Shimmick 2025 Q1 Earnings Losses Narrow Significantly

Shimmick (SHIM) reported its fiscal 2025 Q1 earnings on May 14th, 2025. The company recorded a 1.7% increase in total revenue, reaching $122.11 million compared to $120.04 million in the previous year. Despite this growth, Shimmick continues to face financial challenges with a net loss of $9.77 million, although this marks a significant improvement from the $33.33 million loss in Q1 2024. The company remains optimistic, reaffirming its guidance for the rest of the fiscal year.

Shimmick's results surpassed expectations with a notable narrowing of losses, reflecting positively on their strategic initiatives. The company reaffirmed its guidance, expecting strong bidding activity and nearly $2 billion in projects aligned with its strategic focus for 2025. Shimmick continues to manage its costs and transformation plans, positioning itself for potential future growth amid ongoing challenges.

Revenue

Shimmick's revenue grew by 1.7% year-over-year, reaching $122.11 million in Q1 2025. The fixed-price contracts contributed $102.69 million, while cost-reimbursable contracts added $19.02 million. Equipment and labor revenue accounted for $410,000, rounding out the total.

Earnings/Net Income

Shimmick made progress by narrowing its losses to $0.28 per share, a 78.5% improvement from the $1.30 per share loss in Q1 2024. This reduction in net loss to $9.77 million from $33.33 million indicates a positive trend, albeit with ongoing challenges.

Price Action

The stock price of Shimmick edged down 2.59% during the latest trading day but surged 20.21% over the most recent full trading week and 21.51% month-to-date.

Post-Earnings Price Action Review

Following Shimmick's earnings release, the company's strategy of buying when revenue beats expectations and holding for 30 days has shown promising returns with a 29.03% earnings surprise and a 35.68% revenue beat. This led to a 29.03% increase in the stock price. However, the stock's overall performance remains mixed, with a 34.4% decline year-to-date, underperforming the S&P 500's 0.1% gain. Despite this, the strategy has demonstrated resilience amid macroeconomic challenges. Shimmick's strong backlog and bidding outlook support its future growth prospects. Investors are advised to consider the company's ongoing cost management, transformation plans, and potential impacts from legacy projects when assessing SHIM's long-term prospects.

CEO Commentary

"Our business model continues to prove resilient amid broader macroeconomic factors such as tariffs and supply chain pressures, reflecting both the strength of our disciplined approach and execution of our long-term strategy," said Ural Yal, Chief Executive Officer of Shimmick. The company reported a robust backlog supported by a strong 12-month bidding outlook, indicating heightened demand in electrical, water, and environmental infrastructure sectors. These areas align with national priorities and benefit from public and private investments, positioning Shimmick well for continued growth.

Guidance

Shimmick reaffirms its guidance based on expected strong bidding activity for the remainder of 2025, anticipating nearly $2 billion in projects aligned with its core capabilities and strategic focus markets. The company emphasizes its confidence in the quality of its pipeline and the competitiveness of its offerings as it navigates upcoming opportunities.

Additional News

In recent weeks, Shimmick has not engaged in any merger or acquisition activities, nor have there been significant C-level changes or dividend announcements. However, the company continues to focus on its strategic initiatives to enhance operational efficiency and strengthen its position within the infrastructure solutions sector. Shimmick's ongoing commitment to addressing national priorities in water, climate resilience, energy transition, and sustainable transportation remains central to its growth strategy. This focus, combined with a robust project pipeline and strong bidding activity, positions the company well for potential future expansion and improved financial performance.