Limbach Holdings, Inc. Reports Third Quarter 2025 Results

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