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IRVINE, Calif. - Shimmick Corporation (NASDAQ:SHIM), a $54 million market cap infrastructure company currently trading below its InvestingPro Fair Value, announced Monday the formation of Axia Electric LLC, a new subsidiary focused on electrical and power distribution solutions for infrastructure markets.
The subsidiary will serve low- and medium-voltage markets and provide commissioning and operations and maintenance services, according to a company press release. Axia Electric will target water, industrial, mission-critical, aviation, transportation, transit, and energy sectors. This strategic move comes as the company faces challenging financial metrics, with InvestingPro data showing negative EBITDA of -$83 million in the last twelve months.
"With Axia Electric, we’re sharpening that focus to better serve a growing market and increasing demands from our customers for our electrical and power services," said Ural Yal, CEO of Shimmick.
Fernando DeLeon, appointed as President of Axia Electric, will lead the new entity, which currently employs over 150 workers. The company also announced $42 million in recent electrical contract awards, including projects for the Orange County Sanitation District, San Francisco Public Utilities Commission, and City of Santa Cruz in California, as well as Redwood Materials in Nevada.
Shimmick reported it currently has over $380 million in active electrical construction projects under contract. The new subsidiary builds on the company’s 20-year history in electrical systems work for public and private sector clients.
The formation of the dedicated electrical subsidiary comes as Shimmick aims to expand its specialized services while maintaining its existing heavy civil construction capabilities. For deeper insights into Shimmick’s financial health and growth prospects, including 11 additional key ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Shimmick Corporation reported its first-quarter 2025 earnings, which significantly missed analyst forecasts. The company posted an earnings per share (EPS) of -$0.22, falling short of the expected $0.11, and revenue of $122 million, below the forecasted $176.8 million. Despite these results, Shimmick reaffirmed its full-year guidance, anticipating a 10-15% increase in revenue from its Chimich projects and an overall gross margin of 9-12%. In other developments, Shimmick held its 2025 Annual Meeting of Stockholders, where six directors were elected to the board, and Deloitte & Touche LLP was ratified as the independent public accounting firm for the fiscal year ending January 2, 2026. The board election and accounting firm ratification were overwhelmingly supported by stockholders. Furthermore, the company reported improved gross margins and a reduced net loss compared to the previous year. Shimmick continues to focus on expanding its presence in the electrical and technology infrastructure markets. The company also highlighted its strong liquidity position, with total liquidity of $71 million at the end of the first quarter.
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