Limbach Holdings (LMB) AI Stock Analysis

• Market Cap: $799.34M
• Dividend Yield: N/A
• Average Volume (3M): 165.53K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.63
• Revenue Growth: 16.56%
• EPS Growth: 35.80%
• Country: US
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.05
• Shares Outstanding: 11,626,814
• 10 Day Avg. Volume: 143,512
• 30 Day Avg. Volume: 165,531
• PEG Ratio: 0.74
• Price to Book (P/B): 6.36
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 33.39
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 7.69
• Enterprise Value/Ebitda: 19.43
• 1Y Price Target: $123.50
• Price Target Upside: 71.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4.1
• Revenue Forecast (FY): $658.36M

• Rating: 68 Neutral
• Price Target: $92.00 ▲(27.42% Upside)

Limbach Holdings' strong financial performance and strategic growth in the ODR segment are key strengths. However, bearish technical indicators and valuation concerns, along with challenges highlighted in the earnings call, moderate the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates an expanding market presence and effective business strategies, supporting long-term financial health.

Owner-Direct Relationships (ODR) Strategy

The focus on ODR enhances customer loyalty and revenue predictability, providing a stable foundation for future growth.

Free Cash Flow Improvement

Improved free cash flow enhances financial flexibility, enabling reinvestment in growth opportunities and debt reduction.

Negative Factors

Gross Margin Decline

A declining gross margin may indicate cost pressures or inefficiencies, potentially impacting long-term profitability.

Increased SG&A Expenses

Rising SG&A expenses could pressure operating margins, necessitating cost control measures to maintain profitability.

Organic Revenue Growth Adjustment

Lowered organic growth forecasts suggest potential challenges in market expansion, affecting future revenue projections.

Limbach Holdings Business Overview & Revenue Model

Company Description

Limbach Holdings, Inc. is a leading provider of mechanical, electrical, and plumbing (MEP) services in the United States. The company operates primarily in the construction and facilities services sectors, focusing on delivering comprehensive solutions for a variety of markets including healthcare, education, and commercial buildings. Limbach offers a range of services such as design, installation, and maintenance of HVAC systems, plumbing, electrical systems, and building automation, catering to both new construction projects and existing infrastructure upgrades.

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

Limbach Holdings shows strong financial health with robust revenue growth and profitability. The balance sheet reflects moderate leverage and effective equity utilization, while cash flow generation is solid, albeit with some room for improvement in cash retention.

Income Statement

Limbach Holdings has demonstrated strong revenue growth with a 9.16% increase in TTM, indicating a positive trajectory. The gross profit margin of 27.3% and net profit margin of 6.06% reflect solid profitability. However, the EBIT margin has decreased compared to the previous year, suggesting potential cost management issues.

Balance Sheet

The company's debt-to-equity ratio of 0.46 indicates moderate leverage, which is manageable. Return on equity is strong at 22.51%, showcasing effective use of equity to generate profits. The equity ratio of 44.37% suggests a stable financial position with a good proportion of assets financed by equity.

Cash Flow

The free cash flow growth rate of 34.87% in TTM is impressive, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.01 suggests efficient conversion of income into cash. However, the free cash flow to net income ratio of 0.87 indicates room for improvement in cash retention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	603.58M	518.78M	516.35M	496.78M	490.35M	568.21M
Gross Profit	162.40M	144.28M	119.29M	93.74M	85.91M	81.39M
EBITDA	64.27M	53.72M	38.39M	19.91M	17.99M	21.79M
Net Income	36.61M	30.88M	20.75M	6.80M	6.71M	5.81M
Balance Sheet
Total Assets	409.12M	352.13M	304.44M	294.56M	267.51M	262.16M
Cash, Cash Equivalents and Short-Term Investments	9.88M	44.93M	59.83M	36.00M	14.48M	42.15M
Total Debt	82.75M	48.73M	41.98M	50.30M	60.64M	62.44M
Total Liabilities	227.56M	198.64M	183.52M	199.11M	179.67M	208.43M
Stockholders Equity	181.56M	153.49M	120.92M	95.44M	87.84M	53.73M
Cash Flow
Free Cash Flow	31.97M	29.26M	55.10M	34.38M	-25.02M	38.33M
Operating Cash Flow	36.86M	36.78M	57.37M	35.37M	-24.23M	39.81M
Investing Cash Flow	-92.75M	-42.57M	-17.09M	-495.00K	-19.30M	-1.32M
Financing Cash Flow	14.54M	-9.12M	-16.49M	-13.35M	15.87M	-4.69M

Limbach Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 72.2 is below the 20-day moving average (MA) of 72.45, below the 50-day MA of 85.30, and below the 200-day MA of 104.05, indicating a bearish trend. The MACD of -5.25 indicates Negative momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 68.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LMB.

Limbach Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLDD	76 Outperform	$875.15M	10.86	17.37%	―	12.53%	35.68%
WLDN	76 Outperform	$1.45B	35.37	16.38%	―	12.90%	72.61%
LMB	68 Neutral	$799.34M	22.69	22.61%	―	16.56%	35.80%
ORN	64 Neutral	$396.22M	41.15	6.31%	―	7.02%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AMRC	61 Neutral	$1.85B	29.70	6.31%	―	12.22%	17.41%
MTRX	47 Neutral	$428.61M	-14.39	-16.33%	―	17.16%	24.10%

Limbach Holdings Corporate Events

Limbach Holdings Faces Financial Risks Amid Potential U.S. Government Shutdowns

Limbach Holdings faces potential business risks due to possible U.S. government shutdowns or delays in federal appropriations, which could adversely affect its operations. Although the company primarily generates revenue from private sector clients, it also engages in contracts with government agencies. Any disruptions in government operations could lead to the suspension or delay of these contracts, affecting payments and the awarding of new contracts. Such uncertainties may also impact the company’s customers, suppliers, and partners, potentially delaying projects and reducing demand for services, thereby affecting Limbach Holdings’ financial stability and business prospects.

Limbach Holdings Reports Strong Q3 2025 Results

Limbach Holdings, Inc. is a building systems solutions firm that partners with building owners and facilities managers across various sectors, providing essential mechanical, electrical, and plumbing infrastructure services. The company operates primarily in the eastern United States with a focus on six vertical markets including healthcare and data centers.

Limbach Holdings Q3 2025 Earnings Call Highlights

Limbach Holdings’ recent earnings call painted a picture of robust growth and strategic advancements, particularly in the Owner-Direct Relationships (ODR) segment and through successful acquisitions. However, the company also faces challenges with decreased gross margins and increased Selling, General, and Administrative (SG&A) expenses, indicating areas that require attention.

Limbach Holdings Reports Strong Q3 2025 Revenue Growth

Limbach Holdings reported a strong third quarter for 2025, with a 37.8% increase in total revenue to $184.6 million compared to the previous year, driven by acquisitions and organic growth. The company achieved a net income of $8.8 million and adjusted EBITDA of $21.8 million, reflecting its strategic focus on higher-margin ODR business. The acquisition of Pioneer Power has expanded Limbach’s footprint and contributed significantly to revenue, although it has impacted gross margins due to its lower margin profile. The company remains committed to improving Pioneer Power’s margins and reaffirmed its full-year revenue guidance of $650 million to $680 million.

The most recent analyst rating on (LMB) stock is a Buy with a $132.00 price target. To see the full list of analyst forecasts on Limbach Holdings stock, see the LMB Stock Forecast page.