Shimmick Corporation Second Quarter Update: Growth and Strategy
Shimmick Corporation Reports Strong Financial Performance
In a recent announcement, Shimmick Corporation (NASDAQ: SHIM), a prominent infrastructure solutions provider, revealed its financial results for the second quarter. The company has shown remarkable growth in various projects aimed at enhancing water, climate resilience, energy transition, and sustainable transportation. The figures for the quarter ending July 4, 2025, are particularly impressive, indicating a significant upward trajectory.
Highlights from the Second Quarter
Revenue Growth and Margins
Shimmick reported a robust revenue of $128 million, which marks a 42% increase compared to the previous year. Notably, $113 million of this revenue stemmed from Shimmick Projects, indicative of the company's success in capitalizing on significant infrastructure contracts. The gross margin for the quarter reached $8 million, a substantial turnaround from a loss of $31 million during the same period last year, reflecting an impressive 126% improvement.
Improved Financial Health and Costs Management
The financial management strategies initiated under the Transformation Plan are yielding results, as selling, general, and administrative expenses dropped by 20% to $15 million. This proactive cost management, combined with a report of $73 million in liquidity, demonstrates Shimmick's commitment to strengthening its financial foundations. Though the net loss was reported at $8 million, the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood nearly flat at $(234) thousand, showcasing improved operational efficiency.
Strategic Innovations and Future Prospects
Launch of Axia Electric
In a strategic move to diversify and enhance its operational capabilities, Shimmick Corporation has launched Axia Electric, a new subsidiary focused on providing specialized electrical and power distribution solutions. This venture targets growth markets within industrial, data centers, and advanced manufacturing, in addition to core efforts in water and wastewater management.
Stellar Backlog Prospects
As of July 4, 2025, Shimmick's backlog stands at an impressive $652 million, with more than 88% attributed to Shimmick Projects. This includes recent project awards totaling $70 million and a selection as a preferred bidder for a $164 million Transit Center and River Pump Station project. The company anticipates these projects will significantly enhance its backlog, contributing to sustained financial health and operational scalability.
Outlook for the Remainder of the Year
The leadership at Shimmick is optimistic about the company’s future, supported by an increased bidding outlook exceeding $4.5 billion. The Chief Executive Officer, Ural Yal, has expressed confidence in achieving backlog growth and improved margins throughout the year, despite initial delays due to macroeconomic factors impacting project timelines.
Conference Call and Webcast Information
Shimmick Corporation will conduct a video webcast on August 14, 2025. Interested parties can tune in through the company's Investor Relations website. A detailed presentation relevant to the earnings call will also be available for review following the live event.
About Shimmick Corporation
Shimmick Corporation is a leader in providing comprehensive infrastructure solutions that support critical markets focused on water, energy, climate resilience, and sustainable transportation. By integrating technical excellence with collaborative delivery methods, the company is poised to address contemporary infrastructure challenges, driving growth and empowering communities across the nation.
Frequently Asked Questions
What are the main highlights from Shimmick Corporation's Q2 report?
Shimmick reported $128 million in revenue, a 42% increase year-over-year, and improved gross margin, among other strategic innovations.
What is Axia Electric?
Axia Electric is Shimmick's newly launched subsidiary dedicated to electrical and power distribution solutions, targeting multiple growth sectors.
How much is Shimmick's current backlog?
The company’s backlog is approximately $652 million, with strong prospects for future growth due to recent contract awards.
What is the company's outlook for the rest of the year?
Shimmick expects to see continued backlog growth and margin improvement, supported by a bidding outlook of over $4.5 billion.
How can I find more information about Shimmick Corporation?
More details can be found on Shimmick's official website, where you can access financial reports and updates.
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