Limbach Holdings Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.54%.
Did LMB Beat Earnings? Q2 2025 Results
Limbach Holdings posted a mixed but largely encouraging second quarter for 2025, beating earnings expectations handily while falling just short on revenue, a combination that sent shares lower even as the underlying business story remained compelling. Adjusted diluted EPS came in at $0.93, clearing the $0.77 consensus estimate by 20.39%, while revenue of $142.24 million trailed forecasts by 1.37% despite rising 16.4% year over year. The primary engine behind the earnings strength was Limbach's deliberate pivot toward Owner Direct Relationships, where segment revenue surged 31.7% to $108.95 million and now accounts for 76.6% of total sales, lifting total gross margin to 28.0% from 27.4% a year ago. GAAP net income grew 30.2% to $7.76 million, and adjusted EBITDA expanded 30.0% to $17.95 million. Management responded to the momentum by raising full-year 2025 revenue guidance to $650 million to $680 million and adjusted EBITDA guidance to $80 million to $86 million, with the July 1 acquisition of Pioneer Power expected to add roughly $120 million in annualized revenue beginning in 2026.
- ODR revenue grew 31.7% year over year, representing 76.6% of total revenue
- ODR gross profit grew 24.6%, representing 79.3% of total gross profit
- Total gross margin expanded to 28.0% from 27.4% driven by higher-margin ODR mix
- Adjusted EBITDA margin improved to 12.6% from 11.3%
- GCR gross margins improved to 24.7% from 20.6% due to project selectivity
- Contributions from Consolidated Mechanical and Kent Island acquisitions
“We delivered strong second quarter performance, with improvement in key metrics year over year — clear evidence that our strategic shift to higher margin ODR business is driving meaningful results. During the quarter, ODR revenue grew 31.7%, representing 76.6% of total revenue, up from approximately 21% of total revenue during the second quarter of 2019 which was the year that we started the transition. In addition, ODR gross profit grew 24.6%, representing 79.3% of total gross profit. Our strategic focus on the ODR segment is yielding measurable value as we expand margins, reduce risk, and generate more predictable revenue and profits. This momentum continues to build, reinforcing our confidence in our growth strategy and Limbach's position as a leading provider of essential building systems solutions for existing critical infrastructure.”
Limbach CEO, on the earnings call
Forward Guidance & Outlook
Limbach raised its full-year 2025 guidance, now expecting total revenue of $650 million to $680 million (up from $610 million to $630 million) and adjusted EBITDA of $80 million to $86 million (up from $78 million to $82 million). The company targets an ODR revenue mix of 70% to 80%, ODR revenue growth of 35% to 50%, total gross margin of 28% to 29%, adjusted EBITDA margin of 12% to 13%, and free cash flow conversion of 75% of adjusted EBITDA. PPI is expected to contribute approximately $120 million in annualized revenue and $10 million in adjusted EBITDA beginning in 2026. Management's long-term ODR gross margin target is approximately 35-40%. The company also targets $8 million to $10 million of adjusted EBITDA additions on a full-year basis from its M&A strategy.
LMB YoY Financials
LMB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.