Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenues of $122 million, a slight increase from $120 million in the same period last year [15] - The gross margin for the quarter was $5 million, compared to a negative $1 million in the prior year [16] - Adjusted EBITDA was negative $3 million, an improvement from negative $24 million year-over-year [18] - The net loss for Q1 2025 was $10 million, significantly reduced from a net loss of $33 million in the prior year [18] - Total liquidity at the end of Q1 was $71 million, consisting of $16 million in cash and $55 million available under credit agreements [19] Business Line Data and Key Metrics Changes - Revenue from Chimich projects was $93 million, up from $90 million a year ago, driven by new water and infrastructure projects [16] - Legacy and foundations projects generated $29 million in revenue, a decrease of $1 million compared to the previous year [17] - Gross margin from legacy projects improved to negative $1 million from negative $15 million year-over-year, indicating reduced costs associated with these projects [17] Market Data and Key Metrics Changes - The backlog at the end of Q1 was approximately $740 million, with 90% attributed to Chimich projects, reflecting a shift towards newer projects [6][19] - There has been a slowdown in bidding for larger public projects due to uncertainty around funding streams and tariffs, but bidding activity is expected to increase in Q2 and Q3 [6][10] Company Strategy and Development Direction - The company aims to grow its backlog, restore profitability, and expand addressable markets, focusing on sustainable infrastructure [12][22] - Strategic pillars include building a sustainable risk-balanced backlog, driving operational excellence, and investing in people and culture [12][20] - The company is targeting a 30% share of electrical work in its backlog by 2027, up from approximately 15% currently [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025, citing a strong backlog and an exciting pipeline of opportunities despite macro-level uncertainties [22] - The company is closely monitoring tariff policies and expects to deliver results within previously stated guidance ranges [20] - Management noted that existing projects are largely insulated from tariff impacts due to fixed-price contracts [10] Other Important Information - The company has seen increased bidding activity, nearly tripling its bid volume since the last quarter, and expects this trend to continue [7][9] - Investments in reorganizing sales and estimating departments are starting to yield results, with a robust proposal pipeline of approximately $2 billion [9] Q&A Session Summary Question: Visibility into guidance for Shimik projects - Management indicated performance improvement in Q1 but acknowledged challenges remain, expressing confidence in guidance for both Chimich and legacy projects [30][31] Question: New awards and extensions - Management confirmed ongoing projects and a busy bidding activity expected in Q2, with several contracts in negotiation [39][40] Question: Capacity and liquidity - Management stated that current liquidity is sufficient to support operations, with the capacity to handle $600-$750 million in revenue without significant overhead increases [41][42] Question: Accelerating legacy projects - Management is working on opportunities to accelerate legacy projects but noted that scope growth may delay completion [46][47]
Shimmick (SHIM) - 2025 Q1 - Earnings Call Transcript