8-K: Shimmick Reports Strong Q4, FY25 Results; Positive 2026 Outlook

Shimmick Corporation announced significantly improved financial results for Q4 and full fiscal year 2025, driven by growth in Shimmick Projects and positive 2026 guidance.

Summary

• Reported Q4 2025 revenue of $100 million, including $84 million from Shimmick Projects, and full fiscal year 2025 revenue of $493 million, with $397 million from Shimmick Projects.
• Shimmick Projects revenue increased 4% year-over-year in Q4 2025 and 12% for the full fiscal year 2025.
• Achieved a Q4 2025 gross margin of $10 million, entirely from Shimmick Projects, marking a 462% year-over-year increase for Shimmick Projects in Q4 and 232% for the full fiscal year.
• Recognized a Q4 2025 net loss of $3 million, a substantial improvement from a $38 million net loss in Q4 2024, largely due to the winding down of Non-Core Projects.
• Reported Q4 2025 Adjusted EBITDA of $4 million, marking the second consecutive quarter of positive Adjusted EBITDA.
• Liquidity stood at $44 million as of January 2, 2026.
• Backlog reached approximately $793 million as of January 2, 2026, with a Q4 2025 book-to-burn ratio of 1.4x, representing a 5% increase in backlog compared to Q3 2025.
• $139 million in new work was booked in Q4 2025, with Shimmick Projects accounting for over 89% of total backlog.
• An additional $128 million in new awards were added to backlog as of the close of February 2026, and $234 million in new awards were pending in water and electrical markets in California, Texas, and Washington, expected to contribute to 2026 backlog.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive report, indicating a successful strategic turnaround. While a net loss persists, the significant improvements in gross margin and Adjusted EBITDA, coupled with robust backlog growth and optimistic 2026 guidance, demonstrate strong operational momentum and a clear path to profitability in core segments.

Positives

• Shimmick Projects Q4 2025 revenue increased 4% year-over-year to $84 million, and FY2025 revenue increased 12% year-over-year to $397 million, demonstrating core business growth.
• Shimmick Projects Q4 2025 gross margin surged 462% year-over-year to $10 million, with a 12% gross margin percentage, indicating improved project profitability.
• Consolidated gross margin significantly improved from $(21) million in Q4 2024 to $10 million in Q4 2025, and from $(56) million in FY2024 to $34 million in FY2025.
• Net loss decreased substantially from $(38) million in Q4 2024 to $(3) million in Q4 2025, and from $(125) million in FY2024 to $(26) million in FY2025.
• Adjusted EBITDA turned positive for the second consecutive quarter, reaching $4 million in Q4 2025, a significant improvement from $(27) million in Q4 2024.
• Backlog grew to approximately $793 million as of January 2, 2026, supported by a strong Q4 2025 book-to-burn ratio of 1.4x.
• New awards totaling $139 million were booked in Q4 2025, with over 89% from Shimmick Projects, indicating strong demand for core services.
• Management anticipates strong backlog and revenue growth in the electrical business for 2026, supported by robust bidding activity.
• Selling, general and administrative expenses decreased by $5 million in Q4 2025 due to the continued implementation of the company's transformation plan.

Negatives

• The company reported a net loss of $3 million in Q4 2025 and $26 million for the full fiscal year 2025, primarily attributable to Non-Core Projects.
• Consolidated revenue for Q4 2025 decreased to $100 million from $104 million in Q4 2024, although full-year revenue increased.
• Cash and cash equivalents decreased from $33.73 million as of January 3, 2025, to $19.97 million as of January 2, 2026.
• Net cash used in operating activities increased significantly from $(21.26) million in FY2024 to $(65.11) million in FY2025.
• Long-term debt, net of current portion, increased substantially from $9.48 million in FY2024 to $60.32 million in FY2025.
• Total stockholders' deficit increased from $(34.67) million in FY2024 to $(56.64) million in FY2025.
• Non-Core Projects, which include those from prior ownership and foundation drilling, continue to wind down and have historically experienced significant cost overruns due to factors like the COVID pandemic, design issues, and legal costs.

Risks

• Ability to accurately estimate risks, requirements, or costs when bidding on or negotiating a contract.
• Impact of fixed-price contracts on profitability.
• Qualifying as an eligible bidder for contracts.
• 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 operations or a decline in the market value of owned equipment.
• Subcontractors failing to satisfy their obligations or any inability to maintain subcontractor relationships.
• Marketplace competition.
• Inability to obtain bonding.
• Limited operating history as an independent company following separation from AECOM, its prior owner.
• Relationship and transactions with its prior owner, and the risk of the prior owner defaulting on contractual obligations.
• Limited number of customers.
• Inability to successfully expand the business into new markets or geographies.
• Dependence on subcontractors and suppliers of materials, and any inability to secure sufficient aggregates.
• Inability to complete a merger or acquisition or to integrate an acquired company's business.
• Adjustments in contract backlog due to cancellations, deferrals, or scope changes.
• Accounting for revenue and costs involves significant estimates, particularly with the input method of revenue recognition.
• Potential for material impairments.
• Any failure to comply with covenants under current or future indebtedness.
• Adequacy of sources of liquidity.
• Outcome of any legal or regulatory proceedings to which the company is, or may become, a party.
• Cybersecurity attacks against, disruptions, failures, or security breaches of, information technology systems.
• Seasonality of the business.
• Pandemics and public health emergencies.
• 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, tax legislation (e.g., One Big Beautiful Bill Act), potential changes to the Infrastructure Investment and Jobs Act, immigration laws, and other governmental spending legislation.
• Geopolitical risks, including those related to the war between Russia and Ukraine and hostilities in the Middle East.

Future Outlook

Shimmick Corporation expects a slower start to 2026, followed by sequential quarter-over-quarter improvement as new project awards ramp up. For the full 2026 fiscal year, consolidated revenue is projected to be between $550 million and $600 million, representing year-over-year growth of 17% at the midpoint. Consolidated Adjusted EBITDA is projected in the range of $15 million to $30 million, representing year-over-year growth of 350% at the midpoint. The company anticipates strong backlog and revenue growth in its electrical business.

Management Comments

• Ural Yal, CEO: "Our strategy has been and continues to be growing our backlog with work that we believe will deliver consistent margins while improving operational performance."
• Ural Yal, CEO: "As expected, we delivered another quarter of book-to-burn ratio exceeding 1.0x and also expect new awards to continue into the new year, with new work wins that are geographically within our strategic target markets of California and Texas."
• Ural Yal, CEO: "We continue to work towards de-risking our business by shifting to collaborative delivery models, while meeting the strong demand for our services in the market."
• Ural Yal, CEO: "We expect 2026 to show strong backlog and revenue growth in our electrical business as our focused sales efforts start to take hold supported by robust bidding activity. We are encouraged to see our efforts starting to yield results and look forward to 2026."
• Todd Yoder, CFO: "Shimmick's fourth quarter performance reflects our continued progress and reinforces our confidence in the Company's overall trajectory."
• Todd Yoder, CFO: "This quarter marks the second consecutive period since early 2023 in which our book-to-burn ratio exceeded 1.0x, with $139 million in new project awards. We also generated positive adjusted EBITDA of $4 million for the second consecutive quarter, underscoring meaningful operational momentum."
• Todd Yoder, CFO: "In 2026, we anticipate a slower start to the year, followed by sequential quarter-over-quarter improvement as new project awards ramp up and represent a growing share of our project mix."

Industry Context

StockSavvy.ai notes that Shimmick's focus on water, electrical, and other critical infrastructure aligns with broader industry trends of increased government spending and private investment in aging infrastructure and climate resilience initiatives. The shift away from 'Non-Core Projects' with historical cost overruns towards higher-margin 'Shimmick Projects' reflects a strategic pivot common among construction and engineering firms seeking to de-risk portfolios and capitalize on specific growth sectors. The strong backlog and positive outlook for the electrical business suggest the company is well-positioned to benefit from the energy transition and grid modernization efforts.

Legal Proceedings

• Non-Core Loss Projects have experienced significant cost overruns due to factors including legal costs.

Related Party Transactions

• The company's limited operating history as an independent company following its separation from AECOM, its prior owner, and its relationship and transactions with its prior owner, including the risk of the prior owner defaulting on contractual obligations, are noted as risks.

Stakeholder Impact

• Shareholders: Potential for increased shareholder value due to improved financial performance, strong backlog, and positive future outlook, though current net losses and increased debt pose risks.
• Employees: Continued implementation of the transformation plan and growth in Shimmick Projects may lead to a more stable and growing work environment, particularly in target markets and the electrical business.
• Customers: The company's focus on collaborative delivery models and meeting strong demand in water and electrical infrastructure suggests continued service provision and project execution.
• Creditors: Increased borrowings on credit and loan agreements indicate higher leverage, which could be a concern, but improved Adjusted EBITDA and future projections suggest better debt servicing capacity.
• Suppliers/Subcontractors: Dependence on subcontractors and suppliers is noted, implying ongoing relationships, but also risks if these parties fail to meet obligations.

Next Steps

• Shimmick will host a video webcast conference call on Thursday, March 12, 2026, at 4:30 p.m. Eastern Time to discuss the results.
• The company anticipates a slower start to 2026, followed by sequential quarter-over-quarter improvement as new project awards ramp up.
• Continued efforts to grow backlog with work expected to deliver consistent margins and improve operational performance.
• Continued work towards de-risking the business by shifting to collaborative delivery models.
• Focused sales efforts in the electrical business are expected to take hold, supported by robust bidding activity, leading to strong backlog and revenue growth in 2026.

Key Dates

Recommendation

Shimmick Corporation is demonstrating a clear and effective turnaround strategy, evidenced by the significant year-over-year improvements in gross margin and Adjusted EBITDA, particularly within its core 'Shimmick Projects' segment. The strong backlog of $793 million and a healthy book-to-burn ratio of 1.4x indicate robust future revenue potential. While the company still reports a net loss, the trajectory towards profitability is compelling, supported by positive 2026 guidance for substantial revenue and Adjusted EBITDA growth. The strategic shift away from problematic 'Non-Core Projects' is yielding tangible results, making Shimmick an attractive 'buy' for investors seeking a growth story in the critical infrastructure sector, despite the increased debt and inherent risks of the industry.

Keywords

Infrastructure Solutions, Water Infrastructure, Electrical Infrastructure, Critical Infrastructure, Construction Services, Backlog, Adjusted EBITDA, Financial Results, SEC Filing, Shimmick Corporation, SHIM, Corporate Governance, Risk Management