Shimmick Corp. (NASDAQ: SHIM) reported a smaller-than-expected loss and a growing project backlog for its first quarter, sending shares up more than 8 percent even as revenue fell short of analyst estimates.
"First quarter results were impacted by adverse weather conditions and slower start of new projects early in theperiod; however, performance improved steadily through March," Ural Yal, Chief Executive Officer of Shimmick, said in a statement. "We exited the quarter with stronger momentum."
The infrastructure solutions provider posted first-quarter revenue of $88 million, a 28 percent decrease from the $122 million reported in the same period last year and a miss on consensus estimates of $117 million. However, its adjusted loss per share of $0.07 was in line with expectations.
Shares of Shimmick rose 8.2% to $5.02 on the news. The positive investor reaction was fueled by a third consecutive quarter of positive adjusted EBITDA, which reached $3 million, and a record backlog that grew to $944 million. The company booked $289 million in new awards, achieving a book-to-burn ratio of 2.6x for the quarter.
The company's profitability improved significantly, with gross margin expanding to 12% from 5% a year earlier. This was driven by the ramp-up of new, higher-margin "Shimmick Projects" focused on water and energy infrastructure, and the near-completion of legacy "Non-Core Projects," which now represent less than 3% of the total backlog.
Management reaffirmed its full-year 2026 guidance, projecting revenue between $550 million and $600 million, representing year-over-year growth of 12% to 22%. Adjusted EBITDA is forecast to be between $15 million and $30 million.
The reaffirmed guidance suggests management is confident that the project ramp-up in the seasonally stronger summer months will offset the slow start to the year. Investors will look for continued margin expansion and project execution when the company reports its second-quarter results.
This article is for informational purposes only and does not constitute investment advice.
