[Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Results%20Overview) This section provides an overview of Limbach Holdings, Inc.'s financial performance in the second quarter of 2025, highlighting key achievements and management's strategic commentary [Q2 2025 Highlights](index=1&type=section&id=Q2%202025%20Highlights) Limbach Holdings, Inc. achieved strong financial performance in Q2 2025, with significant growth in net income and Adjusted EBITDA, primarily driven by its strategic shift to the high-margin ODR business | Metric | Q2 2025 | Q2 2024 | YoY Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Income | $7.8 Million | $6.0 Million | +$1.8 Million | +30.0% | | Adjusted EBITDA | $17.9 Million | $13.8 Million | +$4.1 Million | +30.0% | | Total Revenue | $142.2 Million | $122.2 Million | +$20.0 Million | +16.4% | | ODR Revenue | $108.9 Million | $82.7 Million | +$26.2 Million | +31.7% | | GCR Revenue | $33.3 Million | $39.5 Million | -$6.2 Million | -15.7% | | Total Gross Profit | $39.8 Million | $33.5 Million | +$6.3 Million | +18.9% | | Net Cash from Operating Activities | $2.0 Million | $16.5 Million | -$14.5 Million | -87.9% | - ODR revenue accounted for **76.6% of total revenue**[6](index=6&type=chunk) [Management Comments](index=1&type=section&id=Management%20Comments) CEO Michael McCann emphasized that the strategic shift to high-margin ODR business is yielding significant results, with strong growth in ODR revenue and gross profit, while the company invests in sales and pursues M&A for sustained growth - Strategic shift to high-margin ODR business is a key driver of performance growth[4](index=4&type=chunk) - ODR revenue grew by **31.7%**, accounting for **76.6% of total revenue**, significantly higher than approximately **21% in Q2 2019**[4](index=4&type=chunk) - ODR gross profit increased by **24.6%**, representing **79.3% of total gross profit**[4](index=4&type=chunk) - The company has strategically invested in its sales organization to enhance market entry, prioritize national client service, and accelerate collaboration with clients on capital projects[5](index=5&type=chunk) - A robust M&A pipeline and disciplined operational execution provide a foundation for Limbach's continued growth and commitment to long-term shareholder value creation[5](index=5&type=chunk) [Detailed Financial Results (Three Months Ended June 30, 2025 vs 2024)](index=3&type=section&id=Detailed%20Financial%20Results%20(Three%20Months%20Ended%20June%2030%2C%202025%20vs%202024)) This section presents a detailed breakdown of the company's financial performance for the three months ended June 30, 2025, compared to the prior year, covering consolidated operations, segment results, balance sheet, and cash flows [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) The company achieved comprehensive growth in revenue, gross profit, operating income, and net income in Q2 2025, reflecting strong core business performance and enhanced profitability | Metric (in thousands of USD) | Q2 2025 | Q2 2024 | YoY Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | $142,241 | $122,235 | $20,006 | 16.4% | | Cost of Sales | $102,415 | $88,727 | $13,688 | 15.4% | | Gross Profit | $39,826 | $33,508 | $6,318 | 18.9% | | Operating Income | $10,642 | $8,190 | $2,452 | 29.9% | | Net Income | $7,762 | $5,963 | $1,799 | 30.2% | | Diluted Earnings Per Share | $0.64 | $0.50 | $0.14 | 28.0% | [Segment Operating Results](index=3&type=section&id=Segment%20Operating%20Results) ODR business continued strong growth in Q2 2025 with significant increases in revenue and gross profit, despite a slight margin decrease, while GCR revenue declined but improved its gross margin, reflecting portfolio optimization efforts | Metric (in thousands of USD) | Q2 2025 | Q2 2024 | YoY Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | ODR Revenue | $108,948 | $82,754 | $26,194 | 31.7% | | GCR Revenue | $33,293 | $39,481 | $(6,188) | (15.7)% | | ODR Gross Profit | $31,589 | $25,362 | $6,227 | 24.6% | | GCR Gross Profit | $8,237 | $8,146 | $91 | 1.1% | | ODR Gross Margin | 29.0% | 30.6% | -1.6 pp | - | | GCR Gross Margin | 24.7% | 20.6% | +4.1 pp | - | | Total Gross Margin | 28.0% | 27.4% | +0.6 pp | - | - ODR gross margin slightly decreased (**29.0% vs 30.6%**), primarily due to non-recurrence of one-time gains from certain ODR projects in Q2 2024 and impacts from integrating acquired companies[9](index=9&type=chunk) - Selling, General & Administrative (SG&A) expenses increased by approximately **$3.5 million to $26.6 million**, mainly due to professional service fees and compensation-related expenses associated with the PPI acquisition; as a percentage of revenue, SG&A decreased from **19.0% to 18.7%**[9](index=9&type=chunk) [Balance Sheet](index=3&type=section&id=Balance%20Sheet) As of June 30, 2025, the company maintained a robust financial position with ample cash and a healthy current ratio, expanding its revolving credit facility and completing the PPI acquisition post-quarter to support future growth | Metric (in thousands of USD) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | $38,940 | $44,930 | $(5,990) | | Total Current Assets | $208,970 | $220,334 | $(11,364) | | Total Current Liabilities | $123,453 | $151,037 | $(27,584) | | Current Ratio | 1.69x | 1.46x | +0.23x | | Long-Term Debt | $28,397 | $23,554 | +$4,843 | - The company amended its credit agreement on June 27, 2025, expanding its revolving credit facility from **$50 million to $100 million**[7](index=7&type=chunk) - The company completed the acquisition of PPI on July 1, 2025, for **$66.1 million**, financed through existing cash and the revolving credit facility; this acquisition was not included in the June 30, 2025 balance sheet[8](index=8&type=chunk) [Cash Flows](index=3&type=section&id=Cash%20Flows) Net cash from operating activities significantly decreased year-over-year in Q2 2025, primarily due to working capital changes influenced by billing timing, while cash outflow from investing activities reduced, reflecting optimized capital expenditures | Metric (in thousands of USD) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | $4,242 | $12,560 | $(8,318) | | Net Cash from Investing Activities | $(2,152) | $(5,231) | +$3,079 | | Net Cash from Financing Activities | $(8,080) | $(7,628) | $(452) | - Net cash from operating activities in Q2 2025 was **$2.0 million**, lower than **$16.5 million in Q2 2024**, primarily reflecting billing timing impacting working capital changes[9](index=9&type=chunk) [Full Year 2025 Guidance](index=5&type=section&id=Full%20Year%202025%20Guidance) Limbach Holdings, Inc. raised its full-year 2025 guidance for revenue and Adjusted EBITDA, reflecting the company's confidence in future performance and sustained growth momentum | Metric | Current Guidance (FY 2025) | Previous Guidance (FY 2025) | | :--- | :--- | :--- | | Revenue | $650 Million - $680 Million | $610 Million - $630 Million | | Adjusted EBITDA | $80 Million - $86 Million | $78 Million - $82 Million | [Non-GAAP Financial Measures](index=14&type=section&id=Non-GAAP%20Financial%20Measures) This section defines the non-GAAP financial measures used by the company and provides reconciliations to their most directly comparable GAAP measures, offering additional insights into operational performance [Definitions](index=14&type=section&id=Definitions) The company uses non-GAAP financial measures like Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted EPS to assess business performance by excluding certain non-cash or non-recurring items, while backlog represents estimated revenue from uncompleted contracts - **Adjusted EBITDA**: Net income plus depreciation and amortization expense, interest expense, and taxes, further adjusted to eliminate the impact of other non-cash or unusual/non-recurring items; management uses it as a key performance and compensation measure[30](index=30&type=chunk) - **Adjusted Net Income**: Net income adjusted to exclude items that do not reflect core operating performance, such as amortization of intangible assets, stock-based compensation, restructuring charges, fair value changes in contingent consideration, acquisition and other transaction costs, and the net tax impact of adjusting items[31](index=31&type=chunk) - **Backlog**: Represents estimated revenue from uncompleted contracts, including revenue from contracts where work has not yet begun, less revenue recognized to date[33](index=33&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=15&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) By making several adjustments to GAAP net income, the company calculated Adjusted EBITDA, which showed significant growth in Q2 2025 and the first six months, with an improved Adjusted EBITDA margin | Metric (in thousands of USD) | Q2 2025 | Q2 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $7,762 | $5,963 | $17,976 | $13,549 | | Total Adjustments | $10,186 | $7,846 | $14,844 | $12,017 | | Adjusted EBITDA | $17,948 | $13,809 | $32,820 | $25,566 | | Adjusted EBITDA Margin | 12.6% | 11.3% | 11.9% | 10.6% | [Reconciliation to Adjusted Net Income and Adjusted Diluted EPS](index=15&type=section&id=Reconciliation%20to%20Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS) The company calculated Adjusted Net Income and Adjusted Diluted EPS by applying pre-tax and tax impact adjustments to net income, showing growth for both Q2 2025 and the first six months | Metric (in thousands of USD, except per share amounts) | Q2 2025 | Q2 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $7,762 | $5,963 | $17,976 | $13,549 | | Diluted Earnings Per Share | $0.64 | $0.50 | $1.48 | $1.13 | | Total Pre-Tax Adjustments | $4,789 | $3,787 | $9,295 | $6,618 | | Tax Impact of Adjustments | $(1,293) | $(1,023) | $(2,512) | $(1,814) | | Adjusted Net Income | $11,258 | $8,728 | $24,769 | $18,453 | | Adjusted Diluted EPS | $0.93 | $0.73 | $2.05 | $1.54 | [Company Information](index=5&type=section&id=Company%20Information) This section provides background information about Limbach Holdings, Inc., including its business focus, market presence, and important disclosures regarding investor communications and forward-looking statements [About Limbach](index=5&type=section&id=About%20Limbach) Limbach is a building systems solutions company, focusing on providing mechanical, electrical, and plumbing services for critical infrastructure across six vertical markets, with approximately 1,600 team members and 21 offices in the Eastern U.S - Limbach is a building systems solutions company partnering with building owners and facility managers who have critical mechanical (heating, ventilation, and air conditioning), electrical, and plumbing infrastructure[12](index=12&type=chunk) - Primarily serves six vertical markets: healthcare, industrial and manufacturing, data centers, life sciences, higher education, and cultural and entertainment[12](index=12&type=chunk) - The company has approximately **1,600 team members** and **21 offices** across the Eastern United States[12](index=12&type=chunk) [Additional Information & Disclosures](index=5&type=section&id=Additional%20Information%20%26%20Disclosures) This section outlines channels for important financial information, details of an upcoming conference call, and a standard disclaimer regarding forward-looking statements - The company disseminates important financial information to investors and the public through its investor relations website, SEC filings, press releases, public conference calls/webcasts, and social media[13](index=13&type=chunk) - A conference call will be held on Wednesday, August 6, 2025, at **9:00 AM ET**, with domestic and international dial-in numbers and a webcast link provided[11](index=11&type=chunk) - The press release contains forward-looking statements based on current information, involving risks and uncertainties, where actual results may differ materially from expectations; investors are advised to review the company's latest filings on Form 10-K, 10-Q, and 8-K for a complete discussion of risks[14](index=14&type=chunk)

Core Insights - Limbach Holdings, Inc. (LMB) is set to release its second-quarter 2025 results on August 5, with a strong history of earnings surprises, averaging 91.2% over the last four quarters [1] Revenue Expectations - The Zacks Consensus Estimate for LMB's revenues is $143.4 million, reflecting a 17.3% increase from the same quarter last year, primarily driven by the owner-direct relationships (ODR) segment [2][10] ODR Segment Performance - The ODR segment is expected to have gained momentum from the first quarter and increased demand for mission-critical services, particularly in healthcare, with March showing notable acceleration [3] - ODR now accounts for 67.9% of total revenues, up from 62.4% a year ago, indicating a successful strategic shift towards this segment, enhancing margins and cash flow [4][10] Earnings Projections - The consensus estimate for earnings per share is 81 cents, indicating a 62% increase from the year-ago quarter [4][10] Earnings Prediction Model - The current model does not predict a definitive earnings beat for LMB, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [5][6]

Core Insights - Limbach Holdings, Inc. (LMB) is a strong buy stock with a significant earnings beat of 273.3% in Q1 2025, with expectations for double-digit earnings growth this year [1][3][8] - The company operates in six vertical markets and has a workforce of 1,400 across 20 offices in the eastern United States [2] Financial Performance - In Q1 2025, Limbach reported earnings of $1.12, surpassing the Zacks Consensus Estimate of $0.30, marking the tenth consecutive earnings surprise [3] - Revenue increased by 11.9% to $133.1 million from $119 million year-over-year [3] - The gross profit percentage rose to 27.6% from 26.1%, driven by higher-margin Owner Direct Relationships (ODR) work [5] Business Strategy - Limbach's strategy focuses on growing its ODR business, which saw a revenue increase of 21.7% to $90.4 million, accounting for 67.9% of total revenue [4] - The company anticipates an ODR mix shift to be between 70% and 80% for the year, with ODR revenue growth projected between 23% and 46% [7] Market Position - Limbach's shares have increased by 66% year-to-date, reaching new all-time highs, reflecting strong market confidence [8][10] - The company is positioned in the mission-critical building systems solutions industry, particularly benefiting from the demand in data centers [10] Analyst Outlook - Analysts have raised earnings estimates for Limbach, with the Zacks Consensus Estimate increasing to $4.39 from $3.45, indicating a 21.9% growth compared to last year's earnings of $3.60 [7] - Earnings growth is forecasted at 12% over the next 3 to 5 years, making Limbach a notable growth and momentum stock in its industry [14]

Market Overview - U.S. stock markets are experiencing a positive trend after recent volatility, with the S&P 500 near its all-time high, and both the Nasdaq Composite and Dow showing positive year-to-date performance [1] - Factors contributing to this market sentiment include ongoing U.S.-China trade negotiations, stability in the U.S. labor market, and a declining inflation rate, which have encouraged investment in equities [2] Stock Performance - A selection of stocks has demonstrated significant price strength, particularly those on a bull run, indicating potential for continued momentum [2][3] - Five highlighted stocks include Sezzle Inc. (SEZL), Dycom Industries Inc. (DY), Tutor Perini Corp. (TPC), Limbach Holdings Inc. (LMB), and Northrim BanCorp Inc. (NRIM) [3] Screening Parameters - Stocks were screened based on several criteria, including: - Percentage Change in Price (4 Weeks) greater than zero, indicating recent upward movement [5] - Percentage Change Price (12 Weeks) greater than 10%, suggesting sustained momentum over three months [5] - Zacks Rank 1, indicating a strong buy rating with historical outperformance [6] - Average Broker Rating of 1, reflecting positive broker sentiment [6] - Current Price above $5, ensuring stocks are trading at a reasonable level [6] - Current Price/52-Week High-Low Range greater than 85%, indicating strong price performance [7] Individual Stock Highlights - **Sezzle Inc. (SEZL)**: Stock price surged 35.7% in four weeks, with expected earnings growth of 76.1% for the current year [8][9] - **Dycom Industries Inc. (DY)**: Stock price increased 20.3% in four weeks, with a revenue outlook raised for fiscal 2026 after strong Q1 results, and expected earnings growth of 13.2% [10][12] - **Tutor Perini Corp. (TPC)**: Stock price rose 12.8% in four weeks, with expected earnings growth exceeding 100% for the current year [16] - **Limbach Holdings Inc. (LMB)**: Stock price advanced 10.8% in four weeks, with expected earnings growth of 21.9% [18] - **Northrim BanCorp Inc. (NRIM)**: Stock price increased 4.9% in four weeks, with expected earnings growth of 45.9% [20]

Company Overview - Limbach (LMB) currently holds a Momentum Style Score of B, indicating a positive momentum outlook [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [4] Price Performance - Over the past week, Limbach shares have increased by 2.24%, while the Zacks Building Products - Maintenance Service industry has decreased by 0.16% [6] - In a longer time frame, Limbach's shares have risen by 28.61% over the past month, significantly outperforming the industry's 1.52% [6] - Over the last quarter, Limbach shares have surged by 74.03%, and they are up 116.17% over the past year, compared to the S&P 500's performance of -0.42% and 13.57%, respectively [7] Trading Volume - Limbach's average 20-day trading volume is 222,880 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for Limbach have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $3.45 to $4.39 [10] - For the next fiscal year, two estimates have also moved upwards with no downward revisions during the same period [10] Conclusion - Given the strong price performance, positive earnings outlook, and favorable momentum indicators, Limbach is positioned as a promising investment opportunity [12]

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, which can lead to solid returns, but finding such stocks is challenging due to inherent risks and volatility [1] Group 1: Company Overview - Limbach (LMB) is currently recommended as a cutting-edge growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 64.2%, with projected EPS growth of 15.3% this year, surpassing the industry average of 12.9% [5] Group 2: Financial Metrics - Limbach's year-over-year cash flow growth stands at 89.7%, significantly higher than the industry average of 9.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 41.4%, compared to the industry average of 13.1% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Limbach, with the Zacks Consensus Estimate for the current year increasing by 20.3% over the past month [8] - Limbach has achieved a Growth Score of A and a Zacks Rank 1 due to these positive earnings estimate revisions, positioning it well for potential outperformance [10]

Core Viewpoint - Limbach (LMB) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price gains [1][2]. Earnings Estimate Revisions - Analysts have shown increasing optimism regarding Limbach's earnings prospects, leading to higher estimates that are expected to positively influence the stock price [2]. - The consensus earnings estimate for the current quarter is projected at $0.81 per share, reflecting a year-over-year increase of +62%. Over the past 30 days, the Zacks Consensus Estimate has risen by 8.72% due to one upward revision [5]. - For the full year, Limbach's earnings estimate is expected to be $4.15 per share, representing a +15.28% change from the previous year. There has been a positive trend in estimate revisions, with one estimate moving up and no negative revisions [6]. Zacks Rank and Performance - Limbach currently holds a Zacks Rank 1 (Strong Buy), which is based on favorable estimate revisions. This ranking is associated with a strong historical performance, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][7]. - Stocks with Zacks Rank 1 and 2 (Buy) have been shown to significantly outperform the S&P 500 [7]. Stock Performance - Limbach's stock has experienced a notable increase of 54.5% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [8].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Limbach (LMB) currently holding a Momentum Style Score of A [2] - The Zacks Rank system complements Style Scores, with LMB rated as 1 (Strong Buy), indicating potential for outperformance [3] Group 2: Performance Metrics - Limbach shares have increased by 11.25% over the past week, outperforming the Zacks Building Products - Maintenance Service industry, which rose by 2.46% [5] - Over the past quarter, Limbach shares have risen by 32.19%, and over the last year, they have gained 151.6%, while the S&P 500 has moved -5.75% and 10.63% respectively [6] - The average 20-day trading volume for LMB is 302,049 shares, indicating bullish sentiment when combined with rising stock prices [7] Group 3: Earnings Outlook - Recent earnings estimate revisions for LMB show 2 estimates moving higher with none lower, increasing the consensus estimate from $3.14 to $4.15 over the past 60 days [9] - For the next fiscal year, 2 estimates have also moved upwards with no downward revisions, indicating positive earnings momentum [9] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, Limbach is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a promising investment opportunity [11]

Limbach Holdings, Inc. (LMB) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, LMB's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages ...

Core Viewpoint - Limbach (LMB) has experienced significant stock price appreciation, with a 54.5% increase over the past month and a 40.2% gain year-to-date, outperforming both the Zacks Business Services sector and the Zacks Building Products - Maintenance Service industry [1] Financial Performance - Limbach has consistently exceeded earnings expectations, reporting an EPS of $1.12 against a consensus estimate of $0.3 in its last earnings report [2] - For the current fiscal year, Limbach is projected to achieve earnings of $4.15 per share on revenues of $610.4 million, reflecting a 15.28% increase in EPS and a 17.66% increase in revenues [3] - The next fiscal year forecasts earnings of $4.54 per share on revenues of $637.29 million, indicating year-over-year changes of 9.4% and 4.41%, respectively [3] Valuation Metrics - Limbach's current valuation metrics show a Price-to-Earnings (P/E) ratio of 28.9X for the current fiscal year, below the peer industry average of 40.3X [7] - The stock trades at a trailing cash flow basis of 24.5X, matching its peer group's average [7] - Limbach has a PEG ratio of 2.41, which does not position it among the top value stocks [7] Zacks Rank and Style Scores - Limbach holds a Zacks Rank of 1 (Strong Buy), supported by favorable earnings estimate revisions from analysts [8] - The stock has a Value Score of D, while its Growth and Momentum Scores are both A, resulting in a combined VGM Score of B [6][9] - The alignment of a Zacks Rank of 1 or 2 with Style Scores of A or B suggests potential for Limbach shares in the near future [9]