- Williams Industrial Services Group Inc (NYSE:WLMS) previously informed that one of its largest customers had transferred certain work to a competitor and noted this has continued to occur.
- The company informs several multi-year contracts for nuclear decommissioning, currently worth ~$360 million in the backlog for 2022 through 2029, are expected to be lost, including $30 million for 2022 and $50 million for 2023.
- The company's previously issued FY22 guidance incorporated the $30 million impact for the year and thus remains unchanged.
- Related: Why Are Williams Industrial Services Shares Trading Lower Today?
- The company is pursuing appropriate legal action against its former employees and the competitor involved in this situation.
- "We regret the loss of this long-term nuclear decommissioning work in our backlog," said CEO Tracy Pagliara. "On the other hand, the contracts in question did not represent a significant amount of our gross profit in any particular year – including the current one. We remain committed to keeping as much business with this customer as possible."
- Williams' total backlog as of December 31, 2021, excluding the lost decommissioning contracts, total $275 million.
- Price Action: WLMS shares are trading lower by 8.52% at $1.61 on the last check Monday.
