Shimmick Corporation Sees Surge in Revenue and Backlog as It Executes on Strategy
Shimmick Corporation, a leading provider of construction services, reported strong financial results for the second quarter of 2026, driven by its strategic efforts to wind down non-core projects, drive operational improvements, and capitalize on growing demand in core and mission-critical end markets.
In a recent conference call, Ural Yal, Shimmick's CEO, highlighted the company's progress in executing on its strategy, which has resulted in improved activity levels, increased revenue, and expanded gross margins. During the second quarter, Shimmick delivered consolidated revenue of $107 million, grew gross margin to 12%, and increased adjusted EBITDA to $4 million.
The company added $138 million in new work booked in the second quarter, bringing its total backlog to $991 million, its highest level in two years. This significant increase in backlog provides meaningful visibility and supports Shimmick's expectations for continued revenue growth in upcoming quarters.
Shimmick also secured $221 million in additional new awards subsequent to the end of the quarter, which will contribute to its backlog in 2026. The company's book-to-burn ratio was 1.4 during the second quarter, reflecting its fourth consecutive quarter with a positive book-to-burn.
One notable example of Shimmick's progress is a large project secured in February that only commenced in July, illustrating the longer lead times the company has been experiencing and providing confidence that project activity is beginning to translate into execution. Furthermore, less than 10% of the backlog booked over the past 12 months has been converted into revenue to date, highlighting the significant visibility Shimmick has for continued revenue growth.
The CEO emphasized that Shimmick's results reflect continued execution against its priorities: exiting lower-margin non-core work, increasing bidding activity, growing backlog, driving operational improvements, and positioning the business for sustainable growth. He also highlighted the company's recent project wins and the markets where it sees the greatest opportunities ahead.
The data center market continues to be a significant area of focus for Shimmick, with several large outstanding opportunities and strong bidding activity reported. One specific project, a data center build in West Virginia, is now transitioning into the pre-construction phase this month, with construction work anticipated to start in the next 60 days.
Shimmick's positioning in mission-critical infrastructure remains strong, driven by its dedicated business unit focused on pursuing and executing these opportunities. The company has also established a presence in advanced manufacturing, defense, renewables, critical minerals, and other subsegments that fit its skill set well.
