Williams Industrial Reveals Loss Of Contracts; Plans Appropriate Legal Action Against Ex-Employees, Competitor

Williams Industrial Services Group Inc 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.