Shimmick Corporation Reports $122.1 Million Revenue with Improved Gross Margin and Reduced Net Loss

Shimmick Corporation reported a revenue of $122.1 million for the three months ended April 4, 2025, marking a 2% increase from $120.0 million in the same period last year. The company achieved a gross margin of $4.7 million, a significant recovery from a gross loss of $15.9 million in the prior year, primarily due to a reduction in the cost of revenue, which fell to $117.4 million from $135.9 million. Despite these improvements, Shimmick recorded a net loss of $9.8 million, a notable decrease from a net loss of $33.3 million in the previous year, reflecting a 71% reduction in losses.

The company’s operational performance showed marked improvement, with a gross margin percentage rising to 4% from a negative 13% in the prior year. This turnaround was attributed to increased revenue from new projects, including a California Palisades fire clean-up project, which contributed $13 million to revenue. Additionally, Shimmick's backlog of projects stood at approximately $739 million, with over half of these projects located in strategic target markets, indicating a solid pipeline for future revenue.

In terms of strategic developments, Shimmick has focused on critical infrastructure projects, particularly in water treatment and climate resilience. The company has also been winding down its non-core Foundations Projects, which were part of its Legacy Projects acquired during the AECOM Sale Transaction. The company’s employee headcount has increased, reflecting its ongoing efforts to expand its operational capacity and expertise in targeted markets.

Financially, Shimmick's total liabilities increased to $270.3 million as of April 4, 2025, compared to $268.5 million at the beginning of the year. This rise was primarily due to increased long-term debt, which grew to $31.4 million from $9.5 million, as the company secured additional financing to support its operations and growth initiatives. The company reported cash and cash equivalents of $16.3 million, down from $33.7 million at the start of the year, indicating a need for careful cash management moving forward.

Looking ahead, Shimmick Corporation remains optimistic about its growth trajectory, driven by its strategic focus on infrastructure projects aligned with national priorities. The company anticipates that its backlog and ongoing projects will provide a solid foundation for revenue generation in the coming quarters. However, management has cautioned that future performance may be influenced by various factors, including market conditions, project execution risks, and the ability to secure new contracts.