Shimmick Corporation Announces First Quarter 2025 Results

IRVINE, Calif., May 14, 2025 (GLOBE NEWSWIRE) -- Shimmick Corp. (NASDAQ: SHIM), a leading infrastructure solutions provider in water, climate resilience, energy transition and sustainable transportation, today announced financial results for the first quarter ended April 4, 2025.

Highlights

   -- Reported revenue of $122 million, which includes $93 million of Shimmick 
      Projects revenue 
 
   -- Reported gross margin of $5 million, as compared to gross margin of $(16) 
      million during the first quarter of 2024 
 
   -- Reported selling, general and administrative expenses of $14 million, 
      down 11% from the first quarter of 2024 as a result of the continued 
      implementation of the transformation plan 
 
   -- Recognized a net loss of $10 million and Adjusted EBITDA of $(3) million, 
      largely attributable to Legacy Projects 
 
   -- Reported liquidity of $71 million as of April 4, 2025 
 
   -- Backlog is approximately $740 million as of April 4, 2025, with over 87% 
      being Shimmick Projects, with multiple new awards and contract extensions 
      pending 
 
   -- Reaffirming guidance based on expected strong bidding activity for the 
      rest of 2025 with nearly $2 billion in projects anticipated to come to 
      market within our core capabilities and strategic focus markets 

"Our business model continues to prove resilient amid broader macroeconomic factors such as tariffs and supply chain pressures, reflecting both the strength of our disciplined approach and execution of our long-term strategy. We have a robust backlog, supported by a strong 12-month bidding outlook that reflects the quality of our pipeline and the competitiveness of our offerings. Notably, we are seeing heightened demand and opportunities in electrical, water and environmental infrastructure sectors -- areas where we bring deep technical expertise and a strong track record of performance. These segments remain critical to national priorities and are benefiting from public and private investments, positioning us well for continued growth, " said Ural Yal, Chief Executive Officer of Shimmick.

Financial Results

A summary of our results is included in the table below:

 
                                             Three Months Ended 
                                     ---------------------------------- 
(In millions, except per share 
data)                                 April 4, 2025     March 29, 2024 
                                     ---------------   ---------------- 
Revenue                                $         122     $          120 
Gross margin                           $           5     $          (16) 
Net loss attributable to Shimmick 
 Corporation                           $         (10)    $          (33) 
Adjusted net loss                      $          (7)    $          (29) 
Adjusted EBITDA                        $          (3)    $          (24) 
Diluted loss per common share 
 attributable to Shimmick 
 Corporation                           $       (0.28)    $        (1.30) 
Adjusted diluted loss per common 
 share attributable to Shimmick 
 Corporation                           $       (0.22)    $        (1.15) 
 

The following table presents revenue and gross margin data for the three months ended April 4, 2025 compared to the three months ended March 29, 2024:

 
                                            Three Months Ended 
                                   ------------------------------------- 
(In millions, except percentage 
data)                               April 4, 2025        March 29, 2024 
                                   ---------------      ---------------- 
Shimmick Projects(1) 
Revenue                               $         93         $          90 
Gross Margin                          $          5         $          (1) 
Gross Margin (%)                                 6%                   (2)% 
Legacy and Foundations 
Projects(2) 
Revenue                               $         29         $          30 
Gross Margin                          $         (1)        $         (15) 
Gross Margin (%)                                (2)%                 (52)% 
Consolidated Total 
Revenue                               $        122         $         120 
Gross Margin                          $          5         $         (16) 
Gross Margin (%)                                 4%                  (13)% 
 

(1) Shimmick Projects are those projects started after prior ownership that have focused on water, climate resilience, energy transition, and sustainable transportation.

(2) Legacy Projects are those projects started under prior ownership. Projects that focus on foundation drilling are referred to as "Foundations Projects". The Company entered into an agreement to sell the assets of non-core foundation projects in the second quarter of 2024 and continued to wind down remaining work during the remainder of the 2024 fiscal year and three months ended April 4, 2025. As a result, revenue from Foundations Projects will continue to decline during the remainder of the 2025 fiscal year.

Shimmick Projects

Projects started after the AECOM Sale Transaction ("Shimmick Projects") have focused on critical infrastructure aligned with our strategy, including water, climate resilience, energy transition and sustainable transportation. Revenue recognized on Shimmick Projects was $93 million and $90 million for the three months ended April 4, 2025 and March 29, 2024, respectively. The $3 million increase in revenue was primarily the result of $13 million of revenue from a California Palisades fire clean-up project and $10 million of revenue from new water and infrastructure projects ramping up, partially offset by a $20 million decrease from lower activity on existing projects and projects winding down.

Gross margin recognized on Shimmick Projects was $5 million and $(1) million for the three months ended April 4, 2025 and March 29, 2024, respectively. The $6 million increase in the gross margin was primarily the result of $3 million in gross margin from a California Palisades fire clean-up project and $3 million in gross margin from new water and infrastructure projects ramping up.

Legacy and Foundations Projects

As part of the AECOM Sale Transaction, we acquired the Legacy Projects and backlog that were started under prior ownership. The Company entered into an agreement to sell the assets of our non-core Foundations Projects in the second quarter of 2024 and continued to wind down the remaining work which is largely completed.

Legacy and Foundations Projects revenue was $29 million and $30 million for the three months ended April 4, 2025 and March 29, 2024, respectively. The $1 million decrease was due to the Company working to wind down these projects.

Gross margin was $(1) million for the three months ended April 4, 2025 as compared to $(15) million for the three months ended March 29, 2024. The $14 million increase was primarily the result of cost increases for time and design-related schedule extensions identified during the first quarter of 2024 which did not reoccur during the three months ended April 4, 2025.

A subset of Legacy Projects ("Legacy Loss Projects") have experienced significant cost overruns due to the COVID pandemic, design issues, legal costs and other factors. In the Legacy Loss Projects, we have recognized the estimated costs to complete and the loss expected from these projects. If the estimates of costs to complete fixed-price contracts indicate a further loss, the entire amount of the additional loss expected over the life of the project is recognized as a period cost in the cost of revenue. As these Legacy Loss Projects continue to wind down to completion, no further gross margin will be recognized and in some cases, there may be additional costs associated with these projects. Revenue recognized on these Legacy Loss Projects was $18 million and $15 million for the three months ended April 4, 2025 and March 29, 2024, respectively. Gross margin recognized on these Legacy Loss Projects was $(2) million and $(11) million for the three months ended April 4, 2025 and March 29, 2024, respectively. The change in gross margin was primarily the result of cost increases for time and design-related schedule extensions identified during the first quarter of 2024 which did not reoccur during the three months ended April 4, 2025.

Selling, general and administrative expenses

Selling, general and administrative expenses decreased by $2 million primarily as a result of reduced salary, bonus and legal expenses incurred during the three months ended April 4, 2025 as compared to the three months ended March 29, 2024.

Equity in earnings of unconsolidated joint ventures

Equity in earnings of unconsolidated joint ventures remained approximately flat period over period.

Gain (loss) on sale of assets

Gain (loss) on sale of assets remained approximately flat period over period.

Interest expense and Other (income) expense, net

Interest expense and other (income) expense, net remained approximately flat period over period.

Income tax expense

Due to an expected tax loss for the fiscal year ending 2025 and fiscal year ended 2024, no income tax expense was recorded in either period.

Net loss

Net loss decreased by $24 million to a net loss of $10 million for the three months ended April 4, 2025, primarily due to increase in gross margin of $21 million and decrease in salary, general and administrative expenses of $2 million as described above.

Diluted loss per common share was $(0.28) for the three months ended April 4, 2025, compared to diluted loss per common share of $(1.30) for the same period in 2024.

Adjusted net loss was $(7) million for the three months ended April 4, 2025, compared to an adjusted net loss of $(29) million for the same period in 2024.

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