Shimmick's Turnaround Gains Steam with Strong Growth, Positive Outlook

IRVINE, Calif. – March 12, 2026 – Shimmick Corporation (NASDAQ: SHIM) today announced financial results that paint a clear picture of a company in the midst of a successful, albeit incomplete, strategic turnaround. While reporting a net loss for the fourth quarter and full fiscal year 2025, the infrastructure solutions provider delivered its second consecutive quarter of positive Adjusted EBITDA and issued an ambitious growth forecast for 2026, signaling growing confidence that its pivot to core, high-margin projects is taking hold.

The company posted a Q4 net loss of $3 million, a dramatic improvement from the $38 million loss in the same period last year. For the full fiscal year ending January 2, 2026, the net loss was $26 million. However, investors and analysts are looking past the bottom-line loss to more telling operational metrics. Adjusted EBITDA, a non-GAAP measure of profitability, was a positive $4 million for the quarter and $5 million for the full year—a stark reversal from the $61 million Adjusted EBITDA loss recorded in fiscal 2024.

These results underscore the effectiveness of Shimmick’s strategic shift away from problematic legacy contracts and toward a more focused portfolio of critical water, electrical, and transportation projects.

A Tale of Two Portfolios

The story of Shimmick's fiscal 2025 is best understood as a tale of two distinct business segments: the legacy "Non-Core Projects" and the forward-looking "Shimmick Projects."

The company has been diligently working to wind down its Non-Core Projects, many of which were inherited from prior ownership and have been plagued by cost overruns and losses. In the fourth quarter, revenue from these projects dwindled to $16 million, down from $24 million a year prior. More significantly, the gross margin from this segment was breakeven, a massive improvement from the staggering $23 million loss it generated in Q4 2024. This demonstrates that the financial drag from these legacy contracts is finally being neutralized.

In stark contrast, the Shimmick Projects segment—which focuses on the company's strategic areas of water, climate resilience, and energy transition—is flourishing. This core segment saw its revenue grow 4% year-over-year in the fourth quarter to $84 million. The real highlight was its profitability. Gross margin for Shimmick Projects surged an incredible 462% to $10 million in the quarter, compared to just $2 million in the prior-year period. This dramatic margin expansion is the primary driver behind the company's return to positive Adjusted EBITDA.

“Our strategy has been and continues to be growing our backlog with work that we believe will deliver consistent margins while improving operational performance,” said Ural Yal, Chief Executive Officer of Shimmick. He noted the company's success in de-risking its business by shifting to collaborative delivery models and meeting strong market demand.

Building a Foundation for Growth

Shimmick’s forward momentum is further evidenced by its growing backlog and strong booking activity. The company ended the fiscal year with a total backlog of approximately $793 million. Crucially, over 89% of this backlog now consists of higher-margin Shimmick Projects, providing clear visibility into future profitability.

The company's book-to-burn ratio—a key indicator of growth that compares new orders to completed work—was 1.4x for the fourth quarter. This means Shimmick added 40% more work to its backlog than it completed, growing its future revenue base. The company booked $139 million in new work during the quarter and has already added another $128 million in new awards to its backlog as of February 2026.

With an additional $234 million in new awards pending in its target markets of California, Texas, and Washington, the pipeline appears robust. This aligns with a broader industry trend of massive investment in critical infrastructure, fueled by both public and private sector demand for modernizing water systems, upgrading electrical grids to support renewable energy and data centers, and building resilient transportation networks.

An Ambitious Outlook for 2026

Bolstered by the operational improvements and strong backlog, Shimmick's management issued aggressive guidance for fiscal year 2026. The company projects consolidated revenue to grow between 12% and 22%, reaching a range of $550 million to $600 million. Even more impressively, it expects Adjusted EBITDA to skyrocket by 200% to 500%, landing between $15 million and $30 million for the year.

CFO Todd Yoder acknowledged that the year may have a slow start but expects momentum to build. “In 2026, we anticipate a slower start to the year, followed by sequential quarter-over-quarter improvement as new project awards ramp up and represent a growing share of our project mix,” Yoder stated in the press release.

This projected growth is set against a backdrop of strong market fundamentals. The U.S. is in the early stages of a multi-decade infrastructure upgrade cycle, with significant federal funding allocated to the very sectors where Shimmick specializes. However, the industry also faces headwinds, including persistent labor shortages and volatile material costs, which could present challenges to executing projects on budget. Shimmick’s ability to manage these external risks will be critical to achieving its ambitious financial targets.

As the company continues to shed the weight of its legacy contracts and leans into its core competencies, its 2025 results and 2026 outlook suggest that the strategic pivot is not just a plan on paper, but a tangible reality that is rebuilding the company's financial foundation.