Education
About Us
Working with TipRanks
Follow Us
Limbach Holdings (LMB)
NASDAQ:LMB
Top Page
Limbach Holdings
(NASDAQ:LMB)
75Outperform
Limbach Holdings (LMB) vs. S&P 500 (SPY)
Market Cap
$1.45B
Dividend YieldN/A
Average Volume (3M)276.67K
Price to Earnings (P/E)45.0
Beta (1Y)1.73
Revenue Growth3.62%
EPS Growth28.02%
CountryUS
Employees1,400
SectorIndustrials
Sector Strength91
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.12
Shares Outstanding11,624,639
10 Day Avg. Volume263,041
30 Day Avg. Volume276,670
Financial Highlights & Ratios
PEG Ratio5.36
Price to Book (P/B)8.54
Price to Sales (P/S)0.00
P/FCF Ratio39.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$118.33Price Target Upside-5.45% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering3
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 solid financial performance with consistent revenue growth, healthy profit margins, and effective cash flow management. The balance sheet reflects a strong equity position and prudent leverage. Ongoing optimization of operating costs and cash conversion processes could further enhance financial outcomes.Income Statement
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.78
Positive
Balance Sheet
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.71
Positive
Cash Flow
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.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 532.91M | 518.78M | 516.35M | 496.78M | 490.35M | 568.21M | Gross Profit |
| 148.88M | 144.28M | 119.29M | 93.74M | 85.91M | 81.39M | EBIT |
| 40.81M | 38.62M | 29.28M | 12.01M | 13.99M | 17.16M | EBITDA |
| 52.17M | 54.28M | 38.39M | 24.17M | 22.26M | 24.86M | Net Income Common Stockholders |
| 33.50M | 30.88M | 20.75M | 6.80M | 6.71M | 5.81M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 38.09M | 44.93M | 59.83M | 36.00M | 14.48M | 42.15M | Total Assets |
| 336.37M | 352.13M | 304.44M | 294.56M | 267.51M | 262.16M | Total Debt |
| 47.98M | 48.73M | 41.98M | 50.30M | 60.64M | 62.44M | Net Debt |
| 9.89M | 3.80M | -17.86M | 14.30M | 46.16M | 20.29M | Total Liabilities |
| 175.24M | 198.64M | 183.52M | 199.11M | 179.67M | 208.43M | Stockholders Equity |
| 161.13M | 153.49M | 120.92M | 95.44M | 87.84M | 53.73M |
| Cash Flow | Free Cash Flow | ||||
| 35.76M | 29.26M | 55.10M | 34.38M | -25.02M | 38.33M | Operating Cash Flow |
| 42.97M | 36.78M | 57.37M | 35.37M | -24.23M | 39.81M | Investing Cash Flow |
| -42.52M | -42.57M | -17.09M | -495.00K | -19.30M | -1.32M | Financing Cash Flow |
| -10.60M | -9.12M | -16.49M | -13.35M | 15.87M | -4.69M |
Limbach Holdings Technical Analysis
Positive
125.15
Price Trends
88.99
Positive
89.85
Positive
84.14
Positive
Market Momentum
10.98
Negative
82.84
Negative
82.13
Negative
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 125.15 is above the 20-day moving average (MA) of 106.29, above the 50-day MA of 88.99, and above the 200-day MA of 84.14, indicating a bullish trend. The MACD of 10.98 indicates Negative momentum. The RSI at 82.84 is Negative, neither overbought nor oversold. The STOCH value of 82.13 is Negative, 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.45B | 44.96 | 23.37% | ― | 3.62% | 28.02% | |
75 Outperform | $704.98M | 28.80 | 10.78% | ― | 12.40% | 81.98% | |
73 Outperform | $1.45B | 45.03 | 3.79% | ― | 8.65% | -22.72% | |
69 Neutral | $786.95M | 14.74 | 5.64% | ― | 30.13% | -7.60% | |
64 Neutral | $4.43B | 12.01 | 5.16% | 249.23% | 4.03% | -11.73% | |
63 Neutral | $1.94B | ― | -12.28% | ― | 8.95% | -41.32% | |
57 Neutral | $352.59M | ― | -14.26% | ― | -0.29% | -6.77% |
* Industrials Sector Average
Performance Comparison
LMB
Limbach Holdings
125.15
76.65
158.04%
AMRC
Ameresco
14.96
-12.98
-46.46%
MTRX
Matrix Service Company
12.77
1.37
12.02%
TPC
Tutor Perini
36.73
16.66
83.01%
WLDN
Willdan Group
48.63
16.59
51.78%
NVEE
NV5 Holdings
22.05
-1.59
-6.73%
Limbach Holdings Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 21.12%|
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 Corporate Events
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.
Spark’s Take on LMB Stock
According to Spark, TipRanks’ AI Analyst, LMB is a Outperform.
Limbach Holdings is in a strong financial position with robust revenue growth and profitability improvements. The strategic focus on high-margin segments is promising, but flat revenue growth and increased expenses are concerns. Technical indicators show moderate strength, though valuation suggests the stock might be overvalued.
To see Spark’s full report on LMB stock, click here.
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.
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.