SHIMMICK CORPORATION Stock Price, News & Analysis
Company Description
Shimmick Corporation (NASDAQ: SHIM) operates in the construction sector with a focus on water and sewer line and related structures construction and other complex infrastructure. The company describes itself as a national leader in delivering turnkey infrastructure solutions that strengthen critical markets across water, energy, climate resiliency, and sustainable transportation. Shimmick states that it integrates technical excellence with collaborative project delivery methods and technology-driven approaches to support economic activity and communities across the United States.
According to company disclosures, Shimmick is headquartered in California and has a track record that spans over a century. This long operating history underpins its experience in complex civil works and infrastructure delivery. The company’s activities are closely aligned with public and private investment in essential infrastructure, particularly in water, wastewater, electrical and transportation systems.
Core Business Focus and Project Types
Shimmick’s business centers on planning and executing complex infrastructure projects. Based on its own descriptions and recent announcements, its work is concentrated in several key areas:
- Water and wastewater infrastructure: Projects that expand, rehabilitate, upgrade, build and rebuild water and wastewater treatment and conveyance infrastructure. Examples from company news include work on water reclamation plants, wastewater pump stations, and regional water resilience projects.
- Water resources and flood control: Construction and improvement of water storage and conveyance assets, dams, levees, flood control systems, pump stations, and coastal or riverine protection infrastructure. Recent awards such as the Bellota Weir Modifications project in Stockton, California illustrate this focus on water reliability and habitat protection.
- Electrical and power distribution infrastructure: Through Shimmick and its dedicated electrical subsidiary Axia Electric LLC, the company delivers specialized electrical and power distribution solutions, including low- and medium-voltage systems and related commissioning and operations and maintenance services. Company announcements describe electrical work supporting water, manufacturing, data center, aviation, transportation, transit and energy markets.
- Transportation and transit infrastructure: Shimmick reports experience in mass transit and sustainable transportation projects, including transit centers, roadway improvements, and cruise terminal infrastructure. Recent contracts such as the Renton Transit Center project in Washington and the Santa Monica Pier Bridge Replacement Project in California highlight its role in enhancing community mobility and access.
- Other critical infrastructure: The company indicates that it builds, retrofits, expands, rehabilitates, operates, and maintains critical infrastructure, including bridges, marine facilities, and military-related infrastructure. Its portfolio includes projects that combine civil, mechanical, and electrical self-perform capabilities.
Strategic Orientation: Shimmick Projects and Non-Core Projects
Shimmick distinguishes between two main categories of work in its financial reporting:
- Shimmick Projects: These are projects started after the AECOM sale transaction. The company states that these projects focus on critical infrastructure aligned with its strategy, including water, climate resilience, energy transition, and sustainable transportation. Shimmick highlights that Shimmick Projects are central to its long-term business direction and have contributed significantly to revenue and gross margin in recent reporting periods.
- Non-Core Projects: These are projects that started under prior ownership or focus on foundation drilling. Shimmick refers to them as Non-Core Projects (formerly "Legacy and Foundations Projects"). The company reports that it entered into an agreement to sell the assets of its foundation drilling Non-Core Projects and has been winding down the remaining work. A subset of these Non-Core Projects, described as Non-Core Loss Projects, has experienced significant cost overruns due to factors such as the COVID pandemic, design issues, legal costs and other items. Shimmick notes that it has recognized expected losses on these projects and that they are being brought to completion.
This distinction between Shimmick Projects and Non-Core Projects is a key structural element of the company’s business model as described in its earnings releases and SEC filings. It reflects a transition toward a portfolio concentrated on water, climate resilience, energy transition and sustainable transportation infrastructure.
Axia Electric and Electrical Specialization
In company news, Shimmick announced the launch of Axia Electric LLC, a dedicated electrical subsidiary. Axia Electric builds on more than two decades of Shimmick’s experience delivering complex electrical systems for clients across public and private sectors, including municipalities, airports, ports, technology companies, developers, and industrial manufacturers. The company states that Axia Electric serves low- and medium-voltage markets and emphasizes commissioning and operations and maintenance services.
Shimmick reports that Axia Electric supports a range of infrastructure markets, including water, industrial, mission-critical, aviation, transportation, transit, and energy. The subsidiary operates under a self-perform model and is presented by the company as a way to focus and scale its electrical and power distribution capabilities within the broader infrastructure market.
Geographic and Market Emphasis
In its public statements, Shimmick describes itself as a national leader in complex infrastructure solutions. Recent news releases highlight project activity and growth in several U.S. regions, including:
- California: Multiple announcements reference projects in California, such as wastewater and water reclamation facilities, pump stations, river and weir modifications, cruise terminal electrical upgrades, and bridge replacement work. The company notes strong traction in California for water and electrical infrastructure demand.
- Texas: Shimmick’s management commentary notes growing demand and traction in Texas markets, particularly for water and electrical infrastructure, although specific projects are not detailed in the provided materials.
- Other West Coast markets: Company news references work in Washington state on transit center and roadway improvements, indicating activity beyond California within the broader West Coast region.
Across these markets, Shimmick emphasizes themes of climate resiliency, sustainable transportation, water reliability, and modernization of aging infrastructure.
Capital Structure and Financing Activities
Shimmick’s SEC filings and news releases also describe aspects of its capital markets and financing activities. The company’s common stock trades on Nasdaq under the ticker symbol SHIM. In an 8-K filing, Shimmick disclosed entering into an At The Market Offering Agreement with Roth Capital Partners, LLC, allowing for potential sales of common stock from time to time under a shelf registration statement, up to a specified aggregate offering amount.
In a separate announcement, Ares Commercial Finance and Ansley Park Capital disclosed providing Shimmick with a senior secured revolving line of credit and a machinery and equipment term loan. According to that release, proceeds from the working capital financing are intended to refinance existing indebtedness and provide additional liquidity, supporting the company’s project pipeline.
Position Within the Construction and Infrastructure Sector
Within the construction sector and the water and sewer line and related structures construction industry classification, Shimmick positions itself as a company focused on complex, often large-scale infrastructure. Its disclosures emphasize:
- Experience in turnkey infrastructure delivery, from planning and design integration through construction and, in some cases, operations and maintenance.
- Specialization in infrastructure that supports water, energy, climate resiliency, and sustainable transportation.
- Use of collaborative project delivery methods and technology-driven approaches, as described in its own materials.
- A transition strategy that prioritizes Shimmick Projects aligned with core markets and winds down Non-Core Projects associated with prior ownership and foundation drilling.
These elements, drawn from the company’s news releases and SEC filings, outline how Shimmick describes its role in the broader infrastructure ecosystem.