Shimmick Corp (NASDAQ:SHIM) Beats Q3 2025 Revenue and EPS Estimates Despite Stock Decline

Shimmick Corp (NASDAQ:SHIM) has reported financial results for the third quarter of 2025, delivering a performance that notably exceeded analyst revenue expectations while narrowing a projected loss. The market's immediate reaction, however, has been mixed, with the stock experiencing a decline in after-hours trading following the announcement.

Earnings and Revenue Versus Estimates

The company's top-line performance stood out this quarter, significantly surpassing consensus forecasts. While the bottom-line figure remained negative, it showed a considerable improvement over what analysts had projected.

• Revenue: The company reported revenue of $142 million for the quarter. This comfortably exceeded the analyst estimate of approximately $122.6 million, representing a positive surprise of over 18%.
• Earnings Per Share (EPS): Shimmick reported an adjusted diluted loss per share of $0.01. This was a substantial improvement compared to the estimated loss of $0.04 per share, beating expectations by 75%.

Market Reaction and Price Action

Despite the earnings and revenue beats, the stock faced selling pressure after the results were released. The immediate after-market performance showed a decline of nearly 4%. This suggests that investors may be focusing on other aspects of the report or broader market conditions, potentially including the company's continued net loss on a GAAP basis or its future guidance. This negative after-hours movement contrasts with the stock's generally flat performance over the preceding month.

Strategic Highlights and Operational Performance

Beyond the headline numbers, the earnings press release highlighted several key operational milestones that management believes signal a turning point for the company.

• Return to Positive Adjusted EBITDA: The company reported Adjusted EBITDA of $4 million, marking its first quarter of positive Adjusted EBITDA in four quarters. This metric is closely watched as an indicator of core operational profitability.
• Significant Backlog Growth: The company's backlog increased by 15% quarter-over-quarter to approximately $754 million. A key driver was a book-to-burn ratio of 1.7x, meaning new contract awards significantly exceeded revenue recognized in the quarter. This is the first time this ratio has exceeded 1.0x since 2023, indicating strong future revenue visibility.
• Core Business Strength: The "Shimmick Projects" segment, which represents the company's strategic focus on water, electrical, and other critical infrastructure, showed robust growth. Revenue from these projects increased 6% year-over-year to $107 million, while gross margin for this segment surged 67%.

Forward Outlook and Analyst Comparisons

Management reaffirmed its full-year 2025 guidance, expressing confidence in its ongoing transformation. The company now anticipates full-year revenue to land at the higher end of its provided range, with Adjusted EBITDA expected at the lower end. This outlook can be contrasted with existing analyst estimates for the full year, which project a sales figure of approximately $506 million.

For a detailed breakdown of future earnings estimates and historical performance, more information is available on the SHIM earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available sources and should not be relied upon as the sole basis for making an investment decision.