Limbach Holdings, Inc. Reports Second Quarter 2025 Results

Delivered Q2 Net Income of $7.8 million and Adjusted EBITDA of $17.9 million

Increases Full Year 2025 Revenue Guidance to $650 million to $680 million and Adjusted EBITDA to $80 million to $86 million

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

Second Quarter 2025 Highlights Compared to Second Quarter 2024

• Total revenue was $142.2 million, an increase of 16.4% from $122.2 million
• Net income of $7.8 million, or $0.64 per diluted share, compared to $6.0 million, or $0.50 per diluted share
• Adjusted net income of $11.3 million, or $0.93 per adjusted diluted earnings per share, compared to adjusted net income of $8.7 million, or $0.73 per adjusted diluted earnings per share
• Adjusted EBITDA of $17.9 million, up 30.0% from $13.8 million
• Owner Direct Relationships (“ODR”) revenue increased 31.7%, or $26.2 million, to $108.9 million, or 76.6% of total revenue
• Total gross profit was $39.8 million, an increase of 18.9% from $33.5 million
• Net cash from operating activities of $2.0 million compared to $16.5 million

Management Comments

“We delivered strong second quarter performance, with improvement in key metrics year over year — clear evidence that our strategic shift to higher margin ODR business is driving meaningful results,” said Michael McCann, President and Chief Executive Officer of Limbach. “During the quarter, ODR revenue grew 31.7%, representing 76.6% of total revenue, up from approximately 21% of total revenue during the second quarter of 2019 which was the year that we started the transition. In addition, ODR gross profit grew 24.6%, representing 79.3% of total gross profit. Our strategic focus on the ODR segment is yielding measurable value as we expand margins, reduce risk, and generate more predictable revenue and profits. This momentum continues to build, reinforcing our confidence in our growth strategy and Limbach’s position as a leading provider of essential building systems solutions for existing critical infrastructure.

“We believe we are still in the early stages of fully realizing the value of our customer relationships and market reach. To build on this momentum, we’ve made strategic investments in our sales organization aimed at strengthening our go-to-market strategy — prioritizing enhancements to our national account approach and accelerating our ability to collaborate with customers on their capital programs. These efforts are aimed at deepening relationships, enhancing engagement, and positioning us as a trusted, long-term partner. This, combined with a robust M&A pipeline and disciplined operational execution, positions Limbach well for continued growth and we remain focused on creating long-term value for our stockholders.”

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

• Total revenue was $142.2 million, an increase of 16.4% from $122.2 million. ODR segment revenue of $108.9 million increased by $26.2 million, or 31.7%, while General Contractor Relationships (“GCR”) segment revenue of $33.3 million decreased by $6.2 million, or 15.7%. 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 contribution from 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 contribution from Kent Island Mechanical, LLC (“Kent Island”). Kent Island and Consolidated Mechanical were not acquired entities of the Company during the comparative prior year period.
• Total gross profit was $39.8 million, an increase of 18.9%, compared to $33.5 million. ODR gross profit increased $6.2 million, or 24.6%, due to an increase in revenue, despite slightly lower segment margins of 29.0% versus 30.6% resulting from certain ODR-related project write-ups recognized in the second quarter of 2024 that did not recur in the current period. In addition, gross margins continue to reflect the ongoing integration of acquired companies as the Company transitions them to its standardized revenue growth structure and margin recognition framework. GCR gross profit increased $0.1 million, or 1.1%, due to higher segment margins of 24.7% compared to 20.6% on project work period-over-period, despite lower revenue and certain GCR-related project write-ups recognized in the second quarter of 2024 that did not recur in the current period. Total gross margin increased from 27.4% to 28.0%, mainly driven by the mix of higher margin ODR segment work and the Company's continued selectivity of GCR segment work.
• Selling, general and administrative (“SG&A”) expense increased by approximately $3.5 million, to $26.6 million, compared to $23.2 million. The Company’s SG&A expense for the three months ended June 30, 2025 increased primarily due to a $1.7 million increase in professional services fees including those incurred with the successful acquisition of Pioneer Power, Inc. (“PPI”) on July 1, 2025, a $1.6 million increase in payroll related expenses, and a $0.1 million increase in non-cash stock-based compensation expenses. These variances also include SG&A expense associated with Kent Island and Consolidated Mechanical, which were not acquired entities of the Company during the comparative prior year period. As a percentage of revenue, SG&A expense was 18.7%, down from 19.0% in the same period one year ago.
• Interest expense was $0.6 million during the current quarter, compared to $0.4 million in the second quarter of 2024. The increase in interest expense was related to higher financing costs associated with a larger vehicle fleet year-over-year.
• Interest income was $0.3 million during the current quarter, compared to $0.5 million in the second quarter of 2024. This decrease was related to reduced cash and cash equivalent balances and lower yields on investments.
• Net income was $7.8 million compared to $6.0 million, an increase of 30.2%. Diluted earnings per share was $0.64, as compared to $0.50 in the prior period.
• Adjusted EBITDA was $17.9 million as compared to $13.8 million in the prior period, an increase of 30.0%.
• Adjusted net income was $11.3 million as compared to $8.7 million, an increase of 29.0%. Adjusted diluted earnings per share was $0.93 as compared to $0.73 in the prior period.
• Net cash from operating activities of $2.0 million compared to $16.5 million reflecting the timing of billings that impacted changes in working capital.

Balance Sheet

At June 30, 2025, cash and cash equivalents were $38.9 million. Current assets were $209.0 million and current liabilities were $123.5 million at June 30, 2025, representing a current ratio of 1.69x compared to 1.46x at December 31, 2024. At June 30, 2025, the Company had $10.0 million in borrowings against its revolving credit facility and $5.1 million for standby letters of credit. On June 27, 2025, the Company entered into an amendment to its credit agreement with its lender, Wheaton Bank & Trust Company, N.A., a subsidiary of Wintrust Financial Corporation, to expand the size of its revolving credit facility from $50 million to $100 million and make other conforming changes to the credit facility.

On July 1, 2025, the Company completed its acquisition of PPI, for a purchase price at closing of $66.1 million. The purchase price is subject to customary working capital adjustments and includes owned real property associated with PPI’s headquarters, warehouse, and fabrication facility valued at approximately $4.6 million. The acquisition was funded through a combination of available cash and the Company’s revolving credit facility. The PPI acquisition occurred after the end of the second quarter. The balance sheet as of June 30, 2025 does not include the funding impact of the acquisition.

2025 Guidance

The Company is updating its guidance for FY 2025 as follows:

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=xyi0kCOj. 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 1,600 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, 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.

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 to Adjusted Net Income and Adjusted Diluted Earnings Per Share (unaudited)

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