Shimmick Posts $0.02 Per Share Profit as Gross Profit Rises in Q3
Key Facts
Shimmick announced on November 12 that diluted earnings per share were $0.02 in the third quarter ended October 2, 2026, compared with a loss of $0.12 per share in the same period of 2025. Revenue was $135.798 million, versus $141.920 million a year earlier. Gross profit, meanwhile, rose to $16.934 million from $10.789 million. All quarterly revenue came from Shimmick projects, according to the company’s statement. The results put improved profitability and margins alongside continued declines in total revenue from year-earlier levels.
Revenue from Shimmick projects was about $136 million, compared with $107 million in the third quarter of 2025, while gross profit rose to $18 million from $10 million. CEO Oral Yal said revenue from these projects grew 28% year over year as newer, higher-margin work replaced older projects. The company said newly awarded projects that contributed to the start of expansion added $69 million in revenue. This was partly offset by a $14 million decline following the completion of a low-margin operations and maintenance project, and a $26 million drop in activity on projects nearing completion. Yal said demand for water and power infrastructure, along with a diversified backlog across markets, funding sources and customers, supports continued revenue and earnings growth.
Liquidity was $53 million on October 2, up $20 million from the second quarter, while the backlog stood at about $907 million at the end of the third quarter. Shimmick projects accounted for about 98% of total backlog, and the book-to-bill ratio was 1.3 times during fiscal 2026. The company also cited additional new awards worth $401 million pending in the power and water markets. Backlog was about $991 million on July 3, according to the second-quarter results statement. These figures highlight the current project base and pending awards as total quarterly revenue remains below its year-earlier level.
The company revised its fiscal 2026 revenue outlook to a range of $500 million to $525 million, representing 4% year-over-year growth at the midpoint. It maintained its forecast for adjusted earnings before interest, taxes, depreciation and amortization at $20 million to $25 million. The previous revenue range, announced in August, was $525 million to $575 million, with expected growth of 12% at the midpoint, while the adjusted earnings range then was $15 million to $30 million. The CFO said adjusted earnings year to date were about $16 million, exceeding the low end of the original annual range, and the company therefore narrowed its forecast for this measure to $20–25 million. Achieving the revised annual range remains tied to the company’s performance during the remainder of the fiscal year.
The company said it completed a $14.3 million equipment refinancing during the third fiscal quarter and that the transaction reduced borrowing costs. In available market data, SHIM closed at $2.27 on November 11, after closing at $2.29 on November 10 and $2.33 on November 9. These prices predate the results announcement on November 12 and do not reflect a subsequent market reaction. Management’s guidance focused on continued revenue and earnings growth amid strong demand for water and power projects. It also linked margin improvement to a growing contribution from newer, higher-margin work in the project mix.