Limbach Holdings, Inc. Reports Third Quarter 2025 Results

 

WARRENDALE, PA. – Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”) today announced its financial results for the quarter ended September 30, 2025.

Third Quarter 2025 Highlights Compared to Third Quarter 2024

• Total revenue increased 37.8% to $184.6 million from $133.9 million
• Owner Direct Relationships (“ODR”) revenue increased 52.0%, or $48.4 million, to $141.4 million, or 76.6% of total revenue
• Organic ODR revenue growth of 12.2%
• Net income of $8.8 million, or $0.73 per diluted share, compared to $7.5 million, or $0.62 per diluted share
• Adjusted net income of $12.7 million, or $1.05 per adjusted diluted earnings per share, compared to adjusted net income of $10.9 million, or $0.91 per adjusted diluted earnings per share
• Adjusted EBITDA of $21.8 million, up 25.6% from $17.3 million
• Total gross profit increased 23.7% to $44.7 million from $36.1 million
• Net cash from operating activities of $13.3 million compared to $4.9 million

Management Comments

“We are pleased to report a solid third quarter, underscoring the success of our strategic transition to higher margin ODR business,” said Michael McCann, President and Chief Executive Officer of Limbach. “ODR revenue increased 52.0% year-over-year and now represents about 76.6% of total revenue for the quarter, in line with our annual mix shift guidance of 70% to 80%. We also expect ODR organic revenue growth to be in the range of 20% to 25% for the full year and maintain strong gross margins. Total ODR gross profit rose $6.0 million accounting for approximately 80% of total gross profit. These results demonstrate the tangible impact of our strategic focus to drive growth in our ODR business, minimize risk, and improve the consistency of our revenue and earnings.

“Limbach is delivering against all three core elements of our growth strategy, leveraging disciplined M&A to accelerate scale and reinforce long-term growth. In the third quarter, we completed the acquisition of Pioneer Power, expanding our footprint into the Upper Midwest, and deepening our access to industrial markets including power generation. Pioneer Power’s revenue performance exceeded our initial expectations this quarter. While Pioneer Power’s current margin profile differs from Limbach’s, we are actively integrating Pioneer into the Limbach platform and have a path to implement operational and commercial enhancements that we expect will expand its margins over time. Combined with our focus on expanding our top-line through our ODR business, broadening our service offerings, and deepening customer relationships, we are building a resilient business designed to deliver durable long-term value for our stockholders.”

The following are results for the three months ended September 30, 2025, compared to the three months ended September 30, 2024:

• Total revenue increased 37.8%, or $50.7 million, to $184.6 million from $133.9 million. The increase in revenue was primarily attributable to the acquisitions of Pioneer Power, Consolidated Mechanical, LLC (“Consolidated Mechanical”) and Kent Island Mechanical, LLC (“Kent Island”). Of the total increase in revenue, acquisition related revenue represented 35.3%, or $47.3 million, and organic represented 2.5%, or $3.3 million.
• ODR segment revenue increased 52.0%, or $48.4 million, to $141.4 million. Acquisition-related revenue represented 39.8% or $37.1 million, while organic revenue represented 12.2%, or $11.3 million period-over-period.
• General Contractor Relationships (“GCR”) segment revenue increased 5.6%, or $2.3 million, to $43.2 million. Acquisition-related revenue represented 25.1%, or $10.3 million, while organic revenue represented a 19.5%, or $8.0 million decrease period-over-period as the Company continues its strategic mix-shift to ODR.
• Total gross profit increased 23.7% to $44.7 million compared to $36.1 million. Total gross margin of 24.2% decreased from 27.0% in the third quarter of 2024.
• ODR gross profit increased 20.3%, or $6.0 million, to $35.7 million from $29.6 million while gross margins decreased to 25.2% from 31.9% primarily due to the impact of Pioneer Power which has a lower gross margin profile compared to Limbach’s historical profile. Management is focused on improving Pioneer Power’s gross margins to align with the Company’s broader operating model over time.
• GCR gross profit increased 39.3%, or $2.5 million, to $9.0 million from $6.5 million and gross margins increased to 20.8% from 15.8% driven by the Company’s selective focus on higher quality projects.
• Selling, general and administrative (“SG&A”) expense increased by approximately $4.6 million to $28.3 million, compared to $23.7 million in the prior year period. SG&A expense increased primarily due to a $2.3 million increase in payroll related expense, a $1.5 million aggregate increase in SG&A expense associated with Pioneer Power and Consolidated Mechanical, and a $0.4 million increase in non-cash stock-based compensation expense. Pioneer Power and Consolidated Mechanical were not acquired entities during the same period in 2024. SG&A expense as a percentage of revenue decreased to 15.3% as compared to 17.7% primarily due to the increased revenue in the third quarter of 2025 as a result of the Pioneer Power acquisition.
• Interest expense was $1.2 million, an increase of $0.8 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 and higher financing costs associated with a larger vehicle fleet.
• Interest income was $0.1 million, a decrease of $0.5 million, compared to $0.6 million in the third quarter of 2024. This decrease was related to reduced cash and cash equivalent balances and lower yields on investments.
• Net income increased 17.4% to $8.8 million from $7.5 million. Diluted earnings per share was $0.73 compared to $0.62 in the prior year period.
• Adjusted EBITDA increased 25.6% to $21.8 million compared to $17.3 million in the prior year period.
• Adjusted net income increased 16.4% to $12.7 million compared to $10.9 million. Adjusted diluted earnings per share was $1.05 compared to $0.91 in the prior period.
• Net cash from operating activities was $13.3 million compared to $4.9 million reflecting the timing of billings that impacted changes in working capital.

Balance Sheet

At September 30, 2025, cash and cash equivalents were $9.8 million. Current assets were $216.8 million and current liabilities were $151.2 million, representing a current ratio of 1.43x compared to 1.46x at December 31, 2024. At September 30, 2025, the Company had $34.5 million in borrowings under its revolving credit facility and $5.1 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.

2025 Guidance

The Company is reaffirming its previous guidance for FY 2025 as follows:

		Previous Guidance		Current Guidance
Revenue		$650 million – $680 million		$650 million – $680 million
Adjusted EBITDA		$80 million – $86 million		$80 million – $86 million
Assumptions:
Total organic revenue growth(1)(2)		10 – 15%		7 – 10%
ODR revenue as a percentage of total revenue		70 – 80%		70 – 80%
ODR revenue growth		35 – 50%		40 – 50%
Gross margin percentage(3)		28 – 29%		25.5 – 26.5%
SG&A expense as a percentage of total revenue		18 – 19%		15 – 17%
Free cash flow(4)		75% of Adjusted EBITDA		75% of Adjusted EBITDA

(1)		The Company refined its total organic revenue range which reflects a faster-than-expected decline in GCR revenue as part of the strategic mix-shift.
(2)		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 supplemental non-GAAP revenue disclosures.
(3)		The Company revised its gross margin outlook to reflect higher-than-anticipated revenue from Pioneer Power, whose current gross margin profile differs from Limbach’s.
(4)		Free cash flow is defined as cash flow from operating activities excluding changes in working minus capital expenditures (excluding investment in rental equipment).

With respect to projected 2025 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. During the period, the Company refined certain underlying assumptions used to model its 2025 guidance to better reflect current market conditions, project timing, and operational performance trends. These updates influence the Company’s outlook and are incorporated into the Company’s publicly issued guidance ranges for total revenue and Adjusted EBITDA.

Conference Call Details

• Date:  Wednesday, November 5th, 2025 
• 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=od8v6WY4. 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 1,700 team members in 21 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, 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 2025 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.