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Shimmick Corporation Announces First Quarter 2025 Results
Globenewswire· 2025-05-14 20:05
Core Insights - Shimmick Corp. reported a revenue of $122 million for Q1 2025, a slight increase from $120 million in Q1 2024, with a gross margin improvement from $(16) million to $5 million [4][5][20] - The company experienced a net loss of $10 million, significantly reduced from a net loss of $33 million in the same quarter last year, indicating improved operational performance [5][20] - Shimmick's backlog stands at approximately $740 million, with over 87% attributed to Shimmick Projects, reflecting strong demand in critical infrastructure sectors [5][20] Financial Performance - Revenue for Shimmick Projects was $93 million, up from $90 million year-over-year, driven by new projects and clean-up efforts [8][9] - Adjusted net loss improved to $(7) million from $(29) million year-over-year, with adjusted diluted loss per share at $(0.22) compared to $(1.15) [21][20] - Selling, general, and administrative expenses decreased by 11% to $14 million, attributed to the ongoing transformation plan [5][15] Project Segmentation - Shimmick Projects, focusing on water, climate resilience, energy transition, and sustainable transportation, showed a gross margin of $5 million, a significant recovery from $(1) million [9][12] - Legacy and Foundations Projects revenue decreased slightly to $29 million from $30 million, with a gross margin improvement from $(15) million to $(1) million [11][12] - The company is winding down Legacy Projects, which are expected to continue to decline in revenue throughout 2025 [10][11] Future Outlook - The company anticipates a strong bidding activity for the remainder of 2025, with nearly $2 billion in projects expected to come to market [5][22] - Guidance for Shimmick Projects revenue growth is projected between 10% to 15%, with overall gross margin expected between 9% and 12% [23] - Legacy Projects and Foundations Projects revenue is expected to be between $50 million and $60 million, with gross margins ranging from (5)% to (15)% as these projects are completed [23]
Zimmer Biomet(ZBH) - 2025 Q1 - Earnings Call Transcript
2025-05-05 12:30
Financial Data and Key Metrics Changes - The company reported net sales of $1.909 billion, an increase of 1.1% on a reported basis and 2.3% excluding foreign currency impact [27] - Adjusted earnings per share (EPS) was $1.81, down from $1.94 in the prior year [33] - Free cash flow generated was $279 million, representing robust growth compared to the prior year [34] - Adjusted gross margin was 71.5% and adjusted operating margin was 26.2%, both lower than the prior year but in line with expectations [33] Business Line Data and Key Metrics Changes - U.S. hips sales grew nearly 4%, while U.S. knees grew only 0.2% [7][30] - The U.S. SET (Surgical Equipment and Technology) business grew by 4.9%, marking the sixth consecutive quarter of at least mid-single-digit growth [31] - International sales grew 3.7%, driven by mid-single-digit growth in knees and high-single-digit growth in SET [28] Market Data and Key Metrics Changes - The U.S. market showed a notable performance with a 1.3% growth overall, driven by nearly 4% growth in hips and SET [27] - Global hips grew 2.4%, with U.S. growing 3.7% and international growing 1% [29] - Global knees grew 1.9%, with U.S. growing 0.2% and international growing 4.2% [30] Company Strategy and Development Direction - The company is focusing on three strategic priorities: people and culture, operational excellence, and innovation and diversification [12] - The integration of the Paragon 28 acquisition is a top priority, with the expectation of contributing approximately 270 basis points to sales growth in 2025 [10][23] - The company aims to achieve a 5% Vanguard weighted average market growth rate environment by the end of 2027 [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year organic constant currency revenue growth expectations of 3% to 5% [10] - The impact of tariffs is expected to be a headwind of $60 million to $80 million in 2025, with mitigation efforts already in place [38][47] - The second half of 2025 is anticipated to show higher organic constant currency growth due to easier comparisons and new product launches [37][56] Other Important Information - The company has made significant changes in leadership and sales strategies to bolster U.S. performance [12][27] - The introduction of new products, particularly in the hips and knees segments, is expected to drive growth [10][58] - The company is committed to reducing inventory days on hand, moving from over 400 days to approximately 370 days [15][34] Q&A Session Summary Question: Impact of tariffs on EPS and mitigation efforts - Management explained that the majority of production is in the U.S., which lowers exposure to tariffs, and outlined steps taken to mitigate impacts, including optimizing sourcing and moderating discretionary spending [46][47] Question: Clarification on growth expectations and new product impacts - Management indicated that Q1 growth of 2.3% constant currency, when adjusted for one less selling day, is close to mid-single-digit growth expectations, with confidence in new product introductions driving growth in the second half of 2025 [55][58] Question: Performance in ASC versus hospital channels - Management noted that over 20% of U.S. sales now come from the ASC environment, a significant increase from pre-COVID levels, and expressed confidence in continued growth in this area [96][97] Question: Pricing environment and future expectations - Management stated that pricing is expected to be flat for the year, with recent performance slightly better than initial guidance, and emphasized the stability of pricing in the near term [70][72]