Shimmick Awarded Contract for North Hollywood to Pasadena Bus Rapid Transit Project

Rhea-AI Summary

Shimmick Construction and Myers and Sons, operating as Myers-Shimmick Joint Venture (MSJV), have been awarded an $8.26 million contract for preconstruction services on the North Hollywood to Pasadena Bus Rapid Transit Project by LA Metro. The project involves developing a 19-mile transit corridor connecting multiple California cities with 22 new stations.

If awarded the construction phase, the project's estimated value would be $190 million. The initiative aims to provide faster transit options, reduce traffic congestion, and improve air quality using zero-emission electric buses. Early utility work is scheduled to begin in 2025, with completion targeted for 2028.

Positive

• Secured $8.26 million contract for preconstruction services
• Potential additional $190 million construction phase contract
• Strategic partnership with Myers and Sons strengthens market position

Negative

• Construction phase contract not yet secured
• Extended project timeline until 2028 may impact cash flow

Insights

Financial Analyst

The $8.26 million preconstruction contract, with potential for a $190 million construction phase, represents a significant opportunity for Shimmick. This project enhances the company's already strong presence in California's infrastructure sector and demonstrates their continued ability to secure large-scale public transit projects. The CM/GC delivery method typically allows for better risk management and cost control, which could lead to improved project margins. The partnership with Myers and Sons through their joint venture also helps distribute project risks while leveraging combined expertise. The 2028 completion timeline suggests steady revenue streams over the next several years if the construction phase is awarded. This contract win strengthens Shimmick's order backlog and provides good visibility for future revenue growth.

Infrastructure Expert

The NoHo-Pasadena BRT project represents a strategic infrastructure development in LA County's transit network. The 19-mile corridor with 22 stations will significantly improve regional connectivity and reduce transit times. The CM/GC approach is particularly noteworthy as it allows for contractor input during design development, potentially reducing construction risks and optimizing project delivery. The focus on zero-emission electric buses aligns with California's environmental goals and positions Shimmick well for future green infrastructure projects. The early utility work starting in 2025 indicates proper planning for underground infrastructure coordination, which is important for urban transit projects. This project showcases Shimmick's capabilities in managing complex urban transit infrastructure while addressing environmental and community needs.

IRVINE, Calif., Dec. 05, 2024 (GLOBE NEWSWIRE) -- Shimmick Construction Company, Inc. (“Shimmick”), a leader in critical infrastructure, water, and transit solutions, announced today that it has been awarded a key role in the North Hollywood to Pasadena Bus Rapid Transit (BRT) Project by Los Angeles Metropolitan Transportation Authority (LA Metro). Shimmick, with our partner Myers and Sons, as part of the Myers-Shimmick Joint Venture (MSJV), will serve as the Construction Manager/General Contractor (CM/GC) for the project's preconstruction services phase.

The $8.26 million contract for preconstruction services approved on December 5, 2024, by the LA Metro Board of Supervisors, marks the beginning of this transformative 19-mile transit corridor connecting North Hollywood, Burbank, Glendale, Eagle Rock, and Pasadena in California. Featuring 22 new stations, this BRT project will provide faster, more reliable transit options, reduce traffic congestion, and improve air quality with the use of zero-emission electric buses. The construction value for the construction phase, if awarded to Myers-Shimmick Joint Venture by LA Metro, is estimated at $190 million.

"We are excited to once again partner with Myers and Sons and LA Metro on this critical infrastructure project to improve mobility and connectivity for millions of LA County residents," said Ural Yal, CEO of Shimmick. "We are encouraged to utilize the CM/GC project delivery method, which allows the entire project team to work together to address projects risks and set the project up for success during the construction phase."

The project enhances transit access for disadvantaged Equity Focus Communities (EFCs) in the project area, including improved pedestrian and bicycle facilities, and utilizes electric zero-emission buses to improve air quality and reduce greenhouse gas emissions.

The preconstruction phase will involve close collaboration between the Myers-Shimmick team, Metro, and the design team to refine project designs, ensure cost control, and develop a comprehensive construction schedule. Early utility work is scheduled to begin in 2025, with the project slated for completion by 2028.

For more information, visit Metro's North Hollywood to Pasadena Transit Corridor Project Page.

ABOUT SHIMMICK
Shimmick (NASDAQ: SHIM) is a leading provider of water and critical infrastructure solutions nationwide. Shimmick has a long history of delivering complex infrastructure projects from the world's largest wastewater recycling and purification system in Orange County California to the iconic Hoover Dam. Shimmick is at the forefront of delivering solutions to meet the nation’s growing demand for water infrastructure. Our self-performing capability ensures better cost control, quality and client satisfaction across our diverse project portfolio. According to Engineering News Record, in 2024, Shimmick was nationally ranked as a top ten builder of water supply (#8), dams and reservoirs (#6), and water treatment and desalination plants (#7).

CONTACT INFORMATION
Investor Relations
+1-949-704-2350
IR@shimmick.com

FAQ

What is the value of Shimmick's (SHIM) North Hollywood to Pasadena BRT preconstruction contract?

The preconstruction services contract awarded to Myers-Shimmick Joint Venture is valued at $8.26 million.

When will Shimmick's (SHIM) North Hollywood to Pasadena BRT project be completed?

The project is scheduled to begin utility work in 2025 and is slated for completion by 2028.

How many stations will be built in Shimmick's (SHIM) North Hollywood to Pasadena BRT project?

The project will include 22 new stations along the 19-mile transit corridor.

What is the estimated construction phase value for Shimmick's (SHIM) BRT project?

The construction phase value, if awarded to Myers-Shimmick Joint Venture, is estimated at $190 million.