IRVINE, Calif. - Shimmick Construction Company, Inc. (NASDAQ:SHIM), a prominent infrastructure construction firm with annual revenues of $514.75 million, has secured a $45.4 million contract to enhance the Murray Street Bridge in Santa Cruz, California. The project, aimed at improving the bridge's resistance to earthquakes, will also make the structure more accessible to cyclists and pedestrians. According to InvestingPro data, this contract represents a significant win for the company, which has seen its stock price decline 64% year-to-date.
The retrofitting initiative includes the installation of new piles, extended pile caps, new columns, and bent caps. In addition to reinforcing the bridge's structural integrity, the renovation will widen the bike lanes and add a new sidewalk on the south side. The current concrete barriers will be replaced with see-through rails to enhance the views of the harbor and ocean while maintaining safety.
Ural Yal, CEO of Shimmick, emphasized the project's alignment with the company’s mission to deliver infrastructure that bolsters public safety and connectivity. Shimmick has a history of similar projects in California, including the seismic retrofit of the Caltrans Dumbarton Bridge and the construction of the Illinois Street Intermodal Bridge in San Francisco.
Shimmick is recognized for its expertise in water and critical infrastructure projects across the nation. The company's notable contributions include the world's largest wastewater recycling and purification system in Orange County, California, and work on the Hoover Dam. Shimmick's self-performing capabilities are said to ensure superior cost control and quality on diverse projects.
According to Engineering News Record, Shimmick ranked among the top ten builders in 2024 for water supply, dams and reservoirs, and water treatment and desalination plants. This new contract with the City of Santa Cruz underscores the company's standing in the infrastructure sector. Trading at $2.80 per share with a market capitalization of $79.26 million, InvestingPro's Fair Value analysis suggests the stock may be slightly undervalued despite recent challenges.
This information is based on a press release statement from Shimmick Construction Company, Inc.
In other recent news, Shimmick Corporation reported Q2 results with an adjusted loss of $1.60 per share and revenue at $91 million, significantly missing analyst projections. Despite this, the company forecasts a generally flat year-over-year revenue for Shimmick Projects in fiscal 2024, with a gross margin between 4-9%. Shimmick has also settled its Golden Gate Bridge litigation for a substantial $97 million, marking a significant development in the company's broader transformation plan.
Shimmick recently appointed Ural Yal as the new CEO, succeeding Steve Richards. Yal, an experienced professional in the sector, is expected to guide Shimmick into its next phase of growth. On the analyst front, Craig-Hallum has reduced Shimmick's price target to $3 due to project delays and increasing costs.
In addition to these developments, Shimmick has made amendments to its credit agreements with MidCap Financial Services, AECOM, and Berkshire Hathaway (NYSE:BRKa) Specialty Insurance Company. These changes are expected to enhance Shimmick's financial flexibility, providing increased operational headroom and liquidity for ongoing and future projects. Lastly, Shimmick Corporation has 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.