Shimmick Corporation Reports 42% Revenue Growth to $128.4 Million in Latest Quarter

Shimmick Corporation reported significant financial improvements in its latest quarterly results, with revenues reaching $128.4 million for the three months ended July 4, 2025, a 42% increase from $90.6 million in the same period last year. For the first half of the fiscal year, the company generated $250.5 million in revenue, up 19% from $210.6 million in the prior year. The gross margin also saw a notable turnaround, moving from a loss of $31.1 million in the second quarter of 2024 to a positive gross margin of $8.1 million in the latest quarter. However, the company still reported a net loss of $8.5 million for the quarter, although this was a significant improvement compared to a net loss of $51.4 million in the previous year.

The financial performance reflects a strategic shift towards "Shimmick Projects," which focus on critical infrastructure, including water treatment and climate resilience. Revenue from these projects increased to $112.6 million in the latest quarter, compared to $83.7 million a year earlier. The company also reported a backlog of $652 million, with over half of these projects located in California and ongoing work in six other states. This backlog is primarily composed of fixed-price contracts, which account for 84% of the total.

Operationally, Shimmick has made strides in reducing its selling, general, and administrative expenses, which fell by 20% to $15 million in the latest quarter. The company has also seen a decrease in equity losses from unconsolidated joint ventures, which improved from a loss of $1.9 million to a loss of $0.2 million year-over-year. These operational efficiencies are part of a broader transformation plan initiated after the company became independent in 2021 and subsequently went public in November 2023.

Despite these improvements, Shimmick continues to face challenges, particularly with its Non-Core Projects, which have historically incurred significant cost overruns. The company reported a gross margin loss of $6.8 million from these projects in the latest quarter, although this was an improvement from a loss of $35.7 million in the same period last year. The company is winding down these projects and focusing on more profitable ventures.

Looking ahead, Shimmick Corporation remains optimistic about its growth trajectory, driven by its strategic focus on critical infrastructure projects. The company is actively pursuing new contracts and expanding its geographic footprint while managing its operational costs. However, it acknowledges that future performance may be influenced by various factors, including market conditions, project cancellations, and the ability to secure financing for new projects.