US Market News
2 months ago
Limbach Holdings, Inc. Reports First Quarter 2026 ResultsMay 5, 2026 4:17 PM
Business Wire Reaffirms Full Year 2026 Revenue Guidance of $730 million to $760 million and Adjusted EBITDA of $90 million to $94 million Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”), a building systems solutions firm that partners with building owners and operators who have mission-critical mechanical, electrical, plumbing, and controls, or MEPC, systems today announced its financial results for the quarter ended March 31, 2026. First Quarter 2026 Highlights Compared to First Quarter 2025 Total revenue increased 4.3% to $138.9 million from $133.1 million Owner Direct Relationships (“ODR”) revenue increased 10.4%, or $9.4 million, to $99.8 million, or 71.9% of total revenue Total sales booked during the quarter were $209.1 million, generating a book-to-bill ratio of 1.5x Net income of $4.4 million, or $0.36 per diluted share, compared to $10.2 million, or $0.85 per diluted share Adjusted net income of $7.8 million, or $0.64 per adjusted diluted earnings per share, compared to adjusted net income of $13.5 million, or $1.12 per adjusted diluted earnings per share Adjusted EBITDA of $8.7 million, compared to $14.9 million Total gross profit of $31.2 million, compared to $36.7 million Net cash used in operating activities of $7.8 million compared to net cash provided by operating activities of $2.2 million Management Comments “We delivered solid first quarter results in line with our expectations and generated an exceptionally strong level of bookings that we view as the clearest indicator of strengthening demand across our end markets. This momentum positions Limbach for accelerating organic revenue growth as orders convert to sales,” said Mike McCann, President and Chief Executive Officer of Limbach. “The Company’s $209.1 million of bookings and 1.5x book to bill ratio reflect meaningful demand strength across mission critical end markets and provide strong visibility into future revenue conversion. Over the past two quarters, we generated more than $434 million of bookings, reinforcing our confidence in our revenue guidance for 2026. We also see strong momentum in the data center vertical, which represented approximately 27% of bookings in the quarter. Limbach has longstanding relationships with mission-critical and hyperscale customers, and we are building on that foundation as demand in this market continues to accelerate, driving increased participation and meaningful contributions to our overall growth. “Margins were impacted this quarter by lower fixed cost absorption, the absence of higher net project write-ups that benefited the prior-year period, and near-term mix impact from Pioneer Power, which carries a lower margin profile today. However, we have already implemented targeted pricing, operational, integration, and sales initiatives that we expect will drive margin improvement as we progress through 2026. “With a strong balance sheet, a durable business model, and continued investment in our national sales organization and mission critical end markets, we believe we are well positioned to execute our growth strategy. Our strategic priorities for the year are focused on driving ODR organic revenue growth, expanding margins through higher-value customer solutions, and disciplined capital allocation as we scale the business through acquisitions. We believe this positions Limbach to become a leading building solutions partner for owners of mission critical facilities and to deliver attractive long-term value for our stockholders.” The following are results for the three months ending March 31, 2026, compared to the three months ending March 31, 2025: Total revenue increased 4.3%, or $5.8 million, to $138.9 million from $133.1 million. The increase in revenue was primarily attributable to Pioneer Power, which was acquired in July 2025, and contributed a full quarter of revenue in the current period with no comparable contribution in the prior-year period. Of the total increase in revenue, acquisition-related revenue represented 17.7%, or $23.5 million, which was partially offset by a decrease in organic revenue of 13.4%, or $17.8 million. The decline in organic revenue reflects the impact of lower bookings in the middle of 2025 and normal seasonal patterns among industrial customers. More recent booking activity has strengthened significantly, which the Company expects will drive revenue growth as the year progresses. ODR segment revenue increased 10.4%, or $9.4 million, to $99.8 million. Acquisition-related revenue increased 15.8%, or $14.3 million, partially offset by a 5.4%, or $4.9 million decrease in organic revenue. General Contractor Relationships (“GCR”) segment revenue decreased 8.6%, or $3.7 million, to $39.0 million. Organic revenue decreased 30.2%, or $12.9 million, partially offset by a 21.6%, or $9.2 million increase in acquisition-related revenue. Total gross profit decreased 15.1% to $31.2 million compared to $36.7 million. Total gross margin of 22.4% decreased from 27.6%. ODR gross profit decreased 12.1%, or $3.2 million, to $23.0 million from $26.2 million, while gross margin decreased to 23.0% from 28.9%. The decrease in gross margin was primarily driven by lower fixed cost absorption due to seasonal revenue levels and higher fixed costs, the absence of higher net project write-ups that benefited the prior-year period and the current lower margin profile of Pioneer Power. As the Company advances its integration strategy of Pioneer Power, management expects gross margins to improve as 2026 progresses. Operational and pricing improvement initiatives are underway to enhance profitability at Pioneer Power with the goal of bringing gross margins in line with the Company average over the next two to three years. GCR gross profit decreased 22.5%, or $2.4 million, to $8.2 million from $10.6 million, while gross margin decreased to 21.0% from 24.7%. The decrease in gross margin was primarily due to lower margin work associated with Pioneer Power and the absence of higher total net project write ups that benefited the prior-year period. Selling, general and administrative (“SG&A”) expense increased by approximately $1.6 million to $28.1 million, compared to $26.5 million in the prior year period. The increase was primarily driven by a $1.6 million increase in payroll-related expenses and incremental SG&A expense of $0.6 million associated with Pioneer Power. SG&A expense as a percentage of revenue increased to 20.2% for the three months ended March 31, 2026, compared to 19.9% for the three months ended March 31, 2025. Interest expense was $0.7 million, an increase of $0.2 million, compared to $0.5 million in the prior year period. The increase in interest expense was driven by increased borrowings under the Company’s revolving credit facility, as well as higher financing costs associated with a larger vehicle fleet. Interest income was less than $0.1 million compared to $0.4 million in the prior year period. This decrease was related to reduced cash and cash equivalent balances and lower yields on investments. Net income decreased 57.1% to $4.4 million from $10.2 million. Diluted earnings per share was $0.36 compared to $0.85 in the prior year period. Adjusted net income decreased 42.6% to $7.8 million compared to $13.5 million. Adjusted diluted earnings per share was $0.64 compared to $1.12 in the prior year period. Adjusted EBITDA decreased 41.7% to $8.7 million compared to $14.9 million in the prior year period. Net cash used in operating activities was $7.8 million compared to net cash provided by operating activities of $2.2 million in the prior year period. Cash flow in the first quarter of 2026 reflects lower net income and higher working capital timing associated with growth and bookings conversion, in addition to contingent consideration paid for the Industrial Air and Kent Island Mechanical acquisitions. Balance Sheet On March 31, 2026, cash and cash equivalents were $15.8 million. Current assets were $191.8 million and current liabilities were $112.4 million, representing a current ratio of 1.71x compared to 1.44x at December 31, 2025. On March 31, 2026, the Company had $32.4 million in borrowings under its revolving credit facility and $7.0 million of standby letters of credit. The Company intends to deploy free cash flow to continue to reduce its borrowings under its revolving credit facility for the remainder of the year. 2026 Guidance The Company is reaffirming its previous guidance for FY 2026 as summarized in the table below: Revenue $730 million - $760 million Adjusted EBITDA $90 million - $94 million Assumptions: Total organic revenue growth(1) 4 - 8% ODR revenue as a percentage of total revenue 75 - 80% ODR organic revenue growth(1) 9 - 12% Gross margin percentage 26 - 27% SG&A expense as a percentage of total revenue 15 - 17% Free cash flow(2) 75% of Adjusted EBITDA (1) The Company discloses organic revenue and organic revenue growth, which are non-GAAP financial measures, to provide investors with insight into the performance of the Company's existing operations, excluding the impact of acquisitions. These measures are not defined under GAAP and should not be considered as an alternative to total revenue growth or segment-related revenue growth as determined in accordance with GAAP. Refer to additional information at the end of this release regarding certain non-GAAP supplemental revenue disclosures. (2) Free cash flow is defined as cash flow from operating activities excluding changes in working capital minus capital expenditures (excluding investment in rental equipment). With respect to projected 2026 Adjusted EBITDA guidance and Adjusted EBITDA Margin (and the assumptions underlying those projections), a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to certain items, which are excluded from Adjusted EBITDA (and components that go into the calculation of Adjusted EBITDA). The Company expects the variability of these items to have a potentially unpredictable, and potentially significant, impact on future financial results. Conference Call Details Date: Wednesday, May 6, 2026 Time: 9:00 a.m. Eastern Time Participant Dial-In Numbers: Domestic callers: (877) 407-6176 International callers: +1 (201) 689-8451 Access by Webcast The call will also be simultaneously webcast over the Internet via the “Investor Relations” section of Limbach’s website at www.limbachinc.com or by clicking on the conference call link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=lpYdHKl3. An audio replay of the call will be archived on Limbach’s website for 365 days. About Limbach Limbach is a building systems solutions firm that designs, delivers, and maintains mechanical (heating, ventilation, and air conditioning), electrical, plumbing, and controls (“MEPC”) systems that support life’s most important moments. We partner with building owners and operators of mission-critical facilities across healthcare, industrial and manufacturing, data centers, life sciences, higher education, and cultural and entertainment markets. With approximately 1,600 team members across 21 offices throughout the Eastern and Midwestern regions of the United States, we strive to be an indispensable partner by combining our national capabilities with strong local execution and talent to deliver proactive, safe, and reliable solutions for complex facilities. Operating on a connected platform, we integrate engineering expertise with field execution to provide customized MEPC infrastructure solutions that address both operational and capital project needs, optimizing performance, enhancing reliability, and ensuring long-term safety. Additional Information Investors and others should note that Limbach announces material financial information to its investors using its investor relations website, U.S. Securities and Exchange Commission (the “SEC”) filings, press releases, public conference calls/videos, and webcasts. Limbach uses these channels, as well as social media, to communicate with our stockholders and the public about the Company, the Company’s services and other Company information. It is possible that the information that Limbach posts on social media could be deemed to be material information. Therefore, Limbach encourages investors, the media, and others interested in the Company to review the information posted on the social media channels listed on Limbach’s investor relations website. Forward-Looking Statements We make forward-looking statements in this press release within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts for future events, including, without limitation, our earnings, Adjusted EBITDA, projected EBITDA production from possible acquisitions, bookings, projected full year 2026 organic ODR and/or organic revenue growth, revenues, expenses, backlog, capital expenditures or other future financial or business performance or strategies, results of operations or financial condition, timing of the recognition of backlog as revenue, the potential for recovery of cost overruns, and the ability of Limbach to successfully remedy the issues that have led to write-downs in various business units and the Company’s business being negatively affected by the health crises or outbreaks of diseases, such as epidemics or pandemics (and related impacts, such as supply chain disruptions). These statements also may include our assumptions related to our 2026 guidance of full year revenue and Adjusted EBITDA. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “will likely result,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target,” “goal,” or similar expressions. These forward-looking statements are based on information available to us as of the date they were made and involve a number of risks and uncertainties, which may cause them to turn out to be wrong. There may be additional risks that we consider immaterial or which are unknown. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Please refer to our most recent annual report on Form 10-K, as well as our subsequent filings on Form 10-Q and Form 8-K, which are available on the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any forward-looking statements in this press release. LIMBACH HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, (in thousands, except share and per share data) 2026 2025 Revenue $ 138,859 $ 133,108 Cost of revenue 107,689 96,389 Gross profit 31,170 36,719 Operating expenses: Selling, general and administrative 28,114 26,518 Acquisition-related retention expense and contingent consideration 149 427 Amortization of intangibles 1,774 1,863 Total operating expenses 30,037 28,808 Operating income 1,133 7,911 Other (expenses) income: Interest expense (701 ) (526 ) Interest income 15 370 Gain on disposition of property and equipment 238 333 Gain (loss) on change in fair value of interest rate swap 38 (97 ) Total other (expense) income (410 ) 80 Income before income taxes 723 7,991 Income tax benefit (3,657 ) (2,223 ) Net income $ 4,380 $ 10,214 Earnings Per Share (“EPS”) Earnings per common share: Basic $ 0.37 $ 0.89 Diluted $ 0.36 $ 0.85 Weighted average number of shares outstanding: Basic 11,759,399 11,419,455 Diluted 12,067,589 12,051,678 LIMBACH HOLDINGS, INC. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share data) March 31, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 15,766 $ 11,345 Restricted cash 65 65 Accounts receivable (net of allowance for credit losses of $396 at both period ends) 120,506 133,205 Contract assets, net 46,485 45,467 Other current assets 8,937 4,967 Total current assets 191,759 195,049 Property and equipment, net 40,975 43,309 Intangible assets, net 47,442 49,187 Goodwill 70,668 70,600 Operating lease right-of-use assets 19,252 19,792 Deferred tax asset 6,574 2,917 Other assets 302 276 Total assets $ 376,972 $ 381,130 LIABILITIES Current liabilities: Current portion of long-term debt $ 4,906 $ 5,031 Current operating lease liabilities 4,598 4,379 Accounts payable, including retainage 62,127 74,172 Contract liabilities, net 18,060 20,936 Accrued income taxes 1,152 1,152 Accrued expenses and other current liabilities 21,532 29,416 Total current liabilities 112,375 135,086 Long-term debt 51,743 30,536 Long-term operating lease liabilities 15,224 15,925 Other long-term liabilities 1,295 3,922 Total liabilities 180,637 185,469 STOCKHOLDERS’ EQUITY Common stock, $0.0001 par value; 100,000,000 shares authorized, issued 12,100,719 and 11,806,466, respectively, and 11,921,067 and 11,626,814 outstanding, respectively 1 1 Additional paid-in capital 93,629 97,335 Treasury stock, at cost (179,652 shares at both period ends) (2,000 ) (2,000 ) Retained earnings 104,705 100,325 Total stockholders’ equity 196,335 195,661 Total liabilities and stockholders’ equity $ 376,972 $ 381,130 LIMBACH HOLDINGS, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, (in thousands) 2026 2025 Cash flows from operating activities: Net income $ 4,380 $ 10,214 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 4,417 4,072 Provision for credit losses 116 77 Non-cash stock-based compensation expense 1,854 1,594 Non-cash operating lease expense 1,100 994 Amortization of debt issuance costs 16 11 Deferred income tax benefit (3,657 ) (1,881 ) Gain on sale of property and equipment (238 ) (333 ) Acquisition-related retention expense and contingent consideration 149 427 (Gain) loss on change in fair value of interest rate swap (38 ) 97 Changes in operating assets and liabilities: Accounts receivable 12,583 8,900 Contract assets and contract liabilities, net (3,962 ) (1,908 ) Other current assets (3,970 ) (2,345 ) Accounts payable, including retainage (12,045 ) (6,006 ) Accrued taxes payable — (339 ) Operating lease liabilities (1,072 ) (985 ) Accrued expenses and other current liabilities (4,248 ) (9,582 ) Payment of contingent consideration liability in excess of acquisition-date fair value (2,895 ) (711 ) Other long-term liabilities (300 ) (55 ) Net cash (used in) provided by operating activities (7,810 ) 2,241 Cash flows from investing activities: Consolidated Mechanical Transaction, measurement period adjustment — (14 ) Proceeds from sale of property and equipment 299 319 Advances from joint ventures 1 — Purchase of property and equipment (407 ) (2,230 ) Net cash used in investing activities (107 ) (1,925 ) Cash flows from financing activities: Payments on Wintrust Revolving Loan (32,112 ) — Proceeds from Wintrust Revolving Loan 54,492 — Payment of contingent consideration liability up to acquisition-date fair value (3,105 ) (2,289 ) Payments on finance leases (1,264 ) (851 ) Proceeds from the sale of shares to cover employee taxes 5,945 6,344 Taxes paid related to net-share settlement of equity awards (12,037 ) (10,684 ) Proceeds from contributions to Employee Stock Purchase Plan 419 324 Net cash provided by (used in) financing activities 12,338 (7,156 ) Increase (decrease) in cash, cash equivalents and restricted cash 4,421 (6,840 ) Cash, cash equivalents and restricted cash, beginning of period 11,410 44,995 Cash, cash equivalents and restricted cash, end of period $ 15,831 $ 38,155 Supplemental disclosures of cash flow information Noncash investing and financing transactions: Kent Island Transaction, measurement period adjustment $ — $ (94 ) Right of use assets obtained in exchange for new operating lease liabilities 589 — Right of use assets obtained in exchange for new finance lease liabilities — 1,318 Right of use assets disposed or adjusted modifying finance lease liabilities 9 — Interest paid 689 526 Cash paid for income taxes $ — $ — LIMBACH HOLDINGS, INC. Condensed Consolidated Segment Operating Results (Unaudited) Three Months Ended March 31, Increase/(Decrease) (in thousands, except for percentages) 2026 2025 $ % Statement of Operations Data: Revenue: ODR $ 99,811 71.9 % $ 90,393 67.9 % $ 9,418 10.4 % GCR 39,048 28.1 % 42,715 32.1 % (3,667 ) (8.6 )% Total revenue 138,859 100.0 % 133,108 100.0 % 5,751 4.3 % Gross profit: ODR(1) 22,984 23.0 % 26,161 28.9 % (3,177 ) (12.1 )% GCR(2) 8,186 21.0 % 10,558 24.7 % (2,372 ) (22.5 )% Total gross profit 31,170 22.4 % 36,719 27.6 % (5,549 ) (15.1 )% Selling, general and administrative(3) 28,114 20.2 % 26,518 19.9 % 1,596 6.0 % Acquisition-related retention expense and contingent consideration 149 0.1 % 427 0.3 % (278 ) (65.1 )% Amortization of intangibles 1,774 1.3 % 1,863 1.4 % (89 ) (4.8 )% Total operating income $ 1,133 0.8 % $ 7,911 5.9 % $ (6,778 ) (85.7 )% (1) As a percentage of ODR revenue. (2) As a percentage of GCR revenue. (3) Included within selling, general and administrative expenses was $1.9 million and $1.6 million of non-cash stock-based compensation expense for the three months ended March 31, 2026 and 2025, respectively. Non-GAAP Financial Measures In assessing the performance of our business, management utilizes a variety of financial and performance measures. The key measures are Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share, which are non-GAAP financial measures. Adjusted EBITDA and Adjusted EBITDA Margin We define Adjusted EBITDA as net income plus depreciation and amortization expense, interest expense, and taxes, as further adjusted to eliminate the impact of, when applicable, other non-cash items or expenses that are unusual or non-recurring that we believe do not reflect our core operating results. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. Our board of directors and executive management team focus on Adjusted EBITDA and Adjusted EBITDA Margin as two of our key performance and compensation measures. Adjusted EBITDA and Adjusted EBITDA Margin assists us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of certain items that do not necessarily reflect our core operations. We believe that Adjusted EBITDA and Adjusted EBITDA Margin are meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service. Adjusted Net Income and Adjusted Diluted Earnings per Share We define Adjusted Net Income as net income, adjusted to exclude certain items that do not reflect our core operating performance, such as amortization of intangible assets, stock-based compensation, restructuring charges, the change in fair value of contingent consideration, acquisition and other transaction costs and the net tax effect of reconciling items, as further adjusted to eliminate the impact of, when applicable, other non-cash or expenses that are unusual or non-recurring. We define Adjusted Diluted Earnings per Share as Adjusted Net Income divided by the weighted average diluted shares outstanding. We believe Adjusted Net Income and Adjusted Diluted Earnings per Share are useful to investors as we use these metrics to assist with strategic decision making, forecasting future results, and evaluating current performance. We understand that these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share. Our calculations of these non-GAAP measures, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share cannot be achieved without incurring the costs that the measure excludes. A reconciliation of net income to Adjusted EBITDA and net income to Adjusted Net Income, the most comparable GAAP measures, are provided below. Backlog and Bookings We refer to our estimated revenue on uncompleted contracts, including the amount of revenue on contracts for which work has not begun, less the revenue we have recognized under such contracts, as “backlog.” Backlog includes unexercised contract options. Bookings (we also refer to bookings in certain instances as sales booked) represent the total contract value agreed upon when a customer commits to services. We believe bookings provide an indication of trends in our operating results, including potential cash flows, that are not necessarily reflected in our revenue because we recognize revenue in accordance with ASC 606 – Revenue from Contracts with Customers, which is different from how we present bookings. See Note 4 – Revenue from Contracts with Customers within our Form 10-Q for the Quarter ended March 31, 2026, for additional discussion on revenue recognition. Our bookings may vary significantly quarter to quarter depending in part on the timing of the execution of our agreements with our customers. Our book-to-bill ratio is defined as bookings for the defined period divided by revenue for the defined period. Measuring bookings involves the use of estimates and judgments and there are no independent standards or requirements governing the calculation of bookings. The extent and timing of conversion of bookings to revenue may be impacted by, among other factors, the types of services sold, agreement duration, the pace of customer spending, actual volumes of services delivered as compared to the volumes anticipated at the time of sale, and agreement modifications, including terminations, over the lifetime of agreements. Some of our arrangements are terminable by the customer. We do not update our bookings for subsequent terminations. Information regarding our bookings is not comparable to, nor should it be substituted for, an analysis of our reported revenue. However, management believes that it is a key indicator of potential future business and provides a useful indicator of the volume of our business over time as a key metric. Reconciliation of Net Income to Adjusted EBITDA (unaudited) Three Months Ended March 31, (in thousands) 2026 2025 Net income $ 4,380 $ 10,214 Adjustments: Depreciation and amortization 4,417 4,072 Interest expense 701 526 Interest income (15 ) (370 ) Stock-based compensation expense 2,639 2,012 Change in fair value of interest rate swap (38 ) 97 Income tax benefit (3,657 ) (2,223 ) Acquisition and other transaction costs — 50 Acquisition-related retention expense and contingent consideration 149 427 Restructuring costs(1) 94 67 Adjusted EBITDA $ 8,670 $ 14,872 Revenue $ 138,859 $ 133,108 Adjusted EBITDA Margin 6.2 % 11.2 % (1) For the three months ended March 31, 2026 and 2025, the majority of the restructuring costs related to our Southern California and Eastern Pennsylvania branches. Reconciliation to Adjusted Net Income and Adjusted Diluted Earnings Per Share (unaudited) Three Months Ended March 31, (in thousands, except share and per share amounts) 2026 2025 Net income and diluted earnings per share $ 4,380 $ 0.36 $ 10,214 $ 0.85 Pre-tax Adjustments: Amortization of acquisition-related intangible assets 1,774 0.15 1,863 0.15 Stock-based compensation expense 2,639 0.22 2,012 0.17 Change in fair value of interest rate swap (38 ) — 97 0.01 Restructuring costs(1) 94 0.01 67 0.01 Acquisition-related retention expense and contingent consideration 149 0.01 427 0.04 Acquisition and other transaction costs — — 50 — Tax effect of reconciling items(2) (1,247 ) (0.10 ) (1,218 ) (0.10 ) Adjusted net income and adjusted diluted earnings per share $ 7,751 $ 0.64 $ 13,512 $ 1.12 Weighted average number of shares outstanding: Diluted 12,067,589 12,051,678 (1) For the three months ended March 31, 2026 and 2025, the majority of the restructuring costs related to our Southern California and Eastern Pennsylvania branches. (2) The tax effect of reconciling items was calculated using a statutory tax rate of 27%. Supplemental Revenue Disclosures Organic and acquisition-related revenue are not defined under GAAP and may not be comparable to similarly-titled measures used by other companies and should not be considered a substitute for revenue as determined in accordance with GAAP. Management believes these non-GAAP measures provide useful information to investors by highlighting the underlying growth trends of the Company’s existing operations, separate from the effects of recent acquisitions. Organic revenue reflects the change in revenue from the Company’s continuing operations excluding the impact of acquisitions, while acquisition-related revenue represents the incremental contribution from businesses acquired only for the twelve-month period following the date of acquisition. These measures are intended to enhance investors’ understanding of the Company’s performance and trends over time, and should be considered in conjunction with, but not as a substitute for, GAAP revenue. The following are reconciliations of reported revenue to organic / acquisition-related revenue for the three months ended March 31, 2026, compared to revenue for the three months ended March 31, 2025: (in thousands except for percentages) ODR % GCR % Total Revenue % Revenue: Three months ended March 31, 2025 $ 90,393 $ 42,715 $ 133,108 Components of revenue change: Organic revenue decline (4,882 ) (5.4 )% (12,909 ) (30.2 )% (17,791 ) (13.4 )% Acquisition-related revenue(1) 14,300 15.8 % 9,242 21.6 % 23,542 17.7 % Revenue: Three months ended March 31, 2026 $ 99,811 10.4 % $ 39,048 (8.6 )% $ 138,859 4.3 % (1) Acquisition-related revenue reflects revenue attributable to the July 2025 acquisition of Pioneer Power. View source version on businesswire.com: https://www.businesswire.com/news/home/20260505550286/en/ Investor Relations Financial Profiles, Inc.
Lisa Fortuna
LMB-IR@limbachinc.com Original: Limbach Holdings, Inc. Reports First Quarter 2026 Results
US Market News
4 months ago
Limbach Holdings, Inc. Reports Fourth Quarter and Full Year 2025 ResultsMarch 2, 2026 4:12 PM
Business Wire
Delivered FY2025 Record Revenue, Net Income and Adjusted EBITDA
Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”), a building systems solutions firm that partners with building owners and operators who have mission-critical mechanical, electrical, plumbing, and controls (“MEPC”) systems, today announced its financial results for the quarter and year ended December 31, 2025.
Fourth Quarter 2025 Highlights Compared to Fourth Quarter 2024
Total revenue increased 30.1% to a record $186.9 million compared to $143.7 million
Owner Direct Relationships (“ODR”) revenue increased 51.8% to $145.0 million accounting for 77.6% of total revenue; ODR organic revenue growth was 23.9%
Record net income of $12.3 million, or $1.02 per diluted share, compared to net income of $9.8 million, or $0.82 per diluted share
Adjusted net income of $16.9 million, or $1.40 per adjusted diluted earnings per share, compared to adjusted net income of $13.8 million, or $1.15 per adjusted diluted earnings per share
Record adjusted EBITDA of $27.2 million, up 30.8% from $20.8 million
Announced a $50 million share repurchase program authorization
Full Year 2025 Highlights Compared to Full Year 2024
Total revenue increased 24.7% to a record $646.8 million compared to $518.8 million; with organic revenue growth of 3.6%
ODR revenue increased 40.6% to $485.7 million accounting for 75.1% of total revenue; ODR organic revenue growth was 17.0%
Record full-year net income of $39.1 million, or $3.23 per diluted share, compared to $30.9 million, or $2.57 per diluted share
Adjusted net income of $54.5 million, or $4.51 per adjusted diluted earnings per share, compared to adjusted net income of $43.2 million, or $3.60 per adjusted diluted earnings per share
Record full-year adjusted EBITDA of $81.8 million, up 28.4% from $63.7 million
Completed strategic acquisition of Pioneer Power, LLC (“Pioneer Power”)
Management Comments
“Limbach delivered record performance across multiple key metrics in 2025, including a return to significant top-line growth for the first time since 2020 as we continued our transition of the business to an ODR-focused model,” said Mike McCann, President and Chief Executive Officer of Limbach. “We ended the year with ODR representing approximately 75% of revenue, achieving our stated target.
“During the year, we completed the acquisition of Pioneer Power, expanding our geographic reach to the Upper Midwest and enhancing our competitive positioning in key verticals, particularly within the industrial and manufacturing sector. The integration of Pioneer Power is progressing ahead of our expectations. We are now focusing on margin improvement, a critical component of our value creation model and part of our proven integration playbook.
“We continued to invest in our sales organization to pursue national accounts while maintaining strong local execution. This includes a focused effort to expand nationally across mission-critical end markets, with particular emphasis on healthcare, large-scale data center infrastructure, and industrial and manufacturing, where sophisticated enterprise customers value technical depth, reliability, and disciplined direct engagement.
“With our strong balance sheet and durable business model, we believe we are well positioned to execute our growth strategy and become a leading long-term partner to building owners with mission critical systems. As we approach our 125th anniversary during 2026, we expect continued momentum. Our key strategic priorities for the year include driving ODR organic revenue growth, expanding margins through more evolved customer solutions, and executing disciplined capital allocation while scaling the business through acquisitions.”
The following are results for the three months ended December 31, 2025, compared to the three months ended December 31, 2024:
Total revenue increased 30.1%, or $43.2 million, to $186.9 million from $143.7 million. The increase was primarily attributable to the acquisition of Pioneer Power. Of the total increase, acquisition-related revenue represented 22.9% of the increase, or $33.0 million, and organic revenue represented 7.1%, or $10.3 million.
ODR segment revenue increased 51.8%, or $49.5 million, to $145.0 million. Acquisition-related revenue represented 27.9% of the increase, or $26.6 million, while organic revenue represented 23.9%, or $22.8 million.
General Contractor Relationships (“GCR”) segment revenue decreased 13.0%, or $6.3 million, to $41.9 million. Organic revenue decreased 26.1%, or $12.6 million, as the Company continued its strategic focus on ODR, partially offset by a 13.1%, or $6.3 million increase in acquisition-related revenue.
Total gross profit increased 10.4% to $48.1 million compared to $43.6 million. Total gross margin of 25.7% decreased from 30.3%.
ODR gross profit increased 19.1%, or $5.8 million, from $30.6 million to $36.4 million while gross margin decreased from 32.1% to 25.1%, primarily due to the impact of Pioneer Power. Management is focused on improving Pioneer Power’s gross margin to align with the Company’s broader operating model as part of its value creation strategy for acquisitions. Gross margin improvement at Pioneer Power is expected throughout 2026 as the Company continues to further execute its value creation playbook.
GCR gross profit decreased 10.2%, or $1.3 million, from $13.0 million to $11.6 million, primarily due to lower segment revenue; however, gross margin increased from 26.9% to 27.8% driven by the Company’s selective focus on higher quality projects.
Selling, general and administrative (“SG&A”) expense increased by approximately $0.6 million to $28.0 million, compared to $27.4 million in the prior year period. The increase was primarily driven by $2.6 million of SG&A expenses associated with the acquired entities (Consolidated Mechanical, LLC (“Consolidated Mechanical”) and Pioneer Power), primarily offset by a decrease in payroll-related expenses within the Company’s existing business. SG&A expense as a percentage of revenue decreased to 15.0% compared to 19.1%, primarily due to increased revenue from the Pioneer Power acquisition.
Interest expense was $0.8 million, an increase of $0.3 million, compared to $0.5 million in the prior year period. The increase in interest expense was driven by higher borrowings under the Company’s revolving credit facility to partially finance the Pioneer Power acquisition, as well as higher financing costs associated with a larger vehicle fleet.
Interest income was less than $0.1 million compared to $0.5 million in the prior year quarter. This decrease was related to reduced cash and cash equivalent balances and lower yields on investments.
Net income increased 25.0% to $12.3 million compared to $9.8 million. Diluted earnings per share was $1.02 compared to $0.82.
Adjusted net income increased 22.6% to $16.9 million compared to $13.8 million. Adjusted diluted earnings per share was $1.40 compared to $1.15.
Adjusted EBITDA increased 30.8% to $27.2 million compared to $20.8 million.
Net cash provided by operating activities was $28.1 million compared to $19.3 million.
The following are results for the year ended December 31, 2025, compared to the year ended December 31, 2024:
Total revenue increased 24.7%, or $128.0 million, from $518.8 million to $646.8 million. The increase was primarily attributable to the acquisitions of Pioneer Power, Consolidated Mechanical and Kent Island Mechanical, LLC (“Kent Island”). Of the total increase, acquisition-related revenue represented 21.0% of the increase, or $109.1 million, and organic revenue represented 3.6% of the increase, or $18.9 million.
ODR segment revenue increased 40.6%, or $140.2 million, to $485.7 million. Acquisition-related revenue represented 23.6% of the increase, or $81.4 million, while organic revenue represented 17.0% of the increase, or $58.8 million.
GCR segment revenue decreased 7.0%, or $12.2 million, to $161.1 million. Organic revenue decreased 23.0%, or $39.9 million, as the Company continued its strategic focus on ODR, partially offset by a 16.0%, or $27.7 million, increase in acquisition-related revenue.
Total gross profit increased 17.4% to $169.3 million compared to $144.3 million. Total gross margin of 26.2% decreased from 27.8% in 2024.
ODR gross profit increased 20.5%, or $22.1 million, from $107.8 million to $129.9 million on higher revenue while gross margin decreased from 31.2% to 26.7%, primarily due to the impact of Pioneer Power’s lower gross margin, as well as ODR-related project write-ups recognized in 2024 that did not recur in 2025.
GCR gross profit increased 8.0%, or $2.9 million, from $36.5 million to $39.4 million, and gross margin increased to 24.5% from 21.1% driven by the Company’s intentional focus on higher quality projects.
SG&A expense increased by $12.3 million to $109.5 million, compared to $97.2 million in the prior year period. The increase in total SG&A was primarily driven by $9.3 million of SG&A expenses associated with the acquisitions of Pioneer Power, Consolidated Mechanical and Kent Island. SG&A attributable to the existing business increased $3.0 million primarily due to a $1.2 million increase in non-cash stock-based compensation expenses and a $1.1 million increase in bad debt expense associated with the write-off of certain customer receivables that were deemed uncollectible. SG&A expense as a percentage of revenue decreased to 16.9% compared to 18.7%, primarily due to increased revenue from the Pioneer Power acquisition.
Interest expense was $3.1 million, an increase of $1.3 million, compared to $1.9 million. The increase in interest expense was driven by higher borrowings under the Company’s revolving credit facility to partially finance the Pioneer Power acquisition, as well as higher financing costs associated with a larger vehicle fleet.
Interest income was $0.8 million, a decrease of $1.4 million, compared to $2.2 million. This decrease was related to reduced cash and cash equivalent balances and lower yields on investments.
Net income increased 26.5% to $39.1 million from $30.9 million. Diluted earnings per share was $3.23 compared to $2.57 in the prior year.
Adjusted net income increased 26.0% to $54.5 million compared to $43.2 million. Adjusted diluted earnings per share was $4.51 compared to $3.60.
Adjusted EBITDA increased 28.4% to $81.8 million compared to $63.7 million.
Net cash provided by operating activities was $45.7 million compared to $36.8 million in the prior year, primarily due to the acquisitions of Pioneer Power, Consolidated Mechanical and Kent Island.
Balance Sheet
At December 31, 2025, cash and cash equivalents were $11.3 million. Current assets were $195.0 million and current liabilities were $135.1 million, representing a current ratio of 1.44x compared to 1.46x at December 31, 2024. At December 31, 2025, the Company had $10.0 million drawn under its revolving credit facility and $5.1 million drawn under its standby letters of credit.
2026 Guidance
The Company is providing its full year 2026 guidance, as summarized in the table below:
Revenue
$730 million - $760 million
Adjusted EBITDA
$90 million - $94 million
Assumptions:
Total organic revenue growth(1)
4 - 8%
ODR revenue as a percentage of total revenue
75 - 80%
ODR organic revenue growth(1)
9 - 12%
Gross margin percentage
26 - 27%
SG&A expense as a percentage of total revenue
15 - 17%
Free cash flow(2)
75% of Adjusted EBITDA
(1)
The Company discloses organic revenue and organic revenue growth, which are non-GAAP financial measures, to provide investors with insight into the performance of the Company's existing operations, excluding the impact of acquisitions. These measures are not defined under GAAP and should not be considered as an alternative to total revenue growth or segment-related revenue growth as determined in accordance with GAAP. Refer to additional information at the end of this release regarding certain non-GAAP supplemental revenue disclosures.
(2)
Free cash flow is defined as cash flow from operating activities excluding changes in working capital minus capital expenditures (excluding investment in rental equipment).
With respect to projected 2026 Adjusted EBITDA guidance and Adjusted EBITDA Margin (and the assumptions underlying those projections), a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to certain items, which are excluded from Adjusted EBITDA (and components that go into the calculation of Adjusted EBITDA). The Company expects the variability of these items to have a potentially unpredictable, and potentially significant, impact on future financial results.
Conference Call Details
Date:
Tuesday, March 3, 2026
Time:
9:00 a.m. Eastern Time
Participant Dial-In Numbers:
Domestic callers:
(877) 407-6176
International callers:
+1 (201) 689-8451
Access by Webcast
The call will also be simultaneously webcast over the Internet via the “Investor Relations” section of Limbach’s website at https://www.limbachinc.com or by clicking on the conference call link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=LnURlC1E. An audio replay of the call will be archived on Limbach’s website for 365 days.
About Limbach
Limbach is a building systems solutions firm that designs, delivers, and maintains mechanical (heating, ventilation, and air conditioning), electrical, plumbing, and controls (“MEPC”) systems that support life’s most important moments. We partner with building owners and operators of mission-critical facilities across healthcare, industrial and manufacturing, data centers, life sciences, higher education, and cultural and entertainment markets. With approximately 1,500 team members across 21 offices throughout the Eastern and Midwestern regions of the United States, we strive to be an indispensable partner by combining our national capabilities with strong local execution and talent to deliver proactive, safe, and reliable solutions for complex facilities. Operating on a connected platform, we integrate engineering expertise with field execution to provide customized MEPC infrastructure solutions that address both operational and capital project needs, optimizing performance, enhancing reliability, and ensuring long-term safety.
Additional Information
Investors and others should note that Limbach announces material financial information to its investors using its investor relations website, U.S. Securities and Exchange Commission (the “SEC”) filings, press releases, public conference calls/videos, and webcasts. Limbach uses these channels, as well as social media, to communicate with our stockholders and the public about the Company, the Company’s services and other Company information. It is possible that the information that Limbach posts on social media could be deemed to be material information. Therefore, Limbach encourages investors, the media, and others interested in the Company to review the information posted on the social media channels listed on Limbach’s investor relations website.
Forward-Looking Statements
We make forward-looking statements in this press release within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts for future events, including, without limitation, our earnings, Adjusted EBITDA, projected EBITDA production from possible acquisitions, projected full year 2025 organic ODR revenue growth, revenues, expenses, backlog, capital expenditures or other future financial or business performance or strategies, results of operations or financial condition, timing of the recognition of backlog as revenue, the potential for recovery of cost overruns, and the ability of Limbach to successfully remedy the issues that have led to write-downs in various business units and the Company’s business being negatively affected by the health crises or outbreaks of diseases, such as epidemics or pandemics (and related impacts, such as supply chain disruptions). These statements also may include our assumptions related to our 2026 guidance of full year revenue and Adjusted EBITDA. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “will likely result,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target,” “goal,” or similar expressions. These forward-looking statements are based on information available to us as of the date they were made and involve a number of risks and uncertainties, which may cause them to turn out to be wrong. There may be additional risks that we consider immaterial or which are unknown. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Please refer to our most recent annual report on Form 10-K, as well as our subsequent filings on Form 10-Q and Form 8-K, which are available on the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any forward-looking statements in this press release.
LIMBACH HOLDINGS, INC.
Consolidated Statements of Operations
(in thousands, except share and per share data)
(Unaudited)
For the Quarter Ended December 31,
For the Years Ended December 31,
2025
2024
2025
2024
Revenue
$
186,872
$
143,650
$
646,804
$
518,781
Cost of revenue
138,788
100,079
477,490
374,500
Gross profit
48,084
43,571
169,314
144,281
Operating expenses:
Selling, general and administrative
28,038
27,399
109,518
97,199
Acquisition-related retention expense and contingent consideration
153
1,426
1,985
3,770
Amortization of intangibles
2,337
1,732
8,357
4,688
Total operating expenses
30,528
30,557
119,860
105,657
Operating income
17,556
13,014
49,454
38,624
Other (expenses) income:
Interest expense
(821
)
(494
)
(3,133
)
(1,869
)
Interest income
23
493
815
2,227
(Loss) gain on change in fair value of interest swap
(16
)
164
(191
)
34
Gain on disposition of property and equipment
577
294
1,684
950
Total other (expenses) income
(237
)
457
(825
)
1,342
Income before income taxes
17,319
13,471
48,629
39,966
Income tax provision
5,019
3,629
9,565
9,091
Net income
$
12,300
$
9,842
$
39,064
$
30,875
Earnings Per Share (“EPS”)
Net income per share:
Basic
$
1.06
$
0.87
$
3.37
$
2.75
Diluted
$
1.02
$
0.82
$
3.23
$
2.57
Weighted average number of shares outstanding:
Basic
11,626,814
11,273,101
11,575,083
11,243,714
Diluted
12,078,214
12,066,569
12,079,583
12,027,398
LIMBACH HOLDINGS, INC.
Consolidated Balance Sheets
As of December 31,
(in thousands, except share data)
2025
2024
ASSETS
Current assets:
Cash and cash equivalents
$
11,345
$
44,930
Restricted cash
65
65
Accounts receivable (net of allowance for credit losses of $396 and $387, respectively)
133,205
119,659
Contract assets, net
45,467
47,549
Advances to and equity in joint ventures, net
5
5
Other current assets
4,962
8,126
Total current assets
195,049
220,334
Property and equipment, net
43,309
30,126
Intangible assets, net
49,187
41,228
Goodwill
70,600
33,034
Operating lease right-of-use assets
19,792
21,539
Deferred tax asset
2,917
5,531
Other assets
276
337
Total assets
$
381,130
$
352,129
LIABILITIES
Current liabilities:
Current portion of long-term debt
$
5,031
$
3,314
Current operating lease liabilities
4,379
4,093
Accounts payable, including retainage
74,172
60,814
Contract liabilities, net
20,936
44,519
Accrued income taxes
1,152
1,470
Accrued expenses and other current liabilities
29,416
36,827
Total current liabilities
135,086
151,037
Long-term debt
30,536
23,554
Long-term operating lease liabilities
15,925
17,766
Other long-term liabilities
3,922
6,281
Total liabilities
185,469
198,638
Commitments and contingencies
Redeemable convertible preferred stock, net, par value $0.0001, 1,000,000 shares authorized, no shares issued and outstanding ($0 redemption value)
—
—
STOCKHOLDERS’ EQUITY
Common stock, $0.0001 par value; 100,000,000 shares authorized, issued 11,806,466 and 11,452,753, respectively; 11,626,814 and 11,273,101 outstanding, respectively
1
1
Additional paid-in capital
97,335
94,229
Treasury stock, at cost (179,652 shares at both period ends)
(2,000
)
(2,000
)
Retained earnings
100,325
61,261
Total stockholders’ equity
195,661
153,491
Total liabilities and stockholders’ equity
$
381,130
$
352,129
LIMBACH HOLDINGS, INC.
Consolidated Statements of Cash Flows
Year Ended December 31,
(in thousands)
2025
2024
Cash flows from operating activities:
Net income
$
39,064
$
30,875
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization
18,133
11,888
Noncash operating lease expense
4,077
4,115
Provision for credit losses
404
201
Non-cash stock-based compensation expense
7,016
5,773
Amortization of debt issuance costs
54
43
Deferred income tax provision
2,614
(352
)
Gain on sale of property and equipment
(1,684
)
(950
)
Loss (gain) on change in fair value of interest rate swap
191
(34
)
Acquisition-related retention expense and contingent consideration
1,985
3,770
Changes in operating assets and liabilities:
Accounts receivable
4,466
(11,275
)
Contract assets and contract liabilities, net(1)
(24,779
)
5,557
Other current assets
3,220
(499
)
Accounts payable, including retainage
5,288
(10,298
)
Accrued income taxes
(318
)
1,024
Accrued expenses and other current liabilities
(8,918
)
3,111
Operating lease liabilities
(3,999
)
(3,850
)
Payment of contingent consideration liability in excess of acquisition-date fair value
(1,523
)
(2,175
)
Other long-term liabilities
409
(141
)
Net cash provided by operating activities
45,700
36,783
Cash flows from investing activities:
Pioneer Power Transaction, net of cash acquired
(65,651
)
—
Kent Island Transaction, net of cash acquired
—
(13,387
)
Consolidated Mechanical Transaction, net of cash acquired
(3
)
(23,201
)
Proceeds from sale of property and equipment
1,875
1,536
Purchase of property and equipment
(3,807
)
(7,524
)
Advances from joint ventures
—
7
Net cash used in investing activities
(67,586
)
(42,569
)
Cash flows from financing activities:
Proceeds from Wintrust Revolving Loan
73,843
—
Payments on Wintrust Revolving Loan
(73,843
)
—
Payment of contingent consideration liability up to acquisition-date fair value
(3,477
)
(1,325
)
Payments on finance leases
(4,367
)
(3,045
)
Proceeds from contributions to employee stock purchase plan
653
440
Proceeds from the sale of shares to cover employee taxes
6,344
—
Taxes paid related to net-share settlement of equity awards
(10,684
)
(5,187
)
Payments of debt issuance costs
(168
)
—
Net cash used in financing activities
(11,699
)
(9,117
)
(Decrease) increase in cash, cash equivalents and restricted cash
(33,585
)
(14,903
)
Cash, cash equivalents and restricted cash, beginning of year
44,995
59,898
Cash, cash equivalents and restricted cash, end of year
$
11,410
$
44,995
Supplemental disclosures of cash flow information
Noncash investing and financing transactions:
Kent Island Transaction, measurement period adjustment
$
(94
)
$
—
Earnout liability associated with the Kent Island Transaction
—
4,381
Earnout liability associated with the Consolidated Mechanical Transaction
—
757
Right of use assets obtained in exchange for new operating lease liabilities
2,446
4,775
Right of use assets obtained in exchange for new finance lease liabilities
13,529
7,586
Right of use assets disposed or adjusted modifying operating leases liabilities
—
1,268
Right of use assets disposed or adjusted modifying finance leases liabilities
49
—
Interest paid
3,102
1,899
Cash paid for income taxes
$
7,346
$
8,529
LIMBACH HOLDINGS, INC.
Consolidated Statements of Operations (Unaudited)
Three Months Ended
December 31,
Increase/(Decrease)
(in thousands, except for percentages)
2025
2024
$
%
Statement of Operations Data:
Revenue:
ODR
$
144,967
77.6
%
$
95,483
66.5
%
$
49,484
51.8
%
GCR
41,905
22.4
%
48,167
33.5
%
(6,262
)
(13.0
)%
Total revenue
186,872
100.0
%
143,650
100.0
%
43,222
30.1
%
Gross profit:
ODR(1)
36,447
25.1
%
30,605
32.1
%
5,842
19.1
%
GCR(2)
11,637
27.8
%
12,966
26.9
%
(1,329
)
(10.2
)%
Total gross profit
48,084
25.7
%
43,571
30.3
%
4,513
10.4
%
Selling, general and administrative(3)
28,038
15.0
%
27,399
19.1
%
639
2.3
%
Acquisition-related retention expense and contingent consideration
153
0.1
%
1,426
1.0
%
(1,273
)
(89.3
)%
Amortization of intangibles
2,337
1.3
%
1,732
1.2
%
605
34.9
%
Total operating income
$
17,556
9.4
%
$
13,014
9.1
%
$
4,542
34.9
%
(1)
As a percentage of ODR revenue.
(2)
As a percentage of GCR revenue.
(3)
Included within selling, general and administrative expenses was $1.8 million and $1.5 million of non-cash stock-based compensation expense for the quarters ended December 31, 2025 and 2024, respectively.
LIMBACH HOLDINGS, INC.
Consolidated Statements of Operations
Year Ended December 31,
Increase/(Decrease)
(in thousands, except for percentages)
2025
2024
$
%
Statement of Operations Data:
Revenue:
ODR
$
485,690
75.1
%
$
345,500
66.6
%
$
140,190
40.6
%
GCR
161,114
24.9
%
173,281
33.4
%
(12,167
)
(7.0
)%
Total revenue
646,804
100.0
%
518,781
100.0
%
128,023
24.7
%
Gross profit:
ODR(1)
129,876
26.7
%
107,775
31.2
%
22,101
20.5
%
GCR(2)
39,438
24.5
%
36,506
21.1
%
2,932
8.0
%
Total gross profit
169,314
26.2
%
144,281
27.8
%
25,033
17.4
%
Selling, general and administrative(3)
109,518
16.9
%
97,199
18.7
%
12,319
12.7
%
Acquisition-related retention expense and contingent consideration
1,985
0.3
%
3,770
0.7
%
(1,785
)
(47.3
)%
Amortization of intangibles
8,357
1.3
%
4,688
0.9
%
3,669
78.3
%
Total operating income
$
49,454
7.6
%
$
38,624
7.4
%
$
10,830
28.0
%
(1)
As a percentage of ODR revenue.
(2)
As a percentage of GCR revenue.
(3)
Included within selling, general and administrative expenses was $7.0 million and $5.8 million of non-cash stock-based compensation expense for the years ended December 31, 2025 and 2024, respectively.
Non-GAAP Financial Measures
In assessing the performance of our business, management utilizes a variety of financial and performance measures. The key measures are Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share, which are non-GAAP financial measures.
Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA as net income plus depreciation and amortization expense, interest expense, and taxes, as further adjusted to eliminate the impact of, when applicable, other non-cash items or expenses that are unusual or non-recurring that we believe do not reflect our core operating results. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. Our board of directors and executive management team focus on Adjusted EBITDA and Adjusted EBITDA Margin as two of our key performance and compensation measures. Adjusted EBITDA and Adjusted EBITDA Margin assists us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of certain items that do not necessarily reflect our core operations. We believe that Adjusted EBITDA and Adjusted EBITDA Margin are meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service.
Adjusted Net Income and Adjusted Diluted Earnings per Share
We define Adjusted Net Income as net income, adjusted to exclude certain items that do not reflect our core operating performance, such as amortization of intangible assets, stock-based compensation, restructuring charges, the change in fair value of contingent consideration, acquisition and other transaction costs and the net tax effect of reconciling items, as further adjusted to eliminate the impact of, when applicable, other non-cash or expenses that are unusual or non-recurring. We define Adjusted Diluted Earnings per Share as Adjusted Net Income divided by the weighted average diluted shares outstanding. We believe Adjusted Net Income and Adjusted Diluted Earnings per Share are useful to investors as we use these metrics to assist with strategic decision making, forecasting future results, and evaluating current performance.
We understand that these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share. Our calculations of these non-GAAP measures, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share cannot be achieved without incurring the costs that the measure excludes. A reconciliation of net income to Adjusted EBITDA and net income to Adjusted Net Income, the most comparable GAAP measures, are provided below.
We refer to our estimated revenue on uncompleted contracts, including the amount of revenue on contracts for which work has not begun, less the revenue we have recognized under such contracts, as “backlog.” Backlog includes unexercised contract options.
Reconciliation of Net Income to Adjusted EBITDA (unaudited)
For the Three Months Ended December 31,
For the Years Ended December 31,
(in thousands)
2025
2024
2025
2024
Net income
$
12,300
$
9,842
$
39,064
$
30,875
Adjustments:
Depreciation and amortization
5,075
3,627
18,133
11,888
Interest expense
821
494
3,133
1,869
Interest income
(23
)
(493
)
(815
)
(2,227
)
Stock-based compensation expense
1,800
1,450
7,434
5,773
Change in fair value of interest rate swap
16
(164
)
191
(34
)
Restructuring costs(1)
1,758
600
2,155
1,427
Acquisition-related retention expense and contingent consideration
153
1,426
1,985
3,770
Income tax provision
5,019
3,629
9,565
9,091
Acquisition and other transaction costs
298
405
957
1,282
Adjusted EBITDA
$
27,217
$
20,816
$
81,802
$
63,714
Revenue
$
186,872
$
143,650
$
646,804
$
518,781
Adjusted EBITDA margin
14.6
%
14.5
%
12.6
%
12.3
%
(1)
For the three and twelve months ended December 31, 2025 and 2024, the majority of the restructuring costs related to our Southern California and Eastern Pennsylvania branches.
Reconciliation to Adjusted Net Income and Adjusted Diluted Earnings Per Share (unaudited)
Three Months Ended December 31,
For the Years Ended December 31,
(in thousands, except share and per share amounts)
2025
2024
2025
2024
Net income and diluted earnings per share
$
12,300
$
1.02
$
9,842
$
0.82
$
39,064
$
3.23
$
30,875
$
2.57
Pre-tax Adjustments:
Amortization of acquisition-related intangible assets
2,337
0.19
1,732
0.14
8,357
0.69
4,688
0.39
Stock-based compensation expense
1,800
0.15
1,450
0.12
7,434
0.62
5,773
0.48
Change in fair value of interest rate swap
16
—
(164
)
(0.01
)
191
0.02
(34
)
—
Restructuring costs(1)
1,758
0.15
600
0.05
2,155
0.18
1,427
0.12
Acquisition-related retention expense and contingent consideration
153
0.01
1,426
0.12
1,985
0.16
3,770
0.31
Acquisition and other transaction costs
298
0.02
405
0.03
957
0.08
1,282
0.11
Tax effect of reconciling items(2)
(1,718
)
(0.14
)
(1,471
)
(0.12
)
(5,691
)
(0.47
)
(4,564
)
(0.38
)
Adjusted net income and adjusted diluted earnings per share
$
16,944
$
1.40
$
13,820
$
1.15
$
54,452
$
4.51
$
43,217
$
3.60
Weighted average number of shares outstanding: Diluted
12,078,214
12,066,569
12,079,583
12,027,398
(1)
For the three and twelve months ended December 31, 2025 and 2024, the majority of the restructuring costs related to our Southern California and Eastern Pennsylvania branches.
(2)
The tax effect of reconciling items was calculated using a statutory tax rate of 27%.
Supplemental Revenue Disclosures
Organic and acquisition-related revenue are not defined under GAAP and may not be comparable to similarly-titled measures used by other companies and should not be considered a substitute for revenue as determined in accordance with GAAP. Management believes these non-GAAP measures provide useful information to investors by highlighting the underlying growth trends of the Company’s existing operations, separate from the effects of recent acquisitions. Organic revenue reflects the change in revenue from the Company’s continuing operations excluding the impact of acquisitions, while acquisition-related revenue represents the incremental contribution from businesses acquired only for the twelve-month period following the date of acquisition. These measures are intended to enhance investors’ understanding of the Company’s performance and trends over time, and should be considered in conjunction with, but not as a substitute for, GAAP revenue.
The following are reconciliations of reported revenue to organic / acquisition-related revenue for the three and twelve months ended December 31, 2025, compared to revenue for the three and twelve months ended December 31, 2024:
(in thousands except for percentages)
ODR
%
GCR
%
Total Revenue
%
Revenue: Three months ended
December 31, 2024
$
95,483
$
48,167
$
143,650
Components of revenue change:
Organic revenue growth (decline)
22,849
23.9
%
(12,592
)
(26.1
)%
10,257
7.1
%
Acquisition-related revenue(1)
26,635
27.9
%
6,330
13.1
%
32,965
22.9
%
Revenue: Three months ended
December 31, 2025
$
144,967
51.8
%
$
41,905
(13.0
)%
$
186,872
30.1
%
(in thousands except for percentages)
ODR
%
GCR
%
Total Revenue
%
Revenue: Twelve months ended
December 31, 2024
$
345,500
$
173,281
$
518,781
Components of revenue change:
Organic revenue growth (decline)
58,793
17.0
%
(39,863
)
(23.0
)%
18,930
3.6
%
Acquisition-related revenue(2)
81,397
23.6
%
27,696
16.0
%
109,093
21.0
%
Revenue: Twelve months ended
December 31, 2025
$
485,690
40.6
%
$
161,114
(7.0
)%
$
646,804
24.7
%
(1)
Acquisition-related revenue reflects revenue attributable to the Pioneer Power and Consolidated Mechanical acquisitions.
(2)
Acquisition-related revenue reflects revenue attributable to the Pioneer Power, Consolidated Mechanical and Kent Island acquisitions. The Company has provided an estimate of Kent Island's revenue for the twelve months ended December 31, 2025, as the acquired operations were integrated into an existing branch of the Company for which separate financial results are not maintained.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260302217525/en/
Investor Relations
Financial Profiles, Inc.
Lisa Fortuna
LMB-IR@limbachinc.com
Original: Limbach Holdings, Inc. Reports Fourth Quarter and Full Year 2025 Results
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