Limbach Holdings (LMB) AI Stock Analysis

• Market Cap: $1.04B
• Dividend Yield: N/A
• Average Volume (3M): 136.79K
• Price to Earnings (P/E): 29.4
• Beta (1Y): 1.64
• Revenue Growth: 16.56%
• EPS Growth: 35.80%
• Country: US
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.40
• Shares Outstanding: 11,626,814
• 10 Day Avg. Volume: 132,527
• 30 Day Avg. Volume: 136,789
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 6.55
• Enterprise Value/Ebitda: 22.44
• 1Y Price Target: $120.00
• Price Target Upside: 34.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.45
• Revenue Forecast (FY): $746.10M

• Rating: 72 Outperform
• Price Target: $99.00 ▲(11.02% Upside)
• Action: Upgraded Date: 03/03/26
• Date: Action: Upgraded 03/03/26

The score is driven primarily by improving fundamentals (higher margins, stronger earnings, and lower leverage) and constructive earnings-call guidance with strong bookings and cash-generation targets. Offsetting this are mixed technicals (below the 200-day average and slightly below the 20-day) and a higher P/E that leaves less room for execution missteps, especially with near-term acquisition-related margin headwinds.

Positive Factors

Margin expansion and improving profitability

Limbach has meaningfully expanded margins versus earlier years, driven by higher-margin mix and improved project execution. Sustained net and gross margin gains indicate better pricing, cost control and operational discipline, supporting durable earnings power as the company scales ODR and service revenue.

Solid cash generation and FCF conversion

Strong operating cash flow and near-parity free cash flow to net income in 2025 demonstrate the company's ability to convert profits into distributable cash. This supports reinvestment, disciplined M&A, share repurchases and liquidity management—key for long-term capital allocation in project-driven businesses.

Marked reduction in leverage and ample liquidity

Material deleveraging and stronger equity base give the company financial flexibility to pursue bolt-on acquisitions and absorb working-capital swings. Lower net debt and targeted liquidity provide a durable buffer versus project timing variability and support multi-year growth initiatives and buybacks.

Negative Factors

Gross margin compression from acquisitions

Acquired businesses with lower margin profiles have materially compressed consolidated gross margins. Unless integration and pricing improvements are realized, lower margins can persist and reduce operating cash generation per revenue dollar, making sustained margin recovery critical for long-term profitability.

Multi-year integration risk (Pioneer Power)

The explicit 2–3 year timeline for margin normalization at Pioneer Power is a structural execution risk. Prolonged integration work can drain management bandwidth, delay synergies and weigh on consolidated margins and returns, making near-term results sensitive to successful operational alignment.

Historical cash-flow volatility and working-capital swings

Project-based contracting inherently creates working-capital swings and episodic negative cash years. This variability can stress liquidity and complicate multi-year planning for M&A, capex and buybacks, increasing the importance of conservative balance-sheet management and consistent collections to sustain growth.

Limbach Holdings Business Overview & Revenue Model

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.

How the Company Makes Money

Limbach Holdings generates revenue primarily through its contracting services, which include project-based work for new construction and upgrades in the MEP sector. Key revenue streams come from service contracts, maintenance agreements, and the installation of systems in commercial and institutional buildings. The company also earns income through its service and repair operations, which provide ongoing support to clients. Significant partnerships with construction firms, developers, and facility managers further enhance its revenue potential. Additionally, Limbach's focus on energy efficiency and sustainability initiatives has opened new avenues for growth, allowing them to capitalize on the increasing demand for eco-friendly building solutions.

Limbach Holdings Financial Statement Overview

Summary

Strong multi-year improvement with materially higher profitability (net margin ~7.5% in 2025; gross margin ~26%) and meaningfully lower leverage (debt-to-equity ~0.29x; strong ROE ~25%). Cash generation was solid in 2025 with good cash-to-earnings conversion, but historical cash flows were choppy (including a negative year) and margins have shown volatility, adding execution/quality-of-earnings risk typical for project-driven businesses.

Income Statement

Profitability has improved materially over the period, with net margin rising from ~1% (2020–2021) to ~7.5% (2025) and gross margin expanding to ~26% in 2025. Revenue growth re-accelerated in 2025 (up ~7.2% after essentially flat 2024), and earnings growth has been strong versus earlier years. A key watch item is margin volatility—gross margin dipped in 2024 vs. 2023—and the reported operating margin in 2025 appears inconsistent with operating profit, which adds some quality-of-data uncertainty.

Balance Sheet

Leverage has improved meaningfully, with debt-to-equity declining from ~1.16x (2020) to ~0.29x (2025) alongside steady growth in equity. Returns on equity are strong and improving (about 25% in 2025), indicating efficient profitability relative to the capital base. The main drawback is that construction/contracting businesses can face working-capital swings, and while assets and equity have grown, the balance sheet is not “cash-rich” based on the limited data provided.

Cash Flow

Cash generation is solid in the most recent year: 2025 operating cash flow was ~$45.7M and free cash flow was ~$41.9M, with free cash flow close to reported net income (~0.92x), supporting earnings quality. However, cash flows have been choppy over time (notably negative operating and free cash flow in 2021), and free cash flow growth was negative in 2024 before rebounding sharply in 2025—suggesting variability likely tied to project timing and working capital.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	646.80M	518.78M	516.35M	496.78M	490.35M
Gross Profit	169.31M	144.28M	119.29M	93.74M	85.91M
EBITDA	49.45M	53.72M	38.39M	19.91M	17.99M
Net Income	48.63M	30.88M	20.75M	6.80M	6.71M
Balance Sheet
Total Assets	381.13M	352.13M	304.44M	294.56M	267.51M
Cash, Cash Equivalents and Short-Term Investments	11.35M	44.93M	59.83M	36.00M	14.48M
Total Debt	55.87M	48.73M	41.98M	50.30M	60.64M
Total Liabilities	185.47M	198.64M	183.52M	199.11M	179.67M
Stockholders Equity	195.66M	153.49M	120.92M	95.44M	87.84M
Cash Flow
Free Cash Flow	41.89M	29.26M	55.10M	34.38M	-25.02M
Operating Cash Flow	45.70M	36.78M	57.37M	35.37M	-24.23M
Investing Cash Flow	-67.59M	-42.57M	-17.09M	-495.00K	-19.30M
Financing Cash Flow	-11.70M	-9.12M	-16.49M	-13.35M	15.87M

Limbach Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 89.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LMB, the sentiment is Neutral. The current price of 89.17 is below the 20-day moving average (MA) of 90.81, above the 50-day MA of 85.05, and below the 200-day MA of 103.56, indicating a neutral trend. The MACD of 2.38 indicates Positive momentum. The RSI at 49.63 is Neutral, neither overbought nor oversold. The STOCH value of 37.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LMB.

Limbach Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLDD	73 Outperform	$1.13B	15.58	15.21%	―	12.53%	35.68%
LMB	72 Outperform	$1.04B	29.43	22.61%	―	16.56%	35.80%
WLDN	67 Neutral	$1.29B	25.12	19.49%	―	12.90%	72.61%
ORN	65 Neutral	$547.44M	56.86	6.31%	―	7.02%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MTRX	58 Neutral	$312.79M	-16.12	-16.33%	―	17.16%	24.10%
AMRC	52 Neutral	$1.63B	26.21	6.31%	―	12.22%	17.41%

Limbach Holdings Corporate Events

Limbach Holdings Posts Record 2025 Results, Authorizes Buyback

Limbach Holdings reported record fourth‑quarter and full‑year 2025 results on March 2, 2026, driven by its ongoing shift toward Owner Direct Relationships and the contribution from recent acquisitions, notably Pioneer Power. Total revenue rose 30.1% in the fourth quarter and 24.7% for the full year, with net income and adjusted EBITDA reaching all‑time highs despite a lower overall gross margin as the company integrates lower‑margin acquired operations and invests in sales and national account expansion.

Owner Direct Relationships accounted for roughly three‑quarters of 2025 revenue and delivered strong organic growth, while General Contractor Relationships revenue declined as Limbach continued to exit lower‑margin work in favor of higher‑quality projects. Management highlighted that Pioneer Power expanded its geographic reach into the Upper Midwest and key industrial verticals, and coupled the record earnings with a newly authorized $50 million share repurchase program, signaling confidence in the company’s balance sheet and its strategy of scaling through disciplined acquisitions and margin improvement.

The most recent analyst rating on (LMB) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Limbach Holdings stock, see the LMB Stock Forecast page.

Limbach Holdings Expands Board And Increases Director Compensation

On January 5, 2026, Limbach Holdings announced that its board appointed veteran HVAC executive Terence (Terry) P. Dugan as an independent Class A director, effective January 1, 2026, expanding the board from six to seven members and placing him on the Compensation Committee. Dugan, a former senior leader at Trane Technologies and Ingersoll Rand with more than four decades of operating, strategic and M&A experience in HVAC and building systems, is expected to deepen Limbach’s expertise in its core end-markets and support its focus on profitable growth, cash flow generation and long-term value creation. In a concurrent move effective January 1, 2026, the board approved higher pay for non-employee directors, raising annual cash retainers for directors and the chair as well as increasing the cash value of annual equity awards, a step that underscores Limbach’s effort to attract and retain experienced board talent as it strengthens governance and competitive positioning in its niche building systems market.

The most recent analyst rating on (LMB) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Limbach Holdings stock, see the LMB Stock Forecast page.

Limbach Holdings Announces Share Repurchase Program

On December 15, 2025, Limbach Holdings announced a share repurchase program authorized by its board of directors, allowing the company to buy back up to $50 million of its common stock by December 15, 2027. This move reflects the company’s confidence in its growth strategy and aims to manage potential dilution from incentive compensation programs, ultimately reinforcing its focus on delivering long-term stockholder value.

The most recent analyst rating on (LMB) stock is a Buy with a $83.00 price target. To see the full list of analyst forecasts on Limbach Holdings stock, see the LMB Stock Forecast page.