Shimmick (NASDAQ:SHIM) Posts Earnings Results, Beats Expectations By $0.04 EPS

Shimmick (NASDAQ:SHIM) announced its quarterly earnings results on Thursday. The company reported $0.08 EPS for the quarter, beating analysts’ consensus estimates of $0.04 by $0.04, FiscalAI reports. The firm had revenue of $135.80 million for the quarter, compared to the consensus estimate of $139.85 million.

Here are the key takeaways from Shimmick’s conference call:

• Shimmick returned to GAAP profitability for the first time since Q3 2023, with about $1 million in net income. Adjusted EBITDA rose to $9 million from $4 million a year earlier, marking the fifth consecutive quarter of positive adjusted EBITDA.
• The company raised and narrowed its 2026 adjusted EBITDA outlook to $20 million–$25 million; revenue is expected to be $500 million–$525 million. Management said the revenue outlook change reflects lower non-core work and does not affect profitability.
• Backlog plus pending awards reached $1.3 billion, up 33% year over year, with non-core projects below 2% of booked backlog. Management expects most of the $401 million in pending awards to convert to backlog within 90 days and cited continued demand across water, electrical, and mission-critical markets.
• Liquidity increased to $53 million, operating cash flow was positive $10 million, and working capital turned positive at $11 million. Management cautioned that some liquidity improvement came from one-time timing factors, while expecting positive operating cash flow in 2027.
• Management said project ramp-ups and backlog conversion have taken longer than initially expected, creating potential quarter-to-quarter variability. Q3 awards were $48 million, a 0.4x book-to-burn ratio, which the company attributed to contract-execution timing.

Shimmick Stock Up 23.3%

Shares of SHIM opened at $2.88 on Friday. Shimmick has a twelve month low of $2.01 and a twelve month high of $6.76. The company has a 50 day moving average of $2.89 and a two-hundred day moving average of $3.71. The company has a market cap of $119.27 million, a price-to-earnings ratio of -6.40 and a beta of 0.94.

Analysts Set New Price Targets

Several research firms have commented on SHIM. Wall Street Zen upgraded shares of Shimmick from a “sell” rating to a “hold” rating in a research report on Sunday, August 16th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Shimmick in a research note on Monday, September 21st. Two analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $5.50.

Shimmick Company Profile

Shimmick Corporation is a U.S. infrastructure construction company that builds and rehabilitates projects for public agencies and private clients. Its work includes water and wastewater treatment facilities, dams, reservoirs and water conveyance systems, as well as transportation, energy and other civil infrastructure. The company provides services across the project lifecycle, including construction, rehabilitation and alternative-delivery work such as design-build. Its projects are located across the United States, with experience in complex water and infrastructure systems.