Shimmick (NASDAQ:SHIM) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Shimmick (NASDAQ:SHIM) issued its quarterly earnings results on Monday. The company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.02) by $0.01, FiscalAI reports. The company had revenue of $106.62 million during the quarter, compared to analyst estimates of $121.85 million.

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

• Backlog reached $991 million at quarter-end, with $138 million of Q2 awards and an additional $221 million awarded after quarter-end. The 1.4x book-to-burn ratio marked the fourth consecutive quarter above 1.0x.
• Consolidated gross margin improved to 12% from 6% year over year, while adjusted EBITDA rose to $4 million from a loss of $234,000. Management expects further margin expansion as newer, higher-margin projects ramp into construction.
• Management reaffirmed 2026 adjusted EBITDA guidance of $15 million to $30 million and expects revenue of approximately $525 million to $575 million, representing roughly 12% year-over-year growth at the midpoint.
• Demand remains strong in water infrastructure, data centers, electrification, and other mission-critical markets. The company said a West Virginia data-center project is entering pre-construction, with construction expected to begin within 60 days, while Texas is seeing particularly strong water and data-center opportunities.
• Q2 revenue declined to $107 million from $128 million a year earlier as legacy projects wound down and newly awarded work faced longer-than-expected startup timelines. Liquidity was $33 million, although management expects cash flow to improve as loss-making non-core work—now less than 3% of backlog—largely exits the portfolio.

Shimmick Stock Performance

Shares of NASDAQ:SHIM opened at $4.20 on Tuesday. Shimmick has a 52-week low of $1.83 and a 52-week high of $6.76. The business’s 50 day simple moving average is $3.86 and its two-hundred day simple moving average is $4.00. The firm has a market cap of $154.14 million, a P/E ratio of -7.24 and a beta of 0.79.

Analysts Set New Price Targets

Several brokerages recently commented on SHIM. Wall Street Zen lowered Shimmick from a “hold” rating to a “sell” rating in a research report on Saturday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Shimmick in a report on Wednesday, June 24th. Two research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, Shimmick currently has a consensus rating of “Hold” and an average target price of $5.50.

Shimmick Company Profile

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.