Shimmick (SHIM) Q2 2025 earnings summary

Executive summary

• Revenue increased 42% year-over-year to $128 million in Q2 2025, with $113 million from core projects and gross margin improving to $8 million from a $31 million loss, driven by strong core project performance.

• Net loss narrowed to $8.4 million from $51.4 million year-over-year, with adjusted EBITDA nearly flat at $(0.2) million, reflecting higher margins and lower SG&A expenses.

• SG&A expenses decreased 20% year-over-year to $15 million due to transformation initiatives.

• Backlog reached $652 million as of July 4, 2025, with 88% from core projects and $70 million in new awards added in July.

• Axia Electric subsidiary launched to target growth in electrical, industrial, and data center markets.

Financial highlights

• Q2 2025 revenue was $128 million, up from $91 million in Q2 2024; six-month revenue reached $251 million, up 19% year-over-year.

• Gross margin for Q2 2025 was $8.1 million (6%), up from $(31.1) million (-34%) in Q2 2024; six-month gross margin was $12.8 million (5%).

• Adjusted EBITDA for Q2 2025 was $(0.2) million, a significant improvement from $(40) million in Q2 2024.

• Liquidity increased to $73 million as of July 4, 2025, up $2 million sequentially, with $21 million in cash and $52 million in credit availability.

• Non-core projects had a negative gross margin of $(7) million, but losses narrowed as projects near completion.

Outlook and guidance

• Full-year 2025 core project revenue guidance raised to $405–$415 million, with gross margin expected at 9–12%.

• Non-core project revenue guidance increased to $80–$90 million, with gross margin between (15%) and (5%).

• Consolidated adjusted EBITDA guidance lowered to $5–$15 million due to negative mix impact.

• Margin improvement is expected as non-core projects wind down and higher-margin core work ramps up.

• Backlog of $652 million provides strong revenue visibility, with 85% expected to convert within 24 months.