Shimmick (SHIM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $142 million, with Shimmick Projects contributing $107 million, up 6% year-over-year, and gross margin of $11 million, up 67% for core projects.

• Net loss for Q3 2025 was $4 million, primarily due to Non-Core Projects, with positive Adjusted EBITDA of $4 million, the first in four quarters.

• Backlog increased 15% quarter-over-quarter to $754 million, with a book-to-burn ratio of 1.7x, the highest in two years.

• Over 86% of backlog is from core projects, with $190 million in new work added in Q3 and strong bidding activity, especially in water and electrical infrastructure in California, Texas, and the West Coast.

• Transformation efforts are yielding improved execution, higher quality backlog, and a shift toward higher-margin negotiated work.

Financial highlights

• Revenue decreased 15% year-over-year due to a one-time $31 million claim settlement in Q3 2024; excluding this, revenue grew 5% year-over-year.

• Gross margin was $11 million, down $1 million year-over-year, but up $10 million on a like-for-like basis excluding the prior year’s one-time item.

• Net loss for the quarter was $4 million, compared to $1.6 million in Q3 2024, impacted by lower gains on asset sales and higher SG&A expenses.

• Adjusted EBITDA was $4.3 million, compared to $30 million in Q3 2024, which included the one-time settlement.

• Liquidity at quarter-end was $48 million, with $18 million in cash and $30 million in credit availability.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: Shimmick Projects revenue expected between $405–$415 million, gross margin 9–12%, and consolidated Adjusted EBITDA projected between $5–$15 million.

• Non-Core Projects revenue expected between $80–$90 million, with gross margin between -15% and -5%.

• Non-core project burn is now expected to be closer to 20% of total revenue for 2025, higher than initial guidance.

• Backlog growth and new project wins are expected to drive revenue and margin improvements into Q4 2025 and 2026.

• Strong growth anticipated in electrical backlog over the next two quarters, especially in California and Texas.