Executive Summary

Revenue grew 42% year over year to $128.4M, beating Wall Street consensus of $113.2M*; consolidated gross margin improved to 6% from -34% in Q2 2024, while GAAP diluted EPS was -$0.25 and Primary/adjusted EPS was -$0.14, in line with consensus* .
Adjusted EBITDA was approximately breakeven at -$0.234M versus consensus of +$0.35M*, with the shortfall driven by Non-Core projects mix; EBITDA (SPGI-defined) actual was -$3.9M* .
Guidance was mixed: Shimmick Projects revenue raised to $405–$415M (from $392–$410M), Non-Core revenue raised to $80–$90M (from $50–$60M), but consolidated Adjusted EBITDA lowered to $5–$15M (from $15–$25M), reflecting unfavorable gross margin mix as Non-Core revenue becomes a higher share of total .
Backlog stood at ~$652M (>88% Shimmick Projects); the company launched Axia Electric to target electrical/power distribution opportunities, and cited a 12-month bidding outlook >$4.5B, $70M new awards in July, and preferred bidder status on ~$164M of projects—near-term catalysts for backlog growth and narrative shift toward core electrical/water markets .

What Went Well and What Went Wrong

What Went Well

Shimmick Projects performance: Revenue rose to $113M (+34% YoY) with gross margin of $15M (13%), supported by new water/infrastructure ramps and the California Palisades fire clean-up project .
Cost discipline and liquidity: SG&A fell 20% YoY to $15M; liquidity improved to $73M at quarter-end, up $2M sequentially .
Strategic positioning: Launch of Axia Electric and strong bidding pipeline; CEO: “We expect to see strong backlog growth and improved margins over the upcoming quarters… focus on electrical work,” highlighting >$4.5B 12-month bidding outlook and market rebound with both public and private clients .

What Went Wrong

Non-Core drag persists: Non-Core revenue was $16M but gross margin was -$7M (-43%), with Non-Core Loss Projects continuing to consume margin as they wind down; consolidated net loss was -$8.5M .
Guidance cut on profitability: Consolidated Adjusted EBITDA guidance reduced to $5–$15M (from $15–$25M) due to unfavorable mix (higher share of Non-Core revenue) despite raised revenue outlook—CFO flagged this mix impact explicitly .
Working capital/cash flow pressure: Operating cash flow was -$42.0M in 1H25, driven notably by a $48.6M decline in contract liabilities; long-term debt rose to $32.6M from $9.5M at FY24-end, underscoring funding and execution needs while Non-Core projects wind down .

Financial Results

Key Metrics vs Prior Year and Prior Quarter

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$90.605	$122.110	$128.402
Gross Margin ($USD Millions)	-$31.131	$4.696	$8.129
Gross Margin (%)	-34%	4%	6%
Diluted EPS (GAAP) ($)	-$1.83	-$0.28	-$0.25
Adjusted Diluted EPS ($)	-$1.60	-$0.22	-$0.14
Adjusted EBITDA ($USD Millions)	-$39.689	-$2.954	-$0.234
Net Loss ($USD Millions)	-$51.389	-$9.770	-$8.525

Actual vs Wall Street Consensus (S&P Global)

Metric	Q2 2025 Actual	Q2 2025 Consensus
Revenue ($USD Millions)	$128.402	$113.200*
Primary EPS ($)	-$0.14*	-$0.14*
EBITDA ($USD Millions, SPGI-defined)	-$3.921*	$0.350*
Adjusted EBITDA ($USD Millions, Company-Defined)	-$0.234	N/A

Values with asterisk retrieved from S&P Global.

Segment Breakdown

Segment	Q1 2025 Revenue ($M)	Q1 2025 GM ($M)	Q1 2025 GM (%)	Q2 2025 Revenue ($M)	Q2 2025 GM ($M)	Q2 2025 GM (%)
Shimmick Projects	$93	$5	6%	$113	$15	13%
Non-Core (Legacy/Foundations)	$29	-$1	-2%	$16	-$7	-43%
Consolidated Total	$122	$5	4%	$128	$8	6%

KPIs

KPI	Q1 2025	Q2 2025
Backlog ($USD Millions)	~$740	~$652
% Shimmick Projects in Backlog	>87%	>88%
Liquidity ($USD Millions)	$71	$73
12-Month Bidding Outlook ($USD Billions)	~2.0 (proposal pipeline)	>4.5
New Awards Added (Post-Q2)	N/A	$70 in July 2025
Preferred Bidder Selections	N/A	~$164 (Transit Center, River Pump Station)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Shimmick Projects Revenue ($M)	FY 2025	$392–$410	$405–$415	Raised
Shimmick Projects GM (%)	FY 2025	9%–12%	9%–12%	Maintained
Non-Core Projects Revenue ($M)	FY 2025	$50–$60	$80–$90	Raised
Non-Core Projects GM (%)	FY 2025	(5%)–(15%)	(15%)–(5%)	Maintained
Consolidated Adjusted EBITDA ($M)	FY 2025	$15–$25	$5–$15	Lowered

CFO rationale: higher revenue burn in both Shimmick and Non-Core for the year, but mix unfavorable as Non-Core increases as a share of revenue; Shimmick gross margins strong, Non-Core near low end of guidance in 1H25 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Electrical/technology initiatives	CEO highlighted expansion into electrical and technology-driven infrastructure; target to grow electrical share to 30% by 2027 (from ~15%); multiple wins and strong pipeline in data centers/technology .	Launch of Axia Electric subsidiary focused on complex electrical/power distribution; continued emphasis on electrical within core markets .	Strengthening
Tariffs/macro	Minimal margin impact on existing projects due to fixed-price contracts; disciplined bidding to pass through premiums; watch longer-term funding constraints for public clients .	CEO noted market rebound with public and private clients; slower bidding activity earlier in year tied to macro uncertainties but improving .	Improving demand; vigilance on public funding
Backlog/bidding	Backlog ~$739–740M; sustainable, risk-balanced approach; reaffirmed full-year guidance in Q1 .	Backlog ~$652M; >4.5B 12-month bidding outlook; $70M new awards in July; preferred bidder ~$164M .	Pipeline expanding; backlog poised to grow
Non-Core wind-down	Legacy/Foundations margins deeply negative; cost overruns and schedule/design issues; warned no future GM recognition as projects complete .	Non-Core Loss Projects continue to depress margins; claim settlements improved YoY comps; guidance maintains negative GM range .	Improving vs 2024 but still a headwind
Liquidity/financing	Liquidity ~$100M at FY24-end; new $15M credit agreement; Q1 liquidity $71M .	Liquidity $73M; sequential improvement; SG&A down 20% YoY .	Stable to improving

Note: The Q2 2025 call transcript could not be retrieved due to a document database issue; themes reflect Q1 call content and Q2 8-K commentary .

Management Commentary

CEO (Ural Yal): “We expect to see strong backlog growth and improved margins over the upcoming quarters as we continue to develop our profitable core business in sustainable infrastructure with a focus on electrical work… [bidding] outlook stands at over $4.5 billion… rebound in the infrastructure market both with public and private clients” .
CFO (Todd Yoder): “We are increasing our full-year revenue guidance… While we expect higher revenue burn in both Shimmick Projects and Non-Core Projects for the full year, it creates an unfavorable gross margin mix… We now expect Adjusted EBITDA for the full year of between $5 million and $15 million” .

Q&A Highlights

Due to a database inconsistency, the Q2 2025 earnings call transcript was unavailable, limiting Q&A detail. Notable clarifications from management’s guidance statement: raised revenue ranges for both Shimmick and Non-Core projects, but lowered consolidated Adjusted EBITDA due to mix; Shimmick margins tracking strong, Non-Core near low end of guidance in 1H25 . Q1 call emphasized passing tariff-related cost premiums through bids and minimal margin impact on existing fixed-price contracts .

Estimates Context

Q2 performance vs consensus: Revenue beat materially ($128.4M vs $113.2M*), Primary EPS matched (-$0.14* vs -$0.14*), and EBITDA (SPGI-defined) missed (actual -$3.9M* vs +$0.35M*) while company-reported Adjusted EBITDA was roughly breakeven (-$0.234M) .
Implications: Street models may need to increase full-year revenue but trim EBITDA given management’s guide-down and Non-Core mix; reconcile SPGI EBITDA framework vs company Adjusted EBITDA to align with margin narrative. Values with asterisk retrieved from S&P Global.

Key Takeaways for Investors

Revenue momentum is strong and broad-based in core Shimmick Projects; expect continued GM improvement as new water/infrastructure ramps offset Non-Core drag .
Mixed guidance is the key stock narrative: raised revenue outlook but lowered Adjusted EBITDA—near-term estimate revisions likely to adjust profitability lower while backlog/awards support top-line .
Execution focus: SG&A down 20% YoY and liquidity up sequentially; sustaining cost control while converting bids to backlog is critical for margin trajectory .
Watch Non-Core wind-down and claim dynamics: margin headwinds persist even as YoY comps improve; complete and exit efficiently to reduce mix pressure .
Strategic catalysts: Axia Electric launch positions SHIM in higher-value electrical/power scopes across water, data centers, and advanced manufacturing; the >$4.5B bidding outlook plus July awards/”preferred bidder” wins should bolster backlog visibility .
Estimates reset likely: Model revenue higher and Adjusted EBITDA lower for FY25; ensure alignment on “Primary EPS” (adjusted) versus GAAP EPS in comparing to consensus* .
Near-term trading: Potential for positive sentiment on revenue beat/backlog expansion offset by EBITDA guide-down; monitor additional award conversions and Q3 backlog updates for confirmation of the improving core margin narrative .

Shimmick Corp (SHIM)·Q2 2025 Earnings Summary