Shimmick (NASDAQ:SHIM) Issues Earnings Results

Shimmick (NASDAQ:SHIM) announced its quarterly earnings results on Thursday. The company reported $0.08 EPS for the quarter, beating analysts’ consensus estimates of $0.04 by $0.04, FiscalAI reports. The firm had revenue of $135.80 million during the quarter, compared to analyst estimates of $139.85 million.

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

• Shimmick returned to GAAP profitability for the first time since Q3 2023, with about $1 million in net income. Adjusted EBITDA rose to $9 million from $4 million a year earlier, marking the fifth consecutive quarter of positive adjusted EBITDA.
• The company raised and narrowed its 2026 adjusted EBITDA outlook to $20 million–$25 million; revenue is expected to be $500 million–$525 million. Management said the revenue outlook change reflects lower non-core work and does not affect profitability.
• Backlog plus pending awards reached $1.3 billion, up 33% year over year, with non-core projects below 2% of booked backlog. Management expects most of the $401 million in pending awards to convert to backlog within 90 days and cited continued demand across water, electrical, and mission-critical markets.
• Liquidity increased to $53 million, operating cash flow was positive $10 million, and working capital turned positive at $11 million. Management cautioned that some liquidity improvement came from one-time timing factors, while expecting positive operating cash flow in 2027.
• Management said project ramp-ups and backlog conversion have taken longer than initially expected, creating potential quarter-to-quarter variability. Q3 awards were $48 million, a 0.4x book-to-burn ratio, which the company attributed to contract-execution timing.

Shimmick Trading Up 3.1%

SHIM stock traded up $0.07 during midday trading on Thursday, reaching $2.34. 112,445 shares of the company were exchanged, compared to its average volume of 65,998. Shimmick has a one year low of $2.01 and a one year high of $6.76. The business has a 50-day moving average price of $2.89 and a two-hundred day moving average price of $3.71.

Analyst Ratings Changes

SHIM has been the topic of several recent analyst reports. Weiss Ratings restated a “sell (d-)” rating on shares of Shimmick in a research note on Monday, September 21st. Wall Street Zen upgraded Shimmick from a “sell” rating to a “hold” rating in a report on Sunday, August 16th. Two investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $5.50.

About Shimmick

Shimmick Corporation (NASDAQ:SHIM) is a heavy civil construction company that delivers infrastructure projects for public agencies and other customers. Its work focuses primarily on water infrastructure, transportation systems and other complex civil construction programs. The company’s capabilities include the construction and rehabilitation of dams, reservoirs, water-treatment facilities, tunnels, bridges, highways, transit systems and marine structures. Shimmick also provides related engineering, construction management and project-delivery services, with an emphasis on technically demanding projects and long-term infrastructure needs.