Shimmick 2025 Q3 Earnings Deepened Losses Amid Revenue Decline

Shimmick (SHIM) reported Q3 2025 earnings on Nov 14, 2025, with results reflecting a 14.5% revenue drop to $141.92 million and a 181.1% wider net loss of $4.40 million. While Non-GAAP EPS of -$0.01 beat estimates by $0.03 and revenue exceeded forecasts by $21.8 million, the company reaffirmed full-year guidance. CEO Ural Yal emphasized progress in core projects and operational improvements, though non-core legacy projects remain a drag.

Revenue

Shimmick’s Q3 revenue fell to $141.92 million, driven by a 14.5% year-over-year decline. Fixed-price contracts accounted for the lion’s share at $134.34 million, while cost-reimbursable projects contributed $7.36 million, with equipment and labor revenue adding $226,000 to the total. Non-core revenue dropped 46% to $35 million, reflecting the company’s strategic shift away from legacy projects.

Earnings/Net Income

Shimmick’s net loss widened to $4.40 million in Q3 2025, a 181.1% increase from $1.56 million in 2024. Earnings per share deteriorated to -$0.12, a 140% wider loss compared to the previous year. Despite beating revenue estimates, Shimmick’s net losses deepened significantly, underscoring ongoing operational challenges.

Post-Earnings Price Action Review

Following the earnings release, the stock experienced a sharp decline of 10.51% on the day, though it rebounded with a 20.49% surge during the subsequent trading week. Month-to-date gains of 4.22% suggest mixed investor sentiment, balancing short-term volatility with longer-term optimism tied to management’s strategic vision.

CEO Commentary

CEO Ural Yal highlighted progress in executing Shimmick’s three-pronged strategy, including a 6% year-over-year increase in core project revenue to $107 million and a 67% gross margin expansion. Non-core projects, now representing 24% of total revenue, are being phased out, with the company targeting a 1.7 book-to-burn ratio and $754 million in backlog. Yal expressed cautious optimism about 2026, citing Olympic-related opportunities and disciplined execution.

Guidance

Shimmick reaffirmed 2025 full-year guidance: $405–$415 million in core project revenue (9–12% gross margin), $80–$90 million in non-core revenue (negative 15–5% gross margin), and consolidated adjusted EBITDA of $5–$15 million.

Additional News

Recent strategic moves include a $45.4M contract win for the Murray Street Bridge, enhancing seismic resilience, and a $97M settlement from the Golden Gate Bridge Project, reducing legacy liabilities. CEO Ural Yal, appointed in December 2024, has driven a strategic shift toward water and electrical infrastructure, aligning with long-term national priorities. These initiatives, coupled with a 15% sequential backlog increase to $754 million, signal a pivot toward sustainable growth.

Revenue

Shimmick’s Q3 2025 revenue of $141.92 million reflects a 14.5% year-over-year decline, with fixed-price contracts dominating at $134.34 million. Non-core revenue fell to $35 million, underscoring the company’s exit from legacy projects. Gross margins on core projects expanded 67% YoY, while non-core margins remain negative.

Earnings/Net Income

Net losses widened to $4.40 million, a 181.1% increase from 2024, driven by non-core project drag. Adjusted EBITDA turned positive at $4 million, the first profit in four quarters. Despite improved operational efficiency, losses persist due to legacy liabilities and margin compression in non-core segments.

Guidance

Full-year 2025 guidance remains intact, with core project revenue targeting $405–$415 million and adjusted EBITDA of $5–$15 million. Non-core projects are expected to contribute $80–$90 million, though with negative margins. Management emphasized disciplined execution and backlog growth to drive 2026 performance.

Additional News

Shimmick’s strategic wins, including the $45.4M Murray Street Bridge contract and a $97M Golden Gate Bridge settlement, highlight its focus on infrastructure resilience. CEO Ural Yal’s leadership has accelerated the shift toward water and electrical projects, with $169 million in pending bids and a 1.7 book-to-burn ratio. These moves, alongside $754 million in backlog, position the company for long-term growth.