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Limbach Holdings (LMB)
NASDAQ:LMB
US Market

Limbach Holdings (LMB) AI Stock Analysis

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Limbach Holdings

(NASDAQ:LMB)

Rating:78Outperform
Price Target:
$166.00
▲(13.88%Upside)
Limbach Holdings' strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical indicators support a bullish trend, though valuation concerns slightly temper the outlook. Recent corporate events further bolster the company's strategic positioning.

Limbach Holdings (LMB) vs. SPDR S&P 500 ETF (SPY)

Limbach Holdings Business Overview & Revenue Model

Company DescriptionLimbach Holdings, Inc. is a leading provider of building systems solutions with a focus on designing, engineering, constructing, and servicing complex heating, ventilation, air conditioning (HVAC) and mechanical, electrical, and plumbing (MEP) systems. Serving a diverse range of sectors including healthcare, education, government, and commercial markets, the company offers a comprehensive suite of services that include energy-efficient design, installation, maintenance, and retrofit solutions.
How the Company Makes MoneyLimbach Holdings generates revenue primarily through its construction and service segments. The construction segment involves the design and installation of complex HVAC and MEP systems for new buildings and large-scale renovation projects. This segment is driven by contracts with building owners, general contractors, and developers. The service segment focuses on maintaining, repairing, and optimizing existing systems, generating recurring revenue through ongoing service agreements, preventative maintenance contracts, and retrofit projects. The company also leverages key partnerships with equipment manufacturers and technology providers to enhance its service offerings. Additionally, Limbach's emphasis on energy-efficient solutions helps attract clients looking to reduce operational costs and comply with environmental regulations, further contributing to its revenue streams.

Limbach Holdings Earnings Call Summary

Earnings Call Date:May 05, 2025
(Q1-2025)
|
% Change Since: 41.07%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook, with significant growth in ODR revenue and improvements in financial performance. While there were challenges such as a strategic decline in GCR revenue and increased SG&A expenses, the company's strategic focus on ODR and successful acquisition strategy positions it well for future growth.
Q1-2025 Updates
Positive Updates
ODR Revenue Growth
ODR revenue increased from 21% of total revenue in 2019 to 67.9% in Q1 2025, with a projected increase to 70%-80% for the full year. ODR revenue rose by 21.7% in Q1 2025.
Financial Performance Improvements
Total revenue grew 11.9% year-over-year, with gross profit expanding by 18.1% and adjusted EBITDA increasing by 26.5%. Net income grew 34.6% to a record $10.2 million.
Successful M&A Strategy
The company is making solid progress on acquisition integrations and has identified 20-30 new MSAs for expansion, primarily along the East Coast and Midwest.
Strong Cash Flow Management
Free cash flow for Q1 2025 was $15 million, a $3.3 million improvement from Q1 2024, with a free cash flow conversion rate of 101.1%.
Negative Updates
GCR Revenue Decline
GCR revenue declined by 4.5% in Q1 2025 as part of the strategic shift towards ODR, which is intentional but still a reduction.
Increased SG&A Expenses
SG&A expenses increased to $26.5 million from $22.9 million, representing a rise as a percentage of revenue from 19.2% to 19.9%.
Challenges with Tariffs
While tariffs have had a neutral impact, there is uncertainty in the market, leading to accelerated purchasing decisions by customers.
Company Guidance
During the First Quarter 2025 Earnings Conference Call for Limbach Holdings, President and CEO Michael McCann provided guidance and highlighted the company's strategic focus on its Owner Direct Relationships (ODR) model, which accounted for 67.9% of total revenue in the first quarter and is projected to reach between 70% and 80% for the full year 2025. This shift has led to an 11.9% increase in total revenue compared to Q1 2024, with ODR revenue rising by 21.7%. The company's gross profit expanded by 18.1%, and adjusted EBITDA increased by 26.5%. Limbach aims to achieve full-year revenue between $610 million and $630 million, with adjusted EBITDA ranging from $78 million to $82 million. Additionally, the company has invested in expanding its sales team by approximately 40 professionals and is focusing on deepening customer relationships to drive organic growth and capitalize on high-margin opportunities. The guidance reflects the company’s strategic transformation, resilience against economic fluctuations, and continued expansion into new markets.

Limbach Holdings Financial Statement Overview

Summary
Limbach Holdings shows robust financial performance with consistent revenue growth, healthy profit margins, and strong cash flow management. The balance sheet reflects a stable financial position with prudent leverage management. There's room for optimization in operating costs and cash conversion efficiency.
Income Statement
78
Positive
Limbach Holdings shows robust financial performance with consistent revenue growth in recent periods, highlighted by a strong revenue growth rate of 2.72% in TTM. The company maintains healthy gross and net profit margins at 27.93% and 6.29% respectively, indicating efficient cost management and profitability. The EBIT and EBITDA margins are solid at 7.66% and 9.79%, supporting operational efficiency. However, the company could enhance profitability by further optimizing operating costs.
Balance Sheet
71
Positive
The balance sheet exhibits a stable financial position with a favorable equity ratio of 47.91%, indicating a strong equity base. The debt-to-equity ratio stands at 0.30, reflecting prudent leverage management. Return on equity (ROE) is commendable at 20.80%, showcasing effective use of shareholder funds. While the overall debt levels are manageable, continuous monitoring is advised to maintain financial stability.
Cash Flow
75
Positive
Limbach Holdings demonstrates strong cash flow performance with a significant free cash flow growth rate of 22.19% in TTM. The operating cash flow to net income ratio of 1.28 indicates effective cash generation relative to net earnings. The free cash flow to net income ratio of 1.07 further supports the company's ability to convert earnings into cash, although there is room for improvement in cash conversion efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue532.91M518.78M516.35M496.78M490.35M568.21M
Gross Profit148.88M144.28M119.29M93.74M85.91M81.39M
EBITDA52.17M54.28M38.39M24.17M22.26M24.86M
Net Income33.50M30.88M20.75M6.80M6.71M5.81M
Balance Sheet
Total Assets336.37M352.13M304.44M294.56M267.51M262.16M
Cash, Cash Equivalents and Short-Term Investments38.09M44.93M59.83M36.00M14.48M42.15M
Total Debt47.98M48.73M41.98M50.30M60.64M62.44M
Total Liabilities175.24M198.64M183.52M199.11M179.67M208.43M
Stockholders Equity161.13M153.49M120.92M95.44M87.84M53.73M
Cash Flow
Free Cash Flow35.76M29.26M55.10M34.38M-25.02M38.33M
Operating Cash Flow42.97M36.78M57.37M35.37M-24.23M39.81M
Investing Cash Flow-42.52M-42.57M-17.09M-495.00K-19.30M-1.32M
Financing Cash Flow-10.60M-9.12M-16.49M-13.35M15.87M-4.69M

Limbach Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price145.77
Price Trends
50DMA
124.66
Positive
100DMA
102.44
Positive
200DMA
95.51
Positive
Market Momentum
MACD
4.40
Positive
RSI
63.70
Neutral
STOCH
64.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LMB, the sentiment is Positive. The current price of 145.77 is above the 20-day moving average (MA) of 138.47, above the 50-day MA of 124.66, and above the 200-day MA of 95.51, indicating a bullish trend. The MACD of 4.40 indicates Positive momentum. The RSI at 63.70 is Neutral, neither overbought nor oversold. The STOCH value of 64.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$1.52B47.423.79%8.65%-22.72%
79
Outperform
$965.42M40.1710.78%12.40%81.98%
LMLMB
78
Outperform
$1.58B52.3723.37%3.62%28.02%
71
Outperform
$837.45M16.035.64%30.13%-7.60%
63
Neutral
$385.17M-14.26%-0.29%-6.77%
TPTPC
63
Neutral
$2.44B-12.28%8.95%-41.32%
61
Neutral
C$6.52B9.253.44%2.88%6.99%-11.09%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LMB
Limbach Holdings
145.77
90.06
161.66%
AMRC
Ameresco
16.27
-11.02
-40.38%
MTRX
Matrix Service Company
13.95
5.19
59.25%
TPC
Tutor Perini
47.46
26.32
124.50%
WLDN
Willdan Group
67.82
38.29
129.66%
NVEE
NV5 Holdings
23.22
0.46
2.02%

Limbach Holdings Corporate Events

Private Placements and FinancingM&A Transactions
Limbach Holdings Acquires Pioneer Power for $66.1 Million
Positive
Jul 1, 2025

On June 27, 2025, Limbach Holdings LLC and its subsidiary entered into a second amendment to their credit agreement with Wheaton Bank & Trust Company, increasing their revolving credit facility from $50 million to $100 million, extending the maturity date, and modifying several financial terms. Additionally, on July 1, 2025, Limbach Holdings announced the acquisition of Pioneer Power, Inc. for $66.1 million, funded through cash and the company’s credit facility, potentially enhancing its market position in the mechanical contracting industry.

The most recent analyst rating on (LMB) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Limbach Holdings stock, see the LMB Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Limbach Holdings Approves Incentive Plan Amendment
Neutral
Jun 13, 2025

On June 11, 2025, Limbach Holdings, Inc. held its annual stockholders meeting where key decisions were made, including the election of directors and approval of executive compensation. Notably, the stockholders approved an amendment to the Omnibus Incentive Plan, which introduces accelerated vesting provisions for restricted stock units and performance stock units in cases of death, disability, retirement, or reduction in force, potentially impacting employee retention and motivation strategies.

The most recent analyst rating on (LMB) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Limbach Holdings stock, see the LMB Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Limbach Holdings Reports Record Q1 2025 Net Income
Positive
May 5, 2025

Limbach Holdings, Inc. reported a record net income of $10.2 million for the first quarter of 2025, with total revenue increasing by 11.9% to $133.1 million compared to the same period in 2024. The company’s strategic focus on expanding its Owner Direct Relationships (ODR) segment resulted in a 21.7% increase in ODR revenue, contributing to higher gross profits and adjusted EBITDA. Despite increased SG&A expenses, Limbach’s emphasis on the ODR segment is expected to enhance margins, reduce risk, and drive more predictable revenue, positioning the company for continued growth and long-term value delivery to stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 03, 2025