $2,608 | | Stock-based compensation | $1,528 | $969 | $3,318 | $1,967 | | Legal fees and other costs for Non-Core Projects | $1,434 | $2,629 | $1,094 | $5,360 | | Other | $42 | $209 | $233 | $446 | | Adjusted net loss | $(4,796) | $(44,974) | $(12,210) | $(74,341) | | Adjusted net loss attributable to Shimmick Corporation per common share (Diluted) | $(0.14) | $(1.60) | $(0.35) | $(2.77) | - Transformation costs consist of advisory costs in connection with settling outstanding claims related to exiting certain Non-Core Projects as part of the Company's growth strategy[47](index=47&type=chunk)[48](index=48&type=chunk) - Legal fees and other costs for Non-Core Projects consist of costs incurred in connection with claims relating to Non-Core Projects[47](index=47&type=chunk)[48](index=48&type=chunk) [Reconciliation of Adjusted EBITDA](index=15&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 **2025** was **$(234) thousand**, a significant improvement from **$(39.689) million** in Q2 **2024**, with this reconciliation adding back interest expense, depreciation and amortization, and other non-GAAP adjustments to net loss | Metric (in thousands) | Three Months Ended July 4, 2025 | Three Months Ended June 28, 2024 | Six Months Ended July 4, 2025 | Six Months Ended June 28, 2024 | | :---------------------------------------- | :------------------------------ | :------------------------------- | :---------------------------- | :------------------------------- | | Net loss attributable to Shimmick Corporation | $(8,525) | $(51,389) | $(18,295) | $(84,722) | | Interest expense | $1,313 | $1,496 | $2,313 | $2,393 | | Income tax expense | $0 | $0 | $0 | $0 | | Depreciation and amortization | $3,249 | $3,789 | $6,709 | $8,199 | | Transformation costs | $725 | $2,608 | $1,440 | $2,608 | | Stock-based compensation | $1,528 | $969 | $3,318 | $1,967 | | Legal fees and other costs for Non-Core Projects | $1,434 | $2,629 | $1,094 | $5,360 | | Other | $42 | $209 | $233 | $446 | | Adjusted EBITDA | $(234) | $(39,689) | $(3,188) | $(63,749) | - Adjusted EBITDA is calculated by taking Net loss attributable to Shimmick Corporation and adjusting for interest expense, income tax benefit, depreciation and amortization, stock-based compensation, legal fees and other costs for Non-Core Projects, and transformation costs[49](index=49&type=chunk)[55](index=55&type=chunk)
Shimmick Corporation Announces Second Quarter 2025 Results
Globenewswire· 2025-08-14 20:05
Core Insights - Shimmick Corp. reported a significant increase in revenue for Q2 2025, reaching $128 million, a 42% increase year-over-year, with $113 million attributed to Shimmick Projects [4][5][9] - The company is experiencing a positive trend in bidding activity, with a 12-month bidding outlook exceeding $4.5 billion, indicating strong future growth potential [3][4] - The gross margin improved to $8 million in Q2 2025, compared to a gross margin loss of $31 million in the same quarter of 2024, reflecting a 126% year-over-year improvement [5][6][10] Financial Performance - The net loss attributable to Shimmick Corporation decreased to $8 million for Q2 2025, down from a loss of $51 million in Q2 2024, marking a $43 million improvement [21][22] - Adjusted net loss for Q2 2025 was $5 million, significantly better than the adjusted net loss of $45 million in Q2 2024 [22][24] - Adjusted EBITDA for Q2 2025 was nearly flat at $(234) thousand, compared to $(40) million in Q2 2024, indicating operational improvements [23][24] Project Segmentation - Revenue from Shimmick Projects was $113 million for Q2 2025, up from $84 million in Q2 2024, driven by new infrastructure projects and a California Palisades fire clean-up project [9][10] - Non-Core Projects generated $16 million in revenue for Q2 2025, up from $7 million in Q2 2024, primarily due to the settlement of a claim on a large Non-Core Loss Project [12][13] - The gross margin for Shimmick Projects was $15 million in Q2 2025, compared to $5 million in Q2 2024, while Non-Core Projects had a gross margin loss of $7 million [10][13] Operational Efficiency - Selling, general, and administrative expenses decreased by 20% to $15 million in Q2 2025, attributed to the ongoing implementation of the Transformation Plan [5][15] - The company reported liquidity of $73 million as of July 4, 2025, an increase of $2 million from the first quarter of 2025 [5] - Backlog as of July 4, 2025, was approximately $652 million, with over 88% attributed to Shimmick Projects, indicating a strong pipeline of future work [5][24] Future Outlook - The company has increased its full-year revenue guidance due to stronger performance in both Shimmick and Non-Core Projects [24][28] - Shimmick Projects revenue is now expected to be in the range of $405 million to $415 million, while Non-Core Projects revenue is projected between $80 million and $90 million [28] - Adjusted EBITDA for the full year is anticipated to be between $5 million and $15 million, reflecting a more favorable operational outlook [24][28]
Shimmick Corporation to Announce Second Quarter 2025 Financial Results on August 14, 2025
Globenewswire· 2025-08-04 20:05
Core Insights - Shimmick Corporation will release its second quarter 2025 financial results on August 14, 2025, after market close [1] - A video webcast conference call will be held at 5:00 p.m. Eastern Time on the same day to discuss the financial results [2] Company Overview - Shimmick is a leading provider of infrastructure solutions, focusing on complex projects in water, climate resilience, energy transition, and sustainable transportation [3] - The company integrates technical excellence with collaborative project delivery methods to offer innovative, technology-driven infrastructure solutions [3] - Shimmick has a history of over a century and is headquartered in California, combining deep engineering expertise with an entrepreneurial spirit to address complex infrastructure challenges [3]
Shimmick Preferred Bidder on $156 Million in New Infrastructure Contracts Across California
Globenewswire· 2025-07-31 12:30
Core Insights - Shimmick Corporation has been selected as the preferred bidder for four new contracts totaling approximately $156 million, with $47 million allocated for electrical work, reflecting the growing demand for integrated delivery solutions in infrastructure [1][2] Project Summaries - **River Trunk Realignment - River Pump Station**: A $116 million project in Modesto, CA, aimed at upgrading wastewater infrastructure by rerouting sanitary sewer flows and constructing a 40 million gallon per day pump station [3] - **OC San J-98 Power Distribution System Improvements**: A $24 million project in Huntington Beach, CA, focused on modernizing electrical distribution systems at two wastewater treatment plants to enhance operational safety and reliability [4] - **RD1001 Auxiliary Pump Station**: An $8 million project in Nicolaus, CA, involving the construction of a dual-level steel-frame pump station with vertical turbine pumps and associated infrastructure [5] - **Perris Valley RWRF Aeration Basin Rehabilitation and Diffusers Replacement**: An $8 million project in Perris, CA, aimed at rehabilitating aeration basins and upgrading control systems at the water reclamation facility [6] Company Overview - Shimmick Corporation is a leader in delivering turnkey infrastructure solutions across water, energy, climate resiliency, and sustainable transportation, integrating technical excellence with collaborative project delivery methods [7]
Shimmick Awarded $51 Million Contract for Bellota Weir Modifications in Stockton, California
Globenewswire· 2025-07-22 12:30
Core Insights - Shimmick Corporation has been awarded a $51 million contract for the Bellota Weir Modifications project by the Stockton East Water District [1] - The project aims to enhance water reliability and fish habitat while complying with environmental regulations [3][4] Group 1: Project Details - The project includes the construction of an inflatable Obermeyer gate weir, fish screens, a fish ladder, and a gravity flow conveyance system with multiple 54-inch pipelines [2] - Additional features involve a fish exclusion embankment, a low-permeability cutoff wall, and improvements for groundwater recharge and ecological restoration [2] Group 2: Strategic Importance - The project is a key component of SEWD's long-term strategy to improve water reliability and enhance fish habitat on the Calaveras River [3] - It supports compliance with state and federal mandates to protect threatened species, including Central Valley steelhead and Chinook salmon [3] Group 3: Company Perspective - The CEO of Shimmick emphasized the project's dual benefit for infrastructure and environmental protection, highlighting its role in shaping future water management in California [4] - Construction is expected to begin in 2025 after final permitting and preconstruction activities are completed [4] Group 4: Company Overview - Shimmick Corporation is a leader in delivering turnkey infrastructure solutions across various sectors, including water, energy, and sustainable transportation [5] - The company combines technical excellence with collaborative project delivery to address complex infrastructure challenges [5]