Limbach Holdings, Inc. Reports First Quarter 2025 Results

WARRENDALE, PA. – Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”) today announced its financial results for the quarter ended March 31, 2025.

First Quarter 2025 Highlights Compared to First Quarter 2024

• Total revenue was $133.1 million, an increase of 11.9% from $119.0 million.
• Record quarterly net income of $10.2 million, or $0.85 per diluted share, compared to $7.6 million, or $0.64 per diluted share.
• Adjusted net income of $13.5 million, or $1.12 per adjusted diluted earnings per share, compared to adjusted net income of $9.7 million, or $0.82 per adjusted diluted earnings per share.
• Adjusted EBITDA of $14.9 million, up 26.5% from $11.8 million.
• Owner Direct Relationships (“ODR”) revenue increased 21.7%, or $16.1 million, to $90.4 million, or 67.9% of total revenue.
• Total gross profit was $36.7 million, an increase of 18.1% from $31.1 million.
• Net cash provided by operating activities of $2.2 million compared to net cash used in operating activities of $3.9 million.

Management Comments

“In the first quarter, we grew revenue, gross profit, and Adjusted EBITDA, demonstrating the scalability of our business model,” Michael McCann, President and Chief Executive Officer of Limbach, said. “While the first quarter is typically our softest due to weather and customer budget seasonality, we gained significant momentum in March. Based on Q1 results, ODR now represents 67.9% of total revenue, up from 62.4% in Q1 of the previous year. We believe by expanding the ODR segment, we are substantially enhancing margins, reducing risk, and driving more predictable, reoccurring revenue. We are pleased with the additional traction we’ve gained in key end markets like healthcare as we continue to implement our growth strategy and establish Limbach as a leading building systems solutions firm that provides solutions for mission critical existing infrastructure.

“We continue to believe our strategy to grow the ODR business has significant potential. We’ve only begun to tap into customer relationships and market penetration. We also believe Limbach is well-positioned for continued growth in ODR, supported by strong cash generation, operational execution, and a solid M&A pipeline. Based on our current visibility, we are confident in meeting our full-year guidance and delivering long-term value for our stockholders.”

The following are results for the three months ended March 31, 2025, compared to the three months ended March 31, 2024:

• Total revenue was $133.1 million, an increase of 11.9% from $119.0 million. ODR segment revenue of $90.4 million increased by $16.1 million, or 21.7%, while General Contractor Relationships (“GCR”) segment revenue decreased by $2.0 million, or 4.5%. The increase in period-over-period ODR segment revenue was primarily due to the Company’s continued focus on the accelerated growth of its ODR business and as a result of the operations of Consolidated Mechanical, LLC (“Consolidated Mechanical”). The decrease in period-over-period GCR segment revenue was primarily due to the Company’s continued focus on the execution of its mix-shift strategy to ODR, partially offset by an increase in GCR revenue associated with the operations of Kent Island Mechanical, LLC (“Kent Island”). Kent Island and Consolidated Mechanical were not acquired entities of the Company for the three months ended March 31, 2024.
• Total gross profit was $36.7 million, compared to $31.1 million. ODR gross profit increased $4.0 million, or 18.0%, due to an increase in revenue, despite slightly lower segment margins of 28.9% versus 29.8% resulting from certain ODR-related project write-ups recognized in the first quarter of 2024. GCR gross profit increased $1.6 million, or 18.3%, due to higher margins of 24.7% compared to 20.0%, despite lower revenue. The total gross profit percentage increased from 26.1% to 27.6%, mainly driven by the mix of higher margin ODR segment work and the Company continuing to be more selective when pursuing GCR segment work.
• Selling, general and administrative (“SG&A”) expenses increased by approximately $3.6 million, to $26.5 million, compared to $22.9 million. The increase in SG&A expense was primarily due to a $2.0 million increase in payroll-related expenses, a $0.5 million increase in professional services fees, a $0.4 million increase in non-cash stock-based compensation expenses and a $0.2 million increase in travel and entertainment related expenses. These variances include SG&A associated with Kent Island and Consolidated Mechanical, which were not acquired entities of the Company during the three months ended March 31, 2024. As a percentage of revenue, SG&A expenses were 19.9%, up from 19.2% in the prior period.
• Interest expense was relatively flat at $0.5 million during both quarters.
• Interest income was $0.4 million during the current quarter, compared to $0.6 million in the first quarter of 2024. This decrease was related to lower interest rates and a lower average amount of cash invested in overnight repurchase agreements and money market funds period-over-period.
• Net income was $10.2 million compared to $7.6 million, an increase of 34.6%. Diluted earnings per share was $0.85, as compared to $0.64 in the prior period.
• Adjusted EBITDA was $14.9 million as compared to $11.8 million in the prior period, an increase of 26.5%.
• Adjusted net income was $13.5 million as compared to $9.7 million, an increase of 38.9%. Adjusted diluted earnings per share were $1.12 as compared to $0.82.
• Net cash provided by operating activities of $2.2 million compared to net cash used-in operating activities of $3.9 million in the prior period primarily due to changes in working capital.

Balance Sheet

At March 31, 2025, cash and cash equivalents were $38.1 million. Current assets were $204.5 million and current liabilities were $131.7 million at March 31, 2025, representing a current ratio of 1.55x compared to 1.46x at December 31, 2024. At March 31, 2025, the Company had $10.0 million in borrowings against its revolving credit facility and $5.1 million for standby letters of credit.

2025 Guidance

The Company is affirming its previously provided guidance for 2025 as follows:

• Revenue:                               $610 million – $630 million
• Adjusted EBITDA:            $78 million – $82 million

With respect to projected 2025 Adjusted EBITDA guidance and Adjusted EBITDA Margin, 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. The Company expects the variability of these items to have a potentially unpredictable, and potentially significant, impact on future financial results.

Conference Call Details

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=y6XjA4hv. 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 partners with building owners and facilities managers who have mission critical mechanical (heating, ventilation and air conditioning), electrical and plumbing infrastructure. We strive to be an indispensable partner to our customers by providing services that are essential to the operation of their businesses. We work with building owners primarily in six vertical markets: healthcare, industrial and manufacturing, data centers, life science, higher education, and cultural and entertainment. We have approximately 1,400 team members in 20 offices across the eastern United States. Our team members uniquely combine engineering expertise with field installation skills to provide custom solutions that leverage our full life-cycle capabilities, which allows us to address both the operational and capital projects needs of our customers.

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, 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 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.on

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Investor Relations

Financial Profiles, Inc.

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