Shimmick Corporation ( (SHIM) ) has released its Q3 earnings. Here is a breakdown of the information Shimmick Corporation presented to its investors.
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Shimmick Corporation is a prominent player in the water infrastructure sector, known for its expertise in complex projects like wastewater systems and dams, and is recognized as a top ten builder in the industry according to Engineering News Record in 2024.
In its third-quarter 2024 earnings report, Shimmick Corporation announced a significant legal settlement in its Golden Gate Bridge project, the appointment of a new CEO, and strategic financial adjustments amid ongoing transformation efforts.
The company reported a revenue of $166 million for the quarter, with a notable $97 million cash settlement from the Golden Gate Bridge project. Despite a net loss of $2 million, Shimmick achieved an adjusted EBITDA of $30 million. The backlog remains robust at $834 million, primarily driven by Shimmick Projects, which accounted for 85% of the total. The transition to a more capital-efficient model included the sale-leaseback of an equipment yard for a $17 million gain.
Shimmick’s financial results were impacted by increased costs from ERP system enhancements and legal fees related to Legacy Projects. However, the successful settlement of the Golden Gate Bridge project is seen as a pivotal step in the company’s strategic transformation towards focusing on water and critical infrastructure markets in California.
Looking ahead, Shimmick Corporation is optimistic about its ongoing transformation efforts and market opportunities, with expectations to complete the onsite portions of the Golden Gate Bridge project by the third quarter of 2025. The management remains confident in its capital-light business strategy and the potential growth in the California infrastructure sector.
