Shimmick (SHIM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $122 million, with $93 million from Shimmick Projects, and gross margin improved to $5 million from $(16) million year-over-year, reflecting a strategic focus on water, climate resilience, and energy transition.

• Net loss narrowed to $9.8 million from $33 million in the prior year, and Adjusted EBITDA improved to $(3) million from $(24) million, mainly due to the wind-down of Legacy Projects and lower SG&A expenses.

• Backlog stood at $740 million at quarter-end, with over 87% from new/core projects, supporting future revenue visibility and reflecting a shift away from legacy work.

• Operational improvements, strategic investments in sales and estimating, and SG&A optimization have driven higher bid activity and improved win rates.

• Management remains optimistic for 2025, aiming to grow backlog, restore profitability, and expand addressable markets, with a strong bidding pipeline and focus on high-growth sectors.

Financial highlights

• Revenue for Q1 2025 was $122.1 million, up 2% year-over-year, with gross margin at $5 million (4%), a turnaround from $(16) million (-13%) last year.

• Net loss narrowed to $9.8 million from $33 million, and Adjusted EBITDA improved to $(3) million from $(24) million year-over-year.

• SG&A expenses reduced by 11% to $14 million.

• Total liquidity at quarter-end was $71 million, with $16 million in cash and $55 million in credit availability.

• Total assets were $228 million and total liabilities $270 million, with a stockholders' deficit of $43 million as of April 4, 2025.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: Shimmick Projects revenue expected to grow 10–15% to $392M–$410M, with gross margin between 9%–12%.

• Legacy and Foundations Projects revenue expected at $50–$60 million, with gross margin between (5)% and (15)%.

• Adjusted EBITDA guidance for FY2025 is $15–$25 million.

• Management expects higher bidding activity in Q2 and Q3 as paused projects are released and nearly $2 billion in projects anticipated to come to market.

• Guidance reaffirmed amid strong project pipeline and robust market demand.