Equipment Operator - Medium

Shimmick Corp reported mixed Q2 2026 results, with revenue declining to $107 million from $128 million year-over-year, but showing significant profitability improvements. Gross margin doubled to 12% from 6%, whilst net loss narrowed 44% to $5 million. Adjusted EBITDA turned positive at $4 million. The construction firm's backlog surged to $991 million, its highest level in two years, with an additional $221 million in pending awards. The company booked $138 million in new work, achieving a 1.4x book-to-burn ratio for the fourth consecutive quarter. Management updated full-year revenue guidance to $525 million-$575 million, representing 12% growth at the midpoint, whilst reaffirming adjusted EBITDA guidance of $15 million-$30 million. The company ended Q2 with $33 million in liquidity. Noncore projects now represent less than 3% of total backlog, improving overall margin quality.

Shimmick Q2 earnings call highlights. August 10, 2026 Key points. * 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. * Five stocks we like better than Shimmick. 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. Revenue declines as legacy work winds down. 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. 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. Backlog reaches two-year high. 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. Water, transit and electrification awards support growth. 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. Guidance updated for revenue, EBITDA outlook reaffirmed. 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. About Shimmick (NASDAQ:SHIM). 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]. Continue following MarketBeat Before you consider Shimmick, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. 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Shimmick earns ENR West's 2026 California Contractor of the Year recognition. Construction Owners Editorial Team Construction Industry California Highlights. * Shimmick has been named ENR West's 2026 California Contractor of the Year. * The recognition highlights the company's infrastructure growth and expanded self-perform capabilities. * Shimmick launched Axia Electric LLC to strengthen its transportation electrification and utility construction services. * The company secured more than $156 million in California and Washington infrastructure contracts during 2025. * Recent work includes water, electrical and heavy civil infrastructure projects across the western United States. Recognition from industry organizations can reflect a contractor's market position and project delivery capabilities. Shimmick has been selected as ENR West's 2026 California Contractor of the Year, acknowledging the company's continued expansion in infrastructure construction and its focus on specialized self-perform services across the western United States. The award recognizes Shimmick's growth strategy as it continues delivering projects in the water, transportation, energy and heavy civil sectors. Infrastructure portfolio and business growth. Over the past year, Shimmick expanded its operations with the launch of Axia Electric LLC, a business focused on transportation electrification, grid modernization, utility improvements and energy resilience projects. The company also continued to strengthen its position in water infrastructure, transportation construction and heavy civil markets through a combination of new project awards and expanded in-house construction capabilities. During 2025, Shimmick secured more than $156 million in infrastructure contracts across California and Washington. The work included water and electrical system improvements in Southern California as well as the Bellota Weir Modifications Project in Stockton, California. Industry recognition reflects operational performance. In addition to the ENR West recognition, Shimmick received several industry awards for project delivery, including the AGC of California Heavy Civil Constructor Award and two California Transportation Foundation honors. The company stated that its ongoing investments in workforce development, operational performance, quality management and self-perform capabilities have supported its ability to deliver increasingly complex infrastructure projects. Why it matters. Demand for transportation, water and energy infrastructure continues to drive opportunities for specialty contractors with technical expertise and self-perform capabilities. For construction owners, public agencies and developers, recognition of firms with strong infrastructure delivery experience highlights the growing emphasis on execution, specialized services and long-term investment in critical public works projects.