The offering is a rescue capital raise following a 28% revenue drop and a major contract termination. While backlog is strong at $944M and book-to-burn is at a record 2.6x, the immediate dilution and ongoing losses weigh on the stock. Watch for execution on new backlog conversion and resolution of the Chickamauga Lock dispute. The ~90-day lockup on insiders and the $3.50 offering price near the $4.03 close may provide a floor near-term but the stock faces structural overhang.
Price Chart
Executive Summary
Shimmick Corp. is issuing 3,730,000 shares at $3.50/share, raising ~$12.27M net. The offering follows a Q1 2026 earnings report showing a 28% YoY revenue decline ($88M vs $122M), a net loss of -$4M, and a US Army Corps of Engineers contract termination on the Chickamauga Lock project that reduced revenue by $19M. Proceeds are for working capital, diluting existing shareholders by ~10.3% with immediate dilution of $4.80/share. The offering was filed 8 days after Q1 earnings, indicating the capital raise was prompted by cash needs from ongoing losses and contract disputes.
Key Facts
- Offering 3,730,000 shares at $3.50/share, net proceeds ~$12.27M
- Dilution of ~10.3% (36.1M to 39.8M shares outstanding)
- New investors face immediate dilution of $4.80/share
- Q1 2026 revenue fell 28% YoY to $88M (from $122M); net loss of -$4M
- US Army Corps of Engineers terminated the Chickamauga Lock contract, reducing revenue by $19M
- Adjusted EBITDA was +$3M, third consecutive positive quarter, but liquidity only $34M
- Backlog hit $944M, highest since Q1 2024, with book-to-burn ratio of 2.6x
Financial Impact
Net proceeds ~$12.27M; dilution of $4.80/share for new investors; Q1 revenue decline of $34M YoY; $19M revenue reduction from contract termination
Risk Factors
- Dilution of ~10.3% with potential for further dilution if the underwriter exercises the 30-day option for 559,500 additional shares
- US Army Corps of Engineers contract termination is being disputed but outcome uncertain
- Revenue declined 28% YoY as non-core projects wound down and a large fire clean-up project ended
- Net tangible book value is deeply negative at -$1.77/share pre-offering, improving only slightly to -$1.30/share post-offering
- Adverse weather and slower project starts impacted Q1 results; seasonality may affect Q2
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 424B5 Filing (Primary) | 0001193125-26-237202 |
| Document: 0001193125-26-237202-index-headers.html | 0001193125-26-237202 |
| Document: 0001193125-26-237202-index.html | 0001193125-26-237202 |
| Document: 0001193125-26-237202.txt | 0001193125-26-237202 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 18d ago | 8-K | $3.13 | awaiting T+20 | — | $2.33 (−25.56%) |
Aug 10, 2026 11w ago | 8-K | $3.94 $3.47 | ▼ −11.93% | ▼ −10.87% | $2.33 (−40.86%) |
Aug 10, 2026 11w ago | Press Release | $3.94 $3.47 | ▲ +11.93% | ▲ +10.87% | $2.33 (+40.86%) |
May 26, 2026 21w ago | 8-K | $3.59 $4.08 | ▼ −13.65% | ▼ −15.55% | $2.33 (+35.10%) |
May 22, 2026 22w ago | 424B5 | $3.83 $3.54 | ▲ +7.70% | ▲ +5.75% | $2.33 (+39.16%) |
May 22, 2026 22w ago | 424B5 | $3.83 $3.54 | ▼ −7.70% | ▼ −5.75% | $2.33 (−39.16%) |
May 22, 2026 22w ago | Press Release | $3.70 $3.76 | ▼ −1.57% | ▼ −2.98% | $2.33 (+37.03%) |
Mar 12, 2026 32w ago | Press Release | $3.21 $3.91 | ▲ +21.81% | ▲ +18.22% | $2.33 (−27.41%) |
US Market Status
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