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]
Shimmick (SHIM) - 2025 Q3 - Quarterly Results