0001193125-26-105064
SEC filingShimmick Corporation reported revenue of $492.8 million for fiscal year 2025, ending January 2, 2026. The company incurred a net loss attributable to Shimmick Corporation of $25.6 million, driven by a loss from operations of $19.4 million, which was primarily due to selling, general and administrative expenses of $54.6M exceeding the gross margin of $33.6M. The company used $65.1 million in cash from operating activities, but generated $1.1 million from investing activities and $50.1 million from financing activities, resulting in a net decrease in cash of $13.9 million. The balance sheet shows a stockholders' deficit of $56.6 million and total liabilities of $275.4 million. The company's backlog as of January 2, 2026, was approximately $793 million, with over half of its 2025 revenue generated in California. The filing highlights a strategic shift towards smaller, less risky projects with higher margins and the launch of a dedicated electrical subsidiary, Axia Electric, in June 2025.
Shimmick Corporation reported revenue of $492.8 million for the fiscal year ended January 2, 2026. The company incurred a net loss attributable to Shimmick Corporation of $25.6 million, which stemmed from a loss from operations of $19.4 million. This operational loss was primarily due to selling, general and administrative expenses of $54.6 million, which significantly exceeded the gross profit of $33.6 million. The cost of revenue was $459.3 million. Other factors affecting the bottom line included interest expense of $6.7 million and other expense of $636K, partially offset by equity in earnings of unconsolidated joint ventures of $1.5M and a gain on sale of assets of $75K. The company reported a basic and diluted net loss per common share of $1.
The company's revenue of $492.8 million is derived from its core business of delivering turnkey solutions for water and critical infrastructure markets, including energy, climate resiliency, and sustainable transportation. More than half of the 2025 revenue was generated in California. The company is strategically shifting from large-scale, higher-risk, lower-margin projects secured prior to its separation from AECOM to smaller to mid-sized projects with less risk and higher margins. The company had a backlog of approximately $793 million as of January 2, 2026, with projects mostly located in California and ongoing projects in six other states.
The company reported a gross margin of $33.6 million on revenue of $492.8 million, representing a gross margin percentage of approximately 6.8%. The loss from operations was $19.4 million, resulting in an operating margin of approximately -3.9%. The primary driver of the operating loss was high selling, general and administrative expenses of $54.6 million, which consumed the gross profit and then some. The company's strategy includes focusing on operational improvements and SG&A optimization to enhance future profitability.
Net cash used in operating activities was $65.1 million, driven by the net loss and changes in working capital, including a decrease in contract liabilities of $48.8 million and an increase in accounts receivable of $12.8 million, partially offset by an increase in contract assets of $40.2 million and an increase in accounts payable of $23.1 million. Net cash provided by investing activities was $1.1 million, and net cash provided by financing activities was $50.1 million, primarily from borrowings on credit and loan agreements. The net decrease in cash, cash equivalents, and restricted cash was $13.9 million. The balance sheet shows total assets of $218.8 million, total liabilities of $275.4 million, and a total stockholders' deficit of $56.6 million as of January 2, 2026. Cash and cash equivalents were $20.0 million, with restricted cash of $1.9 million.
The company's business and growth strategy is focused on organically growing its core water and critical infrastructure business while enhancing profitability. It intends to grow through selective bidding, collaborative contracting, expansion in electrical work via its Axia Electric subsidiary launched in June 2025, and operational improvements. The company may also seek strategic acquisitions. Key risk factors disclosed include the nature of fixed-price contracts subject to cost overruns, dependence on government funding, intense competition, the need to obtain bonding, reliance on subcontractors, and being a controlled company under Nasdaq rules. The company does not anticipate paying cash dividends in the foreseeable future.