SHIMMEDIUM SIGNALFINANCIAL10-K

SHIM demonstrated meaningful improvement in profitability metrics while maintaining operational stability despite reduced project backlog.

The company showed substantial improvement in both operating losses and net losses, suggesting better project execution or cost management initiatives are taking effect. However, the decline in project backlog from $822 million to $793 million and reduced cash position indicate potential near-term revenue challenges that investors should monitor closely.

Comparing 2026-03-13 vs 2025-03-20View on EDGAR →
FINANCIAL ANALYSIS

SHIM's financial position showed mixed signals with operating income and net income losses improving meaningfully year-over-year, while SG&A expenses declined 14.7%, indicating improved cost discipline. However, the company's cash position weakened to $20.0 million from $33.7 million, and stockholders' equity deficit expanded to -$56.6 million. The reduction in capital expenditures by 39.2% alongside lower accounts receivable suggests a more cautious operational approach as the company works through its financial challenges.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
+83.7%
-$119.3M→-$19.4M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Net Income
P&L
+79.5%
-$124.7M→-$25.6M

Net income grew 79.5% — bottom-line growth signals improving overall business health.

Stockholders Equity
Balance Sheet
-63.4%
-$34.7M→-$56.6M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Cash & Equivalents
Balance Sheet
-40.8%
$33.7M→$20.0M

Cash declined 40.8% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Capital Expenditure
Cash Flow
-39.2%
$10.5M→$6.4M

Capex reduced 39.2% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Accounts Receivable
Balance Sheet
-29.8%
$43.0M→$30.2M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Current Assets
Balance Sheet
+24.4%
$141.0M→$175.4M

Current assets grew 24.4% — improving short-term liquidity or inventory/receivables build.

Interest Expense
P&L
+22.7%
$5.4M→$6.7M

Interest costs rose 22.7% — monitor debt levels and coverage ratio in rising rate environment.

Current Liabilities
Balance Sheet
-14.8%
$230.3M→$196.1M

Current liabilities reduced — improved short-term financial position and working capital health.

SG&A Expense
P&L
-14.7%
$64.0M→$54.6M

SG&A reduced 14.7% — improved cost efficiency or headcount reduction improving operating margins.

LANGUAGE CHANGES
NEW — 2026-03-13
PRIOR — 2025-03-20
ADDED
According to Engineering News Record, in 2025, we are nationally ranked as a top fifteen builder of water supply (#12), dams and reservoirs (#8), and water treatment and desalination plants (#11).
Projects and Backlog As of January 2, 2026, we had a backlog of projects of approximately $793 million, mostly located in California, with ongoing projects in six other states (TN, TX, WY, ID, HI and WA).
construction market is expected to grow to approximately $2.3 trillion in 2026, supported by continued public-sector investment and private demand across major non-residential sectors.
Within this overall market, infrastructure construction remains a critical and expanding segment, with forecasts projecting the U.S.
infrastructure market to reach around $1.5 trillion in 2026 and grow at a mid-single-digit rate over the next decade as federal and state funding drives modernization and resilience upgrades.
Emerging areas such as data center and advanced energy build-out are also strengthening non-residential construction demand, even as traditional commercial segments face uneven conditions.
Based on our geographic focus and core capabilities, we estimate our addressable market continues to represent a meaningful portion of this expanding industry opportunity.
On June 23, 2025, Shimmick announced the launch of Axia Electric LLC ("Axia Electric"), a dedicated electrical subsidiary designed to meet growing market demand for specialized, high-performance electrical and power distribution solutions.
Axia Electric builds on more than 20 years of Shimmick s proven success delivering complex electrical systems for clients across the public and private sectors, including municipalities, airports, ports, technology companies, developers, and industrial manufacturers.
The new subsidiary serves low and medium voltage markets, with an additional focus on commissioning and operations and maintenance services.
REMOVED
economy, changes in state and federal laws, regulations or policies under the new Presidential administration, including changes in trade policies and regulations, including the potential for increases or changes in duties, current and potentially new tariffs or quotas, and geopolitical risks, including those related to the war between Russia and Ukraine, the conflict in the Gaza strip, and the conflict in the Red Sea region.
According to Engineering News Record, in 2024, we are nationally ranked as a Top 400 contractor and top ten builder of water supply (#8), dams and reservoirs (#6), and water treatment and desalination plants (#7).
Projects and Backlog As of January 3, 2025, we had a backlog of projects of approximately $822 million, mostly located in California, with ongoing projects in six other states (NJ, TN, TX, WY, ID, WA).
According to independent industry research, these sectors are projected to grow at rates of 4% to 11% annually through 2028, outpacing the overall non-residential construction industry average of 3.3%.
Based on our geographic focus and core capabilities, we estimate our addressable market to be approximately $106 billion of the $1.1 trillion in non-residential construction projected for 2025.
The demand for water infrastructure stems from multiple factors driving the need for reliable water management systems.
Growing urbanization and industrialization have amplified water consumption, putting pressure on existing water supply networks.
Furthermore, aging infrastructure in many regions requires significant upgrades and modernization to ensure clean water delivery, effective flood control, and efficient navigation.
Critical infrastructure ensures the efficient movement of goods and people, supports economic growth, and enhances connectivity between regions.
Major economic drivers for critical infrastructure projects include increasing international trade, urbanization, need for modernization and population growth.
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