Summary of Shimmick Corporation Q2 2026 Earnings Call

1Key Financial Results and Metrics

Consolidated Revenue:: $107 million, down from $128 million in Q2 2025.

Project Revenue:: $96 million, a decrease from $113 million in the prior year, attributed to project completions and winding down noncore projects.

Gross Margin:: Improved to 12% ($12 million) from 6% ($8 million) in Q2 2025, driven by a favorable project mix.

Adjusted EBITDA:: $4 million, a significant improvement from a loss of $234,000 in Q2 2025.

Net Loss:: Reduced to $5 million from $9 million in Q2 2025.

Backlog:: Increased to $991 million, the highest in two years, with a book-to-burn ratio of 1.4.

Liquidity:: Ended the quarter with $33 million, including $17 million in cash and $16 million available under credit agreements.

2Strategic Updates and Business Highlights

Continued focus on winding down noncore projects, with noncore backlog now less than 3% of total backlog.

Established a dedicated mission-critical business unit to capitalize on strong demand in sectors such as data centers, advanced manufacturing, and renewables.

Secured significant project wins, including a $124 million flood protection project and a $42 million wastewater treatment plant expansion.

Enhanced operational improvements, including safety performance tracking ahead of 2025 levels and strengthened project controls.

3Forward Guidance and Outlook

Revenue Guidance:: Updated for full year 2026 to approximately $525 million to $575 million, representing about 12% growth year-over-year at the midpoint.

Adjusted EBITDA Guidance:: Reaffirmed at $15 million to $30 million, indicating a potential 350% growth over the prior year.

Anticipation of increased project activity and revenue growth as backlog projects ramp up, with expectations for improved margins as higher-quality projects move into execution.

4Bad News, Challenges, or Points of Concern

Revenue for Q2 2026 fell short of expectations, primarily due to longer-than-anticipated ramp-up times for new projects.

Some projects experienced delays related to client permitting processes, impacting revenue momentum.

Legacy projects continue to pose cash flow challenges, although the company is demobilizing from these projects, with only minimal legacy work remaining.

5Notable Q&A Insights

Management expressed confidence that the backlog represents strong margins moving forward, with expectations for significant revenue acceleration in the second half of 2026.

The Texas market is highlighted as a key growth area, particularly for water and data center projects.

Investments in operational capabilities and technology (including AI) are ongoing to support growth without increasing SG&A expenses significantly.

The company is focused on ensuring new projects are cash positive to improve overall liquidity and free cash flow. Overall, Shimmick Corporation is positioned for growth with a strong backlog and improving margins, despite facing challenges related to project ramp-up times and legacy projects.