SHIM

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 4:30 p.m. ET Chief Executive Officer - Ural Yal Executive Vice President and Chief Financial Officer - Todd Yoder Operator: Good day, and welcome to Shimmick Corporation's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. At this time, I'd like to turn the call over to Anthony Rasmus. Please go ahead. Anthony Rasmus: Good afternoon, and thank you for joining us on today's conference call to discuss Shimmick's Second quarter 2026 results. Slides for today's presentation are available on the Investor Relations section of our website, www.shimmick.com. During this conference call, management will make forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect. We identify the principal risks and uncertainties that may affect our performance in our reports and filings with the Securities and Exchange Commission, which can also be found on the Investor Relations website. We do not undertake a duty to update any forward-looking statements. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the company's second quarter press release for definitional information and reconciliation of historical non-GAAP measures to the comparable GAAP financial measures. With that, it is my pleasure to turn the call over to Ural Yal, Shimmick's CEO. Ural Yal: Good afternoon, and thank you all for joining us on today's call. I'm joined by Todd Yoder, Shimmick's CFO. I'd like to start with recognizing our team's unwavering efforts and commitment towards delivering the work we undertake safely and to the satisfaction of our clients as we build our nation's infrastructure. With that, I'm going to start by discussing our financial results for the second quarter of 2026. During the second quarter, we continued to execute on our strategy by making further progress winding down noncore projects while driving operational improvements across the business that enhance efficiency, improve execution and support consistent margins. We delivered consolidated revenue of $107 million, expanded gross margin to 12% and grew adjusted EBITDA to $4 million. What's encouraging is that activity levels continue to improve and several projects that had longer ramp-up timelines are now beginning to move forward with others approaching the start of execution. I will touch on that more in a bit. We added $138 million in new work booked in the second quarter, which brings our total backlog to $991 million, its highest level in 2 years. And subsequent to quarter end, we secured $221 million in additional new awards, which will contribute to our backlog in 2026. Our second quarter book-to-burn ratio was 1.4, reflecting our fourth consecutive quarter with a positive book-to-burn. Looking ahead, we expect activity levels to increase across both existing and newly awarded projects. As an example, a large project we secured in February only commenced in July, illustrating the longer lead times we have been experiencing and providing confidence that project activity is beginning to translate into execution. Also to demonstrate the strength of our demand, we have only converted less than 10% of the backlog booked over the past 12 months into revenue to date, providing meaningful visibility and supporting our expectations for continued revenue growth in the upcoming quarters. We continue to secure new work in our core and mission-critical end markets, and our teams are well positioned to execute on that backlog and drive consistent revenue growth. Overall, our results reflect continued execution against the priorities we laid out, exiting lower-margin noncore work, increasing bidding activity, growing backlog, driving operational improvements and positioning the business for sustainable growth. With that as context, let me turn to some of our recent project wins and the markets where we see the greatest opportunities ahead. Turning to our end markets. We remain encouraged by the opportunities we're seeing across our core and mission-critical sectors. Demand remains strong across mission-critical infrastructure. To further strengthen our positioning in these markets, we have established a dedicated mission-critical business unit focused on pursuing and executing these opportunities, allowing us to better serve customers and capitalize on the growing demand we're seeing. The data center market continues to be a significant area of focus. We have several large outstanding opportunities and continue to see strong bidding activity. One of those projects, the data center build in West Virginia is now transitioning into the preconstruction phase this month and construction work is anticipated to start in the next 60 days. We are gaining traction with customers and are encouraged by the progress we've made across the mission-critical segment, which also includes advanced manufacturing, defense, renewables, critical minerals and other subsegments that contain work scopes that fit our skill set very well. More broadly, bidding activity remains robust with monthly bid volume consistently ranging between approximately $500 million and $1 billion. Importantly, our win rates continue to perform in line with historical levels, providing confidence in both the quality of the opportunities we're pursuing and the discipline of our bidding process. Geographically, we continue to see strong opportunities across our core markets of California, Texas and Washington, while we also -- while also following key customers to adjacent regions as they expand their investment programs, especially through our new mission-critical business unit. Our focus remains on projects that align with our core capabilities that provide lower risk profiles and opportunities for higher margin, where we believe we can deliver the greatest value and generate attractive and consistent long-term returns. Taken together, we believe the strength of our pipeline, consistent bidding activity and growing presence in the mission-critical markets position us well for future growth. Our backlog grew once again to $991 million at the end of second quarter of 2026. This represents our highest backlog level since the first quarter of 2024, reflecting both improved win rates and continued discipline around the work we pursue. Subsequent to quarter close, we announced more than $265 million of new awards across our water, industrial and energy and infrastructure segments. These wins further strengthen our backlog and highlight continued demand for the specialized infrastructure solutions we provide across some of the most attractive end markets in the country. Consistent with our focus on building higher quality backlog through lower-risk collaborative delivery projects, our Myers-Shimmick Joint Venture along with Axia Electric advanced into the construction phase of L.A. Metro's North Hollywood to Pasadena Bus Rapid Transit project. The award, which contributed approximately $80 million to backlog strengthens our strategic industry partnerships and demonstrates our ability to execute complex multidisciplinary infrastructure projects. Expanding our leadership in water infrastructure and climate resiliency, we were selected for the $124 million Coyote Creek Flood Protection Project in Northern California, where we'll deliver critical flood mitigation improvements that enhance community resilience. We also secured a $42 million contract on the Walnut Creek Wastewater Treatment Plant expansion in Texas, further expanding our presence in one of the nation's fastest-growing water infrastructure markets. Finally, in Energy and Electrification, Axia Electric was awarded a $20 million project at UC Berkeley's electrified heating and cooling plant, supporting the university's transition to a modernized all-electric energy system. Collectively, these awards reflect the strength of our customer relationships, our technical capabilities and our disciplined approach to pursuing complex infrastructure opportunities. Just as importantly, they continue to build our backlog in key growth markets, including water, transportation, power and electrification, providing increased visibility and supporting our long-term growth strategy. And beyond our project wins and backlog growth, we are continuing to make meaningful progress on the operational side of the business. First, safety remains our top priority, and we're encouraged by the improvements we've achieved this year. Our safety performance is tracking ahead of 2025 levels, reflecting the focus and discipline our teams bring to every project. Strong safety performance is not only important for our people, but it's also a key indicator of operational excellence across the organization. We're also seeing benefits of our enhanced project controls and cost management initiatives. Over the last several quarters, we have worked to strengthen execution, improve oversight and maintain disciplined cost control across our portfolio. Those efforts are contributing to the consistency we've seen in our margins despite a dynamic operating environment. Looking ahead, we believe there is additional opportunity for margin expansion as more recently awarded projects move from backlog into active construction. A portion of our backlog today remains in the preconstruction or early phases, where revenue and margin contribution are more limited. Importantly, we have converted less than 10% of the backlog booked over the past 12 months into revenue to date, providing significant runway as these projects advance into execution. As these projects ramp and begin burning work at the pace we expect, we anticipate improved absorption of overhead and greater contribution from high-quality work entering the portfolio, supporting both margin expansion and future revenue growth. Taken together, the combination of improved safety performance, stronger project controls, disciplined execution and the ramp-up of recently awarded projects gives us confidence in our ability to continue improving operational performance and drive further margin enhancement over time. With that, I'd like to turn it over to Todd, who will review our financials in more detail. Todd Yoder: Thank you, Ural, and thank you for joining us on today's call. The Shimmick team has delivered another strong quarter of performance, and we're seeing our strategic changes continue to drive results, not only the year-over-year improvement, but more importantly, they're establishing the foundation for continued growth and profitability moving forward. Before we hit the financials, I want to echo Ural in thanking all of the talented men and women across Shimmick for your continued commitment to executing our strategy. Your focus on safety, the quality of the work we deliver to our clients and your dedication to executing with excellence. Your contributions continue to have a significant impact on the achievements we've made and put us in a strong position to continue growing the business and winning the right way. Now let's jump into the financial results. I have revenue and gross margin overview in Slide 8, but I'll talk to the overall performance for the quarter and reference information that's not included in the slides, but it is available in our 10-Q filing, which is posted on our website. All comparisons I make will be on a quarter-over-quarter basis as compared to the same period in 2025, unless otherwise noted. Shimmick project revenue for Q2 2026 was $96 million versus $113 million in Q2 2025. The net difference of $17 million was driven by projects reaching or nearing completion during 2025 and some winding down this year. This is partially offset by the significant new project awards that are ramping up and will continue to ramp up throughout 2026. Noncore project revenue for Q2 2026 was $11 million, down from $16 million in Q2 2025. The $5 million decrease was driven by the termination of the Chick Lock replacement project during Q1 of 2026 as well as the continued progress we've made in moving all noncore projects to completion. I've discussed the negative gross impact from noncore on our total gross margin on prior calls, and I couldn't be more excited to end the quarter with noncore backlog now less than 3% of our total backlog. What this means is we'll continue to see favorable mix impact on our total gross margin moving forward on a year-over-year basis. Shimmick consolidated total revenue for Q2 2026 was $107 million as compared to $128 million in Q2 of 2025. Shimmick project gross margin was $11 million for Q2 2026, down $4 million compared to $15 million in Q2 2025. The $4 million decrease in gross margin was driven by $11 million decrease in margin from projects winding down. This was partially offset by a $7 million increase in margin from newer projects that are continuing to ramp up. Noncore project gross margin was $2 million for Q2 '26 as compared to negative $7 million for Q2 of 2025. The $9 million increase in gross margin for noncore was driven by cost overruns on noncore loss projects during Q2 of 2025 that did not recur in this year. Shimmick consolidated total gross margin for Q2 2026 was $12 million. That's up $4 million or 53% as compared to $8 million of gross margin in Q2 of 2025. Total gross margin as a percent of revenue improved to 12% from 6% in Q2 in 2025. G&A expense for Q2 was $16 million, up $1 million from $15 million during Q2 2025. This was driven by higher onetime legal costs and costs related to equity issuance during the quarter. We remain committed to optimizing our overhead costs while we continue to grow the top line with a higher-margin project wins. Net loss for Q2 2026 was $5 million, favorable $4 million or 44% favorable as compared to a net loss of $9 million in Q2 of 2025. Adjusted EBITDA for Q2 2026 was $4 million as compared to negative $234,000 in Q2 of 2025. Turning to liquidity. We ended Q2 with $33 million of liquidity. This consisted of unrestricted cash and cash equivalents of $17 million and another $16 million of availability under our credit agreements. New awards booked during Q2 were $138 million, giving us a book-to-burn of 1.4x, which is our fourth consecutive quarter with a positive book-to-burn ratio. We ended the quarter with total backlog of $991 million and another $221 million of awards pending fully executed contracts, which on a combined basis is over $1.2 billion. Moving to the guidance slide. As I described on our last call, we have significantly grown backlog over the past few quarters. These new higher-margin projects will continue to gain momentum in the coming quarters, driving higher quarter-over-quarter sequential improvement in our overall results with a favorable mix impact on a year-over-year basis. In summary, we are very pleased with the strong momentum of our new higher-margin Shimmick project awards. As we now have greater visibility into noncore work that we removed from our backlog last quarter, we are updating our full year 2026 revenue guidance to approximately $525 million to $575 million, representing approximately 12% growth on a year-over-year basis at the midpoint. Importantly, this noncore work was not expected to contribute gross margin and therefore, has no impact on our profitability expectations for the full year. Thus, we are reaffirming our full year 2026 adjusted EBITDA guidance of $15 million to $30 million, which at the midpoint represents approximately 350% growth over the prior year. With that, I thank you all for joining us today and for your interest in Shimmick, and I'll turn it back to you. Ural Yal: Thanks, Todd. Overall, we are encouraged by the progress we made in the first half of the year and increasingly confident in our outlook for the back half of 2026 going into 2027. We've strengthened backlog quality, improved project controls, enhanced cost discipline and continue to execute safely across the business. As our newly booked projects begin burning work at the pace we expect, we believe they will drive stronger revenue and gross margin performance over the upcoming quarters. Combined with the operational improvements over the last several quarters, we believe the business is well positioned to deliver improved results, and we look forward to updating you on our progress. Operator, you may now open the line for questions. Operator: [Operator Instructions] Your first question comes from Gerard Sweeney with ROTH Capital. Gerard Sweeney: I apologize for the behind me. But obviously, margins were very nice in the quarter and revenue was maybe a little bit below our expectations. But I just want to dig into a little bit. Obviously, backlog continues to grow. I think it bottomed in 2Q of 2025. Can you give us maybe a little bit more detail as to what we should anticipate in the second half of this year? And are the margins we're seeing in 2Q representative of what is in the rest of the backlog as we move forward? Ural Yal: Yes. No, thanks for the question. So generally, what happened is, like you said, we dipped in Q2 of 2025 at about $600 million and change, and now we're almost $1 billion. And with the awards we announced, we expect to exceed $1 billion in the next quarter that we've already announced. So we're -- what happened is we generally expect a 3 to 4-month start-up period on these projects once we get word we're selected. On a couple of these projects, larger ones in this last couple of quarters, it took a little bit longer towards the 6 or 7 months range, and that's kind of slowed our momentum a little bit from a revenue perspective. But we're very pleased with the margins, like you said. And I think the rest of the backlog represents these kinds of margins and more. So we're -- we expect as those projects continue to ramp up and the new projects continue to ramp up, we expect a pretty significant improvement the rest of the year and into '27. Gerard Sweeney: And suffice to say, obviously, the backlog and pipeline just continue to fill up. So we're probably in the early stages of revenue acceleration. Ural Yal: Yes. Yes. It's -- that 3- to 4-month ramp-up period generally holds true, but we had a few that was not in our control, some of the clients with permitting and et cetera. The projects are there. They're funded. They're starting now, but it just took a little bit longer than what we expected. Gerard Sweeney: That's par for the course. And we've always talked about Shimmick is built for a bigger piece of business or a bigger revenue base. Maybe can you talk a little bit towards what that number is? And how does Shimmick grow into that over the next couple of years? Ural Yal: Yes. I think it's our overhead structure, our processes, we were a $750 million year company before, and I think that's what we're trying to get back to. And with this backlog, we're going to see gradual improvement on top line revenues, and we're confident we're going to be able to hold these margins and improve them. So what you're going to see is SG&A starting -- staying roughly the same, not improving -- increasing as the top line increases. So we're going to start to see some real net income and then top line growth translating into pretty strong EBITDA numbers as we go. Gerard Sweeney: Got it. And final question, then I'll jump back in queue. Obviously, data centers and/or electrical work is a great area to be in. I know you've been bidding on it. I think you even in the prepared remarks, talked about West Virginia. Maybe a little bit more details on what's happening in that space and the opportunities and whether or not we'll time lines maybe towards success. Ural Yal: Yes. We're very pleased. We started -- we launched a mission-critical division just because we're seeing such great opportunities. So West Virginia is hopefully the first one in the line. And once we get going on that, we have several other states where we're bidding work, especially in Texas, really good opportunities there. So we think that this is going to start becoming a sizable chunk of the business, at least in the next 12 months. And -- but meanwhile, Axia is doing really well on other fronts as well. We're winning water, wastewater work. We're winning electrification work. And so we're also diversifying the business on the electrical side. But I would say the mission-critical work we're winning is probably about 80% on the electrical side. So it's heavy on the electrical side, which is great for the electrical business we've launched, and those are higher margin, strong jobs, and we're pretty excited about them. Gerard Sweeney: Higher margins like 15% to 20% gross margin, higher margins? Ural Yal: Yes, that's where we're headed, yes. Operator: Our next question comes from Aaron Spychalla from Craig-Hallum. Aaron Spychalla: First for us, maybe on just kind of the geographical expansion. I mean you touched a little bit on Texas, but can you just talk about that opportunity, how it's unfolding and just some of the growth that you see in these other markets as you kind of diversify the business further here moving forward? Ural Yal: Yes. Yes, will do, Aaron. So we're pretty focused on as far as kind of core markets, we're very focused on California, Texas and Washington. And those are where we're really focused on bidding. Texas market is really great right now. It's lots and lots of water opportunities. We don't even have to bid a whole lot else other than water just because there's -- the pipeline is so strong. And then combining that with the data center opportunities that are coming out, that makes Texas very, very attractive, and we are continuing to win work there. So we're going to continue to grow the percentage of backlog that's in Texas quarter after quarter. So pretty excited about Texas in that sense. And then beyond those 3 states, we're taking a more kind of cautious approach. We're kind of following clients, looking at every project on a case-by-case basis. If we think we can execute, if we can resource a project, then we're bidding them. And then we started this mission-critical division just so we can service those projects because a lot of those out-of-state projects tend to be the mission-critical types. Aaron Spychalla: And then you mentioned kind of holding SG&A at this type of a level with some nice growth. Can you just kind of talk about investments in the business, kind of labor availability and things along those lines as you just think about the growth here in the next couple of years? Ural Yal: Yes. We're very focused on keeping SG&A there, but we're also very focused on investing in the business. We've done a lot of investment in 2025 to -- as we were still doing transformational work, we've invested a lot in the sales and bidding as part of the business. So that's why we're able to now handle $500 million to $1 billion of bidding every quarter, every month and maintaining pretty high win rates. Meanwhile, we're continuing to it's all about operations. So we're continuing to improve IT, we're continuing to improve. We're taking -- making good use of AI and looking at cost controls, finance controls, et cetera, so that we can maintain these -- maintain and improve our gross margin rates as well. But generally, I think I said this before, I think the company can handle a lot bigger volume even at these levels just because we have the backbone already ready. We had those kinds of revenues in the past. We're just kind of getting back, growing back into our size. Aaron Spychalla: Right. Okay. And then maybe last for us, just on free cash flow. Can you kind of talk about some of the dynamics there in the quarter and just the outlook for improvements as some of these projects start up and assume kind of better profitability, better cash flow on those? Ural Yal: Yes, yes. Yes. I mean it's no secret. We've had those legacy projects that had pretty significant negative cash flows. And second quarter was the last quarter where we were demobilizing out of the project in Tennessee. So the numbers start to show it's only under 3% of what's left in the books is legacy work. And the new projects are performing quite well so far. So we expect cash flow liquidity to improve quarter after quarter moving forward. And we are very focused on making sure that the projects that we're taking on are start and stay cash positive, and that should contribute to the overall cash position, free cash position. We want to get to a good net income level and then with a good free cash conversion as well. Aaron Spychalla: Right. Okay. And then just -- sorry, maybe one last one for me. Just on legacy projects, anything else to kind of look for on the Tennessee project? Or is that just still kind of going through that process? And just the remainder of the business is just kind of that one project that should be wrapping up here in the next couple of quarters? Ural Yal: Yes, that's really it. It's -- we've completely demobilized out of the Tennessee project and the one that's left is going to go for another couple of quarters, but in decreasing volumes there quarter after quarter. So -- and we don't see any risk or any issue there. And the Tennessee project is going to just run its course. And again, I'm confident that we'll get to an amicable solution with the client there and sort that out, but it's going to take a little while. Operator: There are no more questions at this time. I'd now like to turn the call over to Ural for closing remarks. Ural Yal: We've shown another quarter of strong results and with record backlog and growing revenues, we expect the next 2 quarters and into 2027 for the company to be very strong. Our gross margins are where we want them to be and growing, and we're very excited about the quarters to come, and thank you for joining us today. Operator: That concludes the call. You may now disconnect. Before you buy stock in Shimmick, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Shimmick wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Shimmick (SHIM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Shimmick Corporation? Here are five stocks we like better. Shimmick’s Q2 revenue fell to $107 million from $128 million as legacy and non-core projects wound down, but gross margin improved to 12% from 6% and net loss narrowed to $5 million. New awards totaled $138 million during the quarter, lifting backlog to a two-year high of $991 million; pending awards pushed combined backlog and awards above $1.2 billion. The company lowered 2026 revenue guidance to $525 million–$575 million while reaffirming adjusted EBITDA guidance of $15 million–$30 million, citing expected growth as newer, higher-margin projects ramp up. Shimmick (NASDAQ:SHIM) reported second-quarter 2026 revenue of $107 million and adjusted EBITDA of $4 million as the infrastructure contractor continued to wind down non-core work, improve project controls and build its backlog of higher-margin projects. The company said consolidated gross margin rose to 12% from 6% in the prior-year period, while net loss narrowed to $5 million from $9 million. Management said the quarter reflected progress on its strategy to exit lower-margin projects and position newly awarded work for future revenue and margin growth. → MarketBeat Week in Review – 08/03 - 08/07 Second-quarter revenue declined from $128 million in the second quarter of 2025. Shimmick project revenue fell to $96 million from $113 million, primarily because projects reached or neared completion during 2025 and continued winding down in 2026, CFO Todd Yoder said. Non-core project revenue declined to $11 million from $16 million a year earlier. Yoder attributed the decrease to the termination of the Chickamauga Lock replacement project during the first quarter and continued progress toward completing the company’s remaining non-core projects. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Despite lower revenue, total gross margin increased to $12 million from $8 million. Shimmick project gross margin declined by $4 million to $11 million as maturing projects contributed less margin, though newer projects partially offset that decline as they ramped up. Non-core gross margin improved to $2 million from a loss of $7 million a year earlier, when the company recorded cost overruns on non-core loss projects. SG&A expense increased to $16 million from $15 million, reflecting higher one-time legal costs and expenses related to an equity issuance, according to Yoder. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War CEO Ural Yal said Shimmick booked $138 million of new work during the quarter, producing a book-to-burn ratio of 1.4 and marking the company’s fourth consecutive quarter with a positive ratio. Total backlog reached $991 million, its highest level in two years. The company also cited additional awards after the quarter ended. Yoder said Shimmick had $221 million of awards pending fully executed contracts, bringing combined backlog and pending awards above $1.2 billion. Separately, Yal said the company had announced more than $265 million of new awards across its water, industrial and energy, and infrastructure operations. Management said less than 10% of the backlog booked during the past 12 months had been converted into revenue so far, leaving substantial work in pre-construction or early project phases. Yal said some projects have taken six or seven months to begin after selection, compared with the company’s typical three- to four-month startup period, due in part to customer permitting and other factors outside Shimmick’s control. “As these projects ramp and begin burning work at the pace we expect, we anticipate improved absorption of overhead and greater contribution from high-quality work entering the portfolio,” Yal said. Recent awards included approximately $80 million of backlog from the Myers-Shimmick joint venture’s work with Axia Electric on the Los Angeles Metro North Hollywood-to-Pasadena Bus Rapid Transit project, which has advanced into construction. Shimmick was also selected for the $124 million Coyote Creek Flood Protection Project in Northern California and secured a $42 million contract for the Walnut Creek Wastewater Treatment Plant expansion in Texas. Axia Electric received a $20 million project at the University of California, Berkeley’s electrified heating and cooling plant. Yal said the company remains focused geographically on California, Texas and Washington. In Texas, management sees a strong pipeline of water infrastructure opportunities alongside growing data-center activity. To pursue work in data centers, advanced manufacturing, defense, renewables and critical minerals, Shimmick established a dedicated mission-critical business unit. A data-center project in West Virginia was entering pre-construction during August, with construction anticipated to begin within 60 days, Yal said. Management said monthly bidding volume has ranged from roughly $500 million to $1 billion and win rates have remained in line with historical levels. Yal told analysts that mission-critical awards are heavily weighted toward electrical work and could become a sizable portion of the business over the next 12 months. Shimmick updated its full-year 2026 revenue guidance to approximately $525 million to $575 million, representing about 12% year-over-year growth at the midpoint. Yoder said the change reflected greater visibility into non-core work removed from backlog and that the work was not expected to contribute gross margin. The company reaffirmed adjusted EBITDA guidance of $15 million to $30 million for 2026. At the midpoint, that would represent approximately 350% growth from the prior year, according to management. Shimmick ended the quarter with $33 million in liquidity, consisting of $17 million in unrestricted cash and cash equivalents and $16 million in availability under credit agreements. Yal said the company had fully demobilized from the Tennessee legacy project and that remaining non-core backlog was below 3% of total backlog. Management said it expects liquidity and cash flow to improve as legacy work declines and newer projects, which it said are performing well so far, move further into execution. Shimmick Corporation provides water and other critical infrastructure solutions in the United States. The company undertakes water and wastewater treatment infrastructure; water storage and conveyance, including dams, levees, flood control systems, pump stations, and coastal protection infrastructure; and mass transit, bridges, 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Shimmick Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: Consolidated total revenue was $107 million in Q2 2026, down from $128 million in Q2 2025. Gross Margin: Consolidated total gross margin improved to $12 million, or 12% of revenue, up from $8 million, or 6%, in the prior-year quarter. Net Loss: Net loss narrowed to $5 million, a 44% improvement from a net loss of $9 million in Q2 2025. Adjusted EBITDA: Grew to $4 million, compared to negative $234,000 in Q2 2025. Backlog: Total backlog reached $991 million, the highest level in two years, with an additional $221 million in awards pending fully executed contracts. New Awards: Booked $138 million in new work during Q2, resulting in a book-to-burn ratio of 1.4x. Liquidity: Ended Q2 with $33 million in liquidity, comprising $17 million in cash and cash equivalents and $16 million in credit availability. Full-Year 2026 Revenue Guidance: Updated to approximately $525 million to $575 million, representing about 12% growth year-over-year at the midpoint. Full-Year 2026 Adjusted EBITDA Guidance: Reaffirmed at $15 million to $30 million, representing approximately 350% growth over the prior year at the midpoint. Warning! GuruFocus has detected 4 Warning Signs with SHIM. List of 52-Week Lows List of 3-Year Lows List of 5-Year Lows Is SHIM fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Gross margin expanded to 12% in Q2 2026, up from 6% in Q2 2025, reflecting improved project mix and operational efficiency. Adjusted EBITDA turned positive at $4 million in Q2 2026, a significant improvement from negative $234,000 in the prior year period. Backlog reached $991 million, the highest level in two years, with an additional $221 million in pending awards, providing strong revenue visibility. Noncore project backlog is now less than 3% of total backlog, reducing risk and improving overall margin quality. Book-to-burn ratio was 1.4x for the fourth consecutive quarter, indicating strong demand and successful bidding discipline. Consolidated revenue declined to $107 million in Q2 2026 from $128 million in Q2 2025, driven by project wind-downs and slower-than-expected ramp-ups. Project revenue decreased by $17 million year-over-year, reflecting the impact of completed and winding-down projects. G&A expenses increased to $16 million in Q2 2026 from $15 million in Q2 2025, due to higher one-time legal costs and equity issuance costs. The company continues to face challenges with legacy projects, including the Tennessee project, which is still in the process of resolution and demobilization. Revenue guidance for full-year 2026 was lowered to $525-$575 million, reflecting delays in project starts and the removal of noncore work from backlog. Q: Can you provide more detail on what to anticipate in the second half of this year, and are the margins we're seeing in Q2 representative of the rest of the backlog?A: Ural Yal (CEO) explained that the company experienced a 3-4 month start-up period for new projects, with some larger ones taking 6-7 months due to client-side permitting issues, which slowed revenue momentum. However, he is very pleased with the margins, stating that the rest of the backlog represents these kinds of margins or better. He expects significant improvement in the remainder of the year and into 2027 as projects continue to ramp up. Q: Can you talk about the opportunities in the data center and electrical work space, and the timeline towards success?A: Ural Yal (CEO) stated they launched a dedicated mission-critical division due to strong opportunities. The West Virginia data center project is transitioning to preconstruction, with construction expected to start in the next 60 days. They are bidding on several other projects, especially in Texas. He noted that mission-critical work is about 80% on the electrical side, which is higher margin (15% to 20% gross margin) and expects this to become a sizable chunk of the business within the next 12 months. Q: Can you talk about the geographical expansion, particularly in Texas, and the growth in other markets?A: Ural Yal (CEO) said they are focused on core markets of California, Texas, and Washington. The Texas market is strong with many water opportunities and data center projects, and they expect to grow the percentage of backlog in Texas quarter after quarter. For other states, they are taking a cautious approach, following clients and evaluating projects case-by-case, with the new mission-critical division servicing out-of-state projects. Q: Can you talk about investments in the business and labor availability as you grow over the next couple of years?A: Ural Yal (CEO) stated they are focused on keeping SG&A stable while investing in the business. They invested heavily in sales and bidding in 2025, enabling them to handle $500 million to $1 billion in monthly bidding with high win rates. They are also improving IT, using AI for cost controls, and maintaining gross margins. He believes the company can handle much larger volume at current levels as the backbone is already in place from when they were a larger company. Q: Can you discuss the free cash flow dynamics in the quarter and the outlook for improvements?A: Ural Yal (CEO) noted that legacy projects had significant negative cash flows, but Q2 was the last quarter of demobilizing from the Tennessee project. Legacy work is now less than 3% of backlog. New projects are performing well and are expected to be cash positive from the start, which should improve liquidity and free cash flow quarter after quarter. The goal is to achieve good net income and strong free cash conversion. Q: What should we look for regarding the legacy Tennessee project and the remainder of the business?A: Ural Yal (CEO) confirmed they have completely demobilized from the Tennessee project. The remaining legacy work will continue for another couple of quarters but in decreasing volumes. He sees no risk or issue, and expects to reach an amicable solution with the client, though it will take time. Q: What is the company's revenue guidance for the full year 2026, and how does the removal of noncore work impact profitability?A: Todd Yoder (CFO) updated full year 2026 revenue guidance to approximately $525 million to $575 million, representing about 12% growth year-over-year at the midpoint. The noncore work removed from backlog was not expected to contribute gross margin, so it has no impact on profitability expectations. They reaffirmed full year 2026 adjusted EBITDA guidance of $15 million to $30 million, representing approximately 350% growth at the midpoint. Q: Can you elaborate on the company's backlog growth and the conversion of new awards into revenue?A: Ural Yal (CEO) highlighted that backlog grew to $991 million, the highest level in 2 years, with an additional $221 million in awards pending contracts. They have converted less than 10% of the backlog booked over the past 12 months into revenue, providing significant visibility and supporting expectations for continued revenue growth. The book-to-burn ratio was 1.4x, marking the fourth consecutive quarter with a positive ratio. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved consolidated revenue of $107 million and expanded gross margin to 12%, driven by the successful wind-down of noncore projects and improved operational efficiency. Backlog reached $991 million, the highest level in two years, supported by a fourth consecutive quarter of positive book-to-burn at 1.4x. Established a dedicated mission-critical business unit to capitalize on surging demand in data centers, advanced manufacturing, and renewable energy sectors. Operational performance improved through enhanced project controls and cost management, resulting in adjusted EBITDA growth to $4 million. Management noted that less than 10% of backlog booked over the past 12 months has been converted to revenue, providing significant visibility for future growth. Strategic focus remains on lower-risk, collaborative delivery projects in core markets like California, Texas, and Washington to ensure consistent long-term returns. Updated full-year 2026 revenue guidance to $525 million–$575 million to reflect the removal of noncore work that was not expected to contribute to profitability. Reaffirmed full-year 2026 adjusted EBITDA guidance of $15 million–$30 million, representing approximately 350% year-over-year growth at the midpoint. Anticipate significant revenue and margin acceleration in the second half of 2026 as projects transition from preconstruction into active execution phases. Expect sequential improvement in liquidity and free cash flow as legacy projects conclude and newer, cash-positive contracts begin to scale. Strategic intent to leverage existing overhead structure to support a return to historical revenue levels of approximately $750 million without significant SG&A increases. Noncore backlog has been reduced to less than 3% of total backlog, significantly mitigating the risk of future margin dilution from legacy contracts. The Chick Lock replacement project was terminated in Q1 2026, contributing to the $5 million decrease in noncore revenue for the quarter. Management reported complete demobilization from the Tennessee project, with remaining legacy work expected to run its course over the next few quarters. Experienced longer-than-expected project ramp-up timelines of 6 to 7 months due to client permitting delays, which temporarily slowed revenue momentum. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that the current 12% gross margin is representative of the broader backlog, with potential for further improvement. Revenue acceleration was delayed by 3-4 months beyond typical start-up periods due to client-side permitting, but these projects are now commencing. The new mission-critical division is targeting higher-margin work, specifically in the 15% to 20% gross margin range. Data center opportunities are expected to become a sizable portion of the business within the next 12 months, particularly in Texas and West Virginia. Texas is a primary growth driver due to a robust pipeline of water infrastructure and data center projects. Expansion into adjacent regions is being handled cautiously, primarily following existing customers for specific mission-critical opportunities. The company is built to handle significantly higher volumes than current levels, aiming to maintain stable SG&A while growing the top line. Investments in sales and bidding capabilities, along with the use of AI for cost and finance controls, are expected to support margin expansion as volume increases.

IRVINE, Calif., Aug. 10, 2026 (GLOBE NEWSWIRE) -- Shimmick Corp. (NASDAQ: SHIM), a leading infrastructure solutions provider in water, electrical and other critical infrastructure construction services, today announced financial results for the second quarter ended July 3, 2026. Highlights Reported Q2 2026 revenue of $107 million, $96 million of which was driven by Shimmick Projects Reported Q2 2026 gross margin of $12 million, $11 million of which was driven by Shimmick Projects Recognized a Q2 2026 net loss of $5 million, which is favorable quarter-over-quarter by $4 million. Reported Q2 2026 Adjusted EBITDA of $4 million, our fourth consecutive quarter with positive Adjusted EBITDA Reported liquidity of $33 million as of July 3, 2026 versus reported liquidity of $34 million as of April 3, 2026 Backlog is approximately $991 million as of July 3, 2026, our highest backlog reported since Q1 2024 $221 million in additional new awards pending in water and electrical target markets primarily located in California and Texas “We continue to execute a disciplined strategy — winning the right projects, in the right markets, at the right risk profile — while building the foundation for substantial growth ahead,” said Ural Yal, Chief Executive Officer of Shimmick. “Operational performance across the business remains consistent and strong, reinforcing our confidence as we look out over the next 12 to 18 months. With record backlog and favorable market conditions, we're well positioned to drive strong revenue growth and continued momentum.” Financial Results A summary of our results is included in the table below: The following table sets forth selected revenue and gross margin data for the three months ended July 3, 2026 compared to the three months ended July 4, 2025: (1) Shimmick Projects are those projects started after prior ownership that have focused on water, climate resilience, energy transition, and sustainable transportation. (2) Projects that started under prior ownership or focus on foundation drilling are referred to as "Non-Core Projects" (formerly referred to as "Legacy and Foundations Projects"). Shimmick Projects Projects started after the AECOM Sale Transaction ("Shimmick Projects") have focused on critical infrastructure aligned with our strategy, including water, climate resilience, energy transition and sustainable transportation. Revenue recognized on Shimmick Projects was $96 million and $113 million for the three months ended July 3, 2026 and July 4, 2025, respectively. The $17 million decrease in revenue was primarily the result of a $22 million decrease in revenue as the result of the completion of a lower margin operation and maintenance project during the third quarter of fiscal year 2025 and $32 million of decreases in revenue from lower activity on existing projects and projects winding down. These decreases were partially offset by $37 million of increases in revenue from new higher margin projects ramping up. Gross margin recognized on Shimmick Projects was $11 million and $15 million for the three months ended July 3, 2026 and July 4, 2025, respectively. The $4 million decrease in gross margin was primarily the result of $12 million of decreases in gross margin from lower activity on existing projects and projects winding down, partially offset by $8 million of increases in gross margin from new higher margin projects ramping up. Non-Core Projects As part of the AECOM Sale Transaction, we acquired projects and backlog that were started under prior ownership (formerly referred to as "Legacy and Foundations Projects"). Non-Core Projects revenue was $11 million and $16 million for the three months ended July 3, 2026 and July 4, 2025, respectively. The $5 million decrease was primarily the result of the Company working to wind down these Non-Core projects as well as the termination of one Non-Core project in Tennessee. Gross margin recognized on Non-Core Projects was $2 million for the three months ended July 3, 2026 as compared to $(7) million for the three months ended July 4, 2025. The $9 million increase was primarily the result of certain time and design-related schedule extensions identified during the three months ended July 4, 2025 which did not reoccur during the three months ended July 3, 2026 as well as a favorable settlement and closeout of other Non-Core projects in the current year. A subset of Non-Core Projects ("Non-Core Loss Projects") has experienced significant cost overruns due to the COVID pandemic, design issues, legal costs and other factors. In the Non-Core Loss Projects, we have recognized the estimated costs to complete and the loss expected from these projects. If the estimates of costs to complete fixed-price contracts indicate a further loss, the entire amount of the additional loss expected over the life of the project is recognized as a period cost in the cost of revenue. As these Non-Core Loss Projects continue to wind down to completion, no further gross margin will be recognized absent external factors and in some cases, there may be additional costs associated with these projects that could lower gross margin. Revenue recognized on these Non-Core Loss Projects was $10 million and $13 million for the three months ended July 3, 2026 and July 4, 2025, respectively. Gross margin recognized on these Non-Core Loss Projects was $1 million and $(3) million for the three months ended July 3, 2026 and July 4, 2025, respectively. The change in gross margin was primarily the result of cost increases for time and design-related schedule extensions identified during the three months ended July 4, 2025 which did not reoccur during the three months ended July 3, 2026. Selling, general and administrative expenses Selling, general and administrative expenses increased by $1 million during the three months ended July 3, 2026 primarily as a result of increases in legal costs. Equity in earnings (loss) of unconsolidated joint ventures Equity in earnings (loss) of unconsolidated joint ventures increased by $1 million during the three months ended July 3, 2026 primarily as the result of an increase in activity on a dam project in the current year as well cost increases incurred on a transit project during the three months ended July 4, 2025 which did not reoccur during the three months ended July 3, 2026. Gain on sale of assets, net Gain on sale of assets, net remained approximately flat period over period. Interest expense Interest expense increased by $1 million during the three months ended July 3, 2026 primarily due to increased average long-term debt balances outstanding during the three months ended July 3, 2026 as compared to the three months ended July 4, 2025. Other expense (income), net Other expense (income), net remained approximately flat period over period. Income tax expense Due to an expected tax loss for the fiscal year ending 2026 and a realized tax loss for the fiscal year ended 2025, no income tax expense was recorded for either the three months ended July 3, 2026 or the three months ended July 4, 2025. Net loss Net loss decreased by $4 million to a net loss of $5 million for the three months ended July 3, 2026, primarily due to an increase in gross margin of $4 million and an increase in equity in earnings (loss) of unconsolidated joint ventures of $1 million, partially offset by an increase in interest expense of $1 million and an increase in selling, general and administrative expenses of $1 million, all as described above. Diluted loss per common share attributable to Shimmick Corporation was $(0.12) for the three months ended July 3, 2026, compared to diluted loss per common share of $(0.25) for the three months ended July 4, 2025. Adjusted net loss was $(0.5) million for the three months ended July 3, 2026, compared to adjusted net loss of $(5) million for the three months ended July 4, 2025. Adjusted diluted loss per common share attributable to Shimmick Corporation was $(0.01) for the three months ended July 3, 2026, compared to $(0.14) for the three months ended July 4, 2025. Adjusted EBITDA was $4 million for the three months ended July 3, 2026, compared to $(0.2) million for the three months ended July 4, 2025. The increase was primarily the result of the increase in gross margin of $4 million as described above. “We are pleased with the strong momentum of our newer, higher-margin Shimmick Project awards, which contributed to a 9% sequential increase in Shimmick Project revenue during the quarter and reinforce our confidence in the earnings trajectory of the business. As we gain greater visibility into certain Non-Core work removed from backlog last quarter, we are updating our full-year 2026 revenue guidance to approximately $525 million to $575 million, representing approximately 12% year-over-year growth at the midpoint. Importantly, this Non-Core work was not expected to contribute gross margin and therefore has no impact on our profitability expectations. We are reaffirming our full-year 2026 Adjusted EBITDA guidance of $15 million to $30 million, which at the midpoint represents approximately 350% improvement over the prior year,” said Todd Yoder, Executive Vice President and Chief Financial Officer. Outlook and Guidance As of August 10, 2026, for the full 2026 fiscal year: We reaffirm our guidance of Consolidated Adjusted EBITDA between $15 million and $30 million, representing year-over-year growth of 350% at the midpoint We now expect consolidated revenue(1) in the range of $525 million and $575 million, representing year-over-year growth of 12% at the midpoint (1) Includes revenue as well as Shimmick's proportionate share of work put-in-place from equity method joint ventures. Conference Call and Webcast Information Shimmick will host a video webcast conference call on Monday, August 10, 2026 at 4:30 p.m. Eastern Time. Interested parties are invited to listen to or watch the conference call which can be accessed live-streamed via the Company’s Investor Relations website (https://investors.shimmick.com/). A copy of the earnings call presentation will also be posted to the Company's website. A replay of the video webcast will be available through the same link following the conference call for a limited time beginning immediately following the call. About Shimmick Corporation Shimmick Corporation ("Shimmick", the "Company") (NASDAQ: SHIM) is an industry leader in delivering turnkey infrastructure solutions that strengthen critical markets across water, energy, climate resiliency, and sustainable transportation. With a track record that spans over a century, Shimmick, headquartered in California, unites deep engineering heritage with entrepreneurial spirit to tackle today's most complex infrastructure challenges. We integrate technical excellence with collaborative project delivery methods to provide innovative, technology-driven infrastructure solutions that accelerate economic growth and empower communities nationwide. For more information, visit www.shimmick.com. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements are often characterized by the use of words such as “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words. Forward-looking statements are only predictions based on our current expectations and our projections about future events, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law. Forward-looking statements contained in this release include, but are not limited to, statements about: expected future financial performance (including the assumptions related thereto), including our revenue, net loss, backlog and Adjusted EBITDA; our growth prospects, including with respect to new awards, certain geographies and our electrical business; our expectations regarding profitability; our strategic transformation towards becoming more capital-efficient business; our market relationships and reputation; our core capabilities and skillset; the risk profile of our project portfolio; and our capital plans and expectations related thereto. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Forward-looking statements are only predictions based on our current expectations and our projections about future events, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law. We wish to caution readers that, although we believe any forward-looking statements are based on reasonable assumptions, certain important factors may have affected and could in the future affect our actual financial results and could cause our actual financial results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on our behalf, including, but not limited to, the following: our ability to accurately estimate risks, requirements or costs when we bid on or negotiate a contract; the impact of our fixed-price contracts; qualifying as an eligible bidder for contracts; the availability of qualified personnel, joint venture partners and subcontractors; inability to attract and retain qualified managers and skilled employees and the impact of loss of key management; higher costs to lease, acquire and maintain equipment necessary for our operations or a decline in the market value of owned equipment; subcontractors failing to satisfy their obligations to us or other parties or any inability to maintain subcontractor relationships; marketplace competition; our inability to obtain bonding; our limited operating history as an independent company following our separation from AECOM, our prior owner our relationship and transactions with our prior owner; our prior owner defaulting on its contractual obligations to us or under agreements in which we are beneficiary; our limited number of customers; any inability to successfully expand our business into new markets or geographies; dependence on subcontractors and suppliers of materials; any inability to secure sufficient aggregates; an inability to complete a merger or acquisition or to integrate an acquired company’s business; adjustments in our contract backlog; accounting for our revenue and costs involves significant estimates, as does our use of the input method of revenue recognition based on costs incurred relative to total expected costs; material impairments; any failure to comply with covenants under any current indebtedness, and future indebtedness we may incur; the adequacy of sources of liquidity; the outcome of any legal or regulatory proceedings to which we are,or may become, a party, including our appeal of the USACE’s notice of termination related to the Chickamauga Lock project; the effectiveness of our disclosure controls and procedures; cybersecurity attacks against, disruptions, failures or security breaches of, our information technology systems; seasonality of our business; commodity products price fluctuations, inflation (and actions taken by monetary authorities in response to inflation) and/or elevated interest rates; climate change; deterioration of the U.S. economy; changes in state and federal laws, regulations or policies under the current presidential administration, including changes in trade policies and regulations, including increases or changes in duties, current and potentially new tariffs or quotas and other similar measures, as well as the impact of retaliatory tariffs and other actions, changes to tax legislation, potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act, changes to immigration laws, as well as other legislation and executive orders or decreases or delays in or uncertainties related to governmental spending, and geopolitical risks, including those related to the war between Russia and Ukraine and the conflict and potential regime change in Iran and the associated disruption to the Strait of Hormuz, as well as other hostilities in the Middle East, and related disruptions to global energy markets; and other risks detailed in our filings with the Securities and Exchange Commission, including the “Risk Factors” section in our Annual Report on Form 10-K for the fiscal year ended January 2, 2026 and those described from time to time in our future reports with the SEC. Non-GAAP Definitions This press release includes unaudited non-GAAP financial measures, adjusted EBITDA and adjusted net loss and adjusted diluted loss per common share. For definitions of these non-GAAP financial measures and reconciliations to the most comparable GAAP measures, see "Explanatory Notes" and tables that follow in this press release. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Please refer to the Reconciliation between Net loss attributable to Shimmick Corporation and Adjusted net loss and Adjusted diluted loss per common share included within Table A and the Reconciliation between Net Loss attributable to Shimmick Corporation and Adjusted EBITDA included within Table B below. We do not provide a reconciliation for forward-looking non-GAAP guidance because we are unable to predict certain items contained in the U.S. GAAP measures without unreasonable efforts. These items may include legal fees and other costs for a Non-Core Loss Project, acquisition-related costs, litigation charges or settlements, and certain other unusual adjustments. Investor Relations Contact1-949-704-2350 [email protected] EXPLANATORY NOTESNon-GAAP Financial Measures Adjusted Net Loss and Adjusted Diluted Loss Per Common Share Adjusted net loss represents Net loss attributable to Shimmick Corporation adjusted to eliminate stock-based compensation, legal fees and other costs for Non-Core Projects and transaction-related costs and changes in fair value of contingent consideration remaining after the impact of transactions with our prior owner. We have also made an adjustment for transformation costs we have incurred including advisory costs in connection with settling outstanding claims, exiting the Non-Core Projects and transforming the Company to shift our strategy to meet the nation’s growing need for water and other critical infrastructure and grow our business. We have included Adjusted net loss in this press release because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In particular, we believe that the exclusion of the income and expenses eliminated in calculating Adjusted net loss can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted net loss provides useful information to investors and others in understanding and evaluating our results of operations. Our use of Adjusted net loss as an analytical tool has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are: Adjusted net loss does not reflect changes in, or cash requirements for, our working capital needs, Adjusted net loss does not reflect the potentially dilutive impact of stock-based compensation, and other companies, including companies in our industry, might calculate Adjusted net loss or similarly titled measures differently, which reduces their usefulness as comparative measures. Because of these and other limitations, you should consider Adjusted net loss alongside Net loss attributable to Shimmick Corporation, which is the most directly comparable GAAP measure. (1) Consists of transformation-related costs we have incurred including advisory costs in connection with settling outstanding claims in connection with exiting certain Non-Core Projects as part of the Company’s growth strategy to address and capitalize on the nation’s growing need for water and other critical infrastructure. (2) Consists of legal fees and other costs incurred in connection with claims relating to Non-Core Projects.(3) Consists of transaction-related costs and changes in fair value of contingent consideration remaining after the impact of transactions with our prior owner. Adjusted EBITDA Adjusted EBITDA represents our Net loss attributable to Shimmick Corporation before interest expense, income tax expense and depreciation and amortization, adjusted to eliminate stock-based compensation, legal fees and other costs for Non-Core Projects and transaction-related costs and changes in fair value of contingent consideration remaining after the impact of transactions with our prior owner. We have also made an adjustment for transformation costs we have incurred including advisory costs in connection with settling outstanding claims, exiting the Non-Core Projects and transforming the Company to shift our strategy to meet the nation’s growing need for water and other critical infrastructure and grow our business. We have included Adjusted EBITDA in this press release because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In particular, we believe that the exclusion of the income and expenses eliminated in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations. Our use of Adjusted EBITDA as an analytical tool has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized might have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements, Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs, Adjusted EBITDA does not reflect the potentially dilutive impact of stock-based compensation, Adjusted EBITDA does not reflect interest or tax payments that would reduce the cash available to us, and other companies, including companies in our industry, might calculate Adjusted EBITDA or similarly titled measures differently, which reduces their usefulness as comparative measures. Because of these and other limitations, you should consider Adjusted EBITDA alongside Net loss attributable to Shimmick Corporation, which is the most directly comparable GAAP measure. (1) Consists of transformation-related costs we have incurred including advisory costs in connection with settling outstanding claims in connection with exiting certain Non-Core Projects as part of the Company’s growth strategy to address and capitalize on the nation’s growing need for water and other critical infrastructure. (2) Consists of legal fees and other costs incurred in connection with claims relating to Non-Core Projects.(3) Consists of transaction-related costs and changes in fair value of contingent consideration remaining after the impact of transactions with our prior owner.

The market expects Shimmick Corporation (SHIM) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 10, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +85.7%. Revenues are expected to be $121.85 million, down 5.1% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Shimmick Corporation, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -50.00%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Shimmick Corporation will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Shimmick Corporation would post a loss of$0.08 per share when it actually produced a loss of -$0.07, delivering a surprise of +12.50%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Shimmick Corporation doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Innodata Inc (INOD), another stock in the Zacks Engineering - R and D Services industry, is expected to report earnings per share of $0.21 for the quarter ended June 2026. This estimate points to a year-over-year change of +5%. Revenues for the quarter are expected to be $86.32 million, up 47.8% from the year-ago quarter. The consensus EPS estimate for Innodata Inc has been revised 11.8% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +17.65%. This Earnings ESP, combined with its Zacks Rank #1 (Strong Buy), suggests that Innodata Inc will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Shimmick Corporation (SHIM) : Free Stock Analysis Report Innodata Inc (INOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a record book-to-burn ratio of 2.6 since going public, driven by $289 million in new awards that align with core technical expertise. Successfully reduced noncore legacy backlog to less than 5% of the total portfolio, significantly improving visibility and execution consistency. Expanded Shimmick project gross margins to 11%, an 89% year-over-year improvement attributed to better project selection and operational discipline. Attributed the Q1 revenue decline to the completion of prior-year projects and the termination of the Chickamauga Lock Replacement Project by the U.S. Army Corps of Engineers. Strengthened the management team with the appointment of a new COO to drive disciplined project execution and risk management at scale. Leveraged centralized procurement and enhanced project controls to identify cost and schedule issues earlier in the project lifecycle. Maintained a robust 24-month bidding pipeline of $600 million to $1 billion per month, allowing for increased selectivity in project pursuit. Reaffirmed full-year 2026 guidance despite the loss of legacy revenue, expecting consolidated revenue growth of 12% to 22%. Anticipates a visible inflection in revenue during July, August, and September as newly won projects transition from mobilization to consistent burn. Projects adjusted EBITDA to increase between 200% and 500% year-over-year, driven by a favorable mix shift toward higher-margin core work. Expects continued expansion of gross margins into the 12% to 13% range as projects won under the current management's disciplined criteria begin to ramp. Assumes a constructive resolution of the Chickamauga Lock termination through the customary federal process without impacting other active Army Corps projects. The U.S. Army Corps of Engineers terminated the Chickamauga Lock Replacement Project; management remains constructive on reaching a resolution via federal processes. Noncore project revenue plummeted to $200,000 from $29 million a year ago, effectively removing a significant historical drag on total gross margins. Identified data centers as a compelling medium-to-long-term growth vertical, with active bidding for mechanical and electrical scopes in Texas and Nevada. Shifted toward collaborative contracting models, evidenced by a $50 million progressive design-build wastewater project awarded after quarter-end. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the project would have contributed approximately $20 million to $30 million in revenue this year. Despite this reduction, they reaffirmed guidance because the $289 million in new Q1 awards provides sufficient coverage to hit targets. Management expects margins to continue trending upward as they burn through work won in 2025 and 2026 at higher bid margins. Inflation, fuel, and supply chain risks are being mitigated by building these costs directly into the pricing of new bids. Shimmick is targeting specialized mechanical and electrical scopes, such as water purification and power generation, rather than general earthwork. The company is focusing on geographic hubs like Texas and Reno where they have established operational footprints. Management expects cash flow to improve as the 'drag' from legacy noncore projects ends and new projects generate upfront cash. The core business outside of legacy projects is already generating positive cash flow.

IRVINE, Calif., May 14, 2026 (GLOBE NEWSWIRE) -- Shimmick Corp. (NASDAQ: SHIM), a leading infrastructure solutions provider in water, electrical and other critical infrastructure construction services, today announced financial results for the first quarter ended April 3, 2026. Highlights Reported Q1 2026 revenue of $88 million, all of which was driven by Shimmick Projects Reported Q1 2026 gross margin of $11 million, $10 million of which was driven by Shimmick Projects Shimmick Projects Q1 2026 gross margin up 89% quarter over quarter Recognized a Q1 2026 net loss of $4 million, largely attributable to Non-Core Projects Reported Q1 2026 Adjusted EBITDA of $3 million, our third consecutive quarter with positive Adjusted EBITDA Reported liquidity of $34 million as of April 3, 2026 Backlog is approximately $944 million as of April 3, 2026, our highest backlog reported since Q1 2024 Q1 2026 Book-to-burn ratio of 2.6x, our highest book-to-burn ratio as a public company $289 million in new work was booked in Q1 2026, with Shimmick Projects representing over 97% of total backlog $174 million in additional new awards were pending as of May 2026 in water and electrical target markets primarily located in California and Texas, expected to contribute to 2026 backlog “First quarter results were impacted by adverse weather conditions and slower start of new projects early in the period; however, performance improved steadily through March,” said Ural Yal, Chief Executive Officer of Shimmick. “We exited the quarter with stronger momentum and expect activity to continue to build as we move into the seasonally stronger summer months along with the ramping up of our newly awarded projects.” “Ongoing operational improvements are translating into higher-quality backlog, with non-core now representing a single-digit percentage and book-to-burn at its strongest level since the company became public. The appointment of our new Chief Operating Officer, Sarah Tacker, further reinforces our focus on disciplined execution during this growth phase of our company.” Financial Results A summary of our results is included in the table below: The following table sets forth selected revenue and gross margin data for the three months ended April 3, 2026 compared to the three months ended April 4, 2025: (1) Shimmick Projects are those projects started after prior ownership that have focused on water, climate resilience, energy transition, and sustainable transportation. (2) Projects that started under prior ownership or focus on foundation drilling are referred to as "Non-Core Projects" (formerly referred to as "Legacy and Foundations Projects"). Shimmick Projects Projects started after the AECOM Sale Transaction ("Shimmick Projects") have focused on critical infrastructure aligned with our strategy, including water, climate resilience, energy transition and sustainable transportation. Revenue recognized on Shimmick Projects was $88 million and $93 million for the three months ended April 3, 2026 and April 4, 2025, respectively. The $5 million decrease in revenue was primarily the result of $21 million of decreases in revenue from lower activity on existing projects and projects winding down as well as $13 million of revenue from a fire clean-up project which was included in revenue for the three months ended April 4, 2025 but was completed during the second quarter of fiscal year 2025 and did not reoccur for the three months ended April 3, 2026, partially offset by $29 million of revenue from new higher margin projects ramping up. Gross margin recognized on Shimmick Projects was $10 million and $5 million for the three months ended April 3, 2026 and April 4, 2025, respectively. The $5 million increase in the gross margin was primarily the result of new higher margin projects ramping up. Non-Core Projects As part of the AECOM Sale Transaction, we acquired projects and backlog that were started under prior ownership (formerly referred to as "Legacy and Foundations Projects"). Non-Core Projects revenue was $200 thousand and $29 million for the three months ended April 3, 2026 and April 4, 2025, respectively. The $29 million decrease was primarily driven by a $19 million reduction in revenue as a result of the U.S. Army Corps of Engineers notice of termination associated with the Chickamauga Lock Replacement Project as well as a $10 million decrease from the Company working to wind down these Non-Core Projects. Gross margin recognized on Non-Core Projects was $1 million for the three months ended April 3, 2026 as compared to $(1) million for the three months ended April 4, 2025. The $2 million increase was primarily the result of positive outcome of a project close-out as well as certain time and design-related schedule extensions identified during the three months ended April 4, 2025 which did not reoccur during the three months ended April 3, 2026. A subset of Non-Core Projects ("Non-Core Loss Projects") have experienced significant cost overruns due to the COVID pandemic, design issues, legal costs and other factors. In the Non-Core Loss Projects, we have recognized the estimated costs to complete and the loss expected from these projects. If the estimates of costs to complete fixed-price contracts indicate a further loss, the entire amount of the additional loss expected over the life of the project is recognized as a period cost in the cost of revenue. As these Non-Core Loss Projects continue to wind down to completion, no further gross margin will be recognized absent external factors and in some cases, there may be additional costs associated with these projects that could lower gross margin. Revenue recognized on these Non-Core Loss Projects was $(5) million and $18 million for the three months ended April 3, 2026 and April 4, 2025, respectively. Gross margin recognized on these Non-Core Loss Projects was $(1) million and $(2) million for the three months ended April 3, 2026 and April 4, 2025, respectively. Selling, general and administrative expenses Selling, general and administrative expenses remained approximately flat period over period. Equity in earnings of unconsolidated joint ventures Equity in earnings of unconsolidated joint ventures remained approximately flat period over period. (Loss) gain on sale of assets, net (Loss) gain on sale of assets, net remained approximately flat period over period. Interest expense Interest expense increased by $1 million during the three months ended April 3, 2026 primarily due to increased average long-term debt balances outstanding during the three months ended April 3, 2026 as compared to the three months ended April 4, 2025. Other income, net Other income, net remained approximately flat period over period. Income tax expense Due to an expected tax loss for the fiscal year ending 2026 and fiscal year ended 2025, no income tax expense was recorded for either the three months ended April 3, 2026 or the three months ended April 4, 2025. Net loss Net loss decreased by $6 million to a net loss of $4 million for the three months ended April 3, 2026, primarily due to an increase in gross margin of $6 million, partially offset by an increase in interest expense of $1 million as described above. Diluted loss per common share attributable to Shimmick Corporation was $(0.13) for the three months ended April 3, 2026, compared to diluted loss per common share of $(0.28) for the three months ended April 4, 2025. Adjusted net loss was $(2) million for the three months ended April 3, 2026, compared to adjusted net loss of $(7) million for the three months ended April 4, 2025. Adjusted diluted loss per common share attributable to Shimmick Corporation was $(0.07) for the three months ended April 3, 2026, compared to $(0.22) for the three months ended April 4, 2025. Adjusted EBITDA was $3 million for the three months ended April 3, 2026, compared to $(3) million for the three months ended April 4, 2025. The increase was primarily the result of the increase in gross margin of $5 million as described above. “Shimmick’s first quarter performance reflects our continued progress and reinforces our confidence in the Company’s overall trajectory. This quarter marks the third consecutive period since early 2023 in which our book-to-burn ratio exceeded 1.0x, with $289 million in new project awards our book-to-burn was 2.6x. We also generated positive adjusted EBITDA of $3 million, now our third consecutive quarter of positive adjusted EBTIDA, underscoring meaningful operational momentum. We expected quarter over quarter improvement as new project awards ramp up and with Non-Core Projects now less than 3 percent of our total backlog. We reaffirm our full year guidance of Shimmick’s consolidated revenue to grow between 12% and 22%, representing approximately $550 million to $600 million of work put in place for the full year 2026. Adjusted EBITDA is projected in the range of $15 million to $30 million for the full year 2026, an increase of 200% to 500% year over year,” said Todd Yoder, Executive Vice President and Chief Financial Officer. Outlook and Guidance For the full 2026 fiscal year, we continue to expect: Consolidated revenue(1) in the range of $550 million and $600 million, representing year-over-year growth of 17% at the midpoint Consolidated Adjusted EBITDA between $15 million and $30 million, representing year-over-year growth of 350% at the midpoint (1) Includes revenue as well as Shimmick's proportionate share of work put-in-place from equity method joint ventures. Conference Call and Webcast Information Shimmick will host a video webcast conference call on Thursday, May 14, 2026 at 4:30 p.m. Eastern Time. Interested parties are invited to listen to or watch the conference call which can be accessed live-streamed via the Company’s Investor Relations website (https://investors.shimmick.com/). A copy of the earnings call presentation will also be posted to the Company's website. A replay of the video webcast will be available through the same link following the conference call for a limited time beginning immediately following the call. About Shimmick Corporation Shimmick Corporation ("Shimmick", the "Company") (NASDAQ: SHIM) is an industry leader in delivering turnkey infrastructure solutions that strengthen critical markets across water, energy, climate resiliency, and sustainable transportation. With a track record that spans over a century, Shimmick, headquartered in California, unites deep engineering heritage with entrepreneurial spirit to tackle today's most complex infrastructure challenges. We integrate technical excellence with collaborative project delivery methods to provide innovative, technology-driven infrastructure solutions that accelerate economic growth and empower communities nationwide. For more information, visit www.shimmick.com. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements are often characterized by the use of words such as “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words. Forward-looking statements are only predictions based on our current expectations and our projections about future events, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law. Forward-looking statements contained in this release include, but are not limited to, statements about: expected future financial performance (including the assumptions related thereto), including our revenue, net loss, backlog and Adjusted EBITDA; our growth prospects, including with respect to new awards, certain geographies and our electrical business; our expectations regarding profitability; our strategic transformation towards becoming more capital-efficient business; our market relationships and reputation; our core capabilities and skillset; the risk profile of our project portfolio; and our capital plans and expectations related thereto. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Forward-looking statements are only predictions based on our current expectations and our projections about future events, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law. We wish to caution readers that, although we believe any forward-looking statements are based on reasonable assumptions, certain important factors may have affected and could in the future affect our actual financial results and could cause our actual financial results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on our behalf, including, but not limited to, the following: our ability to accurately estimate risks, requirements or costs when we bid on or negotiate a contract; the impact of our fixed-price contracts; qualifying as an eligible bidder for contracts; the availability of qualified personnel, joint venture partners and subcontractors; inability to attract and retain qualified managers and skilled employees and the impact of loss of key management; higher costs to lease, acquire and maintain equipment necessary for our operations or a decline in the market value of owned equipment; subcontractors failing to satisfy their obligations to us or other parties or any inability to maintain subcontractor relationships; marketplace competition; our inability to obtain bonding; our limited operating history as an independent company following our separation from AECOM, our prior owner our relationship and transactions with our prior owner; our prior owner defaulting on its contractual obligations to us or under agreements in which we are beneficiary; our limited number of customers; any inability to successfully expand our business into new markets or geographies; dependence on subcontractors and suppliers of materials; any inability to secure sufficient aggregates; an inability to complete a merger or acquisition or to integrate an acquired company’s business; adjustments in our contract backlog; accounting for our revenue and costs involves significant estimates, as does our use of the input method of revenue recognition based on costs incurred relative to total expected costs; material impairments; any failure to comply with covenants under any current indebtedness, and future indebtedness we may incur; the adequacy of sources of liquidity; the outcome of any legal or regulatory proceedings to which we are, or may become, a party, including our appeal of the USACE’s notice of termination related to the Chickamauga Lock project; the effectiveness of our disclosure controls and procedures; cybersecurity attacks against, disruptions, failures or security breaches of, our information technology systems; seasonality of our business; commodity products price fluctuations, inflation (and actions taken by monetary authorities in response to inflation) and/or elevated interest rates; climate change; deterioration of the U.S. economy; changes in state and federal laws, regulations or policies under the current presidential administration, including changes in trade policies and regulations, including increases or changes in duties, current and potentially new tariffs or quotas and other similar measures, as well as the impact of retaliatory tariffs and other actions, changes to tax legislation, including the passage of the One Big Beautiful Bill Act, potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act, changes to immigration laws, as well as other legislation and executive orders or decreases or delays in or uncertainties related to governmental spending, and geopolitical risks, including those related to the war between Russia and Ukraine and the conflict and potential regime change in Iran, as well as other hostilities in the Middle East, and related disruptions to global energy markets; and other risks detailed in our filings with the Securities and Exchange Commission, including the “Risk Factors” section in our Annual Report on Form 10-K for the fiscal year ended January 2, 2026 and those described from time to time in our future reports with the SEC. Non-GAAP Definitions This press release includes unaudited non-GAAP financial measures, adjusted EBITDA and adjusted net loss and adjusted diluted loss per common share. For definitions of these non-GAAP financial measures and reconciliations to the most comparable GAAP measures, see "Explanatory Notes" and tables that follow in this press release. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Please refer to the Reconciliation between Net loss attributable to Shimmick Corporation and Adjusted net loss and Adjusted diluted loss per common share included within Table A and the Reconciliation between Net Loss attributable to Shimmick Corporation and Adjusted EBITDA included within Table B below. We do not provide a reconciliation for forward-looking non-GAAP guidance because we are unable to predict certain items contained in the U.S. GAAP measures without unreasonable efforts. These items may include legal fees and other costs for a Non-Core Loss Project, acquisition-related costs, litigation charges or settlements, and certain other unusual adjustments. Investor Relations Contact 1-949-704-2350 [email protected] EXPLANATORY NOTES Non-GAAP Financial Measures Adjusted Net Loss and Adjusted Diluted Loss Per Common Share Adjusted net loss represents Net loss attributable to Shimmick Corporation adjusted to eliminate stock-based compensation, legal fees and other costs for Non-Core Projects and transaction-related costs and changes in fair value of contingent consideration remaining after the impact of transactions with our prior owner. We have also made an adjustment for transformation costs we have incurred including advisory costs in connection with settling outstanding claims, exiting the Non-Core Projects and transforming the Company to shift our strategy to meet the nation’s growing need for water and other critical infrastructure and grow our business. We have included Adjusted net loss in this press release because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In particular, we believe that the exclusion of the income and expenses eliminated in calculating Adjusted net loss can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted net loss provides useful information to investors and others in understanding and evaluating our results of operations. Our use of Adjusted net loss as an analytical tool has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are: Adjusted net loss does not reflect changes in, or cash requirements for, our working capital needs, Adjusted net loss does not reflect the potentially dilutive impact of stock-based compensation, and other companies, including companies in our industry, might calculate Adjusted net loss or similarly titled measures differently, which reduces their usefulness as comparative measures. Because of these and other limitations, you should consider Adjusted net loss alongside Net loss attributable to Shimmick Corporation, which is the most directly comparable GAAP measure. Table A (1) Consists of transformation-related costs we have incurred including advisory costs in connection with settling outstanding claims in connection with exiting certain Non-Core Projects as part of the Company’s growth strategy to address and capitalize on the nation’s growing need for water and other critical infrastructure. (2) Consists of legal fees and other costs incurred in connection with claims relating to Non-Core Projects. (3) Consists of transaction-related costs and changes in fair value of contingent consideration remaining after the impact of transactions with our prior owner. Adjusted EBITDA Adjusted EBITDA represents our Net loss attributable to Shimmick Corporation before interest expense, income tax expense and depreciation and amortization, adjusted to eliminate stock-based compensation, legal fees and other costs for Non-Core Projects and transaction-related costs and changes in fair value of contingent consideration remaining after the impact of transactions with our prior owner. We have also made an adjustment for transformation costs we have incurred including advisory costs in connection with settling outstanding claims, exiting the Non-Core Projects and transforming the Company to shift our strategy to meet the nation’s growing need for water and other critical infrastructure and grow our business. We have included Adjusted EBITDA in this press release because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In particular, we believe that the exclusion of the income and expenses eliminated in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations. Our use of Adjusted EBITDA as an analytical tool has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized might have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements, Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs, Adjusted EBITDA does not reflect the potentially dilutive impact of stock-based compensation, Adjusted EBITDA does not reflect interest or tax payments that would reduce the cash available to us, and other companies, including companies in our industry, might calculate Adjusted EBITDA or similarly titled measures differently, which reduces their usefulness as comparative measures. Because of these and other limitations, you should consider Adjusted EBITDA alongside Net loss attributable to Shimmick Corporation, which is the most directly comparable GAAP measure. Table B (1) Consists of transformation-related costs we have incurred including advisory costs in connection with settling outstanding claims in connection with exiting certain Non-Core Projects as part of the Company’s growth strategy to address and capitalize on the nation’s growing need for water and other critical infrastructure. (2) Consists of legal fees and other costs incurred in connection with claims relating to Non-Core Projects. (3) Consists of transaction-related costs and changes in fair value of contingent consideration remaining after the impact of transactions with our prior owner.

Interested in Shimmick Corporation? Here are five stocks we like better. Shimmick’s Q1 results improved on profitability despite lower revenue: Revenue fell to $88 million from $122 million a year ago, but gross margin expanded to 12% and adjusted EBITDA improved to about $3 million from a $3 million loss. Net loss also narrowed to $4 million from $10 million. Backlog and new awards hit multi-year highs: The company booked $289 million in new work and ended the quarter with $944 million in backlog, its highest level in more than two years. Management said non-core work now makes up less than 5% of backlog, improving execution visibility. Shimmick reaffirmed full-year 2026 guidance: Despite the Chickamauga project termination, the company still expects 12% to 22% revenue growth and adjusted EBITDA of $15 million to $30 million for the year. Management also said liquidity remains solid at $34 million and that margins and cash flow should improve as legacy work winds down. Shimmick (NASDAQ:SHIM) reported first-quarter 2026 results that management said reflected progress in its strategy to grow core revenue, improve project margins and reduce exposure to non-core work. CEO Ural Yal said the infrastructure contractor delivered consolidated revenue of $88 million, a 12% gross margin and adjusted EBITDA of approximately $3 million in the quarter. He said gross margin on Shimmick projects improved to 11%, which the company described as an 89% improvement from the prior year. → Micron Investors Face a High-Stakes Moment After the Latest Rally “We are continuing to make progress on our strategy, which centers around growing our top line by bidding and winning work aligned with our expertise, winding down non-core projects, and executing at a high level to deliver consistent margins,” Yal said. EVP and CFO Todd Yoder said Shimmick project revenue was $88 million in the first quarter, compared with $93 million in the same period of 2025. He attributed the $5 million decline to prior-year projects reaching completion or nearing completion, along with lower burn on new projects that are expected to ramp up through 2026. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? Non-core project revenue fell sharply to $200,000 from $29 million a year earlier. Yoder said the decrease was driven by the termination of the Chickamauga Lock Replacement Project and continued progress moving non-core projects toward completion. Total consolidated revenue was $88 million, compared with $122 million in the first quarter of 2025. Despite the revenue decline, profitability metrics improved. Shimmick project gross margin rose to $10 million from $5 million, while consolidated total gross margin increased to $11 million from $5 million. Total gross margin as a percentage of revenue improved to 12% from 4% a year earlier. → Reading the Stripes: Is The Industrial Recession Over? General and administrative expense was $14 million, flat from the prior-year period. Net loss improved to $4 million from a net loss of $10 million in the first quarter of 2025. Adjusted EBITDA was $3 million, compared with negative $3 million a year earlier. Management emphasized backlog growth as a key sign of momentum. Shimmick booked $289 million in new work during the quarter, a sequential increase of $150 million from the fourth quarter of 2025. The company reported a book-to-bill ratio of 2.6, which Yal and Yoder said was the highest since Shimmick became a public company. Total backlog stood at $944 million at the end of the first quarter, which Yal said was the company’s highest backlog level in more than two years. He said non-core work now represents less than 5% of total backlog, improving visibility and execution consistency. The quarter’s new awards included flood protection and stormwater infrastructure projects in California and wastewater expansion work in Texas. Yal highlighted the Vista Grande Drainage Basin Improvements project in Northern California, additional flood protection work in Napa and a wastewater treatment plant expansion project in Austin. Yal said the company’s 24-month pipeline remains robust, with expected bidding volumes of $600 million to $1 billion per month. He added that Shimmick is focused on sustaining a book-to-bill profile that supports growth and improved revenue visibility over time. Management addressed the termination by the U.S. Army Corps of Engineers of the Chickamauga Lock Replacement Project in Chattanooga, Tennessee. Yal said the matter is proceeding through the customary federal process and that Shimmick remains constructive in its approach. “We remain constructive in our approach, appreciate our client’s focus on project completion, and are confident that the parties will be able to reach a mutually agreeable resolution in due course,” Yal said. He said the situation does not affect Shimmick’s broader relationship with the U.S. Army Corps of Engineers, which he described as a long-term client dating back to the 1940s through legacy companies. Shimmick currently has two other projects underway with the Corps, one approximately halfway complete and the other nearing completion, and Yal said both continue to progress as planned. In response to an analyst question, Yal said the Chickamauga project would have contributed roughly $20 million to $30 million of revenue this year had the termination not occurred. He said Shimmick still expects to hit its revenue guidance, though it may trend toward the lower side of the range. Yoder said the first quarter was largely in line with expectations for a slower start to 2026 and that the company expects sequential improvement throughout the year as new awards ramp up. Despite the Chickamauga termination, Shimmick reaffirmed its full-year 2026 guidance. The company expects consolidated revenue to grow 12% to 22% year over year, representing approximately $550 million to $600 million of work put in place. It also expects adjusted EBITDA to increase 200% to 500% year over year, implying adjusted EBITDA of $15 million to $30 million for the year. Shimmick ended the quarter with $34 million of liquidity, consisting of $15 million in unrestricted cash equivalents and $19 million of availability under credit agreements. During the question-and-answer session, Yoder said the company is “very optimistic” about liquidity. Yal said winding down legacy and non-core work should improve cash flow, while newer projects are expected to generate upfront cash as they come online. Yal said Axia Electric continues to perform well and remains an important part of Shimmick’s long-term strategy. He also pointed to data centers as a growing opportunity, with multiple active bids in Reno and Texas. In response to an analyst question, Yal said Shimmick is primarily targeting mechanical and electrical work tied to data centers, including water treatment, water purification, racks, switchgear, medium voltage and power generation opportunities. He said the work fits both the Axia Electric business and Shimmick’s core water treatment and process mechanical capabilities. Yal also said Texas and Reno are attractive markets for data center opportunities and that Shimmick is “in the right place right now.” Management said Shimmick continues to pursue more collaborative contracting models. After quarter-end, the company was selected for a California Water Service wastewater treatment plant project in Southern California through a Progressive Design-Build contract with an estimated construction value of $50 million. Yal said the award was not included in quarter-end backlog but supports Shimmick’s strategy of partnering with clients earlier in the project life cycle. Yal closed the call by saying the quarter was aligned with the strategy put in place in 2025 and that backlog and gross margins are beginning to reflect that plan. “We’re still in the early phases of our growth, but we expect the rest of the year to continue to improve and have a very strong year,” he said. Shimmick Corporation provides water and other critical infrastructure solutions in the United States. The company undertakes water and wastewater treatment infrastructure; water storage and conveyance, including dams, levees, flood control systems, pump stations, and coastal protection infrastructure; and mass transit, bridges, 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Shimmick Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.