Core Insights - Shimmick Corporation has been awarded two significant projects in the Los Angeles market, totaling approximately $81.5 million, reflecting the company's strong position in complex infrastructure solutions [1][2]. Project Summaries - The first project, Berths 49–51 Outer Harbor Cruise Terminal Development, is valued at $61.3 million and involves substantial electrical, structural, and civil improvements to support shore power and modern cruise terminal operations. This project aims to enhance sustainability by allowing vessels to connect to shore power, thereby reducing emissions [2][3]. - The second project, Palmdale Water Reclamation Plant Influent Pump Station Modifications, is valued at $20.2 million and focuses on upgrades to influent pumping and electrical systems, along with the construction of a new utility building. This project is designed to improve operational reliability and support long-term water reclamation efforts in the region [3]. Timeline - Construction on both projects is anticipated to commence in 2026, pending the completion of final permitting and preconstruction activities [4]. Company Overview - Shimmick Corporation is recognized as a leader in delivering turnkey infrastructure solutions across various sectors, including water, energy, climate resilience, and sustainable transportation. The company combines technical excellence with collaborative project delivery methods to provide innovative, technology-driven solutions that foster economic growth and empower communities [5].

Core Insights - Shimmick Corporation reported a quarterly loss of $0.01 per share, outperforming the Zacks Consensus Estimate of a loss of $0.04, and showing a significant decline from earnings of $0.72 per share a year ago, resulting in an earnings surprise of +75.00% [1] - The company achieved revenues of $141.92 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 18.27%, although this represents a decrease from year-ago revenues of $166.04 million [2] - Shimmick Corporation has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] Future Outlook - The immediate price movement of Shimmick Corporation's stock will largely depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $125 million, and for the current fiscal year, it is -$0.42 on revenues of $495.5 million [7] - The estimate revisions trend for Shimmick Corporation was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Engineering - R and D Services industry, to which Shimmick Corporation belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8] - Amentum Holdings, another company in the same industry, is expected to report quarterly earnings of $0.59 per share, reflecting a year-over-year change of +25.5%, with revenues projected at $3.61 billion, up 63.1% from the previous year [9][10]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $142 million, a decrease of 15% compared to $166 million in Q3 2024, primarily due to a one-time favorable claim settlement contributing $31 million in the prior year [16][17] - Adjusted EBITDA for Q3 2025 was $4 million, down from $30 million in Q3 2024, influenced by the one-time GGB project settlement [20] - The company reported a net loss of $4 million for Q3 2025, compared to a net loss of $2 million in Q3 2024 [20] Business Line Data and Key Metrics Changes - Revenue from Shimmick projects was $107 million, a 5% increase year-over-year, while non-core project revenue was $35 million, a decrease of 46% [17][19] - Gross margin for Shimmick projects was $10 million, up 61% compared to $6 million in Q3 2024, while gross margin for non-core projects was $1 million, down from $6 million [18][19] Market Data and Key Metrics Changes - The company achieved $1 billion in bidding volumes in September and October, indicating a robust pipeline [8] - The backlog grew by over $100 million, or 15% sequentially, reaching $754 million as of October 3, 2025 [12][21] Company Strategy and Development Direction - The company's strategy focuses on growing the top line through strategic new business, completing non-core projects, and implementing operational improvements [4][5] - The company aims to increase the percentage of negotiated work in its backlog to 50% by 2027, balancing risk and revenue generation [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, citing strong market conditions and backlog growth as key drivers for future performance [14] - The company anticipates that the completion of non-core projects will positively impact cash flow and overall financial health by 2026 [30] Other Important Information - The company maintained a strong liquidity position with total liquidity of $48 million at the end of Q3 2025 [21] - The company reaffirmed its full-year 2025 guidance, expecting Shimmick project revenue in the range of $405 to $415 million [23] Q&A Session Summary Question: Can you discuss the growth of Axia and its representation in the backlog? - Management indicated that Axia currently represents about 15-16% of the backlog, with growth expected in electrification-related work and industrial electrical projects [27][28] Question: What is the status of data center projects and their market activity? - Management noted active bidding in Texas and other regions, with a significant demand for data center projects [29] Question: Can you elaborate on cash flow dynamics and future trends? - Management acknowledged the negative impact from non-core legacy projects but expects improved cash flow as backlog increases and translates into revenue [30][31] Question: What gives confidence for a strong fourth quarter? - Management attributed confidence to new higher-margin work starting to kick in, offsetting lower-margin non-core projects [34][35] Question: How is the transition to more negotiated work progressing? - Management reported that negotiated work is becoming a larger portion of bidding activity, with a goal of achieving a 50% mix in the future [36][38]

Q3 2025 Performance Highlights - Shimmick Projects revenue increased by 6% year-over-year[8] - Gross margin on Shimmick Projects increased by 67% year-over-year[8] - Backlog increased by 15% quarter-over-quarter, with a book-to-burn ratio of 1.7x, exceeding 1.0 for the first time since 2023[8] - The company achieved its first positive Adjusted EBITDA in four quarters, reporting $4 million[8] - New awards of $60 million were added to the backlog in October 2025, and $169 million in projects were selected as preferred bidder with awards pending[8] Revenue and Gross Margin Details - Reported revenue was $142 million, with $107 million from Shimmick Projects[8] - Excluding a one-time favorable GGB Project claim settlement revenue of $31 million in Q3 2024, revenue increased by $7 million, or 5% year-over-year[8] - Reported gross margin was $11 million, compared to $12 million in Q3 2024[8] - Excluding a one-time favorable GGB Project claim settlement gross margin of $11 million in Q3 2024, gross margin increased by $10 million year-over-year[8] - Shimmick Projects contributed a gross margin of $10 million, up 67% year-over-year, while Non-Core Projects contributed $1 million[8] Backlog and Future Outlook - Backlog is approximately $754 million as of October 3, 2025, with $191 million in new work added in Q3 2025, and Shimmick Projects accounting for over 86% of the total backlog[8] - The company's pipeline supports monthly bidding activity of $600 million to $1 billion[10] - For the fiscal year ending January 2, 2026, the company reaffirms its guidance, expecting Shimmick Projects revenue in the range of $405 million to $415 million, with gross margin between 9% and 12%[24] - Non-Core Projects revenue is expected to be in the range of $80 million to $90 million, with gross margin between -15% and -5%[24] - Consolidated Adjusted EBITDA is expected to be between $5 million and $15 million[24]

Financial Performance - Revenue for the three months ended October 3, 2025, was $141.92 million, a decrease of 15% compared to $166.04 million for the same period in 2024[117]. - Gross margin for the three months ended October 3, 2025, was $10.79 million, down 11% from $12.19 million in the prior year[117]. - Net loss for the three months ended October 3, 2025, increased to $4.40 million, representing a 181% increase from a net loss of $1.56 million in the same period in 2024[131]. - Revenue for the nine months ended October 3, 2025, was $392.43 million, a 4% increase from $376.68 million in the same period in 2024[132]. - Gross margin for the nine months ended October 3, 2025, was $23.61 million, a significant improvement from a gross margin loss of $34.80 million in the prior year[133]. - Net loss decreased by $63 million to $23 million, primarily due to a $58 million increase in gross margin and a $16 million decrease in ERP pre-implementation asset impairment[147]. Project Backlog - As of October 3, 2025, the company had a project backlog of approximately $754 million, primarily located in California, with ongoing projects in six other states[94]. - The company reported a backlog of projects amounting to $754 million as of October 3, 2025[189]. - Total backlog as of October 3, 2025, is composed of 66% from state and local agencies, 19% from federal agencies, and 15% from private owners[191]. - The backlog by contract type shows 87% as fixed-price contracts and 13% as cost reimbursable contracts[191]. - Estimated backlog recognition indicates that 85% is expected to be recognized within 0 to 24 months, 5% within 25 to 36 months, and 10% beyond 36 months[191]. Revenue Sources - Revenue from Shimmick Projects was $106.83 million for the three months ended October 3, 2025, a 5% increase from $101.48 million in the prior year[118]. - Revenue from Shimmick Projects increased by $38 million to $313 million for the nine months ended October 3, 2025, driven by $62 million from new higher margin projects and $31 million from a California Palisades fire clean-up project[134]. - Non-Core Projects revenue decreased by 46% to $35.09 million for the three months ended October 3, 2025, down from $64.56 million in the same period in 2024[118]. - Non-Core Projects revenue decreased by $21 million to $80 million, primarily due to a $13 million reduction from a project completion and the absence of a $31 million favorable settlement from the GGB Project[136][137]. - Revenue from Non-Core Loss Projects was $61 million, with a gross margin of $(3) million, showing improvement from $(34) million in the prior year[139]. Costs and Expenses - Selling, general and administrative expenses increased by $1 million to $14.29 million for the three months ended October 3, 2025, primarily due to increased legal costs[125]. - Selling, general and administrative expenses decreased by $4 million due to the implementation of a transformation plan[140]. - The company incurs significant selling, general, and administrative expenses as a public entity, which were not present during its private ownership[109]. Capital and Liquidity - Capital expenditures for the nine months ended October 3, 2025, were approximately $6 million, down from $10 million in the prior year[160]. - Unrestricted cash and cash equivalents totaled $18 million, with total liquidity of $48 million available from credit agreements[160]. - The company had a net cash decrease of $16.9 million for the nine months ended October 3, 2025, compared to a decrease of $37.3 million in the prior year[177]. - Net cash used in operating activities was $65.7 million, consistent with the previous year's $66.2 million[177][178]. - Net cash provided by financing activities for the nine months ended October 3, 2025, was $46.9 million, primarily from net borrowings of $49 million[184]. Debt and Financing - As of October 3, 2025, the company had a total debt of $57.5 million, with long-term debt netting $54.1 million[164]. - The ACF Credit Agreement provides a total commitment of $15 million with an interest rate of adjusted term SOFR plus 4.50%[169]. - The company incurred $450 thousand in cash interest during the three months ended October 3, 2025, and $1 million for the nine months[172]. - The company has a maximum leverage ratio covenant tested quarterly starting from the fourth quarter of 2026 under the Credit Agreement[168]. Public Offering and Market Activity - The company completed its initial public offering on November 16, 2023, selling 3,575,000 shares at a price of $7.00 per share, resulting in net proceeds of approximately $19 million[97]. - The company entered into an At The Market Offering Agreement allowing the sale of up to $7.8 million of common stock[173]. Operational Focus - The company focuses on critical infrastructure projects, including climate resilience, water and wastewater treatment, and energy transition initiatives[92][102]. - The company aims to minimize concentration of work with any one customer or industry to reduce risks and enhance competitiveness[104]. - The company self-performs many projects to better control costs and schedules, which is believed to deliver greater value to clients[94]. - The company has experienced seasonality in revenue, typically seeing the lowest revenue in the first quarter due to adverse weather conditions[100]. - The company faces risks related to project cancellations, which could significantly reduce expected revenue from its backlog[101].

Financial Performance - Reported revenue of $142 million for Q3 2025, with Shimmick Projects revenue up 6% year over year to $107 million[4] - Net loss of $4 million for Q3 2025, compared to a net loss of $2 million in Q3 2024[6] - Revenue for the three months ended October 3, 2025, was $141.92 million, a decrease of 14.5% compared to $166.04 million for the same period in 2024[42] - For the nine months ended October 3, 2025, the net loss attributable to Shimmick Corporation was $22,691,000, a significant improvement from a net loss of $86,286,000 for the same period in 2024[50] - Adjusted net loss income for the nine months ended October 3, 2025, was $(12,446,000), compared to $(50,086,000) for the same period in 2024[50] Gross Margin and EBITDA - Gross margin for Shimmick Projects increased by 67% year over year to $10 million, contributing to a total gross margin of $11 million[4] - Adjusted EBITDA was $4 million, marking the first positive adjusted EBITDA in four quarters[4] - Gross margin for the nine months ended October 3, 2025, was $23.61 million, compared to a gross loss of $34.80 million for the same period in 2024[42] - Adjusted EBITDA for the nine months ended October 3, 2025, was $1,141,000, compared to $(34,070,000) for the same period in 2024[58] Backlog and Future Guidance - Backlog grew to approximately $754 million, up 15% quarter over quarter, with a book-to-burn ratio of 1.7x, the first time above 1.0x since 2023[4] - Shimmick Projects revenue guidance for full year 2025 is expected to be between $405 million and $415 million, with overall gross margin between 9% and 12%[27] - Non-Core Projects revenue guidance for full year 2025 is expected to be between $80 million and $90 million, with overall gross margin between (15%) and (5%)[27] - Added $190 million in new work in Q3 2025, with Shimmick Projects representing over 86% of total backlog[4] - Continued project wins in target markets, with $60 million in new awards added to backlog in October 2025[4] - Company expects strong growth in electrical backlog in the next two quarters due to increased bid volumes in target markets[5] Assets and Liabilities - Total current assets increased to $162.32 million as of October 3, 2025, from $141.00 million as of January 3, 2025[39] - Total liabilities increased to $271.15 million as of October 3, 2025, compared to $268.54 million as of January 3, 2025[39] - Cash and cash equivalents decreased to $17.60 million as of October 3, 2025, from $33.73 million as of January 3, 2025[39] - Total cash, cash equivalents, and restricted cash at the end of the period was $18,925,000, down from $26,573,000 at the end of the previous year[44] Operating Activities and Expenses - The company reported a net cash used in operating activities of $65,732,000 for the nine months ended October 3, 2025, slightly better than $66,183,000 for the same period in 2024[44] - Cash provided by investing activities was $1,941,000 for the nine months ended October 3, 2025, compared to $18,389,000 in the prior year[44] - The company had a net cash provided by financing activities of $46,921,000 for the nine months ended October 3, 2025, up from $10,457,000 in the same period in 2024[44] - Selling, general and administrative expenses for the nine months ended October 3, 2025, were $43.70 million, down from $47.88 million for the same period in 2024[42] Strategic Focus and Risks - Shimmick Corporation is focusing on becoming a more capital-efficient business and expanding its electrical business, indicating a strategic transformation[30] - The company is facing risks related to market competition, project portfolio, and potential impacts from geopolitical events, which could affect future performance[32] One-Time Charges and Compensation - The company incurred $4,520,000 in stock-based compensation for the nine months ended October 3, 2025, compared to $3,304,000 in the same period in 2024[50] - Transformation costs for the nine months ended October 3, 2025, amounted to $1,582,000, down from $4,532,000 in the previous year[50] - The company reported a significant one-time charge of $16,000,000 related to ERP pre-implementation asset impairment in the third quarter of fiscal 2024[51]

Core Insights - Shimmick Corp. reported strong momentum in its transformation strategy, achieving over $1 billion in monthly bidding volume for the first time and improving its book-to-burn ratio to 1.7x, leading to backlog growth for the first time in over eight quarters [3][4][25] Financial Performance - Revenue for Q3 2025 was $142 million, a 5% increase year over year, with Shimmick Projects revenue up 6% to $107 million [5][6] - Gross margin for Q3 2025 was $11 million, with a significant increase of 67% in gross margin from Shimmick Projects compared to the previous year [6][9] - The company reported a net loss of $4 million for Q3 2025, compared to a net loss of $2 million in Q3 2024, largely due to a decrease in gains from asset sales [21][22] - Adjusted EBITDA was $4 million, marking the first positive adjusted EBITDA in four quarters, although down from $30 million in Q3 2024 [24][25] Backlog and Market Position - The backlog as of October 3, 2025, was approximately $754 million, reflecting a 15% increase quarter over quarter, with Shimmick Projects representing over 86% of total backlog [6][25] - The company added $190 million in new work during Q3 2025, with expectations for strong growth in electrical backlog in the upcoming quarters [4][6] Strategic Focus - Shimmick is focusing on critical infrastructure projects in California and Texas, aligning its capabilities with the growing demand for water and electrical infrastructure [4][25] - The company is optimistic about its growth trajectory for 2026, supported by strong bidding activity and positive market conditions [4][25] Guidance - The company reaffirmed its full-year 2025 guidance, anticipating revenue at the higher end of the provided range and adjusted EBITDA at the lower end [25][29]

Core Viewpoint - Shimmick Corporation will release its third quarter 2025 financial results on November 13, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results will be discussed in a video webcast conference call at 4:30 p.m. Eastern Time on the same day [2] - The conference call will be live-streamed via the Company's Investor Relations website, and a replay will be available shortly after the call [2] Group 2: Company Overview - Shimmick is a leader in delivering turnkey infrastructure solutions across critical markets such as water, energy, climate resiliency, and sustainable transportation [3] - The company integrates technical excellence with collaborative project delivery methods to provide innovative, technology-driven infrastructure solutions [3] - Shimmick has a history of over a century and combines deep engineering heritage with an entrepreneurial spirit to address complex infrastructure challenges [3]

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].

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]