Fed’s Powell opens door to potential rate cuts at Jackson Hole
IRVINE, Calif. - Shimmick Construction Company, Inc. (NASDAQ: SHIM), a construction firm with a market capitalization of $102.4 million and trailing twelve-month revenue of $514.75 million, in partnership with Myers and Sons, has been selected as the Construction Manager/General Contractor (CM/GC) for the preconstruction phase of the North Hollywood to Pasadena Bus Rapid Transit (BRT) Project, as announced by the Los Angeles Metropolitan Transportation Authority (LA Metro). The $8.26 million contract, approved today, initiates the development of a 19-mile transit corridor designed to enhance connectivity across several California communities. According to InvestingPro data, the company's stock has shown strong momentum with a 40% return over the past week.
The BRT project aims to establish a more efficient transit system by introducing 22 new stations, connecting North Hollywood, Burbank, Glendale, Eagle Rock, and Pasadena. It is anticipated to offer improved transit options, ease traffic congestion, and contribute to better air quality through the deployment of zero-emission electric buses. While the project presents significant opportunities, InvestingPro analysis indicates challenges ahead, with 14 additional investment insights available to subscribers.
Ural Yal, CEO of Shimmick, expressed enthusiasm about the collaboration with Myers and Sons and LA Metro, highlighting the project's significance in improving mobility for LA County residents. The CM/GC project delivery method adopted for this initiative is expected to facilitate a cohesive approach to managing project risks and setting the stage for successful construction.
The BRT project also focuses on providing better transit access to Equity Focus Communities (EFCs), incorporating enhanced pedestrian and bicycle facilities. The preconstruction phase will involve meticulous collaboration with Metro and the design team to refine designs, control costs, and formulate a detailed construction timeline.
The construction phase, if awarded to the Myers-Shimmick Joint Venture, is projected to be valued at approximately $190 million. Early utility work is scheduled to commence in 2025, with the complete project expected to be operational by 2028.
Shimmick has been recognized for its expertise in delivering complex infrastructure projects, including significant contributions to water infrastructure. In 2024, the company was ranked as a top builder in various categories by Engineering News Record, reflecting its commitment to addressing the nation's infrastructure needs.
This report is based on a press release statement from Shimmick Construction Company, Inc.
In other recent news, Shimmick Construction Company has secured a $45.4 million contract for the retrofit of the Murray Street Bridge in Santa Cruz, California. This project is set to enhance the bridge's resistance to earthquakes and improve accessibility for cyclists and pedestrians. Shimmick recently reported Q2 results, indicating an adjusted loss of $1.60 per share and revenue at $91 million, significantly missing analyst projections. However, the company forecasts a generally flat year-over-year revenue for fiscal 2024, with a gross margin between 4-9%.
The company also settled its Golden Gate Bridge litigation for a significant $97 million, marking a substantial development in its broader transformation plan. In a recent executive shift, Shimmick appointed Ural Yal as the new CEO, succeeding Steve Richards. Analyst firm Craig-Hallum has revised Shimmick's price target to $3 due to project delays and increasing costs.
Shimmick has made amendments to its credit agreements with MidCap Financial Services, AECOM, and Berkshire Hathaway (NYSE:BRKa) Specialty Insurance Company, which are expected to enhance the company's financial flexibility. Lastly, the company received approval to transfer its stock listing from The Nasdaq Global Market to The Nasdaq Capital Market. These are the recent developments for Shimmick Corporation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.