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1. Company Snapshot

1.a. Company Description

Limbach Holdings, Inc.operates as an integrated building systems solutions company in the United States.It operates in two segments, General Contractor Relationships and Owner Direct Relationships.


The company engages in the design, prefabrication, installation, management, and maintenance of mechanical, electrical, plumbing, and control systems, as well as heating, ventilation, air-conditioning (HVAC) system.Its facility services comprise mechanical construction, HVAC service and maintenance, energy audits and retrofits, engineering and design build, constructability evaluation, equipment and materials selection, offsite/prefabrication construction, and sustainable building solutions and practices.The company serves research, acute care, and inpatient hospitals; public and private colleges, universities, research centers and K-12 facilities; sports arenas; entertainment facilities, and amusement rides; passenger terminals and maintenance facilities for rail and airports; government facilities comprising federal, state, and local agencies; hotels and resorts; office building and other commercial structures; data centers; and industrial manufacturing facilities.


The company was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.

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1.b. Last Insights on LMB

Recent negative drivers behind Limbach Holdings' performance include uncertainty surrounding its earnings prospects, as reflected in the latest trend in earnings estimate revisions. Despite being upgraded to a Strong Buy rating, the company's growth prospects are tempered by valuation concerns and potential volatility. Additionally, Limbach faces competition from peers such as Argan, Inc., Powell Industries, and Sterling Infrastructure, which may hinder its growth momentum.

1.c. Company Highlights

2. Limbach Holdings' Q3 2025 Earnings: Strong ODR Growth and Margin Challenges

Limbach Holdings reported a robust revenue growth in Q3 2025, driven by its owner-direct relationship (ODR) business, which accounted for 76.6% of total revenue. Revenue grew 37.8% to $184.4 million, with ODR revenue increasing 52% to $141.4 million. However, gross margin was impacted by the lower margin profile of Pioneer Power, coming in at 24.2%. The company's EPS was $1.05, slightly below estimates of $1.09. SG&A as a percentage of revenue decreased to 15.3%, indicating effective cost management. The company generated $13.3 million in operating cash inflow and $17.9 million in free cash flow.

Publication Date: Nov -29

📋 Highlights
  • ODR Revenue Growth: Owner-direct relationship (ODR) revenue surged 52% to $141.4M (76.6% of total revenue), driven by acquisitions and organic growth.
  • Revenue Mix Shift: Fixed-price projects (> $10k) now account for 2/3 of ODR revenue, with a 1/3 share from maintenance contracts/work orders and T&M work.
  • Strategic Acquisitions: Six acquisitions contributed to 37.8% Q3 revenue growth, enhancing geographic reach and market share, including a $12M healthcare capital project.
  • Margin and Cash Flow: Gross margin at 24.2% (down due to Pioneer Power acquisition), but SG&A fell to 15.3% of revenue, generating $17.9M free cash flow.
  • 2025 Guidance: Targets $650–$680M revenue, $80–$86M adjusted EBITDA, and 35–40% long-term gross margins via ODR expansion and consultative sales shifts.

Business Mix and Growth Strategy

The ODR business has become more diversified and lower-risk, with a greater emphasis on stability, predictability, and long-term value creation. The company's growth strategy is underpinned by three core pillars: scaling ODR business, enhancing profitability, and strategic M&A. Limbach has made progress in its growth strategy, acquiring six high-quality businesses and expanding its geographic footprint. As noted by the company, "we are building a long-term sales team and model to achieve success over multiple quarters and years."

Vertical Market Opportunities

Limbach continues to see opportunities in its key vertical markets, including healthcare, industrial manufacturing, and data centers. The company recently secured a $12 million project based on its facility assessments for a national healthcare owner. The company's focus on anticipating owner challenges and crafting solutions is expected to yield measured results.

Margin Improvement and Outlook

The company is focused on improving margins, with a goal to achieve long-term gross margins in the 35% to 40% range. Pioneer Power's gross margin is expected to improve as it transitions to a new accounting and operating system. Limbach reaffirmed its 2025 guidance, with total revenue expected to be $650-$680 million and adjusted EBITDA of $80-$86 million.

Valuation and Growth Prospects

With a P/E Ratio of 22.47 and an EV/EBITDA of 16.41, the market appears to be pricing in a certain level of growth. Analysts estimate next year's revenue growth at 13.3%. The company's ROIC of 13.73% and ROE of 21.96% indicate a strong ability to generate returns on capital. As Limbach continues to execute on its growth strategy and improve margins, investors will be watching to see if the company can meet its long-term objectives.

3. NewsRoom

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6,118 Shares in Limbach Holdings, Inc. $LMB Purchased by Creative Planning

Dec -02

Source: defenseworld.net

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Limbach Holdings, Inc. (LMB) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Wasatch Micro Cap Value Fund Q3 2025 Contributors And Detractors

Nov -05

Source: seekingalpha.com

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Teacher Retirement System of Texas Reduces Stake in Limbach Holdings, Inc. $LMB

Nov -05

Source: defenseworld.net

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Limbach (LMB) Misses Q3 Earnings Estimates

Nov -05

Source: zacks.com

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Limbach Holdings, Inc. Reports Third Quarter 2025 Results

Nov -04

Source: businesswire.com

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Wasatch Micro Cap Fund Q3 2025 Performance Update

Nov -04

Source: seekingalpha.com

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Four Growth Stocks Powering The Fourth Industrial Revolution In 2025

Oct -28

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.65%)

6. Segments

Owner Direct Relationships

Expected Growth: 4.5%

Limbach Holdings, Inc.'s 4.5% growth in Owner Direct Relationships is driven by strong customer retention, strategic account management, and targeted sales efforts. Additionally, investments in digital marketing and enhanced customer experience have increased brand visibility, attracting new customers and expanding existing relationships.

General Contractor Relationships

Expected Growth: 4.8%

Limbach Holdings, Inc.'s 4.8% growth in General Contractor Relationships is driven by strategic partnerships, expanded service offerings, and increased market share in the mechanical construction and energy services sectors. Additionally, investments in technology and process improvements have enhanced operational efficiency, allowing for better project execution and stronger relationships with general contractors.

7. Detailed Products

Mechanical Services

Limbach Holdings, Inc. provides mechanical services including HVAC, plumbing, and piping solutions to commercial, industrial, and institutional clients.

Building Automation Systems (BAS)

Limbach Holdings, Inc. offers building automation systems that integrate HVAC, lighting, and security systems to optimize energy efficiency and building performance.

Energy Solutions

Limbach Holdings, Inc. provides energy-efficient solutions, including energy audits, retro-commissioning, and energy management systems.

Design-Build Services

Limbach Holdings, Inc. offers design-build services, providing a single-source solution for clients' mechanical, electrical, and plumbing needs.

Service and Maintenance

Limbach Holdings, Inc. provides routine maintenance, repairs, and emergency services to ensure clients' mechanical systems operate efficiently and effectively.

8. Limbach Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Limbach Holdings, Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Limbach Holdings, Inc. is high due to the concentration of customers in the industry and their ability to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Limbach Holdings, Inc. is low due to the availability of multiple suppliers in the market and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Limbach Holdings, Inc. is medium due to the moderate barriers to entry in the industry and the availability of resources.

Intensity Of Rivalry

The intensity of rivalry for Limbach Holdings, Inc. is high due to the high level of competition in the industry and the need to differentiate products and services.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.63%
Debt Cost 6.60%
Equity Weight 88.37%
Equity Cost 8.81%
WACC 8.55%
Leverage 13.17%

11. Quality Control: Limbach Holdings, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Matrix Service

A-Score: 4.9/10

Value: 8.4

Growth: 4.8

Quality: 5.2

Yield: 0.0

Momentum: 7.0

Volatility: 4.0

1-Year Total Return ->

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Willdan

A-Score: 4.8/10

Value: 2.1

Growth: 7.4

Quality: 6.4

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Tutor Perini

A-Score: 4.6/10

Value: 5.9

Growth: 4.7

Quality: 4.4

Yield: 0.0

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

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Orion Holdings

A-Score: 4.4/10

Value: 5.2

Growth: 5.7

Quality: 4.2

Yield: 0.0

Momentum: 9.0

Volatility: 2.3

1-Year Total Return ->

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NV5 Global

A-Score: 4.3/10

Value: 4.1

Growth: 5.0

Quality: 5.3

Yield: 0.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Limbach Holdings

A-Score: 4.2/10

Value: 1.7

Growth: 8.0

Quality: 6.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

73.74$

Current Price

73.74$

Potential

-0.00%

Expected Cash-Flows