Shares of Shimmick Corporation (NASDAQ: SHIM) experienced a substantial increase in the US stock market, particularly during the extended trading session. As of the latest after-market check, SHIM stock surged by 49.75% to $3.10, following a 12.50% rise in the regular session, where it closed at $2.07. This remarkable growth is attributed to Shimmick’s recent announcement of a significant subcontract win.
Key Contract Details and Project Scope
The Sunol Valley Water Treatment Plant Ozonation project has awarded Shimmick (SHIM) a $27,583,595 subcontract for electrical work. The main contract worth $234,782,000 was originally awarded to J.F. Shea Construction, Inc. by the San Francisco Public Utilities Commission (SFPUC) on May 14, 2024.
This project is located in Sunol, Alameda County, and its goal is to improve the raw water that is provided to the Sunol Valley Water Treatment Plant in terms of flavor and odor management. It includes building an ozone treatment plant and associated infrastructure, including an ozone contact basin, an ozone generator building, and other supporting systems.
Installing high-voltage power systems and putting in place instruments and controls for the new ozonation plant are among Shimmick’s duties.
Shimmick Made Strategic Organizational Changes
In addition to this critical infrastructure project, Shimmick recently announced changes within its finance leadership to support its strategic transformation into a more focused water infrastructure company. After Devin Nordhagen’s departure, Amanda Mobley, an experienced financial expert from Shimmick, has been named interim Chief Financial Officer.
Mr. Nordhagen is stepping down to pursue other business interests but will remain with the company for a transition period. Ms. Mobley, known for her strong field management collaborations and respected leadership, will concentrate on organizational execution to drive SHIM’s next phase of growth.
Impact and Future Prospects
This substantial investment in water quality improvement for the San Francisco Bay Area underscores Shimmick’s expertise in complex water treatment projects and its capability to execute specialized electrical work.
The ozonation system will provide additional primary disinfection, enhance treatment reliability, and offer an extra safeguard against emerging contaminants. Shimmick’s involvement in such a critical infrastructure project is expected to significantly bolster its reputation and growth prospects in the water infrastructure sector.
