Shimmick Corporation reported a significant decline in financial performance for the fiscal year ending January 3, 2025, with total revenue of $480.2 million, a decrease of 24% from $632.8 million in the previous fiscal year. The company experienced a gross margin loss of $55.6 million, compared to a gross profit of $22.4 million in the prior year. This downturn was attributed to reduced activity on existing projects, winding down of Legacy Projects, and increased costs associated with ongoing projects. The net loss for the year was $124.7 million, a substantial increase from a net loss of $2.3 million in the previous year.
In terms of operational changes, Shimmick's project backlog as of January 3, 2025, stood at approximately $822 million, primarily focused on water infrastructure projects. The company has been strategically shifting its focus towards smaller, less risky projects with higher margins, moving away from larger, more complex Legacy Projects that have historically resulted in cost overruns. The company also completed a significant initial public offering (IPO) in November 2023, raising approximately $19 million, which has been earmarked for operational growth and liquidity.
Shimmick's workforce has remained stable, with approximately 1,200 employees as of January 3, 2025. The company has emphasized the importance of retaining skilled labor, particularly in light of the competitive labor market in the construction industry. The company has also made strides in enhancing its operational efficiency, including investments in technology and project management systems to better control costs and improve project delivery.
Looking ahead, Shimmick's management has expressed optimism about the future, citing a strong demand for infrastructure projects driven by climate change and aging infrastructure. The company plans to continue focusing on its core competencies in water and critical infrastructure while exploring potential acquisitions to expand its service offerings. However, management has also acknowledged the risks associated with economic downturns, regulatory changes, and the ongoing impacts of inflation on project costs and profitability.
About Shimmick Corp
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