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] - 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, down $1 million from the previous year, with a gross margin improvement from negative $15 million to negative $1 million [17] - The backlog at the end of Q1 was approximately $740 million, with 90% attributed to Chimich projects, a decrease in legacy projects from 13% to 10% quarter-over-quarter [6][8] Market Data and Key Metrics Changes - There has been a slowdown in bidding for larger public projects due to uncertainty around funding streams and tariffs, but an increase in bidding activity is expected in Q2 and Q3 as clients release paused projects [6][7] - The company has seen a robust proposal pipeline of approximately $2 billion for upcoming bids, indicating strong market demand [9] 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 to increase the share of electrical work in its backlog from 15% to 30% by 2027 [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 minimal impact on margins due to existing contracts with fixed prices [10][20] - Management reaffirmed full-year guidance, expecting Chimich project revenue to increase by 10% to 15% [20][21] Other Important Information - The company has implemented operational improvements and reorganized its sales and estimating departments, resulting in increased bidding frequency and win rates [8][9] - The new CFO, Todd Yoder, brings extensive experience in financial leadership within the construction industry [3][14] Q&A Session Summary Question: Visibility into guidance for Shimik projects on revenue and gross margin - Management noted performance improvement in Q1 but acknowledged that it is not yet at guidance levels, with ongoing operational improvements expected to support future performance [29] Question: Details on new awards and extensions pending - Management indicated ongoing projects and strong bidding activity, with expectations for awards to materialize in Q2 [38] Question: Capacity and liquidity concerns - Management expressed confidence in liquidity and indicated that the current structure can support revenues of $600 million to $750 million annually without significant overhead increases [42] Question: Update on accelerating legacy projects into 2025 - Management is working on opportunities to accelerate legacy projects but noted that scope growth and client requests may affect timelines [46]
Shimmick (SHIM) - 2025 Q1 - Earnings Call Transcript