Shimmick (SHIM) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $104 million, with $80 million from Shimmick Projects; full-year revenue was $480 million, with $356 million from Shimmick Projects.

• Net loss for Q4 2024 was $38 million; Adjusted EBITDA was $(27) million, mainly due to Legacy Projects and changed work issues.

• Backlog exceeded $822 million at year-end, with over 87% from Shimmick Projects.

• Liquidity stood at $100 million at year-end, supported by cash, credit facilities, and a new $15 million credit agreement.

• Strategic wins in water, climate resilience, and transportation, and a new CEO strategy, position the company for growth and transformation in 2025.

Financial highlights

• Q4 2024 revenue was $104 million, down from $138 million year-over-year; full-year revenue was $480 million, down from $633 million.

• Q4 adjusted EBITDA was $(27) million; full-year adjusted EBITDA was $(61) million.

• Q4 net loss was $38 million, compared to a net loss of $17 million in the prior year; full-year net loss was $125 million.

• Gross margin on Shimmick projects in Q4 was $2 million, down from $9 million a year ago, due to increased costs and project wind-downs.

• Total liquidity at year-end was $100 million, including $34 million in cash and $66 million in credit facilities.

Outlook and guidance

• 2025 Shimmick Projects revenue expected to increase 10%–15%, with gross margin between 9%–12%.

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

• Adjusted EBITDA for 2025 projected between $15 million and $25 million.

• Management expects gross margin improvement to be weighted toward the second half of the year, especially Q3.

• Strategy for 2025 includes increasing and de-risking backlog, operational efficiency, and sustainable growth.