Core Insights - Limbach Holdings, Inc. reported a solid third quarter for 2025, with a net income of $8.8 million and an adjusted EBITDA of $21.8 million, reflecting a strategic transition to higher-margin Owner Direct Relationships (ODR) business [1][3][5] Financial Performance - Total revenue increased by 37.8% to $184.6 million from $133.9 million, driven by acquisitions and organic growth [5][6] - ODR revenue rose by 52.0%, accounting for 76.6% of total revenue, with organic ODR revenue growth at 12.2% [5][6] - Net income increased by 17.4% to $8.8 million, or $0.73 per diluted share, compared to $7.5 million, or $0.62 per diluted share in the prior year [5][13] - Adjusted net income was $12.7 million, or $1.05 per adjusted diluted earnings per share, up from $10.9 million, or $0.91 [5][13] - Adjusted EBITDA increased by 25.6% to $21.8 million from $17.3 million [5][13] Strategic Initiatives - The company completed the acquisition of Pioneer Power, enhancing its presence in the Upper Midwest and industrial markets, with Pioneer Power's revenue performance exceeding expectations [4][6] - Management emphasized the focus on improving Pioneer Power's margins and integrating it into the Limbach platform [4][6] Guidance and Outlook - The company reaffirmed its full-year 2025 revenue guidance of $650 million to $680 million and adjusted EBITDA guidance of $80 million to $86 million [1][8][12] - The total organic revenue growth expectation was refined to 7% to 10%, down from the previous 10% to 15% [12][8] Balance Sheet and Cash Flow - As of September 30, 2025, cash and cash equivalents were $9.8 million, with current assets at $216.8 million and current liabilities at $151.2 million, resulting in a current ratio of 1.43x [7][20] - Net cash from operating activities was $13.3 million, significantly up from $4.9 million in the prior year [5][13]

Revenue Growth - Total revenue for the three months ended September 30, 2025, increased by $50.7 million, or 37.8%, to $184.6 million compared to $133.9 million for the same period in 2024[181]. - ODR revenue for the three months ended September 30, 2025, increased by $48.4 million, or 52.0%, to $141.4 million compared to $93.0 million for the same period in 2024, driven by recent acquisitions[182]. - GCR revenue for the three months ended September 30, 2025, increased by $2.3 million, or 5.6%, to $43.2 million compared to $40.9 million for the same period in 2024, supported by Pioneer Power and Kent Island operations[184]. - Total revenue for the nine months ended September 30, 2025 increased by $84.8 million, or 22.6%, to $459.9 million compared to $375.1 million in 2024[196]. - ODR revenue for the nine months ended September 30, 2025 increased by $90.7 million, or 36.3%, to $340.7 million, driven by recent acquisitions[197]. - GCR revenue for the nine months ended September 30, 2025 decreased by $5.9 million, or 4.7%, to $119.2 million, primarily due to a strategic shift towards ODR[198]. Profitability - Total gross profit for the three months ended September 30, 2025, was $44.7 million, representing a gross profit margin of 24.2%, compared to $36.1 million and 27.0% in 2024[180]. - Gross profit for the three months ended September 30, 2025 increased by $8.6 million, or 23.7%, to $44.7 million compared to the same period in 2024[185]. - ODR gross profit rose by $6.0 million, or 20.3%, while GCR gross profit increased by $2.5 million, or 39.3%[185]. - Net income for the three months ended September 30, 2025, was $8.8 million, or 4.8% of total revenue, compared to $7.5 million, or 5.6% in 2024[180]. - Net income for the nine months ended September 30, 2025 was $26.8 million, representing a 27.5% increase from $21.0 million in 2024[195]. Expenses - Selling, general and administrative expenses for the three months ended September 30, 2025, were $28.3 million, or 15.3% of total revenue, compared to $23.7 million, or 17.7% in 2024[180]. - SG&A expenses for the three months ended September 30, 2025 increased by $4.6 million, or 19.3%, but as a percentage of revenue decreased to 15.3% from 17.7%[187]. - Selling, General and Administrative (SG&A) expenses increased by approximately $11.7 million, or 16.7%, to $81.5 million for the nine months ended September 30, 2025, compared to $69.8 million in the prior year[201]. - Amortization of intangibles for the three months ended September 30, 2025 increased by $1.5 million, or 176.5%, to $2.4 million due to recent acquisitions[191]. - Interest expense for the three months ended September 30, 2025 increased by $0.8 million, or 161.3%, to $1.2 million, reflecting higher borrowings[192]. - Interest expense increased by 68.1% to $2.3 million for the nine months ended September 30, 2025, compared to $1.4 million in the prior year[205]. Acquisitions - The acquisition of Pioneer Power was completed for a purchase price of $66.1 million, expanding the company's footprint in the Midwest[174]. - The acquisition of Consolidated Mechanical was completed for $23.0 million, with an additional earnout of up to $2.0 million potentially payable over 2026 and 2027[175]. - The acquisition of Kent Island was completed for $15.0 million, with an earnout of up to $5.0 million potentially payable over 2025 and 2026[176]. - The Company aims to expand its geographic footprint and enhance its offerings through strategic acquisitions, including the acquisition of Pioneer Power, which serves critical facilities in the Upper Midwest[219]. - Acquisition-related retention and contingent consideration expenses were $1.8 million for the nine months ended September 30, 2025, down from $2.3 million in the prior year[202]. Backlog and Future Revenue - The Company’s ODR backlog as of September 30, 2025, was $241.6 million, reflecting an increase from $225.3 million as of December 31, 2024, with an estimated 44% expected to be recognized as revenue over the remainder of 2025[209]. - The GCR backlog decreased to $121.2 million as of September 30, 2025, from $140.0 million at December 31, 2024, with an estimated 31% expected to be recognized as revenue over the remainder of 2025[210]. - The Company aims to achieve a revenue mix of 70%-80% from the ODR segment by 2025, with ODR revenue accounting for 74.1% of total consolidated revenue for the nine months ended September 30, 2025[215]. Cash Flow and Liquidity - The Company generated $17.6 million in cash from operating activities for the nine months ended September 30, 2025, compared to $17.5 million for the same period in 2024, reflecting a net income increase of $5.7 million[230]. - Cash flows used in investing activities were $67.9 million for the nine months ended September 30, 2025, primarily due to a $65.7 million outflow associated with the Pioneer Power acquisition[233]. - Cash flows provided by financing activities were $15.2 million for the nine months ended September 30, 2025, compared to cash flows used of $8.4 million for the same period in 2024[235]. - The Company borrowed $41.8 million on its revolving credit facility during the nine months ended September 30, 2025, with additional inflows of $6.3 million from share sales for employee tax withholding[235]. - The Company believes its current cash and cash equivalents, along with available borrowing capacity, will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months[240]. Financial Position - The Company reported a net working capital of $65.6 million as of September 30, 2025, down from $69.3 million at the end of 2024[229]. - The current ratio as of September 30, 2025, was 1.43, slightly down from 1.46 at the end of 2024, indicating a stable liquidity position[229]. - Long-term debt increased to $61.9 million as of September 30, 2025, from $27.2 million as of December 31, 2024[241]. - The Company had approximately $111.0 million in surety bonds outstanding as of September 30, 2025, compared to $109.3 million as of December 31, 2024[242]. - Total available funding capacity as of September 30, 2025, was $70.3 million, including $9.8 million in cash and cash equivalents[237]. Market Conditions - The Company continues to monitor the impact of inflation and tariffs, particularly the 50% tariffs on certain steel and aluminum products implemented in 2025, which could affect costs and supply availability[224]. - The Company is focused on enhancing operational efficiency and margin expansion by evolving its offerings to meet current market demands[217]. - The Company continues to focus on smaller, higher-margin projects in its GCR segment to improve profitability and reduce risks associated with larger, complex projects[216]. - A hypothetical 100 basis point increase in interest rates would result in an approximate $0.9 million increase in annualized interest expense on variable-rate debt[253]. - The Company expects growth in its ODR business to positively impact cash flow trends, which are less sensitive to cash flow issues from large GCR projects[239].

Financial Performance - Q3 2025 net income was $8.8 million, or $0.73 per diluted share, compared to $7.5 million, or $0.62 per diluted share in Q3 2024, representing a 17.4% increase[6]. - Total revenue increased 37.8% to $184.6 million from $133.9 million, driven by acquisitions and organic growth[6]. - Adjusted EBITDA for Q3 2025 was $21.8 million, up 25.6% from $17.3 million in Q3 2024[6]. - Operating income for the three months ended September 30, 2025, increased to $13,345,000, a 22.6% rise compared to $10,888,000 in 2024[17]. - Net income for the nine months ended September 30, 2025, was $26,764,000, compared to $21,033,000 for the same period in 2024, reflecting a 27.3% increase[21]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $54,585,000, up from $42,898,000 in 2024, reflecting a significant growth in operational performance[35]. - Operating income for the nine months ended September 30, 2025, was $31,898,000, representing a 24.6% increase from $25,610,000 in 2024[29]. - Adjusted diluted earnings per share for the nine months ended September 30, 2025, was $3.10, up from $2.46 in 2024[36]. Revenue Breakdown - Owner Direct Relationships (ODR) revenue rose 52.0% to $141.4 million, accounting for 76.6% of total revenue, with organic ODR revenue growth of 12.2%[6][7]. - The acquisition of Pioneer Power contributed $37.1 million to ODR revenue, with acquisition-related revenue accounting for 39.8% of the ODR segment's growth[7]. - Total revenue for the nine months ended September 30, 2025, was $459,932,000, representing a 22.6% increase from $375,131,000 in 2024[29]. - ODR revenue increased by 36.3% to $340,723,000, while GCR revenue decreased by 4.7% to $119,209,000[29]. - Acquisition-related revenue contributed $76,128,000 for the nine months ended September 30, 2025, accounting for 20.3% of total revenue growth[38]. Profitability Metrics - Total gross profit increased 23.7% to $44.7 million, with ODR gross profit rising 20.3% to $35.7 million[9]. - Total gross profit for the nine months ended September 30, 2025, was $121,230,000, a 20.4% increase from $100,710,000 in 2024[29]. - Adjusted EBITDA margin for the nine months ended September 30, 2025, was 11.9%, compared to 11.4% in 2024[35]. Expenses and Cash Flow - Selling, general and administrative (SG&A) expenses increased by approximately $4.6 million to $28.3 million, but SG&A as a percentage of revenue decreased to 15.3%[9]. - The company reported net cash from operating activities of $13.3 million, significantly up from $4.9 million in the prior year[6]. - The company reported a net cash provided by operating activities of $17,571,000 for the nine months ended September 30, 2025, compared to $17,494,000 for the same period in 2024[21]. Balance Sheet Highlights - The current ratio as of September 30, 2025, was 1.43x, slightly down from 1.46x at the end of 2024[8]. - Total current assets as of September 30, 2025, were $216,819,000, slightly down from $220,334,000 as of December 31, 2024[19]. - Total assets increased to $409,117,000 as of September 30, 2025, compared to $352,129,000 as of December 31, 2024[19]. - Total liabilities rose to $227,555,000 as of September 30, 2025, from $198,638,000 as of December 31, 2024[19]. - Cash and cash equivalents decreased to $9,818,000 as of September 30, 2025, down from $44,930,000 as of December 31, 2024[19].

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if they have ad-blockers enabled, indicating a need to disable them for proper access [1]

Core Insights - Liberty Park Fund, LP's value increased by 1.13% in Q3 2025, underperforming the Russell 2000's 12.40% increase, with long positions contributing positively and shorts detracting significantly [2][4][21] - Liberty Park Select Opportunities, LP's value increased by 14.27% in the same period, indicating a strong performance in its investment strategy [3][21] - The Federal Reserve's interest rate cuts are expected to stimulate the economy, but have also inflated a bubble in speculative stocks, reminiscent of the dot-com bubble [4][10] Performance Analysis - Long positions saw a 14.42% increase, contributing 12.38% on a weight-adjusted basis, while shorts increased by 18.60%, detracting 10.85% [2][4] - The gross exposure for Liberty Park Fund averaged 142.48%, while net exposure averaged 33.61% [2][21] - Gross Pure Alpha for the quarter was -3.11%, indicating challenges in stock selection [2] Long Performance - Best-performing long positions included Xometry Inc (61.20% return), BK Technologies Corp (79.25% return), and Napco Security Technologies (45.13% return) [5] - Worst-performing long positions included Limbach Holdings Inc (-30.68% return), DMC Global Inc (-20.84% return), and Whirlpool Corp (-24.49% return) [6] Short Performance - The short portfolio faced significant pressure, with seven companies accounting for over half of the negative contribution, surging an average of 170% without fundamental changes [7] - These companies collectively have a market cap of $100 billion, reflecting unrealistic valuations based on 2026 revenue estimates [7] Portfolio Outlook - The investment environment is complex, with interest rate cuts expected to boost consumption while speculation in certain sectors has risen dramatically [10] - The fund's strategy is to remain invested in real economy, non-bubble names while being short on profitless hype [11] Adaptation and Strategy - The fund is considering single-name equity shorts as a core competency, but currently finds few attractive traditional economy shorts [12] - Options have been introduced for risk management, including long call and put positions to hedge against potential market corrections [13][14] Communication Changes - The fund will no longer disclose top positions or highlight individual investments in quarterly communications to protect proprietary research and focus on new initiatives [15][17]

Core Insights - Limbach Holdings, Inc. (NASDAQ: LMB) has shown significant performance, with the stock increasing as much as 5 times at one point this year [1] Investment Strategy - The investor emphasizes a personal approach to investing, focusing on deep research, independent thinking, and skepticism [1] - The investment strategy includes targeting under-the-radar small caps with asymmetric upside and low-beta stocks that have potential for meaningful growth [1] - The investor also employs a strategy of pairing long positions with targeted short positions to manage risk and capitalize on market mispricing [1]

Core Thesis - Limbach Holdings, Inc. is positioned as a compelling investment opportunity due to its focus on high-margin Owner Direct Relationships (ODR) segment, which has shown significant growth and resilience in a competitive market [1][4]. Company Overview - Limbach Holdings, Inc. is a building systems solutions provider specializing in mechanical, electrical, and plumbing infrastructure, primarily serving the eastern and Midwest U.S. with around 1,400 employees across 20 offices [2]. - The company emphasizes long-term relationships with building owners through its ODR segment, which accounted for 66.6% of 2024 revenue [2][3]. Financial Performance - In FY24, ODR revenue increased by 31.9% to $345.5 million, with gross margins expanding to 31.2% and a backlog of $225.3 million, of which 86% is expected to convert to revenue in 2025 [3]. - The General Contractor Relationships (GCR) segment experienced a revenue decline of 31.9% to $173.3 million, reflecting a strategic shift towards higher-margin ODR projects, although margins improved to 21.1% [3]. Strategic Initiatives - Strategic acquisitions, such as Kent Island Mechanical and Consolidated Mechanical, have enhanced Limbach's geographic reach, sector coverage, and service capabilities, supporting overall growth and profitability [4]. - The company operates in a competitive market influenced by material costs, labor availability, and regulatory requirements, while benefiting from trends in energy efficiency, sustainability, and automation [4]. Investment Outlook - With record margins, strong cash flow, an expanding backlog, and a focused ODR-driven strategy, Limbach presents a strong case for growth, margin expansion, and resilience across diverse end markets [4].

Company Performance - Limbach Holdings (NASDAQ: LMB) reported a solid quarter with margin expansion and double-digit topline growth as it exited the first half of 2025 [1] - The growth was attributed to the continued strength in the company's Owner Direct Relationships (ODR) business segment [1] Analyst Insights - The analysis reflects a focus on companies with strong foundations, particularly in the technology, industrial, and conglomerate sectors [1] - The approach combines financial analysis with narrative to provide insights into potential company performance and market understanding [1]

Core Viewpoint - Limbach (LMB) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in a company's earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4][6]. Company Performance - Limbach is expected to earn $4.46 per share for the fiscal year ending December 2025, indicating no year-over-year change, but the Zacks Consensus Estimate has increased by 1.7% over the past three months [8]. - The upgrade reflects an improvement in Limbach's underlying business, suggesting that investors may push the stock higher in response to this positive trend [5][10]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Company Performance - AirSculpt Technologies, Inc. (AIRS) has achieved a year-to-date return of approximately 19.5%, significantly outperforming the average return of -1.3% for the Business Services sector [4] - The Zacks Consensus Estimate for AIRS' full-year earnings has increased by 15.8% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] Industry Comparison - AirSculpt Technologies, Inc. is part of the Technology Services industry, which has seen an average gain of 17.5% year-to-date, suggesting that AIRS is performing well within its specific industry [5] - Another stock in the Business Services sector, Limbach (LMB), has outperformed with a year-to-date return of 35.1% and a Zacks Rank of 2 (Buy) [4][5] Sector Ranking - The Business Services sector, which includes 255 individual stocks, currently holds a Zacks Sector Rank of 6, reflecting the average performance of its constituent stocks [2] - The Technology Services industry, where AirSculpt operates, is ranked 91 in the Zacks Industry Rank, indicating a relatively lower performance compared to other industries [5]