WLMS - Williams Industrial stock falls 7% on 2022 revenue miss strategic review

Williams Industrial Services ( NYSE: WLMS ) stock fell 6.9% on Wednesday after the firm guided for 2022 revenue below its target and said it will explore strategic alternatives to maximize shareholder value, which could include a potential sale.

2022 revenue is projected to be $235M-$240M (down ~21%-23% Y/Y) vs. prior guidance of $245M-$255M .

"Williams ( WLMS ) ended the year underperforming our guidance. This was largely because an additional $6M write-down in Q4 was deemed necessary for our two largest remaining Florida water contracts. These two projects are scheduled to be completed in Q2 and Q3 2023, respectively," said CEO Tracy Pagliara.

The company is no longer pursuing large fixed price water projects, Pagliara added.

Williams ( WLMS ) expects 2022 gross margin of ~2.75%-3%, including ~$11.6M of losses relating to its Florida water business and $5.7M of net startup expenses associated with its entry into the transmission and distribution market.

2022 adj. EBITDA loss is estimated to be $4.5M-$3.8M, including two legal settlements that comprise $10.8M of other income in the financial statement.

Year-end backlog was ~$330M, including an ~$35M recent contract win with a nuclear utility customer.

Final audited results will be released on or about March 31.

Williams ( WLMS ) is at high risk of performing badly, according to SA Quant .

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