Shimmick (NASDAQ:SHIM) Announces Earnings Results

Key Points

• Shimmick reported EPS of $0.08, beating the $0.04 consensus, and returned to GAAP profitability with about $1 million in net income. Revenue of $135.8 million fell short of analysts’ $139.85 million estimate.
• The company raised and narrowed its 2026 adjusted EBITDA outlook to $20 million–$25 million, with revenue forecast at $500 million–$525 million.
• Backlog plus pending awards climbed 33% year over year to $1.3 billion, but management said project ramp-ups and backlog conversion are taking longer than expected, potentially causing quarter-to-quarter variability.

Shimmick (NASDAQ:SHIM - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.08 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.04 by $0.04, FiscalAI reports. The business had revenue of $135.80 million for the quarter, compared to analysts' expectations of $139.85 million.

Here are the key takeaways from Shimmick's conference call:

• Shimmick returned to GAAP profitability for the first time since Q3 2023, with about $1 million in net income. Adjusted EBITDA rose to $9 million from $4 million a year earlier, marking the fifth consecutive quarter of positive adjusted EBITDA.
• The company raised and narrowed its 2026 adjusted EBITDA outlook to $20 million–$25 million; revenue is expected to be $500 million–$525 million. Management said the revenue outlook change reflects lower non-core work and does not affect profitability.
• Backlog plus pending awards reached $1.3 billion, up 33% year over year, with non-core projects below 2% of booked backlog. Management expects most of the $401 million in pending awards to convert to backlog within 90 days and cited continued demand across water, electrical, and mission-critical markets.
• Liquidity increased to $53 million, operating cash flow was positive $10 million, and working capital turned positive at $11 million. Management cautioned that some liquidity improvement came from one-time timing factors, while expecting positive operating cash flow in 2027.
• Management said project ramp-ups and backlog conversion have taken longer than initially expected, creating potential quarter-to-quarter variability. Q3 awards were $48 million, a 0.4x book-to-burn ratio, which the company attributed to contract-execution timing.

Shimmick Price Performance

Shares of NASDAQ:SHIM traded up $0.07 during trading on Thursday, hitting $2.34. 112,445 shares of the company were exchanged, compared to its average volume of 131,261. The firm's 50 day moving average price is $2.91 and its 200-day moving average price is $3.72. Shimmick has a 12-month low of $2.01 and a 12-month high of $6.76. The stock has a market capitalization of $96.73 million, a P/E ratio of -5.20 and a beta of 0.94.

Analysts Set New Price Targets

SHIM has been the topic of a number of recent analyst reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Shimmick in a report on Monday, September 21st. Wall Street Zen raised Shimmick from a "sell" rating to a "hold" rating in a research report on Sunday, August 16th. Two investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Shimmick currently has a consensus rating of "Hold" and an average price target of $5.50.

Shimmick Company Profile

Shimmick Corporation NASDAQ: SHIM is a heavy civil construction company that delivers infrastructure projects for public agencies and other customers. Its work focuses primarily on water infrastructure, transportation systems and other complex civil construction programs. The company's capabilities include the construction and rehabilitation of dams, reservoirs, water-treatment facilities, tunnels, bridges, highways, transit systems and marine structures. Shimmick also provides related engineering, construction management and project-delivery services, with an emphasis on technically demanding projects and long-term infrastructure needs.

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