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Limbach Holdings (LMB)
NASDAQ:LMB
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Limbach Holdings
(NASDAQ:LMB)
68Neutral
Limbach Holdings (LMB) vs. S&P 500 (SPY)
Market Cap
$853.89M
Dividend YieldN/A
Average Volume (3M)233.01K
Price to Earnings (P/E)29.7
Beta (1Y)2.00
Revenue Growth0.47%
EPS Growth43.12%
CountryUS
Employees1,400
SectorIndustrials
Sector Strength66
IndustryEngineering & Construction
Share Statistics
EPS (TTM)2.57
Shares Outstanding11,353,379
10 Day Avg. Volume273,132
30 Day Avg. Volume233,010
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)N/A
Price to Sales (P/S)1.81
Price to Cash Flow (P/CF)12.20
P/FCF Ratio12.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$114.00Price Target Upside55.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Limbach Holdings Business Overview & Revenue Model
Company DescriptionLimbach 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.
How the Company Makes MoneyLimbach Holdings generates revenue through two primary segments: Construction and Service. The Construction segment involves the design and installation of complex mechanical systems for new constructions and large-scale renovations, providing a significant portion of the company's income. The Service segment offers maintenance, repair, and retrofit services for existing systems, ensuring long-term client relationships and recurring revenue. Limbach's revenue is further supported by strategic partnerships with major contractors and building owners, enhancing its project pipeline and market reach. The company's focus on energy-efficient solutions also positions it well in markets prioritizing sustainability.
Limbach Holdings Financial Statement Overview
Summary
Limbach Holdings demonstrates strong financial health with consistent revenue growth, improving profitability, and effective cash flow management. However, the moderate debt level poses a potential risk.Income Statement
Limbach Holdings has shown strong revenue growth with a consistent increase in total revenue over the years. The gross profit margin and net profit margin are improving, indicating efficient cost management and profitability. The EBIT and EBITDA margins have also improved, reflecting operational efficiencies. However, the company experienced a decline in revenue in 2020, which is a risk factor.75
Positive
Balance Sheet
The company has a moderate debt-to-equity ratio, which indicates a balanced approach to leveraging. The return on equity has significantly improved, showing effective use of shareholder funds. The equity ratio is stable, reflecting a solid financial foundation. However, the presence of significant debt is a potential risk factor.68
Positive
Cash Flow
Limbach Holdings has demonstrated strong cash flow management with a significant improvement in operating cash flow and free cash flow, supporting its growth initiatives. The operating cash flow to net income ratio is healthy, indicating effective cash generation from operations. The free cash flow to net income ratio shows robust cash profitability, although there was a negative free cash flow in 2021.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 518.78M | 516.35M | 496.78M | 490.35M | 568.21M | Gross Profit |
| 144.28M | 119.29M | 93.74M | 85.91M | 81.39M | EBIT |
| 38.62M | 29.28M | 12.01M | 13.99M | 17.16M | EBITDA |
| 54.28M | 38.39M | 24.17M | 22.26M | 24.86M | Net Income Common Stockholders |
| 30.88M | 20.75M | 6.80M | 6.71M | 5.81M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 44.93M | 59.83M | 36.00M | 14.48M | 42.15M | Total Assets |
| 352.13M | 304.44M | 294.56M | 267.51M | 262.16M | Total Debt |
| 48.73M | 41.98M | 50.30M | 60.64M | 62.44M | Net Debt |
| 3.80M | -17.86M | 14.30M | 46.16M | 20.29M | Total Liabilities |
| 198.64M | 183.52M | 199.11M | 179.67M | 208.43M | Stockholders Equity |
| 153.49M | 120.92M | 95.44M | 87.84M | 53.73M |
| Cash Flow | Free Cash Flow | |||
| 29.26M | 55.10M | 34.38M | -25.02M | 38.33M | Operating Cash Flow |
| 36.78M | 57.37M | 35.37M | -24.23M | 39.81M | Investing Cash Flow |
| -42.57M | -17.09M | -495.00K | -19.30M | -1.32M | Financing Cash Flow |
| -9.12M | -16.49M | -13.35M | 15.87M | -4.69M |
Limbach Holdings Technical Analysis
Negative
73.18
Price Trends
84.34
Negative
89.62
Negative
78.42
Negative
Market Momentum
-1.67
Negative
43.11
Neutral
23.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LMB, the sentiment is Negative. The current price of 73.18 is below the 20-day moving average (MA) of 77.23, below the 50-day MA of 84.34, and below the 200-day MA of 78.42, indicating a bearish trend. The MACD of -1.67 indicates Negative momentum. The RSI at 43.11 is Neutral, neither overbought nor oversold. The STOCH value of 23.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LMB.
Limbach Holdings Risk Analysis
Limbach Holdings disclosed 69 risk factors in its most recent earnings report. Limbach Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Limbach Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $17.07B | 17.45 | 37.25% | 0.28% | 15.76% | 61.64% | |
73 Outperform | $5.10B | 6.63 | 16.12% | 2.33% | 4.18% | 7.50% | |
72 Outperform | $38.22B | 42.77 | 13.32% | 0.15% | 13.36% | 20.00% | |
71 Outperform | $11.73B | 22.60 | 35.03% | 0.43% | 34.97% | 62.08% | |
68 Neutral | $853.89M | 29.70 | 22.50% | ― | 0.47% | 43.12% | |
62 Neutral | $14.95B | 25.13 | 10.92% | 1.00% | -13.76% | -13.39% | |
62 Neutral | $8.08B | 13.63 | 3.82% | 3.13% | 3.58% | -14.35% |
* Industrials Sector Average
Performance Comparison
LMB
Limbach Holdings
73.18
32.58
80.25%
FIX
Comfort Systems
311.37
0.07
0.02%
EME
EMCOR Group
354.54
-1.72
-0.48%
J
Jacobs Solutions
118.48
-4.98
-4.03%
MTH
Meritage
66.61
-12.89
-16.21%
PWR
Quanta Services
252.04
-5.81
-2.25%
Limbach Holdings Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: 6.18% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call highlights a successful strategic shift towards high-margin owner direct revenue, strong improvements in gross margin, and significant financial performance growth. However, challenges such as flat overall revenue growth, increased SG&A expenses, and a decline in operating cash flow present areas of concern.Highlights
Shift to Owner Direct Revenue
In 2024, 67% of total revenue came from the Owner Direct (ODR) segment, contributing 75% of total gross profit dollars. ODR revenue grew 31.9%, and gross margins improved significantly, showing a strategic shift towards high-margin sustainable business.
Gross Margin Improvement
Total gross margin increased to 27.8% in 2024 from 23.1% in 2023, driven by higher-margin ODR revenue and quality GCR work.
Strategic Acquisitions
Two strategic acquisitions in 2024 are expected to add approximately $6 million to adjusted EBITDA in 2025, expanding the company's footprint and capabilities, especially in the industrial manufacturing sector.
Strong Financial Performance
Net income grew 48.8% to $30.9 million, and adjusted EBITDA increased by 36.1% to $63.7 million, exceeding the top end of 2024 adjusted EBITDA guidance.
Expansion in Healthcare Vertical
Healthcare emerged as the largest vertical, with significant growth opportunities due to the high demand for infrastructure upgrades and maintenance.
Lowlights
Flat Overall Revenue Growth
Total revenue growth was nearly flat at 0.5% in 2024, with significant declines in the General Contractor (GCR) segment, which fell by 31.9% as part of a strategic shift.
Increased SG&A Expenses
SG&A expenses rose to $97.2 million, up from $87.4 million in 2023, driven by higher payroll and incentive-related expenses, impacting the overall profitability.
Decline in Operating Cash Flow
Operating cash flow for the year decreased by 35.9% to $36.8 million, affected by timing differences in certain accounts receivable.
Company Guidance
In the recent call, Limbach Holdings, Inc. provided a comprehensive overview of its 2024 performance and guidance for 2025, highlighting several key metrics. The company reported a total revenue of $518.8 million for 2024, a marginal increase from 2023, with a notable 31.9% growth in the Owner Direct Revenue (ODR) segment and a 31.9% decline in General Contractor Revenue (GCR) as part of a strategic shift. The ODR segment contributed 66.6% of total revenue, up from 50.7% in 2023, and accounted for 74.7% of the total gross profit of $144.3 million, which saw a 20.9% increase. Gross margin improved to 27.8% from 23.1% in the previous year. The company completed two strategic acquisitions in 2024, expected to add approximately $6 million to the 2025 adjusted EBITDA, which is forecasted to be between $78 million and $82 million. Limbach projects 2025 organic revenue growth of 10% to 15%, with total revenue anticipated to range from $610 million to $630 million. For the upcoming year, the company aims to maintain its strategic focus on expanding the ODR segment, targeting an 80/20 revenue mix between ODR and GCR, to drive higher margins and sustainable growth.Limbach Holdings Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Limbach Holdings Achieves Record Financial Results in 2024
Positive
Mar 10, 2025
Limbach Holdings reported record financial results for the year ending December 31, 2024, with a significant increase in net income, adjusted EBITDA, and gross profit compared to 2023. The company attributed its success to strategic acquisitions, a shift in revenue mix towards ODR, and expanding customer relationships, which have driven profitability and positioned the company for sustainable growth.
Executive/Board ChangesBusiness Operations and Strategy
Limbach Holdings Introduces Executive Severance and Incentive Plan
Neutral
Jan 6, 2025
Limbach Holdings, Inc. has introduced a new Executive Severance and Change in Control Plan effective January 1, 2025, aimed at providing financial support to senior executives upon qualifying employment termination. This initiative is part of the company’s strategy to attract and retain top-tier talent, crucial for its success. Additionally, the company’s Compensation Committee has approved new forms of restricted stock unit award agreements under its incentive plan, incorporating performance-based and time-based vesting criteria. These new equity award forms are designed to align with the severance plan and include provisions to ensure compliance and protect the company’s interests.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.