Shimmick 2025 Q2 Earnings Significant Loss Narrowing

Shimmick (SHIM) reported its fiscal 2025 Q2 earnings on August 14, 2025, showing marked improvement in its financial losses. The company narrowed its per-share loss to $0.25 from $1.83 a year ago, representing an 86.3% improvement. The overall net loss also decreased by 83.7%, falling to $8.37 million compared to $51.39 million in the same period last year. Despite the positive trend, the company has posted losses for the third consecutive year in this quarter, signaling ongoing financial challenges that require attention.

Revenue

Shimmick's total revenue rose 41.7% year-over-year to $128.40 million in Q2 2025, driven by robust performance across its business segments. The fixed-price segment led the growth with $102.59 million in revenue, followed by the cost-reimbursable segment, which contributed $25.56 million. Additional revenue came from equipment and labor, amounting to $254,000. This diverse revenue mix highlights the company's ability to generate income across multiple operational areas.

Earnings/Net Income

Shimmick reported a narrowed loss per share of $0.25 in Q2 2025, a significant improvement from a $1.83 loss per share in the same quarter last year. The net loss also decreased to $8.37 million from $51.39 million in 2024 Q2. Despite these improvements, the company has continued to post losses in this quarter for the past three years, indicating the need for further financial and operational turnaround.

Price Action

Following the earnings report, Shimmick's stock price experienced mixed short-term movements. While it dropped 4.09% during the latest trading day, the stock rebounded with a 20.57% increase during the most recent full trading week. Over the month-to-date period, it gained 3.43%, indicating some investor optimism despite the company’s ongoing losses.

Post Earnings Price Action Review

The investment strategy of purchasing Shimmick shares immediately after the earnings report and holding for 30 days proved highly underperforming. The resulting return of -65.06% significantly lagged the benchmark by 103.89%, while the negative Sharpe ratio of -0.37 underscored the poor risk-adjusted return of the strategy. Additionally, the maximum drawdown of 0% indicated that the investment had no recovery potential during the period.

CEO Commentary

Ural Yal, Chief Executive Officer of Shimmick, outlined the company’s progress on its strategic initiatives, emphasizing increased bidding activity and a strong 12-month outlook exceeding $4.5 billion. He credited recent project wins for contributing to backlog growth and anticipated margin improvements in upcoming quarters. Yal also highlighted the company’s focus on its core business in sustainable infrastructure and electrical work, while acknowledging that macroeconomic uncertainties and Non-Core Project challenges have delayed progress.

Guidance

Shimmick expects strong backlog growth and improved margins in upcoming quarters, driven by continued development in its core business segments and the benefits of prior investments in estimating and project execution. However, operational improvements and backlog expansion are occurring later in the year than initially projected, due to slower bidding activity and ongoing Non-Core Project issues.

Additional News

Among recent notable developments, Bauchi State Governor Bala Mohammed appointed Mr. Li Zhensheng, a Chinese national, as the state’s Economic Adviser. The appointment was made during a recent signing event and signals a strategic collaboration with international experts. In another key development, Nigeria's Federal Government announced the launch of the Tertiary Institutions Staff Support Fund, offering 0% interest loans to academic and non-academic staff. Additionally, Cross River State Governor Bassey Otu signed a N104 billion supplementary budget to support state operations and development initiatives.