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We and our legacy companies have a long history of successfully completing complex water and other critical infrastructure projects, ranging from advanced wastewater recycling and purification system to dams, locks and transit systems.
−Removed: According to Engineering News Record, in 2024, we are nationally ranked as a Top 400 contractor and top ten builder of water supply (#8), dams and reservoirs (#6), and water treatment and desalination plants (#7).
+Added: According to Engineering News Record, in 2025, we are nationally ranked as a top fifteen builder of water supply (#12), dams and reservoirs (#8), and water treatment and desalination plants (#11).
Our business includes construction operations from Morrison Knudsen and Washington Group International, which were consolidated in 2017 by AECOM.
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Projects and Backlog
−Removed: As of January 3, 2025, we had a backlog of projects of approximately $822 million, mostly located in California, with ongoing projects in six other states (NJ, TN, TX, WY, ID, WA).
+Added: As of January 2, 2026, we had a backlog of projects of approximately $793 million, mostly located in California, with ongoing projects in six other states (TN, TX, WY, ID, HI and WA).
We self-perform many of these projects, which we believe allows us to better control critical aspects of construction, reduce cost and schedule risks, and deliver greater value to clients.
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We construct mass transit systems (light passenger rail and bus rapid transit), autonomous transportation solutions (personal rapid transit, autonomous fixed guideway people movers, and implement intelligent transportation technologies.
−Removed: • Energy Transition .
+Added: • Energy Transition and Mission Critical .
We modify facilities to accommodate electric vehicle fleets for transit agencies and municipalities, implement renewable energy components in our projects, and support data center construction.
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water infrastructure, climate resilience projects, transportation systems, and energy transition facilities.
−Removed: According to independent industry research, these sectors are projected to grow at rates of 4% to 11% annually through 2028, outpacing the overall non-residential construction industry average of 3.3%.
−Removed: Based on our geographic focus and core capabilities, we estimate our addressable market to be approximately $106 billion of the $1.1 trillion in non-residential construction projected for 2025.
−Removed: The demand for water infrastructure stems from multiple factors driving the need for reliable water management systems.
−Removed: Growing urbanization and industrialization have amplified water consumption, putting pressure on existing water supply networks.
−Removed: Furthermore, aging infrastructure in many regions requires significant upgrades and modernization to ensure clean water delivery, effective flood control, and efficient navigation.
−Removed: Critical infrastructure ensures the efficient movement of goods and people, supports economic growth, and enhances connectivity between regions.
−Removed: Major economic drivers for critical infrastructure projects include increasing international trade, urbanization, need for modernization and population growth.
−Removed: As governments and private entities continue to invest in upgrading and expanding infrastructure to meet these demands, opportunities for innovative solutions and technologies are expected to flourish.
−Removed: Based on these and other factors, we believe that demand for construction and ongoing maintenance of water and other critical infrastructure projects will continue to increase.
+Added: According to the latest industry data, the broader U.S.
+Added: construction market is expected to grow to approximately $2.3 trillion in 2026, supported by continued public-sector investment and private demand across major non-residential sectors.
+Added: Within this overall market, infrastructure construction remains a critical and expanding segment, with forecasts projecting the U.S.
+Added: infrastructure market to reach around $1.5 trillion in 2026 and grow at a mid-single-digit rate over the next decade as federal and state funding drives modernization and resilience upgrades.
+Added: Emerging areas such as data center and advanced energy build-out are also strengthening non-residential construction demand, even as traditional commercial segments face uneven conditions.
+Added: Based on our geographic focus and core capabilities, we estimate our addressable market continues to represent a meaningful portion of this expanding industry opportunity.
Our Customers
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Projects that were secured prior the AECOM Sale Transaction, including large scale projects with higher risk and lower margins, are continuing to be worked off and replaced with smaller to mid-sized projects with less risk and higher margins.
−Removed: In fiscal year 2024, we focused on simplifying our business with an emphasis on liquidity, capital efficiency and effective execution of our projects.
−Removed: To that end, we executed several notable transactions:
−Removed: • Settlements of two major claims at the Chickamauga Lock and Golden Gate Bridge projects totaling over $130 million in cash received during fiscal year 2024.
−Removed: • Divestiture of our foundation drilling assets and sale-leaseback of our equipment yard which provided liquidity of $17.5 million and $17 million, respectively.
−Removed: • Decreased backlog originating from projects secured prior to the AECOM Sale Transaction which are in loss positions.
−Removed: • Reached an agreement with AECOM to resolve a previous lawsuit relating to the purchase and sale agreement for the divestiture of Shimmick from AECOM in exchange for shares of our common stock.
−Removed: These strategic transactions and agreements provided us with additional liquidity and allow us to further focus our efforts on growing our core business.
−Removed: On November 12, 2024, Shimmick announced that it appointed Ural Yal as its new CEO and member of the Board of Directors effective December 2, 2024 and succeeded Steven Richards upon his retirement.
−Removed: We believe Mr.
−Removed: Yal brings deep expertise in both the California market and national infrastructure construction along with a proven track record of operational growth to lead the Company in capitalizing on market opportunities through operational excellence, safety and client satisfaction.
+Added: On June 23, 2025, Shimmick announced the launch of Axia Electric LLC ("Axia Electric"), a dedicated electrical subsidiary designed to meet growing market demand for specialized, high-performance electrical and power distribution solutions.
+Added: Axia Electric builds on more than 20 years of Shimmick’s proven success delivering complex electrical systems for clients across the public and private sectors, including municipalities, airports, ports, technology companies, developers, and industrial manufacturers.
+Added: The new subsidiary serves low and medium voltage markets, with an additional focus on commissioning and operations and maintenance services.
+Added: Throughout 2025, we have increased our bidding capacity, expanded our pipeline and focused on key markets that will sustain our growth into the future.
+Added: This is allowing us to have more projects to bid on but also be selective in the projects we bid, to achieve a better overall risk profile for the Company.
+Added: In the second half of 2025, we have been able to add to our backlog and expect to continue this backlog expansion to support our growth and profitability.
With these developments, we believe we are well positioned to execute our business and growth strategy, which is focused on organically growing core water and critical infrastructure business while enhancing profitability.
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Currently our portfolio includes a small but growing number of these projects, and our goal is to increase the representation of collaborative contracts in our backlog.
−Removed: To achieve this, we are investing in our bidding, sales and marketing efforts.
+Added: To achieve this, we are continuing to invest in our bidding, sales and marketing efforts.
• Expansion in Electrical Work .
We have self-performed electrical work on our projects for over 20 years and have gained significant experience and expertise in this field.
−Removed: With recent developments and increased investments in energy transition and technology-driven infrastructure (both of which include major electrical scopes in each project), we see an opportunity to leverage our strengths in electrical construction and grow this side of our business, along with providing turn-key solutions through our civil capabilities.
+Added: With recent developments and increased investments in energy transition and technology-driven infrastructure (both of which include major electrical scopes in each project), we see an opportunity to leverage our strengths in electrical construction and grow this side of our business, along with providing turnkey solutions through our civil capabilities.
+Added: To capitalize on this opportunity, we launched Axia Electric during 2025, a dedicated electrical subsidiary designed to meet growing market demand for specialized, high-performance electrical and power distribution solutions.
• Operational Improvements and SG&A Optimization .
We plan to continue refining and improving our operations while maintaining a strong focus on developing our people and a strong company culture.
−Removed: In addition, while many of the major initiatives for right-sizing our SG&A structure were completed in 2024, we are continuing to take action towards making our business more effective, through improvements in other areas of our business including IT, finance, insurance, organizational structure and benefits.
+Added: We plan to take consistent action towards making our business more effective, through improvements in other areas of our business including IT, finance, insurance, organizational structure and benefits.
• Project Controls Improvements .
−Removed: We are making new investments in digitization of our cost, schedule and progress tracking systems through the use of digital labor and equipment tracking systems, PowerBI-based reporting structures, accounting system improvements and additional training to our project staff.
−Removed: This process helps us better manage project costs and schedules, improving profitability and visibility.
+Added: We continue to make investments in digitization of our cost, schedule and progress tracking systems through the use of digital labor and equipment tracking systems, PowerBI-based reporting structures, accounting system improvements and additional training to our project staff.
+Added: This process helps us better manage and estimate sales and project operations, costs and schedules, improving profitability and visibility.
• Health, Safety and Environment .
Safety and well-being of our employees, clients and the communities are our utmost focus.
−Removed: We have a safety track record that is significantly better than industry averages and improving, with strong metrics such as a 34% reduction in our recordable incident rate in 2024 as compared to 2023.
+Added: We have a safety track record that is significantly better than industry averages and improving, with strong metrics such as a 33.3% reduction in our lost time incident rate in 2025 as compared to 2024.
We are committed to fostering an environment where safety is embraced by everyone involved with a true commitment to an injury-free workplace.
−Removed: We also are committed to being good stewards of the environment on all of our projects, ensuring we understand and comply with applicable regulations.
+Added: We also are committed to being
+Added: good stewards of the environment on all of our projects, ensuring we understand and comply with applicable regulations.
Insurance and Bonding
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Safety is a core Shimmick value.
−Removed: We begin meetings with safety messages and conduct training programs, which have contributed to safety performance at our worksites.
+Added: We begin meetings with safety messages and conduct ongoing training programs that reinforce hazard awareness and safe work practices.
All new employees undergo an initial safety orientation, and for certain types of projects, we conduct specific hazard training programs.
−Removed: Our project foremen and superintendents conduct weekly on-site safety meetings, and our safety inspectors make site safety inspections and perform assessments and training if infractions are discovered.
−Removed: In addition, our superintendents and project managers are required to complete an OSHA-approved safety course.
−Removed: Our incident rate is below industry average.
−Removed: For instance, according to the Bureau of Labor Statistics, the average rate of recordable incidents for the construction industry in 2023, the most recent data published, was 2.3 per 100 employees.
−Removed: Our average rate of recordable incidents for calendar year 2024 was 1.06 per 100 employees.
+Added: Our project foremen and superintendents conduct regular on-site safety meetings, and our safety professionals perform site inspections and provide additional training when needed.
+Added: In addition, our superintendents and project managers are required to complete OSHA-approved safety training.
+Added: For the year ended December 31, 2025, our total recordable incident rate (“TRIR”) was 1.39 incidents per 100 full-time equivalent employees.
+Added: While our TRIR increased compared to the prior year, we achieved a 33.3% reduction in our lost time incident rate in 2025, reflecting continued emphasis on reducing more serious injuries and maintaining safe jobsite conditions.
+Added: During 2025, we had no Occupational Safety and Health Administration (OSHA) or Environmental Protection Agency (EPA) citations.
• Harassment-Free Work Environment.
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We regularly partner with disadvantaged business enterprises to provide subcontracting opportunities.
−Removed: We have a team of small business and diversity program managers.
+Added: We have a team of small business program managers.
We provide an outreach program that includes a mentor-protégé program.
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We believe our success is dependent on employee understanding of and investment in their role in that value creation.
−Removed: Our chief executive officer periodically leads employee meetings
−Removed: intended to reinforce the importance of our core values and regularly meets with small groups of employees to receive their feedback on our business.
+Added: Our chief executive officer periodically leads employee meetings intended to reinforce the importance of our core values and regularly meets with small groups of employees to receive their feedback on our business.
Our employees are responsible for upholding our mission, values, strategy and talent leadership expectations.
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Despite rising costs, we continue to pay the majority of the cost of our employees’ healthcare insurance.
−Removed: The water and critical infrastructure markets in which we operate are competitive and include larger national firms such as Barnard Construction Company, Inc., Ames Construction Inc., Flatiron Construction Corp., Fluor Corporation, Granite Construction Incorporated, Kiewit Corporation, Skanska USA Inc., Traylor Bros., Inc., and Walsh Construction Group, LLC, as well as smaller regional contractors, particularly in California.
+Added: The water and critical infrastructure markets in which we operate are competitive and include larger national firms such as Barnard Construction Company, Inc., Ames Construction Inc., Flatiron Dragados, Fluor Corporation, Granite Construction Incorporated, Kiewit Corporation, Skanska USA Inc., Traylor Bros., Inc., and The Walsh Group, as well as smaller regional contractors, particularly in California.
Project awards in our industry are typically based on multiple criteria, including price, technical approach, past performance, quality plans, equipment resources, financial strength, bonding capacity, and relevant project experience.
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We are subject to various federal, state and local laws and regulations relating to the environment, including those relating to discharges to air, water and land, the handling and disposal of solid and hazardous waste, the handling of underground storage tanks and the cleanup of properties affected by hazardous substances.
−Removed: We also are subject to compliance with numerous other laws and regulations of federal, state and local agencies and authorities, including those relating to workplace safety, wage and hour and other labor issues (including the requirements of the OSHA and comparable state laws), immigration controls, vehicle and equipment operations and other aspects of our business.
−Removed: In addition, most of our construction contracts are entered into with public authorities, and these contracts
−Removed: frequently impose additional requirements, including requirements regarding labor relations and subcontracting with designated classes of disadvantaged businesses.
+Added: We also are subject to compliance with numerous other laws and regulations of federal, state and local agencies and authorities, including those relating to workplace safety, wage and hour and other labor issues (including the requirements of the Occupational Safety and Health Act and comparable state laws), immigration controls, vehicle and equipment operations and other aspects of our business.
+Added: In addition, most of our construction contracts are entered into with public authorities, and these contracts frequently impose additional requirements, including requirements regarding labor relations and subcontracting with designated classes of disadvantaged businesses.
We continually monitor our compliance with these laws, regulations and other requirements.
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The diesel particulate and nitrogen oxide emissions produced by the vehicles and other equipment used in our operations are subject, among other things, to the regulations of the California Air Resources Board (“CARB”).
−Removed: Certain CARB regulations require California equipment owners/operators to meet progressively more restrictive emission targets that require California off-road and on-road diesel equipment owners to retrofit equipment with diesel emission control devices or replace equipment with new engine technology, which will result in higher equipment-related expenses.
+Added: Certain CARB regulations require California equipment owners/operators to meet progressively more restrictive emission targets that require California off-road and on-road diesel equipment owners to retrofit equipment with
+Added: diesel emission control devices or replace equipment with new engine technology, which will result in higher equipment-related expenses.
In general, we have maintained compliance with the regulations by replacing our existing equipment as it reaches the end of its useful life with new equipment that meets or exceeds the requirements of the CARB regulations.
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Excessive, prolonged inhalation of very small-sized particles of crystalline silica has been associated with respiratory disease (including silicosis).
−Removed: OSHA has established occupational thresholds for crystalline silica exposure as respirable dust.
+Added: The Occupational Safety and Health Administration (“OSHA") has established occupational thresholds for crystalline silica exposure as respirable dust.
We have implemented dust control procedures to measure compliance with requisite thresholds and to verify that respiratory protective equipment is made available as necessary.
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Although we do not generate large amounts of solid wastes, we occasionally dispose of solid wastes on behalf of customers.
−Removed: Solid wastes, which may include hazardous solid wastes, are subject to the requirements of the federal Solid Waste Disposal Act, the federal Resource Conservation and Recovery Act (the “RCRA”), and comparable state statutes.
+Added: Solid wastes, which may include hazardous wastes, are subject to the requirements of the federal Solid Waste Disposal Act, the federal Resource Conservation and Recovery Act (the “RCRA”), and comparable state statutes.
From time to time, the EPA considers the adoption of stricter disposal standards for non-hazardous solid wastes.
−Removed: Moreover, it is possible that additional solid wastes will in the future be designated as “hazardous wastes.” Hazardous solid wastes are subject to more rigorous and costly disposal requirements than are non-hazardous solid wastes.
+Added: Moreover, it is possible that additional solid wastes will in the future be designated as “hazardous wastes.” Hazardous wastes are subject to more rigorous and costly disposal requirements than are non-hazardous solid wastes.
Generally, under the applicable project agreement, the customer, as the generator of the waste, is at risk for its proper disposal.
−Removed: We typically pass the cost of disposal through to our customers under such agreement.
+Added: We typically pass the cost of disposal through to our customers under such agreements.
Certain environmental laws impose substantial penalties for non-compliance and others, such as CERCLA, and comparable state laws, impose strict, retroactive, joint and several liability upon persons that contributed to the release of a hazardous substance into the environment.
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Our results are significantly influenced by weather and major changes in historical weather patterns could significantly impact our future results of operations.
−Removed: For example, if climate change results in significantly more adverse weather conditions in a given period, we could experience reduced productivity and increases in certain other costs, which could negatively impact our results of operations.
+Added: For example, if climate change results in significantly more adverse weather conditions
+Added: in a given period, we could experience reduced productivity and increases in certain other costs, which could negatively impact our results of operations.
Available Information
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.