Shimmick Corporation

What they do

Shimmick delivers turnkey construction solutions for water treatment, water resources (dams, reservoirs, conveyance), climate resilience (levees, flood walls), transportation (mass transit, autonomous people movers), and energy transition (EV fleet modifications, renewable components, data centers). The company self-performs many projects and targets mostly California-based work. It was spun off from AECOM in 2021 and completed an IPO in November 2023.

Revenue drivers

• Shimmick Projects — Core projects segment, representing over 97% of total backlog. Q2 2026 revenue of $96M and gross margin of $11M (11% margin), down from $113M and $15M in Q2 2025.
• Non-Core Projects — Legacy or lower-priority projects, Q2 2026 revenue of $11M and gross margin of $2M (16% margin), a significant improvement from a -$7M gross loss in Q2 2025.
• Water Treatment and Resources — Includes wastewater treatment, desalination, dams, reservoirs, and water conveyance. Management highlights water as a primary market and target for new awards, with $221M pending in water and electrical.
• Backlog and New Bookings — Backlog of approximately $991M as of July 3, 2026, highest since Q1 2024. Q2 2026 book-to-burn ratio of 1.4x, with $138M in new work booked.

Recent performance

In Q2 2026 (quarter ended July 3, 2026), Shimmick reported revenue of $107M, a decrease from $128M in Q2 2025. Gross margin improved to $12M (up 53% quarter-over-quarter) from $8M in Q2 2025. Net loss attributable to Shimmick narrowed to $5M from $9M in Q2 2025. Adjusted EBITDA was positive at $4M, the fourth consecutive quarter of positive Adjusted EBITDA. Liquidity was $33M as of July 3, 2026, down slightly from $34M at April 3, 2026. For the six months ended July 3, 2026, revenue was $195M and net loss attributable was $9M.

Strategy

Management states it is executing a disciplined strategy of winning 'the right projects, in the right markets, at the right risk profile.' The company is focusing on water and electrical target markets, primarily in California and Texas, and aims to drive revenue growth and continued momentum. They are building a foundation for substantial growth over the next 12 to 18 months. The strategy includes increasing backlog and maintaining positive Adjusted EBITDA.

Risks

• Fixed-price contract risk — Fixed-price contracts expose Shimmick to cost overruns, operating cost inflation, and liquidated damages, which could harm profitability.
• Negative equity and liquidity constraints — As of July 3, 2026, shareholder equity was -$50.3M, total liabilities exceeded assets ($275.3M vs. $224.9M), and cash was $16.9M, indicating balance sheet stress.
• Dependence on a limited number of customers — The company relies on a limited customer base, and loss of major contracts could materially affect results.
• Bonding capacity — Inability to obtain bonding could limit the aggregate dollar amount of contracts Shimmick can pursue.

Outlook

Management expressed confidence in the next 12 to 18 months, citing record backlog and favorable market conditions. They expect to drive strong revenue growth and continued momentum. Pending new awards of $221M in water and electrical target markets, primarily in California and Texas, support the outlook. The company has had four consecutive quarters of book-to-burn >1.0, indicating sustained demand.