Shimmick 2025 Q3 Earnings Net Loss Widens 181% Amid Strategic Shifts

Shimmick (SHIM) reported Q3 2025 earnings that missed expectations, with a net loss of $4.40 million (-181.1% YoY) and revenue declining 14.5% to $141.92 million. Despite losses, the company reaffirmed full-year guidance and highlighted progress in core projects and backlog growth.

Revenue

Total revenue fell to $141.92 million in Q3 2025 from $166.03 million in Q3 2024, driven by a $31 million one-time GGB project settlement in the prior year. Fixed-price projects dominated the revenue mix at $134.34 million, while cost-reimbursable contracts contributed $7.36 million, and equipment and labor revenue added $226,000. Core Shimmick projects accounted for 75% of total revenue, up 6% YoY, as the company phases out non-core work.

Earnings/Net Income

Shimmick’s net loss widened to $4.40 million in Q3 2025, a 181.1% increase from $1.56 million in Q3 2024, with EPS deteriorating to -$0.12 from -$0.05. The losses, now in the third consecutive quarter, reflect ongoing challenges from non-core projects, which posted a 46% revenue drop and negative margins.

Post-Earnings Price Action Review

The strategy of buying Shimmick shares on the date of its earnings announcement and holding for 30 days showed favorable performance over the past three years, with a cumulative return of 17.5% and an average annual return of 5.8%. This outperformance underscores medium-term potential despite market volatility and industry headwinds.

CEO Commentary

CEO Ural Yal emphasized progress in core projects, noting a 67% YoY gross margin expansion and a 1.7 book-to-burn ratio. Strategic priorities include replacing non-core work (now 24% of revenue) with high-margin water and electrical projects, particularly in Texas and the West Coast. The company’s $754 million backlog (86% core projects) and $9 billion bidding pipeline support confidence in 2026 growth.

Guidance

Shimmick reaffirmed 2025 guidance: core project revenue of $405–415 million (9–12% margin), non-core revenue of $80–90 million (-15% to -5% margin), and adjusted EBITDA of $5–15 million. CFO Todd Yoder expects revenue to land near the top of the range and EBITDA toward the lower end, citing Q4 momentum from high-margin projects.

Additional News

Shimmick secured a $45.4 million contract for the Murray Street Bridge, enhancing seismic resilience and accessibility. The company also resolved a $97 million settlement from the Golden Gate Bridge project, reducing legacy liabilities. CEO Ural Yal’s appointment in December 2024 has bolstered strategic focus on core infrastructure, including water and electrical markets, with $169 million in pending awards.

Key Takeaways:

• Strategic Shifts:

  Shimmick is transitioning to high-margin core projects, with 86% of its $754 million backlog now in core work.

• Backlog Growth:

  Sequential backlog increased 15%, driven by $190 million in new awards, including California water projects.

• Market Positioning:

  The company is capitalizing on infrastructure demand in Texas and the West Coast, with a $9 billion bidding pipeline.

Shimmick’s Q3 results highlight a challenging transition but underscore long-term positioning in critical infrastructure sectors. Investors should monitor progress in phasing out non-core projects and executing on the $169 million in pending awards.