Shimmick Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported Q3 2026 revenue of $136 million, down 4% year-over-year compared to $142 million in Q3 2025.
• Reported Q3 2026 gross margin of $17 million, up 55% year-over-year compared to $11 million in Q3 2025; gross margin percentage increased to 12% from 8%.
• Recognized Q3 2026 net income of $1 million, a turnaround from a net loss of $4 million in Q3 2025.
• Reported Q3 2026 Adjusted EBITDA of $9 million, up 125% year-over-year compared to $4 million in Q3 2025.
• Reported Q3 2026 Adjusted Net Income of $4 million, compared to an adjusted net loss of $0.2 million in Q3 2025.
• Diluted income per share was $0.02 in Q3 2026, compared to a diluted loss of $0.12 in Q3 2025.
• Adjusted diluted income per share was $0.08 in Q3 2026, compared to a loss of $0.01 in Q3 2025.
• Liquidity increased by $20 million sequentially to $53 million as of October 2, 2026.
• Cash and cash equivalents were $34.2 million as of October 2, 2026, up from $20.0 million at the start of the fiscal year.
• Total debt increased to $74.5 million ($1.9 million current, $72.6 million long-term) as of October 2, 2026, from $64.5 million at the start of the fiscal year.
• Nine-month 2026 revenue was $330 million, down 16% year-over-year compared to $392 million.
• Nine-month 2026 Adjusted EBITDA was $16 million, up 1,297% year-over-year compared to $1 million.

Guidance and Future Outlook:

• Reaffirmed full-year 2026 Consolidated Adjusted EBITDA guidance between $20 million and $25 million, representing 350% growth at the midpoint year-over-year.
• Updated full-year 2026 consolidated revenue guidance to a range of $500 million to $525 million, representing 4% growth at the midpoint year-over-year.
• Management expects to continue growing revenue and earnings driven by strong demand in water and electrical infrastructure.
• The company notes that Shimmick Projects now represent approximately 98% of total backlog, with greater stability in gross margins emerging as Non-Core activity winds down.

Business Segments and Product Lines:

• Shimmick Projects revenue was $136 million in Q3 2026, up 28% quarter-over-quarter and up 27% year-over-year compared to $107 million.
• Shimmick Projects gross margin was $18 million in Q3 2026, up 487 basis points quarter-over-quarter and up 80% year-over-year compared to $10 million.
• Non-Core Projects revenue was $(0.4) million in Q3 2026, compared to $35 million in Q3 2025, driven by the termination of a Tennessee project and wind-down activities.
• Non-Core Projects gross margin was $(1) million in Q3 2026, compared to $1 million in Q3 2025.
• Non-Core Loss Projects recognized revenue of $(2) million and gross margin of $(1) million in Q3 2026.
• Equity in earnings of unconsolidated joint ventures increased by $1 million in Q3 2026, primarily due to increased activity on a dam project.
• Selling, general and administrative expenses remained approximately flat period-over-period.

Market and Competitive Landscape:

• Backlog stood at approximately $907 million at the end of Q3 2026.
• The 2026 fiscal year book-to-burn ratio was 1.3x.
• There are $401 million of additional new awards pending in electrical and water target markets.
• The company reports winning projects in desired markets at an acceptable risk profile, with a backlog increasingly diversified across markets, funding sources, and customers.

Risks and Challenges:

• Non-Core Loss Projects have experienced significant cost overruns due to the COVID pandemic, design issues, legal costs, and other factors, with estimated costs to complete recognized immediately.
• Interest expense increased by $1 million in Q3 2026 due to the accelerated recognition of unamortized debt issuance expenses from the early repayment of the Ansley Loan Agreement.
• The company faces risks related to fixed-price contracts, ability to bid on contracts, availability of qualified personnel and subcontractors, and potential changes in government spending or legislation.
• Specific legal proceedings mentioned include an appeal of the USACE's notice of termination related to the Chickamauga Lock project.

Management Commentary and Tone:

• CEO Ural Yal stated that third-quarter results show the strategy is working, noting the return to positive net income and the replacement of legacy projects with newer, higher-margin work.
• CFO Todd Yoder highlighted the delivery of $9 million in adjusted EBITDA, positive net income, and a $20 million sequential increase in liquidity.
• Management expressed confidence in the core business's earnings and cash-generation potential as Non-Core activity continues to wind down.

Other Key Points:

• This was the first quarter with positive net income since Q3 2023.
• The company achieved its fifth consecutive quarter of positive Adjusted EBITDA.
• The trailing-twelve-month Adjusted EBITDA was $20 million.
• The company narrowed its Adjusted EBITDA guidance range for the full year 2026 to $20 million to $25 million from an original range of $15 million to $30 million.
• The company raised $18.3 million in net proceeds from underwritten equity and At The Market offerings during the nine months ended October 2, 2026.
• The company repaid $50 million on credit and loan agreements during the nine months ended October 2, 2026.
• No income tax expense was recorded for the three months ended October 2, 2026, or October 3, 2025, due to expected and realized losses for the respective fiscal years.