Axia Electric LLC Launch Positions Shimmick as a Leader in the Green Infrastructure Boom

The launch of Axia Electric LLC by Shimmick Corporation (NASDAQ: SHIM) on June 23, 2025, marks a pivotal strategic move to capitalize on the rapid growth of electrical infrastructure tied to energy transition and sustainability goals. With a $380 million project backlog and a focus on EV charging networks, battery storage systems, and ESG-certified projects, Axia is positioned to benefit from a confluence of trends reshaping global infrastructure markets. This expansion underscores Shimmick's shift toward high-margin, specialized sectors, offering investors a compelling play on the $1.2 trillion global green infrastructure opportunity.

The Electrical Infrastructure Gold Rush

The global push to decarbonize economies has created an insatiable demand for modernized electrical systems. Low- and medium-voltage grids—Axia's core focus—are critical to supporting EV adoption, renewable energy integration, and smart city infrastructure. By 2030, the EV charging infrastructure market alone is projected to grow to $23 billion, while battery storage demand could rise fivefold to 1,000 GW/h. Axia's early contract wins—$42 million secured at launch—suggest strong demand alignment.

The $380M Backlog: A Bridge to Profitability

Axia's project pipeline is a testament to its positioning. The $380 million backlog includes:
- EV infrastructure: Contracts for public and private charging networks, including partnerships with municipalities pursuing net-zero goals.
- Battery storage systems: Projects tied to utility-scale energy storage and corporate renewable energy commitments.
- ESG-certified upgrades: Retrofits for industrial and commercial buildings to meet energy efficiency standards.

Crucially, this backlog is not speculative—it reflects signed contracts underpinned by long-term regulatory and corporate mandates. For Shimmick, Axia's specialization allows it to command premium margins in niche markets, reducing reliance on commoditized construction work.

ESG as a Competitive Moat

ESG criteria are now core to infrastructure procurement, and Axia's alignment with sustainability goals is a strategic advantage. The subsidiary's focus on low-carbon projects qualifies it for green financing instruments, such as sustainability-linked bonds, which now account for 15% of global corporate bond issuance. Moreover, partnerships with ESG-focused firms—like the $50 million deal with CleanGrid Solutions, highlighted in Axia's launch materials—signal access to capital and expertise.

Risks and Considerations

While Axia's prospects are bright, risks remain. Overbuilding in EV charging could lead to stranded assets, and regulatory delays in permitting could slow project timelines. However, Axia's parent company's 20-year track record in complex electrical systems and its existing client relationships mitigate execution risks.

Investment Thesis

Shimmick's stock has underperformed the broader market in recent quarters, trading at 12x trailing earnings—a discount to peers like Quanta Services (PWR, 18x) and Aecom (ACM, 16x). With Axia's backlog contributing ~15% to Shimmick's 2025 revenue guidance, and margins likely expanding due to its high-margin focus, this presents a value-driven entry point.

Recommendation: Investors seeking exposure to the energy transition should consider a 3–5% position in SHIM, with a 12–18 month horizon. The stock could re-rate to 15x earnings if Axia's backlog grows to $700 million by 2026, as projected in management's internal forecasts.

In a world racing to modernize its energy systems, Axia Electric is not just a subsidiary—it's a harbinger of Shimmick's evolution into a pure-play green infrastructure giant.