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]

Limbach Holdings (LMB) FY Conference Summary Company Overview - Limbach Holdings is transitioning from a traditional E&C (Engineering and Construction) model to a building system solutions firm, focusing on existing building environments and mission-critical systems [2][4][3]. Key Market Focus - The company operates in six key vertical markets, including healthcare and industrial manufacturing, emphasizing durable demand where clients must spend on maintenance and capital projects [5][9]. - Limbach aims to establish long-term relationships with clients, focusing on those with multiple locations and significant operational expenditures [11][21]. Strategic Differentiation - Limbach differentiates itself through account-focused strategies, engineering expertise, and the ability to provide both engineered solutions and installation services [6][13]. - The company has shifted its business model from general contractor work to owner-direct services, increasing the proportion of owner-direct work from 10% five years ago to a projected 70-80% [15][32]. Financial Performance and Goals - The company aims for a gross margin of 35-40%, aligning with OEMs, and has seen improvements in adjusted gross margin and profit despite static revenue [17][18]. - Revenue growth is forecasted for the first time since 2019, attributed to the shift towards owner-direct services [31][32]. Acquisition Strategy - Limbach is focused on geographic expansion through acquisitions, targeting $8 million to $10 million in adjusted EBITDA per year [18][37]. - The company seeks acquisitions that fit culturally, have a niche for value addition, and offer overlapping customer bases [25][42]. Customer Relationships - Limbach prioritizes customers with scale and multiple locations, balancing recurring work with capital projects [21][22]. - The company has established relationships with national healthcare providers, indicating potential for growth in service offerings across multiple locations [23][24]. Operational Insights - The company emphasizes a disciplined approach to acquisitions, learning from past experiences to enhance margins and operational efficiency [27][43]. - Limbach's operational model focuses on embedding itself within client operations to become indispensable, ensuring long-term dependency [12][34]. Conclusion - Limbach Holdings is strategically positioning itself as a leader in building system solutions, focusing on durable demand markets, enhancing customer relationships, and pursuing growth through acquisitions while improving financial performance and operational efficiency [34][31].

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $133.1 million, an increase of 11.9% compared to $119 million in Q1 2024 [21] - ODR revenue grew by 21.7%, while GCR revenue declined by 4.5% as part of a strategic shift towards ODR [22] - Gross profit increased by 18.1% from $31.1 million to $36.7 million, with total gross margin rising to 27.6% from 26.1% [22] - Adjusted EBITDA for the quarter was $14.9 million, up 26.5% from $11.8 million in Q1 2024, with an adjusted EBITDA margin of 11.2% [24] - Net income grew by 34.6% to $10.2 million, with earnings per diluted share increasing by 32.8% to $0.85 [24] Business Line Data and Key Metrics Changes - ODR revenue accounted for 67.9% of total revenue in Q1 2025, up from 62.4% in Q1 2024 [22] - ODR gross profit increased by $4 million or 18%, while GCR gross profit rose by $1.6 million or 18.3% [23] - ODR gross margins were 28.9%, slightly down from 29.8% in Q1 2024, primarily due to prior year write-ups [23] Market Data and Key Metrics Changes - The healthcare market is showing signs of recovery, with customers beginning to address deferred maintenance from previous years [32] - Customers are accelerating purchasing decisions due to tariff uncertainties, which has positively impacted project timelines [14][35] Company Strategy and Development Direction - The company is focused on expanding its ODR model, which has increased from less than 21% of total revenue in 2019 to a projected 70-80% for full year 2025 [6][7] - A significant investment in the sales organization has been made, adding approximately 40 new professionals to enhance customer relationships [9] - The company aims to transition strategic customer relationships from reactive to proactive, influencing customer budgets by year-end [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full year revenue guidance of $610 million to $630 million and adjusted EBITDA of $78 million to $82 million [19] - The company remains well-positioned to capitalize on growth opportunities in identified metropolitan areas, with a focus on acquisitions to accelerate market entry [19][64] Other Important Information - The company reported a significant improvement in operating cash flow, moving from a $3.9 million outflow in Q1 2024 to a $2.2 million inflow in Q1 2025 [25] - The balance sheet remains strong, with $38.1 million in cash and total debt of $27.5 million [26] Q&A Session Summary Question: Insights on the healthcare market recovery - Management noted that the healthcare vertical has shown stability and is addressing deferred maintenance, leading to long-term capital planning [32][33] Question: Impact of tariffs on project timelines - Management indicated that while tariffs have been neutral, customers are accelerating decisions to avoid future price increases [35] Question: ODR client relationship development - Management explained that account managers are placed based on research and spending patterns, ensuring that only viable accounts receive dedicated attention [40][41] Question: GCR gross margin sustainability - Management aims to maintain GCR gross margins between 28% and 29%, though it may fluctuate based on project mix [46][47] Question: Sales team ramp-up and effectiveness - Management confirmed that the new sales team, primarily on-site account managers, is crucial for growing the ODR segment, with a ramp-up period expected [57][58] Question: M&A strategy and market competition - Management emphasized a patient and disciplined approach to acquisitions, focusing on long-term integration rather than immediate deals [80][81]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $133.1 million, an increase of 11.9% compared to $119 million in Q1 2024 [20] - ODR revenue grew by 21.7%, accounting for 67.9% of total revenue, up from 62.4% in Q1 2024 [21] - Gross profit increased by 18.1% from $31.1 million to $36.7 million, with total gross margin rising to 27.6% from 26.1% [21][22] - Adjusted EBITDA for the quarter was $14.9 million, up 26.5% from $11.8 million in Q1 2024, with an adjusted EBITDA margin of 11.2% [23] - Net income grew 34.6% to $10.2 million, with earnings per diluted share increasing by 32.8% to $0.85 [23] Business Line Data and Key Metrics Changes - ODR gross profit comprised 71.2% of total gross profit, increasing by $4 million or 18% [22] - GCR revenue declined by 4.5% as part of a strategic shift towards ODR, but GCR gross profit increased by 18.3% due to a focus on higher quality projects [21][22] Market Data and Key Metrics Changes - The healthcare market is showing signs of recovery, with customers beginning to address deferred maintenance from previous years [32] - Customers are accelerating purchasing decisions due to tariff uncertainties, which has positively impacted project timelines [36] Company Strategy and Development Direction - The company is focused on expanding its ODR model, which has increased from less than 21% of total revenue in 2019 to a projected 70-80% for the full year 2025 [6] - A significant investment in sales personnel has been made, adding approximately 40 new professionals to the sales team [8] - The company aims to transition customer relationships from reactive to proactive, influencing customer budgets by the end of the year [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue guidance of $610 million to $630 million and adjusted EBITDA of $78 million to $82 million [18] - The company remains well-positioned to capitalize on growth opportunities in identified metropolitan statistical areas (MSAs) [18] Other Important Information - The company has a strong balance sheet with $38.1 million in cash and total debt of $27.5 million [26] - Tariffs have had a neutral effect on the business, allowing for quick responses to market dynamics [13] Q&A Session Summary Question: Insights on the healthcare market recovery - Management noted that the healthcare vertical has shown stability and customers are beginning to plan for long-term capital needs due to deferred maintenance [32][33] Question: Impact of tariffs on project timelines - Management indicated that customers are making quicker purchasing decisions to avoid potential price increases due to tariffs, which has been beneficial for the company [36] Question: ODR client relationship development - Management explained that account managers are placed at ODR clients after assessing the potential for long-term partnerships based on spending patterns and opportunities [40][41] Question: GCR gross margin sustainability - Management stated that they are targeting a blended gross margin of 28% to 29% for the year, acknowledging variability based on project mix [48][49] Question: M&A strategy in a competitive environment - Management emphasized a patient and disciplined approach to acquisitions, focusing on long-term integration and cultural alignment with potential targets [78][80]

Company Overview - Limbach specializes in revitalizing and maintaining mission-critical systems in existing facilities [5] - The company has approximately 1,400 team members and operates across 20 branch locations [11, 13] - Limbach focuses on six distinct vertical markets to diversify revenue streams [18] Financial Performance and Strategy - From FY 2019 to FY 2024, Limbach expanded its gross margin by nearly 1,480 bps to 27.8%, driving Adjusted EBITDA Margin more than 4x from 3.0% to 12.3% [33] - The company targets a shift in revenue mix to approximately 80% ODR (Owner Direct Relationships) and approximately 20% GCR (General Contractor Relationships) [32] - Limbach projects total revenue between $610 million and $630 million for 2025, with ODR revenue growth between 23% and 46% [62] - The company anticipates an Adjusted EBITDA between $78 million and $82 million in 2025, resulting in an Adjusted EBITDA Margin between 12.5% and 13.5% [62] Acquisitions and Expansion - Consolidated Mechanical is expected to contribute approximately $23 million in annualized revenue and $4 million in EBITDA beginning in 2025 [53] - Kent Island Mechanical is expected to contribute on average $30 million in revenue and $4 million in EBITDA on a full year basis [59] Q1 2025 Performance - Limbach reported revenue of $133.1 million in Q1 2025, an increase of 11.9% year-over-year [69] - Gross profit for Q1 2025 was $36.7 million, with a gross margin of 27.6% [69] - Adjusted EBITDA for Q1 2025 was $14.9 million, compared to $11.8 million in Q1 2024 [70]

Core Viewpoint - Limbach (LMB) reported quarterly earnings of $1.12 per share, significantly exceeding the Zacks Consensus Estimate of $0.30 per share, marking an earnings surprise of 273.33% [1][2] Financial Performance - The company achieved revenues of $133.11 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 10.45% and showing an increase from $118.98 million year-over-year [2] - Over the last four quarters, Limbach has consistently surpassed consensus EPS estimates, achieving this four times [2] Stock Performance - Limbach shares have increased approximately 20.7% since the beginning of the year, contrasting with the S&P 500's decline of -3.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.75, with projected revenues of $144.46 million, and for the current fiscal year, the estimate is $3.45 on revenues of $609.16 million [7] Industry Outlook - The Building Products - Maintenance Service industry, to which Limbach belongs, is currently ranked in the top 2% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Limbach's stock performance [5][6]

Revenue and Profitability - Total revenue for the three months ended March 31, 2025, was $133.1 million, an increase of $14.1 million or 11.9% compared to $119.0 million in the same period of 2024 [160]. - ODR revenue increased by $16.1 million, or 21.7%, reaching $90.4 million, while GCR revenue decreased by $2.0 million, or 4.5%, totaling $42.7 million [161]. - Gross profit for the total revenue was $36.7 million, representing a gross margin of 27.6%, compared to $31.1 million and 26.1% in the prior year [160]. - The Company reported a net income of $10.2 million for the three months ended March 31, 2025, compared to $7.6 million in the same period of 2024, reflecting a net margin of 7.7% [160]. - The Company's gross profit for the three months ended March 31, 2025 increased by $5.6 million, or 18.1%, compared to the same period in 2024, with ODR gross profit rising by $4.0 million (18.0%) and GCR gross profit increasing by $1.6 million (18.3%) [162]. Expenses and Costs - Selling, general and administrative expenses for the three months ended March 31, 2025, were $26.5 million, or 19.9% of total revenue, compared to $22.9 million, or 19.2% in the prior year [160]. - Selling, general and administrative (SG&A) expenses increased by approximately $3.6 million, or 15.9%, for the three months ended March 31, 2025, primarily due to a $2.0 million increase in payroll-related expenses [164]. - Amortization of intangibles for the period was $1.9 million, up from $1.1 million in the prior year, reflecting the impact of recent acquisitions [160]. - Amortization of intangibles increased by $1.1 million, or 76.3%, for the three months ended March 31, 2025, primarily due to acquisitions [166]. - The Company continues to monitor the impact of inflation and tariffs on its cost structure, with higher costs of materials affecting specific projects in 2024 [183]. Acquisitions and Market Expansion - The Company acquired two companies in 2023 for a total cash consideration of $15.3 million, including ACME for $5.0 million and Industrial Air for $13.5 million [155]. - The acquisition of Kent Island Mechanical for $15.0 million and Consolidated Mechanical for $23.0 million further expanded the Company's market share and capabilities in the mechanical contracting sector [156][157]. - The Company is actively seeking strategic acquisitions to enhance its geographic footprint and service offerings [179]. Backlog and Future Revenue - The Company's ODR backlog as of March 31, 2025 was $249.0 million, up from $225.3 million as of December 31, 2024, with an estimated 87% expected to be recognized as revenue over the remainder of 2025 [170][171]. - The GCR backlog decreased to $120.2 million as of March 31, 2025, from $140.0 million at December 31, 2024, with an estimated 63% expected to be recognized as revenue over the remainder of 2025 [172]. - The Company’s existing current backlog is projected to provide considerable coverage of forecasted revenue for one year from the date of the financial statement issuance [187]. Cash Flow and Liquidity - The Company generated $2.2 million in cash from operating activities for the three months ended March 31, 2025, compared to a cash outflow of $3.9 million for the same period in 2024 [189]. - The Company has $38.1 million in cash and cash equivalents as of March 31, 2025, which, along with available borrowing capacity of $34.9 million, is expected to meet working capital and capital expenditure requirements for at least the next 12 months [197]. - The Company experienced a cash outflow of $1.9 million in investing activities for the three months ended March 31, 2025, slightly down from $2.0 million in 2024 [192]. - Cash flows used in financing activities increased to $7.2 million for the three months ended March 31, 2025, compared to $5.7 million in the same period of 2024 [194]. - The Company’s cash flows are primarily impacted by fluctuations in working capital, influenced by contract mix and timing of cash payments [186]. Debt and Financial Position - As of March 31, 2025, the total long-term debt of the company is $23.692 million, an increase from $23.554 million as of December 31, 2024 [198]. - The company has approximately $113.0 million in surety bonds outstanding as of March 31, 2025, compared to $109.3 million as of December 31, 2024 [199]. - The company believes its $800.0 million bonding capacity provides a significant competitive advantage over competitors with limited bonding capacity [199]. - The Company’s current ratio improved to 1.55 as of March 31, 2025, up from 1.46 as of December 31, 2024, indicating better liquidity [188]. Tax and Other Income - The Company recorded an income tax benefit of $2.2 million for the three months ended March 31, 2025, compared to $0.3 million for the same period in 2024, with an effective tax rate of (27.8)% [168]. - Total other income decreased to $0.08 million for the three months ended March 31, 2025, down from $0.7 million in 2024, driven by a loss associated with the interest rate swap arrangement [167]. - The change in fair value of contingent consideration related to acquisitions was $427,000 for the three months ended March 31, 2025 [160]. - The change in fair value of contingent consideration was an expense of $0.4 million for the three months ended March 31, 2025, down from $0.6 million in 2024 [165]. - The company recognized interest income of approximately $0.4 million for the three months ended March 31, 2025 [211]. Pension and Insurance - The company participates in approximately 50 multiemployer pension plans (MEPPs) and is responsible for any plan underfunding [202]. - The company accrues for the unfunded portion of costs for both reported claims and claims incurred but not reported related to its self-insurance policies [201]. - The company has not experienced any losses in its cash and cash equivalents, maintaining a conservative investment policy [211].