Shimmick Corp (SHIM) Q1 2025 Earnings Call Highlights: Revenue Growth Amid Ongoing Challenges

GuruFocus News

Thu, May 15, 2025, 6:01 PM 3 min read

Release Date: May 14, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Shimmick Corp (NASDAQ:SHIM) reported a gross summation to $122 cardinal successful Q1 2025, up from $120 cardinal successful the aforesaid play past year.

• Gross borderline improved significantly, with a affirmative $5 cardinal compared to a antagonistic $1 cardinal successful the erstwhile year.

• The institution has a beardown liquidity presumption with $71 million, providing the superior needed for strategical and operational plans.

• Shimmick Corp (NASDAQ:SHIM) has a robust connection pipeline of astir $2 cardinal successful upcoming bids, indicating imaginable aboriginal growth.

• The institution is seeing accrued bidding activity, peculiarly successful the electrical and technology-driven infrastructure market, which is expected to turn significantly.

• Shimmick Corp (NASDAQ:SHIM) reported a nett nonaccomplishment of $10 cardinal for Q1 2025, though this is an betterment from a $33 cardinal nonaccomplishment successful the anterior year.

• Legacy projects proceed to interaction financials negatively, with a gross borderline of antagonistic $1 cardinal for these projects.

• There is uncertainty successful the marketplace owed to tariffs and backing streams, which has caused a slowdown successful bidding for larger nationalist projects.

• The institution faces imaginable semipermanent challenges from rising prices owed to tariffs, which could strain lawsuit budgets and pb to task downscaling oregon cancellations.

• Despite improvements, the adjusted EBITDA remains antagonistic astatine $-3 million, indicating ongoing fiscal challenges.

• Warning! GuruFocus has detected 5 Warning Signs with SHIM.

Q: Can you sermon the visibility into the guidance for the twelvemonth connected Shimmick projects, some connected gross and gross margin, fixed the show successful the archetypal quarter? Also, could you elaborate connected what you're seeing connected the tariff broadside of things? A: Yes, we've seen show betterment successful Q1, and portion it's not yet astatine the guidance level, operational improvements are underway. We consciousness bully astir our guidance for some Shimmick and bequest projects. Regarding tariffs, determination was a little intermission owed to uncertainty astir backing streams, but enactment is picking up arsenic clients purpose to fastener successful prices earlier imaginable increases. We are optimistic astir Q2 owed to accrued bidding activity.

Q: Can you quantify the caller awards and extensions that are pending? Have they been seen successful the 2nd quarter, oregon are they inactive to come? Also, could you interaction connected the Palisades task and its imaginable size and contribution? A: The Palisades task is ongoing and contributes to Q2 activity. We person projects wherever we were the debased bidder, but awards were paused. We expect to spot them successful Q2. Bidding enactment is high, and we are negotiating definite contracts and alteration orders. The precocious level of bidding enactment is encouraging, and we expect affirmative outcomes.