Financial Data and Key Metrics Changes - In Q2 2025, total revenue increased by 16.4% to $142.2 million compared to $122.2 million in Q2 2024 [26] - ODR revenue grew by 31.7% to a record $108.9 million, while GCR revenue declined by 15.7% [26] - Gross profit rose by 18.9% from $33.5 million to $39.8 million, with total gross margin improving to 28% from 27.4% [27] - Adjusted EBITDA increased by 30% to $17.9 million, with an adjusted EBITDA margin of 12.6% compared to 11.3% in the previous year [29] - Net income for the quarter grew by 30.2% to $7.8 million, and earnings per diluted share increased by 28% to $0.64 [29] Business Line Data and Key Metrics Changes - ODR revenue accounted for 76.6% of total revenue in Q2 2025, up from 67.7% in Q2 2024 [27] - ODR gross profit reached a quarterly record of $31.6 million, comprising 79.3% of total gross profit [27] - GCR gross profit increased by 1.1% to $1.1 million, driven by higher margins despite lower revenue [27] Market Data and Key Metrics Changes - The company operates across six distinct verticals, which helps mitigate volatility and reduces reliance on any single industry [8] - In healthcare, deferred maintenance is driving emergency repair work, while proactive discussions are being initiated to avoid emergencies [10] - Industrial manufacturing customers continue to invest in facility upgrades and labor for planned shutdowns [10] Company Strategy and Development Direction - The company’s growth strategy focuses on scaling the ODR business, enhancing product offerings, and making strategic acquisitions [6] - The recent acquisition of Pioneer Power is expected to enhance market presence and align with the company’s disciplined acquisition criteria [18][19] - The company aims to transition from a reactive support model to a proactive partnership approach, helping customers plan capital expenditures [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing macroeconomic uncertainty but emphasizes strong momentum and commitment to long-term value creation [24] - The company anticipates generating between $650 million and $680 million in revenue for the full year 2025, with adjusted EBITDA projected between $80 million and $86 million [23] - Management is focused on driving top-line revenue growth, expanding relationships, and executing the integration of Pioneer [24] Other Important Information - The company has expanded its sales organization by adding 40 new salespeople to support the ODR business [11] - A new Senior Vice President of Sales has been hired to enhance the sales strategy and customer engagement [12] - The company expects a heavier revenue contribution in Q4 compared to Q3 due to the timing of projects [23] Q&A Session Summary Question: What is the outlook for gross margins, particularly in GCR? - Management indicated that gross margins will fluctuate, with a long-term guidance of 20% to 29% for 2025 [35] Question: Will Pioneer’s contribution dilute overall gross margins in the short term? - Yes, Pioneer’s integration may lead to short-term dilution of gross margins, but the goal is to enhance margins over time [36] Question: How is the demand environment trending? - The company is focused on proactive sales, particularly in healthcare, where customers must make repairs and consider capital programs [45][46] Question: Is the GCR business expected to continue declining? - The company aims for 70% to 80% ODR revenue, indicating a continued push towards higher-margin owner-direct business [49] Question: What drove the change in guidance? - The change primarily reflects the contribution from the Pioneer acquisition, with a conservative outlook for initial projections [53] Question: What is the status of the ODR backlog? - The decline in backlog is attributed to timing rather than a change in demand, with ongoing efforts to convert OpEx into CapEx [56] Question: How are the new sales hires performing? - New hires are performing as expected, but there is a typical ramp-up time before they contribute fully to revenue [61]

Company Overview - Limbach specializes in revitalizing and maintaining mission-critical systems in existing facilities[6] - The company operates in six distinct vertical markets across 17 Metropolitan Statistical Areas[19] - Limbach uniquely combines engineering expertise with skilled craftsmanship to deliver fully integrated solutions[16] Financial Performance & Strategy - From FY 2019 to FY 2024, Gross Margin expanded nearly 1,480 bps to 27.8%, driving Adjusted EBITDA Margin more than 4x from 3.0% to 12.3%[32] - Total Revenue decreased by 6.2% from 2019, but ODR Revenue had a CAGR of 21.3% for the 2019 to 2024 period[35] - The company targets a gross margin of ~35-40% through a transformation to OEM[31] - 2025 Guidance projects total revenue between $650 million and $680 million, with ODR revenue comprising 70% to 80% of the mix and growing by 35% to 50%[65] - 2025 Guidance projects total gross margin between 28% to 29%, and Adjusted EBITDA between $80 million to $86 million[65] Acquisitions - Pioneer Power Inc (PPI) is expected to contribute annualized revenue of approximately $120 million and Adjusted EBITDA of $10 million beginning in 2026[55] - Consolidated Mechanical is expected to contribute annualized revenue of approximately $23 million beginning in 2025, and EBITDA of $4 million per annum[60]

Group 1 - Limbach reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.81 per share, and showing an increase from $0.5 per share a year ago, resulting in an earnings surprise of +14.81% [1] - The company posted revenues of $142.24 million for the quarter ended June 2025, which was a 16.4% increase from $122.24 million year-over-year, but missed the Zacks Consensus Estimate by 0.79% [2] - Limbach has surpassed consensus EPS estimates in all four of the last quarters, while it has only topped consensus revenue estimates once during the same period [2] Group 2 - The stock has gained approximately 57.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.22 on revenues of $165.29 million, and for the current fiscal year, it is $4.39 on revenues of $615.9 million [7] - The Building Products - Maintenance Service industry, to which Limbach belongs, is currently ranked in the top 7% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=Part%20I.%20Financial%20Information) This section provides the unaudited condensed consolidated financial information of Limbach Holdings, Inc., including statements, notes, and management's discussion and analysis [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, stockholders' equity, and cash flows, with detailed notes on accounting policies, acquisitions, and segment performance [Condensed Consolidated Balance Sheets (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) This table provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity at specific dates | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $38,940 | $44,930 | | Accounts receivable (net) | $113,065 | $119,659 | | Contract assets | $45,812 | $47,549 | | Total current assets | $208,970 | $220,334 | | Total assets | $342,980 | $352,129 | | **LIABILITIES** | | | | Current portion of long-term debt | $4,423 | $3,314 | | Accounts payable, including retainage | $55,386 | $60,814 | | Contract liabilities | $32,100 | $44,519 | | Total current liabilities | $123,453 | $151,037 | | Total liabilities | $172,446 | $198,638 | | **STOCKHOLDERS' EQUITY** | | | | Total stockholders' equity | $170,534 | $153,491 | | Total liabilities and stockholders' equity | $342,980 | $352,129 | - Total assets decreased by **$9.1 million** from $352.1 million at December 31, 2024, to $343.0 million at June 30, 2025, primarily driven by a decrease in cash and cash equivalents and accounts receivable[16](index=16&type=chunk) - Total liabilities decreased by **$26.2 million** from $198.6 million at December 31, 2024, to $172.4 million at June 30, 2025, mainly due to a reduction in contract liabilities and accrued expenses[16](index=16&type=chunk) - Total stockholders' equity increased by **$17.0 million** from $153.5 million at December 31, 2024, to $170.5 million at June 30, 2025[16](index=16&type=chunk) [Condensed Consolidated Statements of Operations (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) This statement outlines the company's financial performance over specific periods, detailing revenue, expenses, and net income | (in thousands, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $142,241 | $122,235 | $275,349 | $241,211 | | Gross profit | $39,826 | $33,508 | $76,545 | $64,596 | | Operating income | $10,642 | $8,190 | $18,553 | $14,722 | | Income before income taxes | $10,764 | $8,358 | $18,755 | $15,617 | | Net income | $7,762 | $5,963 | $17,976 | $13,549 | | Basic EPS | $0.67 | $0.53 | $1.56 | $1.21 | | Diluted EPS | $0.64 | $0.50 | $1.48 | $1.13 | - Revenue increased by **16.4%** for the three months ended June 30, 2025, and by **14.2%** for the six months ended June 30, 2025, compared to the respective prior year periods[18](index=18&type=chunk) - Net income grew by **30.2%** to **$7.8 million** for the three months ended June 30, 2025, and by **32.7%** to **$18.0 million** for the six months ended June 30, 2025, year-over-year[18](index=18&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)) This statement details changes in stockholders' equity, reflecting impacts from net income, stock-based compensation, and other equity transactions | (in thousands, except share amounts) | Balance at Dec 31, 2024 | Non-cash stock-based compensation | Shares issued related to vested restricted stock units | Tax withholding related to vested restricted stock units | Shares issued related to employee stock purchase plan | Net income | Balance at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Common stock | 1 | 0 | 0 | 0 | 0 | 0 | 1 | | Additional paid-in capital | 94,229 | 1,594 | 0 | (4,338) | 169 | 0 | 91,654 | | Treasury stock, at cost | (2,000) | 0 | 0 | 0 | 0 | 0 | (2,000) | | Retained earnings | 61,261 | 0 | 0 | 0 | 0 | 10,214 | 71,475 | | Stockholders' equity | 153,491 | 1,594 | 0 | (4,338) | 169 | 10,214 | 161,130 | *Note: The table above reflects the activity for the three months ended March 31, 2025, leading to the balance at March 31, 2025. The final balance at June 30, 2025, includes additional non-cash stock-based compensation and net income for the subsequent period.* - Stockholders' equity increased from **$153.5 million** at December 31, 2024, to **$170.5 million** at June 30, 2025, primarily driven by net income and non-cash stock-based compensation, partially offset by tax withholding related to vested restricted stock units[16](index=16&type=chunk)[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This statement summarizes cash inflows and outflows from operating, investing, and financing activities over specific periods | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,242 | $12,560 | | Net cash used in investing activities | $(2,152) | $(5,231) | | Net cash used in financing activities | $(8,080) | $(7,628) | | Decrease in cash, cash equivalents and restricted cash | $(5,990) | $(299) | | Cash, cash equivalents and restricted cash, end of period | $39,005 | $59,599 | - Net cash provided by operating activities decreased significantly from **$12.6 million** in H1 2024 to **$4.2 million** in H1 2025, primarily due to changes in working capital, particularly contract liabilities and accrued expenses[23](index=23&type=chunk)[206](index=206&type=chunk) - Net cash used in investing activities decreased from **$5.2 million** in H1 2024 to **$2.2 million** in H1 2025, mainly due to lower purchases of property and equipment[23](index=23&type=chunk)[207](index=207&type=chunk) - Net cash used in financing activities increased from **$7.6 million** in H1 2024 to **$8.1 million** in H1 2025, driven by higher tax payments related to equity awards and contingent consideration payments[23](index=23&type=chunk)[209](index=209&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) These notes provide detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1 – Business and Organization](index=10&type=section&id=Note%201%20%E2%80%93%20Business%20and%20Organization) This note describes Limbach Holdings, Inc.'s core business as a building systems solutions firm and its operating segments - Limbach Holdings, Inc. is a building systems solutions firm specializing in mechanical (HVAC), electrical, and plumbing infrastructure, serving six vertical markets: healthcare, industrial and manufacturing, data centers, life science, higher education, and cultural and entertainment[25](index=25&type=chunk) - The Company operates in two segments: Owner Direct Relationships (ODR) for direct projects and maintenance, and General Contractor Relationships (GCR) for new construction or renovation projects awarded by general contractors[26](index=26&type=chunk) [Note 2 – Significant Accounting Policies](index=10&type=section&id=Note%202%20%E2%80%93%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and estimates used in preparing the financial statements - The financial statements are prepared in accordance with GAAP for interim information and SEC Form 10-Q requirements, with certain information condensed or omitted[28](index=28&type=chunk) - Significant estimates include revenue recognition on construction contracts, fair value accounting for acquisitions, insurance reserves, income tax valuation allowances, and contingent consideration[29](index=29&type=chunk) - Recent accounting pronouncements include ASU 2024-03 (Expense Disaggregation Disclosures) effective after December 15, 2026, and ASU 2023-09 (Improvements to Income Tax Disclosures) effective after December 15, 2024, which the Company expects to adopt in its 2025 Form 10-K[33](index=33&type=chunk)[34](index=34&type=chunk) [Note 3 – Acquisitions](index=11&type=section&id=Note%203%20%E2%80%93%20Acquisitions) This note details the company's recent acquisitions, including purchase prices, strategic rationale, and goodwill allocation - On December 2, 2024, the Company acquired Consolidated Mechanical for **$23.0 million** cash, expanding its reach into the industrial sector in Kentucky, Illinois, and Michigan. The acquisition resulted in **$11.1 million** of goodwill allocated to the ODR segment[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - On September 3, 2024, the Company acquired Kent Island Mechanical for **$15.0 million** cash, expanding its market share in the greater Washington, DC metro area. The acquisition resulted in **$5.6 million** of goodwill allocated to both ODR and GCR segments[41](index=41&type=chunk)[42](index=42&type=chunk)[44](index=44&type=chunk) Consolidated Mechanical Transaction Purchase Price Allocation (in thousands) | (in thousands) | Adjusted Purchase Price Allocation | | :--- | :--- | | Total Consideration | $24,351 | | Fair value of assets acquired | $14,463 | | Fair value of liabilities assumed | $1,232 | | Goodwill | $11,120 | Kent Island Transaction Purchase Price Allocation (in thousands) | (in thousands) | Adjusted Purchase Price Allocation | | :--- | :--- | | Total Consideration | $19,655 | | Fair value of assets acquired | $24,760 | | Fair value of liabilities assumed | $10,683 | | Goodwill | $5,578 | [Note 4 – Revenue from Contracts with Customers](index=13&type=section&id=Note%204%20%E2%80%93%20Revenue%20from%20Contracts%20with%20Customers) This note explains the company's revenue recognition policies and provides details on contract assets and liabilities - Revenue is primarily generated from fixed-price construction contracts (recognized on a cost-to-cost method) and time and materials contracts (recognized as services are performed), typically ranging from three months to two years[47](index=47&type=chunk) Contract Assets (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Costs and estimated earnings in excess of billings | $27,775 | $27,304 | $471 | | Retainage receivable | $18,037 | $20,245 | $(2,208) | | Total contract assets | $45,812 | $47,549 | $(1,737) | Contract Liabilities (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Billings in excess of costs and estimated earnings | $32,083 | $44,417 | $(12,334) | | Provisions for losses | $17 | $102 | $(85) | | Total contract liabilities | $32,100 | $44,519 | $(12,419) | - As of June 30, 2025, remaining performance obligations for ODR and GCR segments were **$212.3 million** and **$99.5 million**, respectively. The Company estimates **66%** of ODR and **49%** of GCR obligations will be recognized as revenue in the remainder of 2025[59](index=59&type=chunk) [Note 5 – Goodwill and Intangibles](index=16&type=section&id=Note%205%20%E2%80%93%20Goodwill%20and%20Intangibles) This note provides information on the company's goodwill and other intangible assets, including changes and amortization expense Goodwill by Segment (in thousands) | (in thousands) | GCR | ODR | Total | | :--- | :--- | :--- | :--- | | Goodwill as of January 1, 2024 | $0 | $16,374 | $16,374 | | Goodwill as of December 31, 2024 | $4,244 | $28,790 | $33,034 | | Goodwill as of June 30, 2025 | $4,338 | $28,793 | $33,131 | - Goodwill increased slightly from **$33.0 million** at December 31, 2024, to **$33.1 million** at June 30, 2025, primarily due to measurement period adjustments related to the Kent Island and Consolidated Mechanical acquisitions[61](index=61&type=chunk)[63](index=63&type=chunk) Intangible Assets (excluding goodwill) (in thousands) | (in thousands) | June 30, 2025 Net | December 31, 2024 Net | | :--- | :--- | :--- | | Customer relationships | $23,722 | $25,696 | | Backlog | $1,125 | $2,250 | | Trade name, trademarks and intellectual property | $2,859 | $3,322 | | Total amortized intangible assets | $27,706 | $31,268 | | Unamortized trade name – Limbach | $9,960 | $9,960 | | Total intangible assets, excluding goodwill | $37,666 | $41,228 | - Total amortization expense for definite-lived intangible assets was **$1.8 million** for Q2 2025 (up from $1.0 million in Q2 2024) and **$3.6 million** for H1 2025 (up from $2.1 million in H1 2024), reflecting recent acquisitions[64](index=64&type=chunk) [Note 6 – Debt](index=17&type=section&id=Note%206%20%E2%80%93%20Debt) This note details the company's long-term debt obligations, including revolving loans, finance leases, and related agreements Long-term Debt (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | A&R Wintrust Revolving Loans | $10,000 | $10,000 | | Finance leases | $17,831 | $11,888 | | Financing liability | $5,351 | $5,351 | | Total debt | $33,182 | $27,239 | | Long-term debt (net of current portion, discount/costs) | $28,397 | $23,554 | - On June 27, 2025, the Second A&R Wintrust Credit Agreement was amended to increase the revolving credit facility from **$50.0 million** to **$100.0 million**, extend the maturity date to July 1, 2030, and increase the L/C sublimit to **$20.0 million**[71](index=71&type=chunk)[215](index=215&type=chunk) - The Company had **$10.0 million** outstanding on the revolving loan as of June 30, 2025, with a weighted average annual interest rate of **5.70%** for Q2 2025[74](index=74&type=chunk) - A sale-leaseback transaction for the Pontiac, MI facility was accounted for as a finance lease, resulting in a **$5.0 million** financing liability (net of issuance costs) as of June 30, 2025[81](index=81&type=chunk)[82](index=82&type=chunk) [Note 7 – Equity](index=20&type=section&id=Note%207%20%E2%80%93%20Equity) This note provides details on the company's equity structure, including incentive plans and employee stock purchase programs - The Company's Omnibus Incentive Plan authorizes **3,050,000 shares** for equity awards, with amendments approved in April 2025 related to treatment of death, disability, retirement, and reduction in force[85](index=85&type=chunk)[86](index=86&type=chunk)[132](index=132&type=chunk)[134](index=134&type=chunk) - The Employee Stock Purchase Plan (ESPP) allows eligible employees to purchase common stock at **85%** of fair market value, with **380,545 shares** remaining available for future issuance as of June 30, 2025[87](index=87&type=chunk)[88](index=88&type=chunk) [Note 8 – Fair Value Measurements](index=21&type=section&id=Note%208%20%E2%80%93%20Fair%20Value%20Measurements) This note describes the company's fair value hierarchy and valuation methods for financial assets and liabilities - The Company uses a fair value hierarchy (Level 1, 2, 3) for financial assets and liabilities. Cash equivalents (overnight repurchase agreements) are classified as Level 1[89](index=89&type=chunk)[91](index=91&type=chunk)[93](index=93&type=chunk) - Contingent earnout payments for ACME, Industrial Air, Kent Island, and Consolidated Mechanical acquisitions are valued using the Monte Carlo Simulation method (Level 3 measurement)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) Contingent Earnout Payment Obligations (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | First Kent Island Earnout Period | $2,433 | $2,297 | | First Consolidated Mechanical Earnout Period | $683 | $402 | | Second ACME Earnout Period | $2,000 | $1,713 | | Second IA Earnout Period | $3,500 | $3,222 | | Second Kent Island Earnout Period | $2,286 | $2,201 | | Second Consolidated Mechanical Earnout Period | $511 | $355 | | Total | $11,413 | $13,190 | - An interest rate swap agreement with a notional amount of **$10.0 million** and a fixed rate of **3.12%** is classified as a Level 2 fair value measurement. A loss of **$0.1 million** and **$0.2 million** was recognized for the three and six months ended June 30, 2025, respectively[73](index=73&type=chunk)[101](index=101&type=chunk) [Note 9 – Earnings per Share](index=24&type=section&id=Note%209%20%E2%80%93%20Earnings%20per%20Share) This note presents the calculation of basic and diluted earnings per share for the reported periods Earnings Per Share (EPS) | (in thousands, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $7,762 | $5,963 | $17,976 | $13,549 | | Basic EPS | $0.67 | $0.53 | $1.56 | $1.21 | | Diluted EPS | $0.64 | $0.50 | $1.48 | $1.13 | - Basic EPS increased to **$0.67** for Q2 2025 (from $0.53 in Q2 2024) and **$1.56** for H1 2025 (from $1.21 in H1 2024). Diluted EPS also increased to **$0.64** for Q2 2025 (from $0.50 in Q2 2024) and **$1.48** for H1 2025 (from $1.13 in H1 2024)[103](index=103&type=chunk) [Note 10 – Income Taxes](index=24&type=section&id=Note%2010%20%E2%80%93%20Income%20Taxes) This note provides details on the company's income tax expense, effective tax rates, and the impact of tax law changes Income Tax Expense and Rate | (in thousands, except percentages) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Income tax expense | $3,002 | $2,395 | $779 | $2,068 | | Income tax rate | 27.9% | 28.7% | 4.2% | 13.2% | - The effective tax rate for the six months ended June 30, 2025, was significantly lower at **4.2%** (compared to 13.2% in H1 2024), primarily due to 'excess tax benefits on stock-based compensation' recognized discretely in Q1 2025, which reduced the rate by **53.5%**[106](index=106&type=chunk) - Newly enacted federal legislation on U.S. federal tax law on July 4, 2025, is being assessed and its effects are expected to be reflected in Q3 2025[107](index=107&type=chunk)[160](index=160&type=chunk) [Note 11 – Operating Segments](index=25&type=section&id=Note%2011%20%E2%80%93%20Operating%20Segments) This note presents financial information by operating segment, detailing revenue and gross profit for ODR and GCR - The Company operates in two segments: Owner Direct Relationships (ODR) and General Contractor Relationships (GCR). Segment information is reviewed by the President and CEO and Executive Vice President and CFO[108](index=108&type=chunk) Segment Revenue (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | ODR Revenue | $108,948 | $82,754 | $199,341 | $157,010 | | GCR Revenue | $33,293 | $39,481 | $76,008 | $84,201 | | Total Revenue | $142,241 | $122,235 | $275,349 | $241,211 | Segment Gross Profit (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | ODR Gross Profit | $31,589 | $25,362 | $57,750 | $47,523 | | GCR Gross Profit | $8,237 | $8,146 | $18,795 | $17,073 | | Total Gross Profit | $39,826 | $33,508 | $76,545 | $64,596 | [Note 12 - Leases](index=27&type=section&id=Note%2012%20-%20Leases) This note provides details on the company's lease arrangements, including right-of-use assets, lease liabilities, and lease costs - The Company leases real estate, vehicles, and other equipment, electing not to separate non-lease components from lease components[111](index=111&type=chunk)[112](index=112&type=chunk) Lease Assets and Liabilities (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Operating lease right-of-use assets | $21,165 | $21,539 | | Finance lease assets (Property and equipment, net) | $19,326 | $13,966 | | Total lease assets | $40,491 | $35,505 | | Current operating lease liabilities | $4,133 | $4,093 | | Current finance lease liabilities (Current portion of long-term debt) | $4,423 | $3,314 | | Long-term operating lease liabilities | $17,433 | $17,766 | | Long-term finance lease liabilities (Long-term debt) | $18,759 | $13,925 | | Total lease liabilities | $44,748 | $39,098 | Lease Costs (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating lease cost (Cost of revenue) | $911 | $743 | $1,769 | $1,331 | | Operating lease cost (SG&A) | $419 | $599 | $866 | $1,325 | | Finance lease amortization (Cost of revenue) | $1,042 | $754 | $1,971 | $1,494 | | Finance lease interest (Interest expense, net) | $196 | $116 | $372 | $235 | | Total lease cost | $2,568 | $2,212 | $4,978 | $4,385 | - The Company has related party operating lease agreements for facilities with former members of acquired entities (Jake Marshall and Industrial Air) and a sublease agreement for its Southern California office space, generating approximately **$0.3 million** and **$0.6 million** in income for the three and six months ended June 30, 2025, respectively[113](index=113&type=chunk)[115](index=115&type=chunk)[118](index=118&type=chunk) [Note 13 – Commitments and Contingencies](index=32&type=section&id=Note%2013%20%E2%80%93%20Commitments%20and%20Contingencies) This note outlines the company's legal proceedings, surety bonds, multi-employer pension plans, and self-insurance liabilities - The Company is involved in various legal proceedings arising in the ordinary course of business, but management believes the ultimate resolution will not have a material adverse effect on its financial position[125](index=125&type=chunk) - Surety bonds outstanding totaled approximately **$107.3 million** as of June 30, 2025, securing payment and performance obligations under construction contracts[126](index=126&type=chunk) - Many craft labor employees are covered by collective bargaining agreements requiring contributions to multi-employer pension plans (MEPPs). Some MEPPs are in 'critical' status, but the Company is not currently aware of significant related liabilities[127](index=127&type=chunk) Self-Insurance Liability (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current liability — workers' compensation and general liability | $418 | $395 | | Current liability — medical and dental | $558 | $485 | | Non-current liability | $367 | $505 | | Total liability | $1,343 | $1,385 | | Restricted cash | $65 | $65 | [Note 14 – Management Incentive Plans](index=33&type=section&id=Note%2014%20%E2%80%93%20Management%20Incentive%20Plans) This note details the company's equity-based incentive plans, including various types of RSU awards and associated compensation expense - The Omnibus Incentive Plan allows for various equity awards, with **3,050,000 shares** reserved for issuance. Amendments in April 2025 addressed treatment of awards in cases of death, disability, retirement, and reduction in force[131](index=131&type=chunk)[132](index=132&type=chunk)[134](index=134&type=chunk) - Service-based RSUs vest ratably over one to three years, with **$0.6 million** in non-cash compensation expense recognized for Q2 2025 and **$1.1 million** for H1 2025[135](index=135&type=chunk) - Performance-based RSUs (PRSUs) are earned based on company performance metrics (e.g., adjusted EBITDA), with **$0.7 million** in non-cash compensation expense recognized for Q2 2025 and **$1.4 million** for H1 2025[137](index=137&type=chunk)[138](index=138&type=chunk) - Market-based RSUs (MRSUs) were granted in Q1 2025, vesting based on the Company's TSR relative to the Russell 2000 Index, with **$0.4 million** in non-cash compensation expense recognized for Q2 2025 and **$0.7 million** for H1 2025[140](index=140&type=chunk)[142](index=142&type=chunk) - Total unrecognized stock-based compensation expense for unvested RSUs was **$10.3 million** at June 30, 2025, expected to be recognized over a weighted average period of **1.87 years**[144](index=144&type=chunk) [Note 15 – Subsequent Events](index=35&type=section&id=Note%2015%20%E2%80%93%20Subsequent%20Events) This note discloses significant events that occurred after the balance sheet date, specifically a recent acquisition - On July 1, 2025, the Company acquired Pioneer Power, Inc. (PPI), a mechanical contractor, for **$66.1 million**, funded by cash and its revolving credit facility. This acquisition expands the Company's geographic footprint and customer base in the Midwest[145](index=145&type=chunk) - The initial purchase price allocation for the PPI acquisition is not yet available and will be disclosed in a future filing[146](index=146&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operational results, segment performance, and outlook, including liquidity, capital resources, and critical accounting policies [Overview](index=36&type=section&id=Overview) This overview describes Limbach Holdings, Inc.'s core business as a building systems solutions firm and its operating segments - Limbach Holdings, Inc. is a building systems solutions firm focused on mechanical, electrical, and plumbing infrastructure, serving mission-critical systems in healthcare, industrial, data centers, life sciences, higher education, and cultural/entertainment sectors[148](index=148&type=chunk)[152](index=152&type=chunk) - The Company operates in two segments: Owner Direct Relationships (ODR) for direct projects and maintenance, and General Contractor Relationships (GCR) for new construction or renovation projects[149](index=149&type=chunk) [Key Components of Condensed Consolidated Statements of Operations](index=36&type=section&id=Key%20Components%20of%20Condensed%20Consolidated%20Statements%20of%20Operations) This section details the primary components of the condensed consolidated statements of operations, including revenue, costs, and expenses - Revenue is primarily from fixed-price construction contracts (cost-to-cost method) and time and materials service contracts (as services are performed), with contract durations typically 3 months to 2 years[150](index=150&type=chunk) - Cost of revenue includes labor, equipment, material, subcontract, and other job costs, with historical fluctuations expected to continue[153](index=153&type=chunk) - Selling, General and Administrative (SG&A) expenses cover personnel costs for administrative, estimating, HR, safety, IT, legal, finance, and accounting teams, along with non-personnel costs like professional fees and corporate expenses[154](index=154&type=chunk) - Changes in fair value of contingent consideration relate to remeasurement of earnout arrangements from acquisitions (ACME, Industrial Air, Kent Island, Consolidated Mechanical)[155](index=155&type=chunk) - Amortization of intangibles includes periodic non-cash charges for favorable leasehold interests and customer relationships from acquisitions[156](index=156&type=chunk) - Other (expenses) income primarily consists of interest expense, gains/losses on property disposition, changes in fair value of interest rate swaps, and interest income[157](index=157&type=chunk) - Income tax provision is calculated based on the estimated annual effective tax rate, with recent federal tax law changes expected to impact Q3 2025[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk) [Impact of Acquisitions](index=39&type=section&id=Impact%20of%20Acquisitions) This section outlines the strategic impact and financial details of recent acquisitions, including Kent Island Mechanical and Consolidated Mechanical - The acquisition of Kent Island Mechanical on September 3, 2024, for **$15.0 million** (plus potential $5.0 million earnout) expanded the Company's market share in the Greater Washington, DC metro area and supports ODR growth[162](index=162&type=chunk) - The acquisition of Consolidated Mechanical on December 2, 2024, for **$23.0 million** (plus potential $2.0 million earnout) extended the Company's reach into the heavy industrial, power, and commercial markets in Kentucky, Illinois, and Michigan[163](index=163&type=chunk) [Operating Segments](index=39&type=section&id=Operating%20Segments) This section describes the company's two operating segments, Owner Direct Relationships (ODR) and General Contractor Relationships (GCR), used for business performance management - The Company manages and measures its business performance through two operating segments: Owner Direct Relationships (ODR) and General Contractor Relationships (GCR)[164](index=164&type=chunk) - All ODR work is aggregated into one ODR reportable segment, and all GCR work into one GCR reportable segment, with inter-segment transactions eliminated[165](index=165&type=chunk) [Comparison of Results of Operations for the three months ended June 30, 2025 and 2024](index=40&type=section&id=Comparison%20of%20Results%20of%20Operations%20for%20the%20three%20months%20ended%20June%2030,%202025%20and%202024) This section compares the company's financial performance for the three months ended June 30, 2025, against the same period in 2024 [Revenue](index=40&type=section&id=Revenue_Q2) Revenue (Q2 YoY) | (in thousands) | Q2 2025 | Q2 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | ODR Revenue | $108,948 | $82,754 | $26,194 | 31.7% | | GCR Revenue | $33,293 | $39,481 | $(6,188) | (15.7)% | | Total Revenue | $142,241 | $122,235 | $20,006 | 16.4% | - Total revenue increased by **16.4%** due to a **31.7%** increase in ODR revenue, driven by accelerated ODR business growth and the Consolidated Mechanical acquisition. GCR revenue decreased by **15.7%** as the Company shifted focus to ODR, partially offset by Kent Island operations[167](index=167&type=chunk) [Gross Profit](index=41&type=section&id=Gross%20Profit_Q2) Gross Profit (Q2 YoY) | (in thousands) | Q2 2025 | Q2 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | ODR Gross Profit | $31,589 | $25,362 | $6,227 | 24.6% | | GCR Gross Profit | $8,237 | $8,146 | $91 | 1.1% | | Total Gross Profit | $39,826 | $33,508 | $6,318 | 18.9% | | Total Gross Profit % of Revenue | 28.0% | 27.4% | | | - Total gross profit increased by **18.9%**, with ODR gross profit up **24.6%** despite slightly lower segment margins (**29.0%** vs **30.6%**) due to non-recurring project write-ups in Q2 2024. GCR gross profit increased **1.1%** due to higher segment margins (**24.7%** vs **20.6%**) despite lower revenue[168](index=168&type=chunk) - The overall gross profit percentage increased from **27.4%** to **28.0%**, driven by a higher mix of ODR work and selective GCR project pursuit[168](index=168&type=chunk) - In Q2 2025, a material gross profit write-down of **$0.6 million** occurred on one GCR project. In Q2 2024, material gross profit write-ups totaled **$1.5 million** for ODR projects and **$1.5 million** for GCR projects[169](index=169&type=chunk) [Selling, General and Administrative](index=41&type=section&id=Selling,%20General%20and%20Administrative_Q2) SG&A Expense (Q2 YoY) | (in thousands) | Q2 2025 | Q2 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | SG&A Expense | $26,632 | $23,176 | $3,456 | 14.9% | | SG&A % of Total Revenue | 18.7% | 19.0% | | | - SG&A expense increased by **14.9%** due to a **$1.7 million** increase in professional services fees (including PPI acquisition costs) and a **$1.6 million** increase in payroll-related expenses, including costs from Kent Island and Consolidated Mechanical[170](index=170&type=chunk) - Despite the increase in absolute terms, SG&A as a percentage of revenue decreased from **19.0%** to **18.7%**[170](index=170&type=chunk) [Change in Fair Value of Contingent Consideration](index=41&type=section&id=Change%20in%20Fair%20Value%20of%20Contingent%20Consideration_Q2) - The change in fair value of contingent consideration resulted in an expense of **$0.8 million** for Q2 2025, down from $1.1 million in Q2 2024. These increases to the contingent liability are due to the timing and probability of meeting gross profit margins for earnout arrangements[171](index=171&type=chunk)[172](index=172&type=chunk) [Amortization of Intangibles](index=42&type=section&id=Amortization%20of%20Intangibles_Q2) Amortization of Intangibles (Q2 YoY) | (in thousands) | Q2 2025 | Q2 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | Amortization of intangibles | $1,757 | $1,031 | $726 | 70.4% | - Amortization expense increased by **70.4%** due to the Kent Island and Consolidated Mechanical acquisitions, which were not owned in Q2 2024[173](index=173&type=chunk) [Other Income (Expenses)](index=42&type=section&id=Other%20Income%20(Expenses)_Q2) Other Income (Expenses) (Q2 YoY) | (in thousands) | Q2 2025 | Q2 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Interest expense | $(563) | $(432) | $(131) | 30.3% | | Interest income | $334 | $546 | $(212) | (38.8)% | | Gain on disposition of property and equipment | $407 | $66 | $341 | 516.7% | | Loss on change in fair value of interest rate swap | $(56) | $(12) | $(44) | 366.7% | | Total other income (expenses) | $122 | $168 | $(46) | (27.4)% | - Total other income decreased by **27.4%**, primarily due to a **$0.2 million** decrease in interest income (reduced cash balances, lower yields) and a **$0.1 million** increase in interest expense (larger vehicle fleet, higher financing costs), partially offset by a **$0.3 million** increase in gains from property dispositions[174](index=174&type=chunk) [Income Taxes](index=42&type=section&id=Income%20Taxes_Q2) - Income tax provision was **$3.0 million** for Q2 2025 (effective rate **27.9%**) compared to **$2.4 million** for Q2 2024 (effective rate **28.7%**)[175](index=175&type=chunk) [Comparison of Results of Operations for the six months ended June 30, 2025 and 2024](index=43&type=section&id=Comparison%20of%20Results%20of%20Operations%20for%20the%20six%20months%20ended%20June%2030,%202025%20and%202024) This section compares the company's financial performance for the six months ended June 30, 2025, against the same period in 2024 [Revenue](index=43&type=section&id=Revenue_H1) Revenue (H1 YoY) | (in thousands) | H1 2025 | H1 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | ODR Revenue | $199,341 | $157,010 | $42,331 | 27.0% | | GCR Revenue | $76,008 | $84,201 | $(8,193) | (9.7)% | | Total Revenue | $275,349 | $241,211 | $34,138 | 14.2% | - Total revenue increased by **14.2%** due to a **27.0%** increase in ODR revenue, driven by continued focus on ODR growth and the Consolidated Mechanical acquisition. GCR revenue decreased by **9.7%** as the Company executed its mix-shift strategy to ODR, partially offset by Kent Island operations[177](index=177&type=chunk) [Gross Profit](index=44&type=section&id=Gross%20Profit_H1) Gross Profit (H1 YoY) | (in thousands) | H1 2025 | H1 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | ODR Gross Profit | $57,750 | $47,523 | $10,227 | 21.5% | | GCR Gross Profit | $18,795 | $17,073 | $1,722 | 10.1% | | Total Gross Profit | $76,545 | $64,596 | $11,949 | 18.5% | | Total Gross Profit % of Revenue | 27.8% | 26.8% | | | - Total gross profit increased by **18.5%**, with ODR gross profit up **21.5%** despite slightly lower segment margins (**29.0%** vs **30.3%**) due to non-recurring project write-ups in H1 2024. GCR gross profit increased **10.1%** due to higher margins on project work despite lower revenue[178](index=178&type=chunk) - The overall gross profit percentage increased from **26.8%** to **27.8%**, driven by the mix of higher-margin ODR segment work and selective GCR project pursuit[178](index=178&type=chunk) - In H1 2025, material gross profit write-ups on two GCR projects totaled **$1.4 million**. In H1 2024, material gross profit write-ups totaled **$3.9 million** for ODR projects and **$1.7 million** for GCR projects[179](index=179&type=chunk) [Selling, General and Administrative](index=44&type=section&id=Selling,%20General%20and%20Administrative_H1) SG&A Expense (H1 YoY) | (in thousands) | H1 2025 | H1 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | SG&A Expense | $53,150 | $46,052 | $7,098 | 15.4% | | SG&A % of Total Revenue | 19.3% | 19.1% | | | - SG&A expense increased by **15.4%** due to a **$3.6 million** increase in payroll, a **$2.2 million** increase in professional services fees (including PPI acquisition costs), and a **$0.5 million** increase in non-cash stock-based compensation, including costs from Kent Island and Consolidated Mechanical[180](index=180&type=chunk) - SG&A as a percentage of revenue slightly increased from **19.1%** to **19.3%**[180](index=180&type=chunk) [Change in Fair Value of Contingent Consideration](index=45&type=section&id=Change%20in%20Fair%20Value%20of%20Contingent%20Consideration_H1) - The change in fair value of contingent consideration resulted in an expense of **$1.2 million** for H1 2025, down from $1.7 million in H1 2024. These increases to the contingent liability are due to the timing and probability of meeting gross profit margins for earnout arrangements[181](index=181&type=chunk) [Amortization of Intangibles](index=45&type=section&id=Amortization%20of%20Intangibles_H1) Amortization of Intangibles (H1 YoY) | (in thousands) | H1 2025 | H1 2024 | Increase/(Decrease) | Change % | | :--- | :--- | :--- | :--- | :--- | | Amortization of intangibles | $3,620 | $2,088 | $1,532 | 73.4% | - Amortization expense increased by **73.4%** due to the Kent Island and Consolidated Mechanical acquisitions, which were not owned in H1 2024[182](index=182&type=chunk) [Other Income (Expenses)](index=45&type=section&id=Other%20Income%20(Expenses)_H1) Other Income (Expenses) (H1 YoY) | (in thousands) | H1 2025 | H1 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Interest expense | $(1,089) | $(907) | $(182) | 20.1% | | Interest income | $704 | $1,108 | $(404) | (36.5)% | | Gain on disposition of property and equipment | $740 | $557 | $183 | 32.9% | | (Loss) gain on change in fair value of interest rate swap | $(153) | $137 | $(290) | (211.7)% | | Total other income (expenses) | $202 | $895 | $(693) | (77.4)% | - Total other income decreased by **77.4%**, primarily due to a **$0.4 million** decrease in interest income (reduced cash balances, lower yields), a **$0.2 million** increase in interest expense (larger vehicle fleet, higher financing costs), and a current period loss on interest rate swap, partially offset by a **$0.2 million** increase in gains from property dispositions[183](index=183&type=chunk) [Income Taxes](index=45&type=section&id=Income%20Taxes_H1) - Income tax provision was **$0.8 million** for H1 2025 (effective rate **4.2%**) compared to **$2.1 million** for H1 2024 (effective rate **13.2%**). The lower effective rate in H1 2025 was significantly impacted by 'excess tax benefits on stock-based compensation' recognized in Q1 2025[184](index=184&type=chunk) [ODR and GCR Backlog Information](index=45&type=section&id=ODR%20and%20GCR%20Backlog%20Information) This section provides details on the backlog for both ODR and GCR segments, indicating future revenue recognition Backlog Information (in millions) | Segment | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | ODR Backlog | $233.1 | $225.3 | | GCR Backlog | $99.5 | $140.0 | - ODR backlog increased to **$233.1 million** (from $225.3 million at Dec 31, 2024), with **65%** expected to be recognized as revenue in the remainder of 2025, reflecting continued focus on ODR growth[186](index=186&type=chunk) - GCR backlog decreased to **$99.5 million** (from $140.0 million at Dec 31, 2024), with **49%** expected to be recognized as revenue in the remainder of 2025. This reduction is intentional, focusing on smaller, higher-margin projects and reducing risk[187](index=187&type=chunk) [Market Update](index=46&type=section&id=Market%20Update) This section discusses current macroeconomic conditions, geopolitical risks, and supply chain challenges impacting the company's operations - The Company is monitoring evolving macroeconomic conditions, heightened geopolitical risks, and increased economic and trade policy uncertainty, which could impact global growth and inflationary pressures[188](index=188&type=chunk) - Supply chain vulnerabilities and pricing fluctuations persist due to global conflicts, tariffs, labor disruptions, and regulations. The Company is proactively collaborating with suppliers to mitigate these issues[188](index=188&type=chunk) - In economic uncertainty, large capital projects may be delayed or canceled, while service contracts and maintenance work often remain stable or increase. The Company's diversified offerings aim to reduce market volatility[189](index=189&type=chunk) [Outlook for 2025](index=46&type=section&id=Outlook%20for%202025) This section outlines the company's strategic objectives for 2025, focusing on profitability, ODR growth, margin expansion, and acquisitions - Key objectives for 2025 are to improve profitability and generate quality growth by shifting to the ODR segment, expand margins through evolved offerings, and scale the business through acquisitions[190](index=190&type=chunk) - The ODR segment's revenue as a percentage of total consolidated revenue increased to **72.4%** in H1 2025, aligning with the 2025 target of **70%-80%**. The Company is investing to expand ODR offerings, including digital solutions for building systems management[190](index=190&type=chunk)[191](index=191&type=chunk) - In the GCR segment, the focus is on improving project execution and profitability by pursuing smaller, shorter-duration opportunities that leverage captive design and engineering services, reducing exposure to large, complex, non-owner direct projects[192](index=192&type=chunk) - The Company aims to expand margins by evolving offerings to be a 'one-stop-shop' for building owners, fostering long-term partnerships and capturing a greater share of the value chain[193](index=193&type=chunk) - Strategic acquisitions, such as the recent PPI acquisition, are a key part of the strategy to increase geographic footprint, supplement business models, address capability gaps, and enhance offerings[194](index=194&type=chunk) [Seasonality, Cyclicality and Quarterly Trends](index=47&type=section&id=Seasonality,%20Cyclicality%20and%20Quarterly%20Trends) This section describes how weather, cyclical patterns, and quarterly trends influence the company's construction and maintenance activities - Severe weather, particularly in northern climates, can slow construction productivity, shifting revenue and gross profit recognition. Mild weather may reduce demand for maintenance services, while severe weather may increase it[197](index=197&type=chunk)[198](index=198&type=chunk) - Operations experience mild cyclicality, with increased maintenance and capital projects typically occurring in the third and fourth calendar quarters[198](index=198&type=chunk) [Effect of Inflation and Tariffs](index=48&type=section&id=Effect%20of%20Inflation%20and%20Tariffs) This section addresses the impact of inflation and tariffs on material costs and the company's mitigation strategies - Prices of materials like steel, pipe, copper, and equipment are subject to fluctuations and increases. The Company includes cost escalation factors in bids and uses fixed-price purchase orders to mitigate impact[199](index=199&type=chunk) - Increased tariffs on imported steel and aluminum (e.g., **50%** on certain products) have prompted domestic price increases. While ODR can often pass on cost increases due to short sales cycles, significant supply chain disruptions could delay projects and impact backlog conversion[200](index=200&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's liquidity position, capital resources, and cash flow management strategies [Cash Flows](index=49&type=section&id=Cash%20Flows) Summary Cash Flow Information (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $4,242 | $12,560 | | Net cash used in investing activities | $(2,152) | $(5,231) | | Net cash used in financing activities | $(8,080) | $(7,628) | | Net decrease in cash, cash equivalents and restricted cash | $(5,990) | $(299) | - Liquidity needs are primarily for working capital, capital expenditures, and strategic investments, historically funded by operating activities and borrowings[201](index=201&type=chunk) - Cash flows are impacted by working capital fluctuations, contract mix, commercial terms, and project delays. The Company assesses receivables for collectability and believes reserves are appropriate[202](index=202&type=chunk) Summarized Working Capital Information (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current assets | $208,970 | $220,334 | | Current liabilities | $(123,453) | $(151,037) | | Net working capital | $85,517 | $69,297 | | Current ratio | 1.69 | 1.46 | [Cash Flows Provided by Operating Activities](index=50&type=section&id=Cash%20Flows%20Provided%20by%20Operating%20Activities) - Net cash provided by operating activities decreased to **$4.2 million** in H1 2025 (from $12.6 million in H1 2024), primarily due to an **$18.8 million** cash outflow from changes in contract assets and liabilities and a **$7.3 million** outflow from accrued expenses, partially offset by increased net income and changes in accounts payable/receivable[205](index=205&type=chunk)[206](index=206&type=chunk) [Cash Flows Used in Investing Activities](index=50&type=section&id=Cash%20Flows%20Used%20in%20Investing%20Activities) - Net cash used in investing activities decreased to **$2.2 million** in H1 2025 (from $5.2 million in H1 2024), mainly due to lower purchases of property and equipment (**$3.1 million** in H1 2025 vs. $5.8 million in H1 2024), partially offset by proceeds from asset sales[207](index=207&type=chunk) - Capital additions primarily included tools, equipment, computer software/hardware, office furniture, and leasehold improvements[208](index=208&type=chunk) [Cash Flows Used in Financing Activities](index=51&type=section&id=Cash%20Flows%20Used%20in%20Financing%20Activities) - Net cash used in financing activities increased to **$8.1 million** in H1 2025 (from $7.6 million in H1 2024), driven by **$10.7 million** in taxes for net share settlement of equity awards, **$1.8 million** for finance lease payments, and **$2.3 million** for contingent consideration payments[209](index=209&type=chunk) - These outflows were partially offset by **$6.3 million** from the sale of shares to cover employee taxes and **$0.4 million** from ESPP contributions[209](index=209&type=chunk) [Cash Flow Summary](index=51&type=section&id=Cash%20Flow%20Summary) - Management expects ODR business growth to positively impact cash flow trends, as it is less sensitive to cash flow issues from large GCR projects[212](index=212&type=chunk) - The Company believes its cash balance (**$38.9 million**), future operating cash flows, and **$84.9 million** available under its revolving credit facility are sufficient to meet working capital and capital expenditure requirements for at least the next 12 months[213](index=213&type=chunk) [Debt and Related Obligations](index=51&type=section&id=Debt%20and%20Related%20Obligations) Long-term Debt (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | A&R Wintrust Revolving Loans | $10,000 | $10,000 | | Finance leases | $17,831 | $11,888 | | Financing liability | $5,351 | $5,351 | | Total debt | $33,182 | $27,239 | | Long-term debt (net of current portion, discount/costs) | $28,397 | $23,554 | - The Second A&R Wintrust Credit Agreement was amended on June 27, 2025, increasing the revolving credit facility to **$100.0 million**, extending maturity to July 1, 2030, and increasing the L/C sublimit to **$20.0 million**[215](index=215&type=chunk) [Surety Bonding](index=52&type=section&id=Surety%20Bonding) - Surety bonds outstanding were approximately **$107.3 million** as of June 30, 2025 (down from $109.3 million at Dec 31, 2024). The Company believes its **$1 billion** bonding capacity provides a significant competitive advantage[216](index=216&type=chunk) [Insurance and Self-Insurance](index=52&type=section&id=Insurance%20and%20Self-Insurance) - The Company is substantially self-insured for workers' compensation and general liability claims (with **$250,000** per-incident deductibles) and for medical/dental claims (with annual stop-loss limits)[217](index=217&type=chunk)[218](index=218&type=chunk) - Liabilities for reported and incurred but not reported claims are accrued and reflected as current and non-current liabilities on the balance sheets[217](index=217&type=chunk)[218](index=218&type=chunk) [Multiemployer Pension Plans](index=52&type=section&id=Multiemployer%20Pension%20Plans) - The Company participates in approximately **50** multiemployer pension plans (MEPPs) for union employees. Contributions are set by collective bargaining agreements but may increase based on funded status and Pension Protection Act requirements[219](index=219&type=chunk)[220](index=220&type=chunk) - Some MEPPs are in 'critical' status, potentially requiring funding improvement or rehabilitation plans, which could increase contribution rates or alter benefits. The Company may incur withdrawal liability if it ceases or significantly reduces contributions to underfunded MEPPs[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk) [Critical Accounting Policies and Estimates](index=53&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights the significant accounting policies and estimates that require management's judgment in financial reporting - The preparation of financial statements requires management to make significant estimates and assumptions, including those related to revenue recognition on construction contracts, fair value accounting for acquisitions, insurance reserves, income tax valuation allowances, and contingent consideration[223](index=223&type=chunk) - No significant changes to critical accounting policies and estimates were identified during the three months ended June 30, 2025, compared to the Annual Report on Form 10-K for 2024[224](index=224&type=chunk) [Recent Accounting Pronouncements](index=53&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to recent accounting pronouncements and their expected impact on the company's financial statements - Refer to Note 2 for a discussion of recent accounting pronouncements, including ASU 2024-03 (Expense Disaggregation Disclosures) and ASU 2023-09 (Improvements to Income Tax Disclosures)[225](index=225&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the Company's exposure to market risks, primarily focusing on interest rate risk related to its variable-rate debt and cash equivalents. It outlines how the Company manages these risks and assesses their potential impact on financial performance [Interest Rate Risk](index=53&type=section&id=Interest%20Rate%20Risk) This section details the company's exposure to interest rate fluctuations on its variable-rate debt and cash equivalents, and its hedging strategies - The Company's market risk exposure is primarily from changes in interest rates on its Second A&R Wintrust Revolving Loan, which had **$10.0 million** outstanding as of June 30, 2025[226](index=226&type=chunk) - An interest rate swap agreement with a **$10.0 million** notional value and a fixed interest rate is used to manage variable-rate debt risk, maturing in July 2027. Changes in its fair value are recognized directly in earnings[226](index=226&type=chunk) - Cash and cash equivalents, totaling **$38.9 million** at June 30, 2025 (mostly overnight repurchase agreements), are managed under a conservative investment policy, and the Company believes it is not exposed to significant risk[228](index=228&type=chunk) [Item 4. Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the management's evaluation of the effectiveness of the Company's disclosure controls and procedures and reports on any changes in internal control over financial reporting. It also acknowledges the inherent limitations of any control system [Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures](index=54&type=section&id=Conclusion%20Regarding%20the%20Effectiveness%20of%20Disclosure%20Controls%20and%20Procedures) Management's assessment of the effectiveness of the company's disclosure controls and procedures as of June 30, 2025 - As of June 30, 2025, management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective[229](index=229&type=chunk) [Changes in Internal Control over Financial Reporting](index=54&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) Report on any material changes in internal control over financial reporting during the period - No changes in internal control over financial reporting were identified during the period covered by this 10-Q that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[230](index=230&type=chunk) [Inherent Limitations on Effectiveness of Controls](index=54&type=section&id=Inherent%20Limitations%20on%20Effectiveness%20of%20Controls) Acknowledgement of the inherent limitations of any control system in providing absolute assurance - Management acknowledges that no control system can provide absolute assurance of achieving desired objectives due to inherent judgments and assumptions[231](index=231&type=chunk) [PART II.](index=55&type=section&id=Part%20II.) This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 of the Condensed Consolidated Financial Statements for information regarding legal proceedings - Information regarding legal proceedings is detailed in Note 13 to the Condensed Consolidated Financial Statements[233](index=233&type=chunk) [Item 1A. Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the Company's most recent Annual Report on Form 10-K - No material changes have occurred from the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[234](index=234&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section indicates that there were no unregistered sales of equity securities or use of proceeds to report for the period - There were no unregistered sales of equity securities and use of proceeds to report[235](index=235&type=chunk) [Item 3. Defaults Upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section reports that there were no defaults upon senior securities during the period - There were no defaults upon senior securities[236](index=236&type=chunk) [Item 4. Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable[237](index=237&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) This section provides other relevant information, specifically addressing Rule 10b5-1 Trading Plans [Rule 10b5-1 Trading Plans](index=55&type=section&id=Rule%2010b5-1%20Trading%20Plans) Details on Rule 10b5-1 trading arrangements adopted or terminated by directors or officers - During the three months ended June 30, 2025, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement[238](index=238&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including corporate governance documents, credit agreements, and certifications - Exhibits include the Conformed Second Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, Amended and Restated Omnibus Incentive Plan, and the Second Amendment to the Second Amended and Restated Credit Agreement[240](index=240&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer pursuant to the Securities Exchange Act of 1934 and the Sarbanes-Oxley Act of 2002 are filed herewith[240](index=240&type=chunk) [SIGNATURES](index=57&type=section&id=SIGNATURES) This section contains the official signatures of the registrant's authorized officers, confirming the due authorization and filing of the report [Signature Details](index=57&type=section&id=Signature_Details) Details of the authorized signatories and the date of the report's filing - The report is signed by Michael M. McCann, President and Chief Executive Officer, and Jayme L. Brooks, Executive Vice President and Chief Financial Officer, on August 5, 2025[243](index=243&type=chunk)

[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]