Revenue: As of FY2027 Q1, the actual value is USD 88.03 M, missing the estimate of USD 131.2 M.EPS: As of FY2027 Q1, the actual value is USD -0.13, missing the estimate of USD -0.03.EBIT: As of FY2027 Q1, the actual value is USD -140 K.<h4>Revenue</h4>Shimmick Corporation’s total revenue for the three months ended April 3, 2026, was $88,033 thousand, a -28% decrease from $122,110 thousand for the same period in 2025.<ul><li>Shimmick Projects: Revenue was $87,793 thousand for the three months ended April 3, 2026, a -6% decrease from $93,154 thousand in the prior year period, primarily due to lower activity on existing projects and projects winding down, and a non-recurring fire clean-up project, partially offset by new higher-margin projects ramping up.</li><li>Non-Core Projects: Revenue was $240 thousand for the three months ended April 3, 2026, a -99% decrease from $28,956 thousand in the prior year period, mainly due to the termination of the Chickamauga Lock Replacement Project and winding down of these projects. Revenue from Non-Core Loss Projects was - $5 million for the three months ended April 3, 2026, compared to $18 million for the same period in 2025.</li></ul><h4>Gross Margin</h4>Total gross margin increased to $10,898 thousand (12% of revenue) for the three months ended April 3, 2026, a 132% increase from $4,696 thousand (4% of revenue) for the same period in 2025.<ul><li>Shimmick Projects: Gross margin was $9,955 thousand (11% of revenue) for the three months ended April 3, 2026, an increase from $5,267 thousand (6% of revenue) in the prior year, primarily due to new higher-margin projects ramping up.</li><li>Non-Core Projects: Gross margin was $943 thousand (393% of revenue) for the three months ended April 3, 2026, compared to - $571 thousand (-2% of revenue) in the prior year, mainly due to a positive project close-out and non-recurrence of certain time and design-related schedule extensions. Gross margin from Non-Core Loss Projects was - $1 million for the three months ended April 3, 2026, compared to - $2 million for the same period in 2025.</li></ul><h4>Operating Expenses</h4>Selling, general and administrative expenses remained relatively flat at $14,253 thousand for the three months ended April 3, 2026, compared to $14,368 thousand for the same period in 2025.<h4>Loss from Operations</h4>Loss from operations improved to - $2,316 thousand for the three months ended April 3, 2026, from - $8,880 thousand in the prior year period.<h4>Net Loss</h4>Net loss decreased to - $4,426 thousand for the three months ended April 3, 2026, from - $9,770 thousand for the same period in 2025, primarily due to the increase in gross margin, partially offset by higher interest expense.<h4>Cash Flow</h4><ul><li>Operating Activities: Net cash used in operating activities significantly decreased to - $7,533 thousand for the three months ended April 3, 2026, compared to - $38,184 thousand for the same period in 2025, driven by changes in contract assets, accounts payable, and accrued expenses.</li><li>Investing Activities: Net cash used in investing activities was - $599 thousand for the three months ended April 3, 2026, primarily due to purchases of property, plant, and equipment, compared to - $438 thousand for the same period in 2025.</li><li>Financing Activities: Net cash provided by financing activities was $2,882 thousand for the three months ended April 3, 2026, mainly from $10 million in borrowings on credit agreements, partially offset by $7 million in repayments. For the same period in 2025, net cash provided was $21,907 thousand.</li></ul><h4>Liquidity</h4>As of April 3, 2026, Shimmick Corporation had $15 million in unrestricted cash and cash equivalents, along with $13 million available under the Credit Agreement and $6 million under the ACF Credit Agreement, totaling $34 million in liquidity. The company anticipates that its operating, investing, and financing cash flows will be sufficient to fund operations for at least the next twelve months and the foreseeable future.<h4>Backlog</h4>As of April 3, 2026, the company’s project backlog totaled $944 million.<ul><li>By Customer Type: State and local agencies account for 69%, federal agencies 16%, and private owners 15% of the backlog.</li><li>By Contract Type: Fixed-price contracts represent 89% of the backlog, while cost-reimbursable contracts make up 11%.</li><li>Estimated Recognition: 78% of the backlog is expected to be recognized within 0 to 24 months, 14% within 25 to 36 months, and 8% beyond 36 months.</li></ul><h4>Strategic Focus and Outlook</h4>Shimmick Corporation is concentrating on critical infrastructure projects within water, climate resilience, energy transition, and sustainable transportation. The company is actively winding down Non-Core Projects, which have incurred significant cost overruns. Additionally, Shimmick Corporation launched Axia Electric, a subsidiary aimed at expanding into specialized electrical and power distribution solutions in new regions such as Texas, Georgia, and Tennessee.

Shimmick | 10-Q: FY2027 Q1 Revenue Misses Estimate at USD 88.03 M