Shimmick Corporation Reports 28% Revenue Decline in Q1 2026, Despite Improved Gross Margin

Shimmick Corporation reported a significant decline in revenue for the first quarter of 2026, with total revenue of $88.0 million, down 28% from $122.1 million in the same period last year. The decrease was attributed primarily to reduced activity on existing projects and the winding down of certain projects, including a notable fire clean-up project that contributed $13 million to last year's figures but did not recur this quarter. Despite the revenue drop, the company achieved a gross margin of $10.9 million, a 132% increase from $4.7 million in the prior year, reflecting improved profitability from new higher-margin projects.

The company's financial position showed a decrease in total assets, which fell to $202.3 million from $218.8 million at the beginning of the year. Current assets also declined, primarily due to reductions in cash and accounts receivable. Total liabilities decreased to $262.8 million from $275.4 million, driven by a reduction in current liabilities. Shimmick's stockholders' deficit widened to $60.5 million, compared to $56.6 million previously, largely due to the net loss attributable to the company of $4.6 million for the quarter, an improvement from a loss of $9.8 million in the same quarter last year.

Operationally, Shimmick's backlog of projects stood at approximately $944 million, with a significant portion located in California and ongoing projects in six other states. The company continues to focus on critical infrastructure projects, particularly in water treatment and climate resilience. Shimmick's strategic initiatives include the launch of Axia Electric, a subsidiary aimed at expanding its electrical capabilities and geographic reach, particularly in Texas, Georgia, and Tennessee.

The company reported a net cash used in operating activities of $7.5 million, a notable improvement from $38.2 million in the prior year, indicating better cash management despite ongoing challenges. Shimmick's financing activities generated $2.9 million, primarily from borrowings under credit agreements, which helped to offset cash outflows. Looking ahead, Shimmick remains focused on enhancing its project execution and cost management strategies while navigating the complexities of the construction market, including potential impacts from weather and economic conditions.