Shimmick (NASDAQ:SHIM) executives said the company closed 2025 “strong and in line with our expectations,” pointing to improved profitability in its core operations, continued progress winding down legacy non-core work, and a growing backlog supported by what management described as a healthy market backdrop.
2025 results reflect mix shift toward core projects
Management reiterated that Shimmick’s strategy is centered on three priorities: growing revenue by pursuing “strategic risk-balanced work” aligned with its expertise, completing and winding down legacy low-margin non-core projects, and driving operational improvements to deliver more consistent margins and better G&A leverage.
Non-core project revenue declined to $96 million from $125 million in 2024 as the company continued to burn down that portion of the backlog. Management said non-core projects were close to 90% complete at the end of 2025.
Fourth-quarter profitability improved versus prior-year loss-driven quarter
CFO Todd Yoder said fourth-quarter performance reflected operational improvements and mix changes, alongside the absence of prior-year non-core cost overruns.
- Q4 2025 consolidated revenue: $100 million vs. $104 million in Q4 2024
- Q4 Shimmick project revenue: $84 million, up 4% year over year, driven by new projects ramping up
- Q4 non-core revenue: $16 million, down $24 million year over year, reflecting less non-core backlog to burn
On profitability, Shimmick project gross margin in Q4 was $10 million, up from $2 million a year earlier, with gross margin percentage improving to 12% from 3%. Yoder attributed the gross margin increase to $6 million from new awards and $2 million from existing projects. Non-core gross margin was flat in Q4 2025 compared to a negative $23 million gross margin in Q4 2024, which the CFO said was driven by cost overruns on non-core loss projects that did not recur.
Consolidated Q4 gross margin was $10 million versus negative $21 million in the prior-year quarter. G&A expense for Q4 2025 was $11 million, down from $16 million in Q4 2024, which management attributed to its business transformation efforts. Net loss in Q4 2025 was $3 million compared to a $38 million net loss in Q4 2024, while adjusted EBITDA improved to $4 million from negative $27 million.
Backlog growth and pipeline activity highlighted
Shimmick ended 2025 with $793 million of backlog. Management said backlog remained well above a one-to-one book-to-burn ratio, calling this an indicator of demand and the company’s ability to win work. New awards booked during Q4 totaled $135 million (management also referenced $139 million of Q4 new awards in prepared remarks), producing a 1.4x book-to-burn for the quarter.
After year-end, the company reported additional awards totaling $128 million that were added to backlog in early 2026. Management also said Shimmick had been selected as preferred bidder on projects totaling $234 million, predominantly in water and electrical construction and mostly located in California and Texas, with negotiations or final awards expected “over the upcoming weeks and months.”
Executives said the company’s 24-month pipeline supports $600 million to $1 billion of bidding volume per month. In response to analyst questions, management described activity in California, Texas, and the Pacific Northwest as strong, particularly for water-related work in both Texas and California.
Collaborative delivery milestones and growth verticals
Management emphasized efforts to expand participation in collaborative delivery models. The CEO said the company expected to announce its first progressive design-build award since he joined, describing it as a milestone. The project is valued at approximately $55 million, located in Southern California, and includes wastewater treatment and specialty electrical work. Shimmick expects to negotiate the construction contract at the end of 2026, with construction beginning in 2027.
The company also highlighted construction manager/general contractor (CM/GC) opportunities, including a bus infrastructure project tied to Los Angeles’ preparation for the 2028 Olympics. Management described it as an estimated $200 million effort approaching the construction phase, with an announcement expected in the second quarter and construction starting shortly thereafter.
In addition, executives discussed pursuing data center opportunities, noting active pursuits with large operators in Texas, Washington, and Nevada, though they said they were not yet in a position to announce new contracts.
On the electrical side, management described its electrical business as focused on low- and medium-voltage work spanning a range of project sizes, from roughly $5 million–$10 million to as large as $200 million. The CEO said Texas has been “extremely strong” for bidding activity and noted the portion of electrical work in overall bids has been increasing.
Liquidity and 2026 outlook
Shimmick ended Q4 2025 with total liquidity of $44 million, consisting of $20 million in unrestricted cash and cash equivalents and $24 million of availability under credit agreements. Liquidity declined from $48 million at the end of Q3 2025.
For 2026, management said some projects in California and Texas experienced slower burn due to heavy rainfall in California and cold weather in Texas, and newly awarded contracts took longer than normal to ramp. While the company expects a slower start to the year, it anticipates sequential improvement throughout 2026 as new awards ramp up.
The company guided for 2026 consolidated revenue growth of 12% to 22%, implying approximately $550 million to $600 million of work put in place. Adjusted EBITDA is projected to increase 200% to 500%, equating to a range of $15 million to $30 million.
In the Q&A, executives said they expect gross margins to rise in 2026, depending on project mix, and emphasized efforts to hold SG&A around current levels as revenue grows. Management said it expects non-core work to be largely burned through in 2026, with “very little left, if any, into 2027,” noting that those projects have forward losses booked and were described as effectively zero-margin work.
About Shimmick (NASDAQ:SHIM)
Shimmick Corporation provides water and other critical infrastructure solutions in the United States. The company undertakes water and wastewater treatment infrastructure; water storage and conveyance, including dams, levees, flood control systems, pump stations, and coastal protection infrastructure; and mass transit, bridges, and military infrastructure projects. It serves federal, state, and local governments. The company was formerly known as SCCI National Holdings, Inc and changed its name to Shimmick Corporation in September 2023.
