Good afternoon, and thank you all for joining us on today's call. I'm joined by Todd Yoder, Shimmick's new CFO. I'm excited to introduce Todd on his first earnings call with Shimmick. Todd joined Shimmick earlier last month and brings a proven track record of financial leadership and strong collaboration with operations in the construction industry. Over the course of his career, his experience at other publicly traded companies has allowed him to align financial expertise with long term operational execution excellence, which is exactly what we're looking to do in our business. And I wanna thank Amanda Mobley, who served as interim CFO over the course of the last few quarters. I'm excited that Amanda will continue her career at Shimmick as chief accounting officer. She's an integral piece of our financial success going forward, and we appreciate all that she's doing to ensure a smooth transition and partnership with Todd. And with that, let's get started. I'm going to start by discussing our results for the first quarter. And our progress on the strategy we put in place at the end of twenty twenty four. For the first quarter of twenty twenty five, delivered revenues of 122,000,000 with a gross margin of $5,000,000 and an adjusted EBITDA of negative 3,000,000 Of the first quarter revenues, nearly 76% came from projects.

These are the projects we've won since we became an independent company after previous ownership. We've seen improved margins on Shimmick projects since the last quarter as we put operational improvements in place and we are starting to trend towards the margins we expect to see consistently. As we continue to derisk our backlog. On legacy and foundation projects, which are the projects dating back to previous ownership, or were part of the Knight divested foundations business, we continued to put work in place and draw down backlog and saw only nominal losses this quarter. Our liquidity remains strong as we finish the first quarter with a total liquidity of $71,000,000 Overall, while we have more work to do, we are encouraged to see more stability in our business and recording good trends towards our goals as we start to implement the new strategy we put in place earlier this year. Our backlog at the end of the first quarter was approximately approximately $740,000,000 composed of 90% Shimmick projects. We have been seeing slowdown in bidding for larger public projects, and believe uncertainty around funding streams and tariffs has been a key contributing factor. This quarter, we have seen certain clients pause project awards and bids, waiting for certainty around funding availability, impacting our ability to replenish and grow our backlog.

That said, this is already proving to be a brief pause, and we expect bidding activity activity to be higher than normal in Q2 and Q3. Due to those paused projects being released to bid. In addition, we are starting to see clients accelerate their bid dates in anticipation of potential price increases due to the tariffs and trying to lock in prices before they go up. In response to the slowdown in bidding in Q1, we have increased our bidding frequency, which has translated to wins on smaller projects that we may have overlooked in the past. We almost tripled our bid activity since the last quarter, and are seeing even higher levels of bidding in the second quarter. We have several projects in negotiation or execution phase, which are expected to add to our backlog in Q2 of this year. We continue to make progress working down the exposure of legacy projects in the backlog as well. At the end of the first quarter, legacy projects only accounted for roughly 10 of the backlog, down from 13% a quarter ago, and 20% year over year. The investments we spoke about on the last call related to reorganizing our sales and estimating departments, substantially increasing our bid volume, and improving our win rates are starting to show some results in the second quarter.

We have a robust proposal pipeline of roughly $2,000,000,000 of upcoming bids, we are confident that we are well positioned as the market for larger public projects comes back. However, we recognize the continued uncertainty in the market and although we are encouraged by the recent increased bidding activity, we are carefully watching this aspect of the business. Finally, I would like to discuss tariffs and their impacts on our current backlog. Our existing projects are generally in mature stages. And all of the materials that may have otherwise be impacted by tariffs are already under contracts, with fixed prices, resulting in a minimal impact on our ongoing projects. For new projects, our disciplined bidding approach ensures that we pass price premiums to the customer. As a result, we don't expect negative impacts to our margins due to tariffs. However, in the longer term, rising prices could strain client budgets and may result in down scaling or cancellation of future projects due to funding shortages. In particular with public clients. Meanwhile, we are continuing to see strong activity on the private side, and we are in close contact with all of our clients watching for new developments. One area where we have seen a pickup in activity is our electrical and technology driven infrastructure market expansion, where we saw multiple wins the core in the in the quarter and recently.

As we explained last quarter, we see electrical work taking a larger share of more construction projects due to technological improvements, along with growing needs in water, transit, data centers, and other segments. With the investments we're making in estimating sales and operations, we expect electrical work to continue to grow in share of our backlog with a target of 30% by 2027 from approximately 15% today. I'm excited about the progress we have made so far in 2025. We are executing on our plan, in our in our four key end markets, water infrastructure, climate resilience, technology and energy transition, sustainable transportation. Leveraging our strong expertise and client relationships in these markets. The U. Water infrastructure market remains robust and well funded. Driven by aging assets, pollutant treatment, and regional water scarcity. Climate resilience is a growing field due to intensifying weather events, with projects such as seawalls and flood mitigation gaining momentum. The rise of AI in is fueling demand for data center infrastructure, presenting opportunities for our water, cooling, and electrical capabilities. Despite some uncertainty in the energy sector, we continue to see investment in electrification and battery storage. And have a strong pipeline of bids coming up.

To support growth, we've implemented three strategic pillars at the beginning of this year. Building a sustainable risk balanced backlog with geographic diversification, and increased use of collaborative delivery methods. Driving operational excellence through system upgrades, improved risk management, and disciplined SG and A control, and investing in people and culture, with new incentive programs, clearer career paths, and talent retention efforts. We remain optimistic about 2025, aiming to grow backlog restore profitability, and expand our addressable markets. With that, I'd like to turn to Todd, who will review our financials in more detail.

Thank you, Yuriel, and thank you to those on the call for joining us today and for your interest in Shimmick. To expand on your all's comments at the top of the call, I joined Shimmick with nearly two decades of public company experience. With fifteen of those years working with some of the most talented in the construction industry in both finance and operations. This provides me with a unique perspective on what it takes to win in this business. You will hear me talk a lot about winning the right way. Which which I will expand on in the future. But for now, I will say my guiding principles align lockstep with the three pillars your all has shared with you. Shimmick has a rich history as an industry leader, And over the past month, I've had the opportunity to meet many of the talented people across the business who have been key to Shimmick's strong reputation in the market past success, and rich history. As we begin the next chapter of Shimmick's success and growth, I couldn't be more excited about the talented people strong capabilities, and the market opportunities we have ahead of us. Let's jump into the first quarter.

All comparisons made today be on a year over year basis as compared to the same period in 2024. For the first quarter of twenty twenty five, we were revenue of a hundred and 22,000,000 compared to a hundred and $20,000,000 for the prior year period. Revenue on Shimmick projects was $93,000,000 for the quarter as compared to $90,000,000 a year ago. The increase in revenue was primarily the result of revenue from new water and infrastructure projects, ramping up in the California Palisades fire cleanup project. This was partially offset by decreases from lower activity on existing projects as they continue to wind down. Gross margin recognized on Shimmick projects in the first quarter was $5,000,000 as compared to a negative $1,000,000 in the margin recognized a year ago. The increase in gross margin was primarily the result of $3,000,000 in gross margin from new water and infrastructure projects ramping up, and 3,000,000 in gross margin from the California Palisades fire cleanup project. Legacy and foundations projects revenue was $29,000,000 for the first three months. Ended 04/04/2025, a decrease of $1,000,000 as compared to the three months ended 03/29/2024 as the company works to wind down these projects. Gross margin from legacy and foundations projects was negative $1,000,000 for the first three months.

As compared to negative $15,000,000 for the prior year quarter. This change was driven as a result of increases per time and design related schedule extensions identified during the first quarter of twenty twenty four, which did not reoccur during the first quarter of this year. As a reminder, these legacy projects continue to wind down to completion. And no further gross margin will be recognized. Furthermore, in some cases, there may be additional costs associated with these projects, which will be recognized in the period. We also reported SG and A expenses of $14,000,000 for the quarter, down nearly $2,000,000 or 11% versus the prior year quarter. This was driven as a result of continued implementation of Shimmick's transformational plan. Our net loss for the first quarter twenty twenty five was $10,000,000 compared to a net loss of $33,000,000 for the prior year period. This material improvement was primarily due to improvement in gross margin of $21,000,000 related to legacy projects. First quarter adjusted EBITDA was negative $3,000,000 to negative $24,000,000 in the prior year period. Turning to the balance sheet. Unrestricted cash and cash equivalents ending the first quarter totaled 16,000,000 and availability under our credit agreements was $55,000,000 resulting in total liquidity of $71,000,000.

Feel comfortable that our liquidity position ending the first quarter provides the capital needed to carry out our strategic and operational plan. Our backlog remains strong and with $739,000,000 at the end of the first quarter, The mix of our backlog continues to improve as Shimmick projects now represent 90% of the total backlog ending the first quarter. We are committed to winning the right way. One of the three pillars that define our growth strategy is sustainable, [indiscernible] Centers around a disciplined approach to how we bid work, while remaining focused on work that aligns with our core capabilities. We are pleased with our first quarter results and the momentum it provides us to start 2025. We grew our top line while achieving significant improvement in our gross margin, and SG and A, for the year over a on a year over year basis. The results are a testament to the diligent work the team is doing to advance our strategy. Which is centered around building sustainable backlog with a renewed focus on operational excellence, and people and culture. We continue to closely monitor the fluidity of tariff policy, At this point, we are reaffirming our full year guidance.

We expect to deliver results in our previously stated guidance ranges. Expect Shimmick projects revenue to increase 10% to 15% with overall gross margin between 912%. We expect legacy project legacy projects and foundation projects revenue between 50,000,000 and 60,000,000 with gross margin between negative five and negative 15% as we complete these projects. And we expect to achieve adjusted EBITDA between $15,000,000 and $25,000,000. With that, I'd like to turn it over now to Yarav for some closing remarks.

Last quarter, I stated our goal of making Shimmick one of the nation's leading sustainable infrastructure companies. I'm excited to see the progress we are making on several fronts to achieve this goal. Despite the uncertainties we experienced in q one at the macro level, we have a resilient structure, strong backlog, and exciting pipeline of opportunities ahead of us in 2025. As the strategic initiatives we are putting in place this year take hold, I expect to see stronger financial outcomes over the next several years. I want to express my appreciation to the entire Shimmick team for their tireless efforts this [indiscernible] Towards the great future we are building for our company. Operator, you may now open the line for questions. We will now move our question and answer session. At this time, you would like to ask a question, please click on the raise hand button can be found on the black bar at the bottom of your screen. You may remove yourself from the queue at any time by lowering your hand. It is your turn, will receive a message on your screen asking to be promoted to a panelist. Please accept, wait a moment, and once you have been promoted, you will hear your name called, and you may unmute your video and audio and ask your question.

We will now pause a moment to allow the team to gather assemble the queue. Your first question comes from the line of Aaron Spichalla from Craig Hallum. Please unmute your audio and video and ask your question.

Yeah. Hi, Yaral and Todd. Thanks for for taking the questions. You know, maybe first for me, you just kinda talk about visibility into the guidance for for the year on the Shimmick projects, both on revenue and gross margin, just given the performance in the first quarter. Then maybe as part of that, just kinda if you could elaborate on you know, what you're seeing on the on the tariff side of things. It sounds like, you know, there kinda was a brief slowdown, but you're starting to see things kinda pick back up If you could just give a little more color there, that'd be great.

Yep. Yep. Yep. Thanks, Aaron. Good to see you. Yeah. So Shimmick projects, we've seen some performance improvement in q one. Obviously, it's not where the guidance is yet. But we are making, changes and operational improvements and looking at the the backlog and and where the work what we we have to put in place the rest of the year, we're still feeling good about the the guidance we have. On on the 90% mark is a is a is a is a pretty big milestone for us. And we're we're really down to the to the end of it now for for for those projects. And there's only a few of them, really. And then just touching on the tariffs, and I'll let Todd chime in as well. But we saw a brief pause, and I think that's really related to just the uncertainty of it. Just a lot there was a lot of a lot of uncertainty around where the funding streams were and and and and and staff at the federal level as well as just just making sure they they they the our clients are feeling good about the funding, that it's still gonna be there.

That resulted in a few bids and and and few clients pausing, their their bid dates pushing their bid days or contract awards. But we're seeing that right come right back as we see some stability now over the last month month and a half. And in fact, like I mentioned in the in the earlier it's there's a there's a concern around prices going up with the tariffs and, hey. Let's get our let's get our bids as as fast as we can, to lock prices in on a lot of these situate a lot of these projects. And we see we were starting to see a lot more activity than we had expected in q two because of that. So that gets us, that us pretty optimistic. And then, Todd, maybe you can touch on tariff exposure we have right now.

Yeah. So tariffs, right, is the word du jour these days. But, really, the way we look at that we break it down into EPC language, which know, our business tends to be a lot stickier you know, with three, sometimes four year projects. Right? So so pricing you can't pass that on to to clients like you can in other some other businesses So we look at, you know, commodity exposure, We look at inflation equipment prices. And what we wanna know is what exposure do we have to fixed price work, and then what we call bought out. So what percentage are we bought out on those exposures? Or committed which means we already have those exposures locked in, those commodities. Those those items that could be impacted by inflation. And so running through that analysis, we believe we're around 9096% bought out. On most of those exposures. So we see you know, with our existing backlog, we see that as a a minimal exposure at this at this time.

Alright. Thanks for the the color there. And then maybe second, can you just kinda you mentioned, you know, new awards and and extensions that are pending. You know, can you just maybe quantify some of Maybe give a little more detail. Have we seen them already here in the, in the second quarter? Are are they still, to come And then maybe just kind of a follow on with that. I mean, I saw you know, the Palisades kinda was a was a good driver in the first quarter. Maybe if you could just touch on you know, that that project and kinda the potential size and contribution there.

Yeah. That that project's ongoing. So then that's a that's a cost plus. So we recognize that as as it goes. So, yes, that's part of, that's part of what the activity we're gonna see in q two, as well as, like I like I mentioned, we have been we have projects that we were low bidder on But, again, through that pause that I that I discussed earlier, It's they have not been awarded, but we expect to see start to see them in in q two. And it's we have a we probably have the the the most the busiest bidding activity we've had in a in a while, this May and June time frame. So some of that may fall into q two, some of it may not, but, we're seeing we're seeing really, really strong bidding activity along with certain contracts getting negotiated. And then there's a few change or larger change orders of both on the Shimmick side as well as the legacy contract side. That we are working to to to finalize with clients. So generally positive, and and I think most the most positive part of it is is this this very high level of bidding activity is extremely encouraging.

It's it hasn't been this way. Earlier in the year, so I'm looking forward to it.

Good. And then you know, maybe one more just on know, kinda capacity and and liquidity. Sounds like, you know, you feel comfortable with the liquidity you have. I mean, just with what you've added on the estimating side and, you know, building out kind of the piece of the business, can you just talk about, you know, what kind of revenue capacity or just the size of the business, could could today and and just any other investments you're you're looking to make in the business.

Yeah. No. That's a great question. So we are we are comfortable with the liquidity We we have largely completed a lot of those investments. We've brought on we filled every all the positions that we had expected to fill except for two at this point and brought really expanded our sales and estimating team, business development estimating team, and they are they are hard at work now. So we're we're we're very hopeful that we're gonna see the benefits of that. And honestly, it's the the struck the overhead structure we have right now we can easily handle 607 hundred, 750,000,000 a year without adding significant additional overhead. So, you know, assuming we we we we succeed in our in our in this in this effort to increase our bid volume and win rates. I think we can we have that excess capacity, especially on on on critical side in the water and electrical piece that not everybody has at this point. I think, assuming we can deliver on the, on the sales side, I think we have we have some really good opportunity here rest of the year.

Got it. And then just maybe one last one. Apologies. But you you kinda talked about in the past potentially, you know, accelerating some of the legacy projects into 2025. I mean, I see you kept the the same guidance. Maybe, just just an update there on on that potential.

Yeah. We we're we're trying, on a on a couple of them. There are some good opportunities there. I can't I can't say that I'm I'm ready to declare them yet, but, we're working towards them. But at the same time, towards the end of these projects, there's always, scope growth, you know, loose ends to tie up and and and and, you know, the clients want certain things done in addition to the in as a change or to the contract. So there's there's a bit of that as well that might push it again back out. The the majority of the work we are working very hard to bring it back as as as forward as possible as as much as we can.

Alright. Good. Thanks for taking the questions. I'll turn it over.

Thanks, Aaron.

Thanks. See you.

There are no more questions at this time. I'd now like to turn the call over to Yuril for closing remarks.

Thank you. As we stated, we are very excited for the rest of the rest of 2025 and what we've accomplished so far in the first quarter. A lot of the operational sales estimating and process improvements that we are we have put in place and we are continuing to put in place are starting show show good results, and and the the our our results in the first quarter are a good initial indication of of what's to come. So we are we are very happy with our progress. We have a very strong new management team with Todd joining as well, and we see a lot of opportunity in February to 2025 into 2026. Even though we've had faced some uncertainty this this quarter, we think that there's a there's a we have an opportunity to to turn that into a positive the rest of the year and deliver the the the the results that we had provided guidance for earlier in the year. Thank you for joining, and thanks for your interest in Shimmick.