Limbach Holdings, Inc. Reports Third Quarter 2025 Results

WARRENDALE, Pa.--( BUSINESS WIRE)--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

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:

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

Adjusted EBITDA

$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%

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

(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 5, 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.

LIMBACH HOLDINGS, INC.

Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

(in thousands, except share and per share data)

2025

2024

2025

2024

Revenue

184,583

133,920

459,932

375,131

Cost of revenue

139,898

97,806

338,702

274,421

Gross profit

44,685

36,114

121,230

100,710

Operating expenses:

Selling, general and administrative

28,330

23,748

81,480

69,800

Acquisition-related retention expense and contingent consideration

610

1,832

2,344

Amortization of intangibles

2,400

868

6,020

2,956

Total operating expenses

31,340

25,226

89,332

75,100

Operating income

13,345

10,888

31,898

25,610

Other (expenses) income:

Interest expense

(1,223

)

(468

)

(2,312

)

(1,375

)

Interest income

626

792

1,734

Gain on disposition of property and equipment

367

1,107

656

Loss on change in fair value of interest rate swap

(22

)

(267

)

(175

)

(130

)

Total other income

(790

)

(10

)

(588

)

885

Income before income taxes

12,555

10,878

31,310

26,495

Income tax expense

3,767

3,394

4,546

5,462

Net income

8,788

7,484

26,764

21,033

Earnings Per Share (“EPS”)

Earnings per common share:

Basic

0.76

0.66

2.32

1.87

Diluted

0.73

0.62

2.21

1.75

Weighted average number of shares outstanding:

Basic

11,626,578

11,272,798

11,557,649

11,233,847

Diluted

12,107,480

12,027,021

12,090,829

11,998,750

LIMBACH HOLDINGS, INC.

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share data)

September 30, 2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

9,818

44,930

Restricted cash

Accounts receivable (net of allowance for credit losses of $410 and $387 as of September 30, 2025 and December 31, 2024, respectively)

142,466

119,659

Contract assets

52,672

47,549

Income tax receivable

—

Other current assets

11,754

8,131

Total current assets

216,819

220,334

Property and equipment, net

45,938

30,126

Intangible assets, net

51,495

41,228

Goodwill

69,745

33,034

Operating lease right-of-use assets

20,758

21,539

Deferred tax asset

4,057

5,531

Other assets

305

337

Total assets

409,117

352,129

LIABILITIES

Current liabilities:

Current portion of long-term debt

5,255

3,314

Current operating lease liabilities

4,284

4,093

Accounts payable, including retainage

65,912

60,814

Contract liabilities

37,272

44,519

Accrued income taxes

—

1,470

Accrued expenses and other current liabilities

38,507

36,827

Total current liabilities

151,230

151,037

Long-term debt

56,275

23,554

Long-term operating lease liabilities

16,938

17,766

Other long-term liabilities

3,112

6,281

Total liabilities

227,555

198,638

STOCKHOLDERS’ EQUITY

Common stock, $0.0001 par value; 100,000,000 shares authorized, issued 11,806,466 and 11,452,753, respectively, and 11,626,814 and 11,273,101 outstanding, respectively

Additional paid-in capital

95,536

94,229

Treasury stock, at cost (179,652 shares at both period ends)

(2,000

)

(2,000

)

Retained earnings

88,025

61,261

Total stockholders’ equity

181,562

153,491

Total liabilities and stockholders’ equity

409,117

352,129

LIMBACH HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows (Unaudited)

Nine Months Ended

September 30,

(in thousands)

2025

2024

Cash flows from operating activities:

Net income

26,764

21,033

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation and amortization

13,058

8,261

Provision for credit losses

352

159

Non-cash stock-based compensation expense

5,216

4,323

Non-cash operating lease expense

3,021

3,092

Amortization of debt issuance costs

Deferred income tax provision

1,474

(439

)

Gain on sale of property and equipment

(1,107

)

(656

)

Change in fair value of contingent consideration

1,512

2,344

Loss on change in fair value of interest rate swap

175

130

Changes in operating assets and liabilities:

Accounts receivable

(4,743

)

4,283

Contract assets

(1,041

)

(1,115

)

Other current assets

(3,565

)

(395

)

Accounts payable, including retainage

(2,972

)

(18,418

)

(44

)

—

Accrued taxes payable

(1,470

)

1,311

Contract liabilities

(13,753

)

Operating lease liabilities

(2,964

)

(2,895

)

Accrued expenses and other current liabilities

(1,375

)

(1,446

)

Payment of contingent consideration liability in excess of acquisition-date fair value

(711

)

(2,175

)

Other long-term liabilities

(293

)

Net cash provided by operating activities

17,571

17,494

Cash flows from investing activities:

Pioneer Power Transaction, net of cash acquired

(65,651

)

—

Kent Island Transaction, net of cash acquired

—

(12,716

)

Consolidated Mechanical Transaction, measurement period adjustment

)

—

Proceeds from sale of property and equipment

1,305

1,171

Advances from joint ventures

—

Purchase of property and equipment

(3,556

)

(6,187

)

Net cash used in investing activities

(67,905

)

(17,725

)

Cash flows from financing activities:

Payments on Wintrust Revolving Loan

(17,347

)

—

Proceeds from Wintrust Revolving Loan

41,848

—

Payments of debt issuance costs

(168

)

—

Payment of contingent consideration liability up to acquisition-date fair value

(2,289

)

(1,325

)

Payments on finance leases

(3,052

)

(2,296

)

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

)

Proceeds from contributions to Employee Stock Purchase Plan

369

Net cash provided by (used in) financing activities

15,222

(8,439

)

Decrease in cash, cash equivalents and restricted cash

(35,112

)

(8,670

)

Cash, cash equivalents and restricted cash, beginning of period

44,995

59,898

Cash, cash equivalents and restricted cash, end of period

9,928

51,228

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

Right of use assets obtained in exchange for new operating lease liabilities

2,317

4,776

Right of use assets obtained in exchange for new finance lease liabilities

13,475

3,095

Right of use assets disposed or adjusted modifying finance lease liabilities

—

988

Interest paid

2,327

1,413

Cash paid for income taxes

4,663

4,700

LIMBACH HOLDINGS, INC.

Condensed Consolidated Segment Operating Results (Unaudited)

Three Months Ended September 30,

Increase/(Decrease)

(in thousands, except for percentages)

2025

2024

Statement of Operations Data:

Revenue:

ODR

141,382

76.6

93,007

69.4

48,375

52.0

GCR

43,201

23.4

40,913

30.6

2,288

5.6

Total revenue

184,583

100.0

133,920

100.0

50,663

37.8

Gross profit:

ODR (1)

35,679

25.2

29,647

31.9

6,032

20.3

GCR (2)

9,006

20.8

6,467

15.8

2,539

39.3

Total gross profit

44,685

24.2

36,114

27.0

8,571

23.7

Selling, general and administrative (3)

28,330

15.3

23,748

17.7

4,582

19.3

Acquisition-related retention expense and contingent consideration

610

0.3

610

0.5

—

Amortization of intangibles

2,400

1.3

868

0.6

1,532

176.5

Total operating income

13,345

7.2

10,888

8.1

2,457

22.6

(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 September 30, 2025 and 2024, respectively.

LIMBACH HOLDINGS, INC.

Condensed Consolidated Segment Operating Results (Unaudited)

Nine Months Ended September 30,

Increase/(Decrease)

(in thousands, except for percentages)

2025

2024

Statement of Operations Data:

Revenue:

ODR

340,723

74.1

250,017

66.6

90,706

36.3

GCR

119,209

25.9

125,114

33.4

(5,905

)

(4.7

Total revenue

459,932

100.0

375,131

100.0

84,801

22.6

Gross profit:

ODR (1)

93,429

27.4

77,170

30.9

16,259

21.1

GCR (2)

27,801

23.3

23,540

18.8

4,261

18.1

Total gross profit

121,230

26.4

100,710

26.8

20,520

20.4

Selling, general and administrative (3)

81,480

17.7

69,800

18.6

11,680

16.7

Acquisition-related retention expense and contingent consideration

1,832

0.4

2,344

0.6

(512

)

(21.8

Amortization of intangibles

6,020

1.3

2,956

0.8

3,064

103.7

Total operating income

31,898

6.9

25,610

6.8

6,288

24.6

(1)

As a percentage of ODR revenue.

(2)

As a percentage of GCR revenue.

(3)

Included within selling, general and administrative expenses was $5.2 million and $4.3 million of non-cash stock-based compensation expense for the nine months ended September 30, 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)

Three Months Ended

September 30,

Nine Months Ended

September 30,

(in thousands)

2025

2024

2025

2024

Net income

8,788

7,484

26,764

21,033

Adjustments:

Depreciation and amortization

5,063

2,741

13,058

8,261

Interest expense

1,223

468

2,312

1,375

Interest income

(88

)

(626

)

(792

)

(1,734

)

Stock-based compensation expense

1,980

1,603

5,634

4,323

Change in fair value of interest rate swap

267

175

130

Income tax provision

3,767

3,394

4,546

5,462

Acquisition and other transaction costs

137

826

659

877

Acquisition-related retention expense and contingent consideration

610

1,832

2,344

Restructuring costs (1)

263

565

397

827

Adjusted EBITDA

21,765

17,332

54,585

42,898

Revenue

184,583

133,920

459,932

375,131

Adjusted EBITDA Margin

11.8

12.9

11.9

11.4

(1)

For the three and nine months ended September 30, 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 September 30,

Nine Months Ended September 30,

(in thousands, except share and per share amounts)

2025

2024

2025

2024

Net income and diluted earnings per share

8,788

0.73

7,484

0.62

26,764

2.21

21,033

1.75

Pre-tax Adjustments:

Amortization of acquisition-related intangible assets

2,400

0.20

868

0.07

6,020

0.50

2,956

0.25

Stock-based compensation expense

1,980

0.16

1,603

0.13

5,634

0.47

4,323

0.36

Change in fair value of interest rate swap

—

267

0.02

175

0.01

130

0.01

Restructuring costs (1)

263

0.02

565

0.05

397

0.03

827

0.07

Acquisition-related retention expense and contingent consideration

610

0.05

610

0.05

1,832

0.14

2,344

0.21

Acquisition and other transaction costs

137

0.01

826

0.07

659

0.06

877

0.07

Tax effect of reconciling items (2)

(1,461

)

(0.12

)

(1,280

)

(0.10

)

(3,974

)

(0.32

)

(3,093

)

(0.26

)

Adjusted net income and adjusted diluted earnings per share

12,739

1.05

10,943

0.91

37,507

3.10

29,397

2.46

Weighted average number of shares outstanding: Diluted

12,107,480

12,027,021

12,090,829

11,998,750

(1)

For the three and nine months ended September 30, 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 growth 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 during 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 nine months ended September 30, 2025, compared to revenue for the three and nine months ended September 30, 2024:

(in thousands except for percentages)

ODR

GCR

Total Revenue

Revenue: Three months ended

September 30, 2024

93,007

40,913

133,920

Components of revenue change:

Organic revenue growth (decline)

11,316

12.2%

(7,991

)

(19.5)%

3,325

2.5%

Acquisition-related revenue (1)

37,059

39.8%

10,279

25.1%

47,338

35.3%

Revenue: Three months ended

September 30, 2025

141,382

52.0%

43,201

5.6%

184,583

37.8%

(in thousands except for percentages)

ODR

GCR

Total Revenue

Revenue: Nine months ended

September 30, 2024

250,017

125,114

375,131

Components of revenue change:

Organic revenue growth (decline)

35,944

14.4%

(27,271

)

(21.8)%

8,673

2.3%

Acquisition-related revenue (1)

54,762

21.9%

21,366

17.1%

76,128

20.3%

Revenue: Nine months ended

September 30, 2025

340,723

36.3%

119,209

(4.7)%

459,932

22.6%

(1)

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 three and nine months ended September 30, 2025 as the acquired operations were integrated into an existing branch of the Company for which separate financial results are not maintained.