Shimmick stock gains after launch of electrical subsidiary

Published 23/06/2025, 21:16
© Reuters.

Investing.com -- Shimmick Corporation (NASDAQ:SHIM) stock surged 6% following the company’s announcement of a new electrical subsidiary aimed at expanding its infrastructure solutions portfolio.

The national infrastructure solutions provider launched Axia Electric LLC, a dedicated electrical subsidiary designed to capitalize on growing market demand for specialized electrical and power distribution solutions. The new entity will focus on low- and medium-voltage markets, along with commissioning and operations and maintenance services.

"Our electrical team has a longstanding track record of delivering outstanding results on some of the nation’s most critical infrastructure," said Ural Yal, CEO of Shimmick. "With Axia Electric, we’re sharpening that focus to better serve a growing market and increasing demands from our customers for our electrical and power services."

The company reported that Axia Electric will be led by Fernando DeLeon and has already secured recent electrical contract awards totaling $42 million. These include projects for various California municipal clients and Redwood (NYSE:RWT) Materials in Nevada.

Shimmick currently has over $380 million in active electrical construction projects under contract, according to the company. The new subsidiary will leverage Shimmick’s 20-year history in delivering complex electrical systems across public and private sectors, including municipalities, airports, ports, and industrial manufacturers.

The subsidiary will serve multiple infrastructure markets including water, industrial, mission-critical, aviation, transportation, transit, and energy sectors.

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