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Shimmick Corporation (SHIM)
NASDAQ:SHIM
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Shimmick Corporation
(NASDAQ:SHIM)
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Rating:48Neutral
Price Target:
$3.00
▲(1.01% Upside)
Action:ReiteratedDate:03/17/26
The score is held down primarily by weak financial performance (ongoing losses, significant cash burn, and negative equity). Technicals also indicate soft momentum with the stock below key short- and mid-term moving averages. Offsetting these risks, the latest earnings call provided notably improved guidance and backlog-driven support for a potential operational turnaround, lifting the overall score despite current financial strain.
Positive Factors
Backlog and book-to-burn strength
A $793M backlog and a book-to-burn above 1 provide durable revenue visibility across multiple quarters, supporting the guided 2026 revenue growth. High backlog limits near-term bidding dependence and gives predictable work-in-hand that underpins steady top-line conversion if execution holds.
Material margin and EBITDA improvement
The swing to positive adjusted EBITDA and gross margin expansion to ~10% reflect structural operational improvements (project controls, procurement), indicating improved project execution and pricing discipline. Sustained margin recovery would materially improve cash generation and rebuild equity over time.
Operational/SG&A discipline and scalable overhead
Management's ability to contain SG&A near $11M while scaling revenue implies operating leverage potential. Combined with investments in analytics and procurement, this scalable cost structure can convert incremental revenue into outsized earnings improvement, aiding long-term margin sustainability if maintained.
Negative Factors
Negative shareholder equity
Negative equity signals accumulated losses and constrains financial flexibility, increasing refinancing and covenant risk. Over a multi-quarter horizon this can elevate borrowing costs, limit bid capacity on large projects, and force dilutive capital measures if operating cash generation doesn't improve materially.
Persistent cash burn and weak cash flow
Consistent negative operating and free cash flow imply reliance on external liquidity and heighten refinancing risk. Even with improving EBITDA, the absolute cash burn requires sustained margin conversion and backlog realization to avoid capital-raising or reduced bidding capacity, making liquidity management a multi-month strategic priority.
Execution and conversion risk from pending awards
A sizable portion of near-term opportunity remains non-contracted, creating timing and execution risk; failed or delayed conversions would slow revenue and cash recovery. Coupled with remaining noncore closeout exposure, this elevates project-delivery uncertainty and could impair the projected multi-quarter turnaround if awards don't materialize.
Shimmick Corporation (SHIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$107.19M
Dividend YieldN/A
Average Volume (3M)21.41K
Price to Earnings (P/E)―
Beta (1Y)1.71
Revenue Growth-3.64%
EPS Growth53.82%
CountryUS
Employees1,200
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-0.07
Shares Outstanding36,091,730
10 Day Avg. Volume39,794
30 Day Avg. Volume21,407
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)-1.87
Price to Sales (P/S)0.21
P/FCF Ratio-1.48
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit3.08
Enterprise Value/Ebitda-16.71
Forecast
1Y Price Target
$5.00Price Target Upside68.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.08
Revenue Forecast (FY)$568.95M
Shimmick Corporation Business Overview & Revenue Model
Company DescriptionShimmick Corporation provides water and other critical infrastructure solutions in the United States. The company undertakes water and wastewater treatment infrastructure; water storage and conveyance, dam, levee, flood control system, pump station, and coastal protection infrastructure; and mass transit, bridge, and military infrastructure projects. It serves federal, state, and local governments. The company was formerly known as SCCI National Holdings, Inc. and changed its name to Shimmick Corporation in September 2023. Shimmick Corporation was founded in 1990 and is headquartered in Irvine, California. Shimmick Corporation operates as a subsidiary of GOHO, LLC.
How the Company Makes MoneyShimmick makes money primarily by performing construction and engineering work under awarded contracts, recognizing revenue as it satisfies performance obligations on projects (e.g., over time as work progresses) and collecting payments from project owners (often public agencies). Key revenue streams generally come from (1) heavy civil construction services (labor, equipment, and subcontractor-managed scopes) priced under lump-sum/fixed-price, unit-price, or cost-plus contract structures; (2) change orders and contract modifications that adjust scope, schedule, and price; and (3) potential claims and dispute resolutions where additional compensation is pursued for owner-directed changes, differing site conditions, or delays (when contractually supported). Earnings are influenced by the company’s success in bidding and winning new work, executing projects within estimated cost and schedule, managing subcontractors and materials procurement, and controlling project risks (e.g., geotechnical complexity, permitting, weather, and supply-chain volatility). Specific partner names, customer concentration, or segment-level revenue splits are null.
Shimmick Corporation Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call emphasized a clear operational and financial turnaround: revenue modestly grew, project revenue rose 12%, project gross margins expanded to 10% (up ~400 bps), adjusted EBITDA turned positive ($5M vs. -$61M prior year), backlog strengthened to $793M with strong new‑award cadence and a robust pipeline. Management also highlighted tangible operational improvements (project controls, procurement, analytics) and specific near‑term opportunities (progressive design‑build and CM/GC projects). Remaining challenges include an ongoing adjusted net loss (-$15M), remaining noncore closeout risk, weather‑driven slower field activity and a portion of awards still pending execution ($234M), but overall the positives substantially outweigh the negatives.Q4-2025 Updates
Positive Updates
Full‑Year Revenue and Project Revenue Growth
Consolidated revenue for FY2025 was $493 million (up $13 million or ~3% year‑over‑year). Shimmick projects revenue was $395 million, a 12% increase YoY, and now represented approximately 75% of total revenue, reflecting strategic shift to higher‑value work.
Material Gross Margin Improvement
Shimmick projects gross margin expanded to 10% for FY2025 (a ~400 basis point improvement vs. FY2024). Consolidated gross margin improved to $34 million (≈7% of revenue) for FY2025 versus a sizeable negative gross margin in 2024; Q4 gross margin swung to 10% from negative 20% in Q4 2024.
Adjusted EBITDA and Net Loss Turnaround
Adjusted EBITDA for FY2025 was $5 million versus negative $61 million in FY2024 (improvement of ~$66 million). Adjusted net loss narrowed to negative $15 million in 2025 from negative $81 million in 2024. Q4 adjusted EBITDA was $4 million versus negative $27 million in Q4 2024.
Backlog, Book‑to‑Burn and New Awards Momentum
Total backlog grew to $793 million at fiscal year end. Q4 new awards were significant (reported at ~$135–139 million), producing a Q4 book‑to‑burn of ~1.4x. Management reported $128 million added to backlog by end of Feb 2026 and an additional $234 million of preferred‑bidder/pending awards.
Robust Pipeline and Market Positioning
Management reports a 24‑month bidding pipeline supporting $600 million to $1 billion of bidding volumes per month. Focused geographies (California, Texas, Pacific Northwest) and growing traction in collaborative delivery methods (progressive design‑build and CM/GC) bolster long‑term opportunity.
Notable Contract Wins and Prospective Projects
Expected/announced opportunities include a ~ $55 million progressive design‑build wastewater project (Southern California) and a ~$200 million CM/GC project supporting Los Angeles Olympic‑era bus infrastructure. Active pursuits in data center and electrical work across Texas, Washington and Nevada were highlighted.
Operational Improvements and SG&A Discipline
Company strengthened project controls, procurement, and analytics (Power BI/AI tools), reduced attrition rates and improved procurement discipline. Q4 G&A was ~$11 million, down ~32% YoY (vs. $16 million in Q4 2024), and management expects to control SG&A as revenue scales.
Liquidity Position
Ended FY2025 with total liquidity of $44 million (cash and cash equivalents ~$20 million and ~$24 million available on credit facilities), which management indicates is sufficient to execute near‑term priorities.
Negative Updates
Ongoing Net Loss and Modest Profitability
Despite improvements, the company remains unprofitable on an adjusted net loss basis (negative $15 million for FY2025) and a GAAP net loss in Q4 2025 of $3 million, indicating continued earnings recovery is still in progress.
Noncore Project Legacy Impact and Remaining Close‑out Risk
Noncore project revenue fell to $96 million in 2025 from $125 million in 2024 as those projects wind down; noncore gross margin was negative $7 million (-7%). Management noted ~90% of noncore work is complete but acknowledged remaining closeout risk and potential final‑stage overruns.
Quarterly Revenue Pressure and Seasonality/Weather Delays
Consolidated Q4 revenue declined to $100 million from $104 million YoY. Management cited heavy rainfall in California and cold weather in Texas slowing field activity and some new contracts ramping slower than planned, contributing to a slower start to 2026.
Liquidity Slightly Lower Sequentially
Total liquidity declined from $48 million at the end of Q3 2025 to $44 million at year end, reflecting ongoing cash needs as the business transforms (cash $20 million plus $24 million availability).
Pending Awards and Execution Risk
A meaningful portion of near‑term opportunity remains not fully executed: $234 million of preferred‑bidder/pending awards were reported as of end of Feb 2026. Conversion timing and contract finalization present execution and timing risk to backlog growth and 2026 revenue realization.
Concentration and Market Exposure
Management is focused primarily on California and Texas (and Pacific Northwest), which concentrates geographic exposure; success is partially dependent on continued activity in these regions and conversion of pipeline opportunities (including data center and electrical growth that are not yet contractually secured).
Company Guidance
Management guided 2026 consolidated revenue growth of 12%–22% (17% midpoint), or roughly $550–$600 million of work put in place, and adjusted EBITDA up 200%–500% (350% midpoint) to $15–$30 million, noting a slower start due to weather but expecting quarter‑over‑quarter improvement; guidance is supported by year‑end backlog of $793 million (Shimmick projects ~90% of backlog), Q4 new awards of about $135–139 million with a Q4 book‑to‑burn of 1.4x and a book‑to‑burn expected to remain well above 1 into Q1 2026, $128 million of new awards added to backlog through February 2026 plus $234 million of preferred‑bidder awards pending, a 24‑month pipeline that supports $600 million–$1 billion of bidding volume per month, liquidity of $44 million (cash $20M, credit availability $24M), noncore work at roughly 11% of backlog expected to be largely burned off by year‑end, and an intention to hold SG&A near recent Q4 levels (~$11M) while scaling revenue (management said they can sustain that SG&A run‑rate up to about $750M of revenue before adding incremental overhead).Shimmick Corporation Financial Statement Overview
Summary
Financial fundamentals remain stressed: revenue has declined sharply over recent periods, the company is still loss-making, and cash flow is materially negative (operating cash flow about -$65.1M and free cash flow about -$71.5M most recently). The most significant balance-sheet concern is negative shareholder equity (about -$56.6M), which reduces financial flexibility despite modest stated debt (~$16.1M).Income Statement
Profitability is weak and volatile. Revenue has declined sharply (down ~63% in the latest annual period and down ~24% in 2024), and the company is still loss-making with a net loss of about $25.6M in the latest year. While gross margin improved to ~6.8% versus deeply negative in 2024, operating performance remains negative (EBITDA margin ~-3.9%), suggesting the turnaround is not yet firmly established.24
Negative
Balance Sheet
Balance sheet risk is elevated due to negative shareholder equity in the latest two annual periods (about -$56.6M most recently), which limits financial flexibility and signals accumulated losses. Total debt is relatively modest in dollars (~$16.1M latest), but negative equity distorts leverage measures and increases refinancing/credit sensitivity. Total assets are stable (~$219M latest), yet the capital structure deterioration is the key weakness.18
Very Negative
Cash Flow
Cash generation is a major concern, with operating cash flow negative across all shown years and worsening to about -$65.1M most recently. Free cash flow is also consistently negative (about -$71.5M latest), implying ongoing cash burn and potential dependence on external funding. While free cash flow appears “better than earnings” in ratio terms (free cash flow to net income > 1 due to losses), the absolute level of cash outflow remains the critical issue.16
Very Negative
| Breakdown | Jan 2026 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 492.84M | 480.24M | 632.81M | 664.16M | 572.67M |
| Gross Profit | 33.59M | -55.65M | 22.37M | 23.52M | -132.80M |
| EBITDA | -6.20M | -105.15M | 17.12M | -23.58M | -198.03M |
| Net Income | -25.58M | -124.75M | -2.55M | 3.76M | 45.40M |
Balance Sheet | |||||
| Total Assets | 218.76M | 233.86M | 426.65M | 426.65M | 492.00M |
| Cash, Cash Equivalents and Short-Term Investments | 19.97M | 33.73M | 62.94M | 63.91M | 73.18M |
| Total Debt | 16.06M | 25.46M | 44.67M | 53.24M | 11.90M |
| Total Liabilities | 275.40M | 268.54M | 356.16M | 356.16M | 444.98M |
| Stockholders Equity | -56.64M | -34.52M | 71.24M | 71.24M | 46.59M |
Cash Flow | |||||
| Free Cash Flow | -71.48M | -31.74M | -95.14M | -13.53M | -56.91M |
| Operating Cash Flow | -65.11M | -21.26M | -88.10M | -3.08M | -53.98M |
| Investing Cash Flow | 1.12M | 15.04M | 22.05M | 4.20M | 136.17M |
| Financing Cash Flow | 50.05M | -21.90M | 47.88M | -931.00K | -294.00K |
Shimmick Corporation Technical Analysis
Neutral
2.97
Price Trends
3.64
Negative
3.07
Positive
2.69
Positive
Market Momentum
-0.17
Positive
42.85
Neutral
35.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHIM, the sentiment is Neutral. The current price of 2.97 is below the 20-day moving average (MA) of 3.45, below the 50-day MA of 3.64, and above the 200-day MA of 2.69, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 42.85 is Neutral, neither overbought nor oversold. The STOCH value of 35.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHIM.
Shimmick Corporation Risk Analysis
Shimmick Corporation disclosed 70 risk factors in its most recent earnings report. Shimmick Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Shimmick Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.11B | 29.35 | 19.12% | ― | 12.90% | 72.61% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $236.24M | 12.61 | 3.91% | 1.11% | 16.80% | -98.32% | |
58 Neutral | $345.49M | -30.18 | 3.32% | ― | -8.98% | -38.23% | |
55 Neutral | $397.63M | 158.32 | 1.60% | ― | 7.02% | ― | |
48 Neutral | $107.19M | -9.13 | ― | ― | -3.64% | 53.82% | |
42 Neutral | $37.50M | -0.77 | -84.16% | ― | -9.10% | 21.10% |
* Industrials Sector Average
SHIM
Shimmick Corporation
2.97
1.28
75.74%
ESOA
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12.84
3.22
33.47%
ORN
Orion Group Holdings
9.92
3.91
65.06%
WLDN
Willdan Group
75.18
32.35
75.53%
BBCP
Concrete Pumping Holdings
6.84
0.99
16.92%
SLND
Southland Holdings
0.69
-2.75
-79.85%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.