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DATE
Monday, Aug. 10, 2026 at 4:30 p.m. ET
CALL PARTICIPANTS
- Chief Executive Officer - Ural Yal
- Executive Vice President and Chief Financial Officer - Todd Yoder
TAKEAWAYS
- Consolidated Revenue -- $107 million, representing a decrease from $128 million in the prior year quarter due to the wind-down of noncore projects.
- Shimmick Project Revenue -- $96 million, reflecting $37 million in revenue from new higher-margin projects offsetting a $54 million decrease from completed work and lower activity on existing projects.
- Total Gross Margin -- 12%, an increase from 6% in the second quarter of 2025, driven by improved project mix and the absence of prior year cost overruns.
- Adjusted EBITDA -- $4 million, compared to a loss of $234,000 in the second quarter of 2025, marking the fourth consecutive quarter of positive adjusted EBITDA.
- Net Loss -- $5 million, representing a 44% improvement compared to a $9 million loss in the second quarter of 2025.
- Total Backlog -- $991 million at quarter end, the highest reported level since the first quarter of 2024.
- Book-to-Burn Ratio -- 1.4, which represents the company's fourth consecutive quarter with a ratio above 1.0.
- FY 2026 Revenue Guidance -- $525 million to $575 million, representing 12% growth at the midpoint.
- FY 2026 Adjusted EBITDA Guidance -- $15 million to $30 million, reflecting approximately 350% growth over the prior year at the midpoint.
- Non-Core Backlog -- Less than 3% of the total backlog, as the company continues to exit legacy foundation and drilling contracts.
- Liquidity -- $33 million, consisting of $17 million in unrestricted cash and $16 million in available credit.
- New Awards Booked -- $138 million in the second quarter, with newer projects representing over 97% of the total backlog.
- Post-Quarter New Awards -- $221 million in additional awards secured after the quarter end, which brings the total combined backlog to over $1.2 billion.
- Monthly Bid Volume -- $500 million to $1 billion, with win rates remaining consistent with historical levels.
- Coyote Creek Project -- $124 million award for critical flood protection improvements in Northern California.
- LA Metro Project -- $80 million contribution to the backlog for a Bus Rapid Transit construction joint venture.
- Walnut Creek Plant Expansion -- $42 million contract for wastewater treatment infrastructure in Texas.
- UC Berkeley Project -- $20 million award for an electrified heating and cooling plant modernization.
- Backlog Conversion -- Less than 10% of the backlog booked in the last 12 months has been recognized as revenue to date.
- Mission-Critical Segment -- Focused on data centers and advanced manufacturing, with 80% of current wins in this division focused on electrical scopes.
- GAAP Diluted Loss Per Share -- $(0.12), compared to $(0.25) in the second quarter of 2025.
- G&A Expense -- $16 million, up $1 million from the prior year due to onetime legal costs and equity issuance expenses.
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RISKS
- Yal stated, "on a couple of these projects, larger ones in this last couple of quarters, it took a little bit longer towards the 6 or 7 months range, and that's kind of slowed our momentum a little bit from a revenue perspective," regarding permitting and client delays.
- Yoder noted that for the remaining non-core projects, "there may be additional costs associated with these projects that could lower gross margin" as they are finalized.
SUMMARY
Management reported that Shimmick Corporation (SHIM -0.54%) is shifting its operational focus toward high-margin water and mission-critical infrastructure projects while reducing its exposure to legacy noncore work. The company achieved a record backlog of $991 million and reported its fourth consecutive quarter of positive adjusted EBITDA, reflecting improved project execution and cost discipline. Management established a dedicated business unit to capture demand in the data center and electrification sectors, reporting monthly bid volumes that remain consistent with historical levels. While the company adjusted its full-year revenue guidance to reflect the removal of specific noncore contracts, profitability targets were reaffirmed based on the anticipated ramp-up of higher-margin awards in the second half of 2026.
- CEO Yal stated, "we started -- we launched a mission-critical division just because we're seeing such great opportunities," primarily targeting the data center sector in states like West Virginia and Texas.
- Yal noted that the company's overhead and internal processes are designed to support a "750 million year company," suggesting capacity for revenue growth without significant additional fixed costs.
- Management attributed recent revenue delays to permitting issues on large projects, which extended typical three to four-month ramp-up periods to between six and seven months.
- CFO Yoder noted that the removal of non-core work from the backlog did not impact profitability guidance because that work was not expected to contribute gross margin.
- The data center project in West Virginia is transitioning to the preconstruction phase in August 2026, with construction work expected to begin in the next 60 days.
- CFO Yoder confirmed that non-core backlog fell to less than 3% of the total, which is expected to create a favorable mix impact on gross margins moving forward.
INDUSTRY GLOSSARY
- Shimmick Projects: Infrastructure contracts initiated after current ownership was established, focusing on water, climate resilience, and sustainable transportation.
- Book-to-burn Ratio: A financial metric measuring new contract awards against recognized revenue; a ratio above 1.0 indicates a growing backlog.
- Non-Core Projects: Legacy contracts or foundation drilling projects that the company is phasing out to focus on core infrastructure solutions.
- Mission-Critical: A business segment providing essential infrastructure for high-stakes markets such as data centers, defense, and renewable energy.
- Adjusted EBITDA: A non-GAAP profit measure that excludes interest, taxes, depreciation, amortization, and specific transformation or legal costs.
- Backlog: The estimated total value of work that is contracted but not yet completed or recognized as revenue.
Full Conference Call Transcript
Operator: Good day, and welcome to Shimmick Corporation's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. At this time, I'd like to turn the call over to Anthony Rasmus. Please go ahead.
Anthony Rasmus: Good afternoon, and thank you for joining us on today's conference call to discuss Shimmick's Second quarter 2026 results. Slides for today's presentation are available on the Investor Relations section of our website, www.shimmick.com. During this conference call, management will make forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect. We identify the principal risks and uncertainties that may affect our performance in our reports and filings with the Securities and Exchange Commission, which can also be found on the Investor Relations website. We do not undertake a duty to update any forward-looking statements.
Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the company's second quarter press release for definitional information and reconciliation of historical non-GAAP measures to the comparable GAAP financial measures. With that, it is my pleasure to turn the call over to Ural Yal, Shimmick's CEO.
Ural Yal: Good afternoon, and thank you all for joining us on today's call. I'm joined by Todd Yoder, Shimmick's CFO. I'd like to start with recognizing our team's un