SHIM earnings analysis
What we found in SHIM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 11.68%
- Operating margin
- -2.49%
- Segment
- Shimmick Projects: revenue $95.772 million, down 15% year over year; gross margin $10.721 million, down 28%.
- Segment
- Non-Core Projects: revenue $10.844 million, down 31% year over year; gross margin $1.733 million versus $(6.790) million.
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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