Shimmick wins $156 million in preferred bidder contracts

IRVINE, California - Shimmick Corporation (NASDAQ:SHIM), currently trading at $1.84 per share and showing signs of undervaluation according to InvestingPro analysis, has been selected as preferred bidder on four infrastructure contracts totaling approximately $156 million, the company announced Thursday.

The projects, expected to be awarded and commence in the third quarter, include $47 million in electrical work. They span water, wastewater, and power infrastructure improvements across California. These new contracts could provide much-needed revenue boost for the company, which has seen its revenue decline by 18% over the last twelve months to $482.3 million.

The largest project is a $116 million wastewater infrastructure upgrade for the City of Modesto that will reroute sanitary sewer flows and construct a 40 million gallon per day pump station.

Other projects include a $24 million power distribution system improvement for Orange County Sanitation District in Huntington Beach, an $8 million auxiliary pump station for Reclamation District 1001 in Nicolaus, and an $8 million aeration basin rehabilitation project for Eastern Municipal Water District in Perris.

"These projects underscore the confidence our clients continue to place in Shimmick’s ability to deliver complex infrastructure solutions," said Ural Yal, CEO of Shimmick, in a press release statement.

The company indicated the new contracts align with its strategy for growth in water and electrical infrastructure markets in 2025 and beyond.

Shimmick Corporation provides infrastructure solutions across water, energy, climate resiliency, and transportation sectors. The company and its electrical subsidiary Axia Electric are headquartered in California.

In other recent news, Shimmick Corporation reported its Q1 2025 earnings, which fell short of analysts’ expectations. The company posted an earnings per share (EPS) of -$0.22, missing the projected $0.11. Revenue also missed forecasts, coming in at $122 million compared to the anticipated $176.8 million. Despite these results, Shimmick Corporation has been active with new ventures and contracts. The company announced the launch of Axia Electric LLC, a new subsidiary aimed at providing electrical and power distribution solutions. This subsidiary will target various sectors, including water, industrial, and energy. Additionally, Shimmick secured a $51 million contract from the Stockton East Water District for the Bellota Weir Modifications project in California. At the 2025 Annual Meeting of Stockholders, the election of six directors to the company’s board was confirmed. These developments reflect Shimmick’s strategic moves to expand its infrastructure solutions portfolio.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.