Shimmick Corporation

It's who we are. Shemek, building the infrastructure that connects, powers, and strengthens our world. We make it happen. Every day, across the country, Chimic builds the infrastructure that improves lives. Our work may be behind the scenes, but its impact is everywhere. In the water that sustains communities. in the energy that powers industry, in the connections that bring people closer together. For more than a century, we've earned trust by doing things the right way, with integrity, safety, and excellence. We don't just deliver projects. We build the systems people count on every day. We protect and move water, designing and building treatment and conveyance systems that sustain this critical resource, focusing on communities and the environment. Power, today more than ever, keeps our world running and we provide electrical expertise for the modern age. Axia Electric, our specialty electrical construction subsidiary, delivers the electrical systems that make technology, industry and everyday life work. We build the bridges and transit systems that move people and opportunity forward safely and efficiently, helping cities move better, grow stronger, and connect more seamlessly. We strengthen coastlines and communities, designing and constructing levees, flood walls, and sea level defense systems that protect people, property, and critical infrastructure, safeguarding our communities from rising waters and extreme weather. Our strength comes from our people. craft workers engineers and leaders who take ownership in every task and self-perform the work that defines a project success quality safety accountability and a culture built on performance and pride it's who we are shimmick building the infrastructure that connects powers and strengthens our world we make it happen Every day, across the country, Chimic builds the infrastructure that improves lives. Our work may be behind the scenes, but its impact is everywhere. In the water that sustains communities. in the energy that powers industry, in the connections that bring people closer together. For more than a century, we've earned trust by doing things the right way, with integrity, safety, and excellence. We don't just deliver projects. We build the systems people count on every day. We protect and move water, designing and building treatment and conveyance systems that sustain this critical resource, focusing on communities and the environment. Power, today more than ever, keeps our world running and we provide electrical expertise for the modern age. Axia Electric, our specialty electrical construction subsidiary, delivers the electrical systems that make technology, industry and everyday life work. We build the bridges and transit systems that move people and opportunity forward safely and efficiently, helping cities move better, grow stronger, and connect more seamlessly. We strengthen coastlines and communities, designing and constructing levees, flood walls, and sea-level defense systems that protect people, property, and critical infrastructure, safeguarding our communities from rising waters and extreme weather. Our strength comes from our people. craft workers engineers and leaders who take ownership in every task and self-perform the work that defines a project success quality safety accountability and a culture built on performance and pride it's who we are shimmick building the infrastructure that connects powers and strengthens our world we make it happen Every day, across the country, Chimic builds the infrastructure that improves lives. Our work may be behind the scenes, but its impact is everywhere. In the water that sustains communities. in the energy that powers industry, in the connections that bring people closer together. For more than a century, we've earned trust by doing things the right way, with integrity, safety, and excellence. We don't just deliver projects. We build the systems people count on every day. We protect and move water, designing and building treatment and conveyance systems that sustain this critical resource, focusing on communities and the environment. Power, today more than ever, keeps our world running and we provide electrical expertise for the modern age. Axia Electric, our specialty electrical construction subsidiary, delivers the electrical systems that make technology, industry and everyday life work. We build the bridges and transit systems that move people and opportunity forward safely and efficiently, helping cities move better, grow stronger, and connect more seamlessly. We strengthen coastlines and communities, designing and constructing levees, flood walls, and sea-level defense systems that protect people, property, and critical infrastructure, safeguarding our communities from rising waters and extreme weather. Our strength comes from our people, craft workers, engineers, and leaders who take ownership in every task and self-perform the work that defines a project's success. Quality, safety, accountability, and a culture built on performance and pride. It's who we are. Schimmick, building the infrastructure that connects, powers, and strengthens our world. We make it happen. Every day across the country, Chimic builds the infrastructure that improves lives. Our work may be behind the scenes, but its impact is everywhere. In the water that sustains communities. in the energy that powers industry, in the connections that bring people closer together. For more than a century, we've earned trust by doing things the right way, with integrity, safety, and excellence. We don't just deliver projects. We build the systems people count on every day. We protect and move water, designing and building treatment and conveyance systems that sustain this critical resource, focusing on communities and the environment. Power, today more than ever, keeps our world running and we provide electrical expertise for the modern age. Axia Electric, our specialty electrical construction subsidiary, delivers the electrical systems that make technology, industry and everyday life work. We build the bridges and transit systems that move people and opportunity forward safely and efficiently, helping cities move better, grow stronger and connect more seamlessly. We strengthen coastlines and communities, designing and constructing levees, floodwalls and sea level defense systems that protect people, property and

Good afternoon, and thank you for joining us on today's conference call to discuss SHMIC's first quarter 2026 results. Slides for today's presentation are available on the investor relations section of our website, www.shmic.com. During this conference call, management will make forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect. We identify the principal risks and uncertainties that may affect our performance in our reports and filings with the Securities and Exchange Commission, which can also be found on our investor relations website. We do not undertake any duty to update any forward-looking statements. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the company's first quarter press release for definitional information and reconciliations of historical non-GAAP measures to the comparable GAAP financial measures. With that, it is my pleasure to turn the call over to your all y'all, Shemix CEO.

Good afternoon, and thank you all for joining us on today's call. I'm joined by Todd Yoder, Chimic CFO. As always, I would like to recognize the men and women who work at Chimic, safely and effectively delivering the projects we take on. We're all very proud of the work we put in every day that makes a real difference in communities across the states we operate in. With that, I'm going to start by discussing our financial results for the first quarter of 2026. I'm pleased to report that we are continuing to make progress on our strategy, which centers around growing our pipeline by bidding and winning work aligned with our expertise, winding down non-core projects, and executing at a high level to deliver consistent margins. For the first quarter, we delivered consolidated revenue of $88 million, 12% gross margin, and adjusted EBITDA of approximately $3 million. We expanded our gross margin on SHIMIC projects to 11% and 89% improvement over last year. We're already seeing increasing monthly top line revenues as the winter weather subsides and new projects start to ramp up. What's important also is the trajectory. We now have secured and continuing to secure backlog that is going to fuel our growth the rest of the year and beyond. We are excited by the progress we're making on our backlog and have achieved our highest book-to-burn ratio since the company went public, reflecting strong demand and improving project quality. At the same time, we continue to scale Schemek projects as a percentage of the overall portfolio, with non-core work now representing less than 5% of total backlog, further supporting visibility and execution consistency going forward. Looking forward, we expect activities on existing and newly won projects pick up as we head into the summer months. July, August, and September are when we expect to see more visible inflection in revenue as new projects begin generating consistent burn. Meanwhile, we're continuing to win new work, and our teams are well positioned to deliver consistent and growing revenues. For our non-core projects, revenue was $200,000 compared to $29 million a year ago, largely as a result of determination by the U.S. Army Corps of Engineers of the Chickamauga Lock Replacement Project in Chattanooga, Tennessee, which I'd like to address in more detail. From time to time, differences of view arise on projects, including scope of work and schedules, and in this instance, the matter is proceeding through the customary federal process. We remain constructive in our approach, appreciate our clients' focus on project completion, and are confident that the parties will be able to reach a mutually agreeable resolution in due course. Importantly, this situation does not affect our broader relationship with the U.S. Army Corps of Engineers, who has been a long-term client for us, with our first projects dating back to the 1940s through our legacy companies. We currently have two other projects underway with the Corps, one approximately halfway complete and the other one nearing completion, and these projects continue to progress as planned. As we continue to wind down non-core activities, this development further reduces our remaining non-core backlog to under 5%, allowing us to remain focused on our core priorities. Now I'd like to spend some more time digging into our progress, provide an update on market conditions, and discuss our continued focus on execution. We continue to see strong momentum across our core geographies, highlighted by our ongoing success-winning work in Texas and sustained bidding activity across the platform. Importantly, the work we are booking is firm, contracts are signed, visibility is solid, and the projects we've added to backlog are scheduled to begin ramping up this year. This gives us confidence not just in demand, but in timing and execution as we move through the balance of 2026. We're seeing healthy demand across our end markets and improved selectivity in the work we pursue. This momentum reflects the collective efforts of our teams across the organization, and our focus remains on sustaining a book-to-burn profile that supports consistent growth and improved revenue visibility over time. With that backdrop, Axia continues to perform well, and we're encouraged by the growth and momentum we're seeing in the segment. The electrical business remains an important pillar of our long-term strategy, and Axia's progress reinforces our confidence in that vertical as we look to further expand capabilities and market share. We're also seeing increasing opportunity in data centers, which remains an attractive and growing end market for us. Today, we have multiple active bids in Reno and in Texas, and we are in regular dialogue with those customers. While still early, the level of engagement and inbound activity reinforces our view that data centers represent a compelling growth vertical over the medium and to long term. From a commercial standpoint, the environment looks very similar to last quarter, with a strong and growing backlog, a healthy pipeline of work, and several pending items we expect to convert over the next quarter or two. Our overall 24-month pipeline remains robust, with expected 600 million to a billion in bidding volumes per month. Looking forward, our pipeline continues to be a real strength, allowing us to grow our revenues and margins while being selective and strategic about what we pursue. Our elevated level of bidding activity translated directly into meaningful backlog growth during the quarter, with the total backlog increasing to 944 million at the end of the first quarter of 2026. This represents our highest backlog level in more than two years, reflecting both improved win rates and continued discipline around the work we pursue. This momentum is also evident in our book-to-burn ratio of 2.6 in the first quarter. During the quarter, we booked $289 million in new work. Taken together, these wins enhance revenue visibility and support our expectation for accelerated growth as projects begin to ramp up over the course of the year. These new projects include major flood protection and stormwater infrastructure projects in California, as well as wastewater expansion work in Texas, reflecting strong demand for our core capabilities across our target markets. In California, we were awarded several water resources projects that speak to the critical nature of our work and our in-depth experience in the state. In Northern California, the Vista Grande Drainage Basin Improvements Project represents a large-scale modernization of stormwater infrastructure designed to address chronic flooding challenges and improve resilience for the surrounding community. The project involves complex underground construction and integrated civil, mechanical, and electrical scopes, aligning well with our core self-performed capabilities. We were also awarded additional flood protection work in Napa, where we will construct new flood walls as part of the county's broader, long-running flood management program. This project further expands our presence in Northern California and reinforces our role in delivering essential infrastructure that protects communities and local economies. And in Texas, we continue to see attractive opportunities tied to population growth and long-term infrastructure investment. During the quarter, we were selected for a wastewater treatment plant expansion project in Austin, supporting the city's efforts to increase capacity and meet rising demand. The scope includes complex concrete structures, underground systems, and process-related infrastructure, and reflects continued demand for our technical expertise in water and wastewater markets. Our strategy is focused on improving execution, so revenue growth translates into stronger and more consistent net income. That starts with operational discipline. We've been implementing targeted enhancements across the business to improve visibility, accountability, and decision-making as we scale. Experienced leadership is a key part of that. In April, we announced the appointment of Sarah Thacker as Executive Vice President and Chief Operating Officer. We continue to bolster our management team with hands-on operational experience at scale, which is driving more disciplined project execution and risk management. We're also strengthening our project controls and technology, giving us better insight into cost, schedule, and productivity. This allows us to identify issues earlier and manage performance more proactively. Centralized procurement is improving purchasing efficiency and cost control by leveraging our scale and standardizing processes across the organization. And talent retention and acquisition remain a top priority for us. Having the right people in place is critical to executing our strategy effectively in a competitive labor market. Additionally, we continue to advance our shift towards more collaborative contracting models. Subsequent to quarter end, we were selected for a project with California Water Service for a wastewater treatment plant in Southern California, delivered through a progressive design-build contract with an estimated construction value of $50 million. While this opportunity is not reflected in our core rent backlog, it showcases demand for our capabilities and supports our strategic focus on projects that give us an opportunity to partner with our clients earlier in the project lifecycle. These projects support our strategy toward risk-balanced contracts, where we provide value to our clients through our technical expertise. With that, I'd like to turn to Todd, who will review our financials in more detail.