Limbach to Participate in 38th Annual ROTH Conference Mar 17, 2026 4:05 PM Eastern Daylight Time Limbach to Participate in 38th Annual ROTH Conference Share TAMPA, Fla.--(BUSINESS WIRE)--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 that Michael McCann, President and Chief Executive Officer, will p ...

Core Insights - Limbach reported a record-setting year in 2025, with total revenue increasing by 24.7% and adjusted EBITDA rising by 28.4% to $81.8 million, driven by a strategic shift towards Owner Direct Relationships (ODR) [4][5][8] Financial Performance - Total revenue for 2025 reached $730–760 million, reflecting a year-over-year growth of 13–17%, while adjusted EBITDA is projected to be between $90–94 million, indicating a growth of 10–16% [6][18] - The company generated $71.9 million in operating cash (excluding working capital) and $70.1 million in free cash flow for 2025, with free cash flow conversion of adjusted EBITDA at 85.7% [7][9] - For the fourth quarter, total revenue rose by 30.1% to $186.9 million, with ODR revenue increasing by 51.8% to $145.0 million [11] Strategic Initiatives - Limbach's revenue mix for 2025 was 75% ODR and 25% General Contractor Relationships (GCR), with ODR revenue growing by 40.6%, including 17% organic growth, while GCR revenue declined by 7% [2][5] - The company plans to pursue 1–3 selective acquisitions in 2026 and aims to improve margins through bundled customer solutions [6][19] Operational Developments - Limbach will relocate its headquarters to Tampa, Florida, where nearly 40% of the corporate workforce is already based, coinciding with the company's 125th anniversary [3][8] - Management highlighted a strong balance sheet, with net debt at $24.6 million, representing 0.3x adjusted EBITDA, and total liquidity of approximately $96.3 million [10] Market Trends and Outlook - Positive demand trends were noted in the fourth quarter across various verticals, particularly in healthcare and education, following mid-year softness [16] - The company expects ODR organic revenue growth of 9% to 12% in 2026, with total gross margin projected to be between 26% and 27% [18][20]

Financial Data and Key Metrics Changes - Limbach Holdings reported total revenue growth of 24.7% for 2025, reaching $646.8 million compared to $518.8 million in 2024 [30] - Adjusted EBITDA for the year increased by 28.4% to $81.8 million, with an adjusted EBITDA margin of 12.6% [35] - The company generated $71.9 million in cash from operations, with a free cash flow of $70.1 million for 2025, representing an increase of $17.8 million from the previous year [35][36] Business Line Data and Key Metrics Changes - ODR revenue grew by 40.6% to $485.7 million, with organic ODR revenue growth of 17% [30][8] - GCR revenue decreased by 7% to $161.1 million, with organic revenue contributing to a decline of $39.9 million [30][31] - Total gross margin for 2025 was 26.2%, down from 27.8% in 2024, primarily due to the impact of Pioneer Power's lower gross margin [31] Market Data and Key Metrics Changes - The healthcare vertical saw a rebound in spending, contributing to a 24% organic revenue growth in Q4 [17] - Data center revenue represented less than 5% of total revenue in 2025, but the company aims to increase its contribution significantly in 2026 [20] - The industrial manufacturing vertical produced steady results, less affected by policy concerns, with expectations for revenue growth driven by previous investments [21] Company Strategy and Development Direction - The company is focusing on three strategic growth pillars: ODR and organic revenue growth, margin expansion through evolved customer solutions, and strategic M&A [10] - Plans to relocate headquarters to Tampa, Florida, to strengthen its presence and leverage local resources [6][7] - The company aims to pursue one to three acquisitions in 2026 to expand its geographic footprint and enhance customer solutions [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand improvement across all verticals, particularly in healthcare and data centers [17] - The company anticipates a softer start to 2026 but expects revenue growth to accelerate in the second half of the year [24] - Guidance for 2026 includes revenue expectations of $730 million to $760 million, reflecting year-over-year growth of 13% to 17% [22] Other Important Information - The company authorized a $50 million share repurchase program in December [9] - Total liquidity as of December 31st was $96.3 million, indicating a strong balance sheet to support growth initiatives [38] Q&A Session Summary Question: Can you talk about the investment or specific steps you're taking to take advantage of the data center opportunity? - Management highlighted the establishment of national vertical market teams and successful project deliveries in the Columbus market as key strategies [40][41] Question: How do you see the organic growth in the ODR segment once Pioneer is integrated? - Management indicated a long-term organic growth target of 17% to 20% for the ODR segment, with a focus on improving gross profit [52][54] Question: What are the most material risks and uncertainties you're monitoring for 2026? - Management emphasized the importance of project selection and maintaining a short duration for projects to manage risks effectively [90]

Financial Data and Key Metrics Changes - Total revenue for 2025 increased by 24.7% to $646.8 million from $518.8 million, primarily driven by acquisitions and organic growth [30][31] - Adjusted EBITDA for the year rose by 28.4% to $81.8 million, with an adjusted EBITDA margin of 12.6% [35] - Net income increased by 26.5% to $39.1 million, with diluted earnings per share growing by 25.7% to $3.23 [34] Business Line Data and Key Metrics Changes - ODR revenue grew by 40.6% to $485.7 million, with organic revenue growth of 17% [30][31] - GCR revenue decreased by 7% to $161.1 million, with organic revenue contributing to a decline of $39.9 million [30][31] - ODR accounted for 75% of total revenue in 2025, up from 67% in 2024 [8] Market Data and Key Metrics Changes - The healthcare vertical saw a rebound in spending, contributing to a 24% organic revenue growth in Q4 [17] - Data center revenue represented less than 5% of total revenue in 2025, with expectations for significant growth in 2026 [20][21] - Industrial manufacturing vertical produced steady results, less affected by policy concerns [21] Company Strategy and Development Direction - The company is focused on three strategic growth pillars: ODR and organic revenue growth, margin expansion through evolved customer solutions, and strategic M&A [10][14] - Plans to pursue one to three acquisitions in 2026 to enhance capabilities and market presence [14] - The relocation of headquarters to Tampa, Florida, aims to strengthen the company's presence and operational efficiency [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand recovery across verticals, particularly in healthcare and data centers [17][20] - The company anticipates a softer start to 2026 but expects revenue growth to accelerate in the second half of the year [22][24] - Guidance for 2026 includes revenue expectations of $730 million to $760 million, reflecting year-over-year growth of 13% to 17% [22] Other Important Information - The company authorized a $50 million share repurchase program [9] - Cash from operations for 2025 was $71.9 million, with a strong balance sheet showing only $24.6 million in net debt [9][36] Q&A Session Summary Question: Can you talk about the investment or specific steps you're taking to take advantage of the data center opportunity? - Management highlighted the establishment of national vertical market teams to enhance focus on data centers and leverage existing relationships [40][41] Question: What is the long-term organic growth expectation for the ODR segment? - Management indicated a normalized growth rate of 17% to 20% for the ODR segment once Pioneer Power is fully integrated [52][54] Question: How does the company plan to integrate Pioneer Power and improve margins? - Management discussed the completion of phase one integration and the focus on customer engagement to drive margin improvements in phase two [86][88]

Financial Data and Key Metrics Changes - Total revenue for 2025 increased by 24.7% to $646.8 million from $518.8 million, primarily due to acquisitions and organic growth [28][30] - Adjusted EBITDA for the year reached $81.8 million, a 28.4% increase from 2024, with an adjusted EBITDA margin of 12.6% [34] - Net income for the quarter increased by 25% to $12.3 million, with diluted earnings per share growing by 24.4% to $1.02 [26] Business Line Data and Key Metrics Changes - ODR revenue grew by 40.6% to $485.7 million, with organic revenue growth of 17% [28][29] - GCR revenue decreased by 7% to $161.1 million, with organic revenue contributing to the decline [29] - ODR revenue accounted for 77.6% of total revenue in Q4, up from 66.5% in 2024 [23] Market Data and Key Metrics Changes - The healthcare vertical saw increased spending as customers utilized leftover budgets and prepared for 2026 [15] - Data center revenue is expected to grow, with a recent $10 million project awarded in Q4 [17] - Industrial manufacturing showed steady results, less affected by policy concerns [18] Company Strategy and Development Direction - The company is focused on three strategic growth pillars: ODR and organic revenue growth, margin expansion through evolved customer solutions, and strategic M&A [8][12] - The relocation of headquarters to Tampa, Florida, aims to strengthen the company's presence and operational efficiency [5][6] - The company plans to pursue one to three acquisitions in 2026 to enhance capabilities and market presence [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand recovery in institutional markets, particularly healthcare and life sciences [14] - The company anticipates a softer start to 2026 but expects revenue growth to accelerate in the second half of the year [22] - Guidance for 2026 includes revenue expectations of $730 million to $760 million, reflecting year-over-year growth of 13% to 17% [19] Other Important Information - The company authorized a $50 million share repurchase program [7] - Total gross margin for 2025 was 26.2%, a decrease from 27.8% in 2024, primarily due to the impact of Pioneer Power's lower gross margin [30] - The company has a strong balance sheet with only $24.6 million in net debt [7] Q&A Session Summary Question: Can you elaborate on the investment steps for the data center opportunity? - The company is building national vertical market teams and has seen success in Columbus, Ohio, with plans to expand resources in the data center market [39][40] Question: What is the long-term organic growth expectation for the ODR segment? - The company previously indicated a long-term organic growth rate of 17%-20% and is focused on maintaining strong local results [52][53] Question: How does the company plan to integrate Pioneer Power and improve margins? - The integration is in phase two, focusing on customer engagement and margin improvement, with lessons learned from previous acquisitions [86][88]

CRITICAL SYSTEMS, AHEAD OF THE MOMENT INVESTOR PRESENTATION 2025 Q4/FULL YEAR RESULTS NASDAQ: LMB 1 WE MAKE FORWARD-LOOKING STATEMENTS IN THIS PRESENTATION 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, THE EXECUTION OF THE COMPANY'S LONG-TERM STRATEGIC ROADMAP. THESE STATEMENTS MAY BE PRECEDED BY, FOLLOWED BY OR INCLUDE THE WORDS "MAY," "MIGHT," "WILL," "WILL L ...

分组1 - Limbach reported quarterly earnings of $1.4 per share, exceeding the Zacks Consensus Estimate of $1.28 per share, and up from $1.15 per share a year ago, representing an earnings surprise of +9.38% [1] - The company posted revenues of $186.87 million for the quarter ended December 2025, which missed the Zacks Consensus Estimate by 4.58%, compared to year-ago revenues of $143.65 million [2] - Limbach shares have increased approximately 17.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.96 on revenues of $171.03 million, and for the current fiscal year, it is $4.56 on revenues of $743.77 million [7] - The Zacks Industry Rank indicates that the Building Products - Miscellaneous sector is currently in the bottom 27% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8] - Southland Holdings, another company in the same industry, is expected to report a quarterly loss of $0.21 per share, reflecting a year-over-year change of -133.3% [9]

Financial Performance - Total revenue for FY2025 increased 30.1% to a record $186.9 million compared to $143.7 million in FY2024[8] - Record net income of $12.3 million, or $1.02 per diluted share, compared to $9.8 million, or $0.82 per diluted share in the previous year[8] - Adjusted EBITDA for FY2025 reached a record $81.8 million, up 28.4% from $63.7 million in FY2024[8] - Revenue for the year ended December 31, 2025, was $646,804,000, representing a 24.7% increase from $518,781,000 in 2024[22] - Net income for 2025 reached $39,064,000, a 26.5% increase compared to $30,875,000 in 2024[22] - Basic earnings per share (EPS) for 2025 was $3.37, compared to $2.75 in 2024, reflecting a 22.5% increase[22] - Operating income for 2025 was $49,454,000, up from $38,624,000 in 2024, showing improved operational efficiency[22] - Total revenue for the three months ended December 31, 2025, was $186,872,000, representing a 30.1% increase from $143,650,000 in the same period of 2024[30] - Net income for the three months ended December 31, 2025, was $12,300,000, compared to $9,842,000 in 2024, resulting in diluted earnings per share of $1.02[40] Revenue Breakdown - Owner Direct Relationships (ODR) revenue rose 51.8% to $145.0 million, accounting for 77.6% of total revenue; ODR organic revenue growth was 23.9%[8] - ODR revenue for the year ended December 31, 2025, was $485,690,000, a 40.6% increase from $345,500,000 in 2024, while GCR revenue decreased by 7.0% to $161,114,000[33] - Organic revenue growth for ODR was $22,849,000, representing a 23.9% increase, while GCR experienced a decline of $12,592,000, or 26.1%[42] - Acquisition-related revenue for the three months ended December 31, 2025, was $32,965,000, accounting for 22.9% of total revenue[42] - For the twelve months ended December 31, 2025, total revenue rose by 24.7% to $646,804,000 from $518,781,000 in 2024[43] - Acquisition-related revenue for the twelve months ended December 31, 2025, was $109,093,000, representing 21.0% of total revenue[43] - The company attributed acquisition-related revenue to Pioneer Power, Consolidated Mechanical, and Kent Island acquisitions[43] Expenses and Financial Health - SG&A expenses increased to $109.5 million, primarily due to acquisitions, but as a percentage of revenue decreased to 16.9%[11] - Interest expense increased to $3.1 million, driven by higher borrowings related to the Pioneer Power acquisition[11] - Cash and cash equivalents decreased to $11,345,000 in 2025 from $44,930,000 in 2024, indicating a cash flow challenge[24] - Total liabilities decreased to $185,469,000 in 2025 from $198,638,000 in 2024, indicating improved financial health[24] - The company made significant investments in acquisitions, including the Pioneer Power Transaction, which totaled $65,651,000[26] Strategic Initiatives - The company completed the strategic acquisition of Pioneer Power, enhancing its competitive positioning in key verticals[7] - For FY2026, the company expects total revenue between $730 million and $760 million, with ODR revenue projected to be 75-80% of total revenue[14] - The company aims to improve margins through evolved customer solutions and disciplined capital allocation while scaling the business through acquisitions[10] - The company reported a backlog that includes unexercised contract options, indicating potential future revenue[38] - The company emphasizes the importance of non-GAAP measures such as Adjusted Net Income and Adjusted Diluted Earnings per Share for evaluating performance and making strategic decisions[36] Amortization and Retention - Acquisition-related retention expense decreased significantly by 89.3% to $153,000 for the three months ended December 31, 2025[30] - Amortization of intangibles increased by 34.9% to $2,337,000 for the three months ended December 31, 2025[30]

Core Viewpoint - Limbach Holdings, Inc. is relocating its corporate headquarters to Tampa, Florida, which is a significant milestone in the company's 125th anniversary year [1] Company Overview - Limbach Holdings, Inc. is a building systems solutions firm that collaborates with building owners and operators on mission-critical mechanical, electrical, plumbing, and controls (MEPC) systems [1]

Financial Performance - Total revenue for the fiscal year ended December 31, 2025, was $646.8 million, a 24.7% increase from $518.8 million in 2024[288] - Gross profit for the Company was $169.3 million, representing a gross margin of 26.2%, compared to $144.3 million and 27.8% in 2024[288] - Net income for the fiscal year ended December 31, 2025, was $39.1 million, a 26.5% increase from $30.9 million in 2024, maintaining a net income margin of 6.0%[288] - Total revenue for the year ended December 31, 2025 increased by $128.0 million, or 24.7%, to $646.8 million, compared to $518.8 million for 2024[289] - ODR revenue for 2025 increased by $140.2 million, or 40.6%, to $485.7 million, driven by acquisitions contributing approximately $81.4 million and organic growth of $58.8 million[291] - GCR revenue for 2025 decreased by $12.2 million, or 7.0%, to $161.1 million, primarily due to a strategic shift towards ODR work[292] - Total gross profit for 2025 increased by $25.0 million, or 17.4%, to $169.3 million, with gross profit margin decreasing to 26.2% from 27.8% in 2024[293] - SG&A expenses for 2025 increased by $12.3 million, or 12.7%, to $109.5 million, with SG&A as a percentage of revenue decreasing to 16.9% from 18.7%[300] - The Company reported net cash provided by operating activities of $45,700,000 for 2025, an increase from $36,783,000 in 2024[327] - Net income for 2025 was $39.1 million, up from $30.9 million in 2024, reflecting an increase of $8.2 million year-over-year[1] Acquisitions - The Company completed the acquisition of Pioneer Power for $66.1 million on July 1, 2025, expanding its market presence in the upper Midwestern region[283] - The acquisition of Consolidated Mechanical for $23.0 million on December 2, 2024, included a potential earnout of up to $2.0 million[284] - The acquisition of Kent Island for $15.0 million on September 3, 2024, also included a potential earnout of up to $5.0 million[285] - Amortization of intangibles increased by approximately $3.7 million to $3.7 million in 2025, driven by acquisitions impacting the current year[304] Segment Performance - ODR segment revenue increased to $485.7 million (75.1% of total revenue) from $345.5 million (66.6% of total revenue) in the previous year[288] - GCR segment revenue decreased to $161.1 million (24.9% of total revenue) from $173.3 million (33.4% of total revenue) in 2024[288] - The Company's ODR backlog was $255.8 million as of December 31, 2025, up from $225.3 million in 2024, with an estimated 84% expected to be recognized as revenue in 2026[309] - The GCR backlog was $141.8 million as of December 31, 2025, compared to $140.0 million in 2024[310] - For fiscal year 2025, the ODR segment generated 75.1% of total consolidated revenue, exceeding the revenue target of 70% - 80%[316] - The Company’s GCR segment margins have improved by focusing on smaller, shorter-duration projects, stabilizing the segment's performance[318] Cash Flow and Debt - Cash flows used in investing activities increased to $67.6 million in 2025 from $42.6 million in 2024, primarily due to $65.7 million related to the Pioneer Power Transaction[4] - Financing activities resulted in cash outflows of $11.7 million in 2025, compared to $9.1 million in 2024, driven by $10.7 million in tax payments related to equity awards[7] - As of December 31, 2025, the company had total available funding capacity of $96.3 million, including $11.3 million in cash and cash equivalents[9] - Total debt increased to $35.9 million in 2025 from $27.2 million in 2024, with long-term debt rising to $30.5 million[10] - The Company experienced a net decrease in cash of $33,585,000 for 2025, compared to a decrease of $14,903,000 in 2024[327] Tax and Interest - The Company's income tax provision was $9.6 million for 2025, with an effective tax rate of 19.7%, down from 22.7% in 2024[308] - Interest expense increased by $1.3 million, or 67.6%, to $3.1 million in 2025, primarily due to greater borrowings for the Pioneer Power transaction[307] - The Company recognized interest income of approximately $0.8 million for the year ended December 31, 2025[383] Economic Conditions and Strategy - The Company continues to monitor macroeconomic conditions and anticipates elevated uncertainty regarding inflation and trade policies[312] - The Company aims to expand margins through enhanced customer solutions and a commitment to operational efficiency[321] - The Company is focused on disciplined capital deployment for acquisitions to support long-term value creation[322] Pension and Liabilities - The Company made contributions of $14.3 million to multiemployer pension plans in 2025, up from $10.3 million in 2024[14] - The Company participates in approximately 70 Multiemployer Pension Plans (MEPPs) and is responsible for any plan underfunding alongside other employers[353] - The Pension Protection Act of 2006 mandates a 5.0% surcharge on employer contributions for the first year of critical status and a 10.0% surcharge for subsequent years until a compliant collective bargaining agreement is established[354] - The Company may incur withdrawal liabilities if it reduces contributions to MEPPs, which could materially impact its financial condition[355] Accounting Policies - The Company recognizes revenue based on the cost-to-cost method, which requires significant judgment in estimating total costs to complete contracts[359] - Contract revenue is determined by multiplying total expected contract revenue by the percentage of contract costs incurred to total estimated costs[360] - The Company records an allowance for credit losses based on historical loss experience and current conditions, which requires judgment and estimates[369] - The Company is substantially self-insured for various liabilities, with losses estimated based on historical trends and industry averages[371] - Goodwill impairment testing is performed annually, requiring management to estimate the fair value of reporting units[376] - The Company did not have any off-balance sheet arrangements aside from $5.1 million and $4.2 million in irrevocable letters of credit related to its self-insurance program[380] Financial Position - The Company’s current assets as of December 31, 2025, were $195,049,000, while current liabilities were $135,086,000, resulting in net working capital of $59,963,000[330] - The Company’s current ratio as of December 31, 2025, was 1.44, indicating a slight decrease from 1.46 in 2024[330] - The company had $69.1 million in open purchase obligations as of December 31, 2025, with approximately $55.4 million expected to be due within the next 12 months[12] - The present value of contingent consideration liabilities was $10.0 million as of December 31, 2025, with approximately $7.0 million estimated to be payable in 2026[13] - Future lease payments, excluding leases with initial terms of one year or less, totaled $46.8 million as of December 31, 2025, with $11.4 million payable within the next 12 months[15] Investment and Cash Management - The Company has an interest rate swap arrangement with a notional value of $10.0 million, maturing in July 2027[382] - Cash equivalents as of December 31, 2025 were $10.2 million, consisting of overnight repurchase agreements[383] - The Company maintains a conservative investment policy and has not experienced any losses in its cash and cash equivalents[383] - An increase or decrease in interest rates would not have a material impact on the Company's consolidated statements of operations[382]