Gerry Sweeney's questions to Shimmick (SHIM) leadership • Q2 2025
Question
Inquired about the nature of the increased non-core project work, the potential for change orders, the expected margin trends over the next few years, the strategy for expanding the Axia electrical business into new markets, and future SG&A targets.
Answer
The increase in non-core work is a combination of pulling work forward from 2026 and some scope growth, for which change orders are being negotiated. Future margins are expected to trend up gradually towards the high end of the 9-12% guided range as new work is bid at an average of 14-15%. The Axia electrical division expands by leveraging a mobile team and acting as a subcontractor, which is less risky. The company has an aspirational goal to reduce SG&A as a percentage of revenue to 7.5%.