10-Q · May 15, 2026
Shimmick Corporation reported Q1 2026 revenue of $88 million, significantly below estimates of $120.8 million, resulting in a diluted loss per share of $(0.07) matching expectations. Despite the revenue miss, the…
Earnings analysis · 10-Q
SHIM earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Shimmick’s Q2 results showed a mixed trend: revenue of $106.616 million declined 17% year over year, but gross margin improved to 11.68%, operating losses narrowed, and net loss improved to $4.813 million. New…
Read full summary
Shimmick’s Q2 results showed a mixed trend: revenue of $106.616 million declined 17% year over year, but gross margin improved to 11.68%, operating losses narrowed, and net loss improved to $4.813 million. New higher-margin project ramp-up and a $991 million backlog support the strategic transition, while Non-Core project wind-downs continue to pressure revenue. Liquidity and leverage remain significant concerns, with $33 million of total liquidity, $72.389 million of net debt and $24.627 million of operating cash use during the first six months.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
-
Revenue improved sequentially, declined year over year
Q2 revenue was $106.616 million, down 17% from $128.402 million a year ago but up approximately 21% from $88 million in Q1 2026. The year-over-year decline reflected lower activity and project wind-downs.
-
Margins improved materially year over year
Gross margin increased to $12.454 million from $8.129 million year over year, lifting gross margin to 11.68% from approximately 6.33%. Operating margin improved to -2.49% from approximately -5.53%.
-
GAAP loss narrowed by $3.553 million
Net loss narrowed to $4.813 million from $8.366 million year over year, primarily due to a $4.325 million increase in gross margin and a $1.271 million increase in equity earnings from unconsolidated joint ventures.
-
Higher-margin project ramp supports mix
New higher-margin projects contributed $37 million of Q2 revenue, partially offsetting $32 million of declines from lower activity and winding-down projects. For the six months, new projects contributed $68 million of revenue.
-
Backlog remained substantial
Backlog was approximately $991 million as of July 3, 2026. Management states that the backlog is mostly located in California, with ongoing projects in six other states.
-
Equity offering supplemented liquidity
The company completed an equity offering of 4,289,500 shares and received approximately $14 million of net proceeds. Financing cash flow was $19.159 million for the six months ended July 3, 2026.
What to watch
-
Operating cash flow remained negative
Net cash used in operating activities was $24.627 million for the six months ended July 3, 2026, despite improving from $41.987 million in the prior-year period. Changes in operating assets and liabilities used $21.634 million, including a $12.261 million use from contract assets and a $7.518 million use from contract liabilities.
-
Debt and interest burden increased
Total debt, net increased to $72.389 million from $64.459 million at January 2, 2026. Interest expense rose to $2.036 million in Q2 from $1.313 million year over year, while the Ansley Loan Agreement carries a 12.50% interest rate.
-
Liquidity remains limited
Unrestricted cash was $17 million and availability under the Credit Agreement and ACF Credit Agreement was $4 million and $12 million, respectively, for total liquidity of $33 million. Standby letters of credit outstanding totaled $10 million at July 3, 2026, versus none at January 2, 2026.
-
Non-Core project wind-down continues
Non-Core Projects revenue fell to $10.844 million from $15.783 million year over year, and management states that additional costs could lower gross margin as Non-Core Loss Projects wind down. The company also recorded a $10 million six-month decline in Non-Core revenue following the termination of the Chickamauga Lock Replacement Project.
-
Credit covenant waiver highlights financing risk
The Credit Agreement was amended on July 29, 2026 to waive specified noncompliance with the Material Project Documents covenant regarding non-bonded contracts. The facility provides borrowing capacity of up to $60 million and is secured by substantially all company and borrower assets.
-
Material control weaknesses persist
Management concluded that disclosure controls were not effective as of July 3, 2026 because of material weaknesses involving journal-entry authorization, income-tax accounting, revenue estimate-at-completion reviews and monitoring controls. The filing states there were no material changes to the risk factors in the Form 10-K.
Management's outlook
The 10-Q provides no explicit numeric revenue or EPS guidance. Management states that operating, investing and financing cash flows are believed sufficient to fund operations for at least the next twelve months; total liquidity was $33 million at July 3, 2026.
Earlier filings 4
10-K · March 13, 2026
Shimmick’s 2025 10-K shows a company in transition: backlog increased to $793 million and management is shifting toward smaller/mid-sized, higher-margin water and critical infrastructure projects while launching Axia…
10-Q · November 13, 2025
Shimmick reported Q3 revenue of $141.92M and a gross margin of $10.79M (7.6%), but generated an operating loss of $3.181M and a diluted loss per share of $0.12. Backlog/remaining performance obligations remain sizable…
10-Q · August 14, 2025
Shimmick reported Q2 revenue of $128,402 (in thousands), up from $90,605 in Q2 2024, and delivered a positive gross margin of $8,129 (in thousands) versus a gross loss of $(31,131) a year ago. Despite margin recovery,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.