Shimmick (NASDAQ:SHIM) Issues Quarterly Earnings Results, Meets Expectations

Shimmick (NASDAQ:SHIM) released its earnings results on Monday. The company reported ($0.01) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.01), FiscalAI reports. The firm had revenue of $106.62 million during the quarter, compared to analyst estimates of $106.60 million.

Here are the key takeaways from Shimmick’s conference call:

• Backlog reached $991 million at quarter-end, with $138 million of Q2 awards and an additional $221 million awarded after quarter-end. The 1.4x book-to-burn ratio marked the fourth consecutive quarter above 1.0x.
• Consolidated gross margin improved to 12% from 6% year over year, while adjusted EBITDA rose to $4 million from a loss of $234,000. Management expects further margin expansion as newer, higher-margin projects ramp into construction.
• Management reaffirmed 2026 adjusted EBITDA guidance of $15 million to $30 million and expects revenue of approximately $525 million to $575 million, representing roughly 12% year-over-year growth at the midpoint.
• Demand remains strong in water infrastructure, data centers, electrification, and other mission-critical markets. The company said a West Virginia data-center project is entering pre-construction, with construction expected to begin within 60 days, while Texas is seeing particularly strong water and data-center opportunities.
• Q2 revenue declined to $107 million from $128 million a year earlier as legacy projects wound down and newly awarded work faced longer-than-expected startup timelines. Liquidity was $33 million, although management expects cash flow to improve as loss-making non-core work—now less than 3% of backlog—largely exits the portfolio.

Shimmick Trading Up 3.3%

SHIM stock traded up $0.13 on Wednesday, hitting $4.07. 2,080 shares of the company’s stock traded hands, compared to its average volume of 131,367. Shimmick has a 1-year low of $1.92 and a 1-year high of $6.76. The stock has a market cap of $149.36 million, a price-to-earnings ratio of -9.26 and a beta of 0.79. The stock has a fifty day moving average of $3.87 and a 200-day moving average of $3.99.

Analyst Upgrades and Downgrades

SHIM has been the topic of a number of research reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Shimmick in a research note on Wednesday, June 24th. Wall Street Zen cut Shimmick from a “hold” rating to a “sell” rating in a research note on Saturday. Two research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Shimmick has a consensus rating of “Hold” and a consensus target price of $5.50.

About Shimmick

Shimmick Corporation provides water and other critical infrastructure solutions in the United States. The company undertakes water and wastewater treatment infrastructure; water storage and conveyance, including dams, levees, flood control systems, pump stations, and coastal protection infrastructure; and mass transit, bridges, and military infrastructure projects. It serves federal, state, and local governments. The company was formerly known as SCCI National Holdings, Inc and changed its name to Shimmick Corporation in September 2023.