Limbach delivered robust second-quarter results, with non-GAAP earnings per share of $0.93, outperforming the consensus estimate of $0.77 and marking a 27.4% increase year-over-year. Revenue reached $142.2 million, up 16.4% from Q2 2024, though missing analyst projections by 1.4%. Adjusted EBITDA climbed 29.7% to $17.9 million, while gross profit rose 18.8% to $39.8 million. GAAP net income surged 30.2% to $7.8 million. Operating leverage improved as SG&A expenses increased by $3.5 million to $26.6 million but declined to 18.7% of revenue from 19.0% in the prior year. Operating cash flow declined sharply to $2.0 million from $16.5 million in the prior-year quarter, driven by working-capital swings and higher deal-related expenses. Cash on hand at June 30 stood at $38.9 million, down roughly $6 million compared to December 31, 2024. Total debt remains modest relative to equity, though the post-quarter acquisition of Pioneer Power, Inc., involving a $66.1 million commitment, will increase leverage. Investors will be watching for improvements in cash-flow conversion and integration of recent acquisitions, including Kent Island Mechanical and Consolidated Mechanical. The Owner Direct Relationships (ODR) segment continued to fuel performance, generating $108.9 million in revenue—up 31.7% year-over-year—and representing 76.6% of total top-line. ODR gross profit climbed 24.6% to $31.6 million, accounting for 79.3% of overall gross profit. While segment margin eased to 29.0% from 30.6%, management attributed the decline to the absence of one-time project gains seen in Q2 2024. In contrast, General Contractor Relationships revenue fell 15.7%, but margins improved to 24.7% from 20.6% through stricter project selection. Limbach raised its fiscal 2025 guidance, now targeting revenue of $650 million to $680 million (previously $610 million to $630 million) and adjusted EBITDA of $80 million to $86 million (up from $78 million to $82 million). Management highlighted continued ODR growth, synergy realization from acquisitions, and sales-force expansion as key drivers. Investors should monitor sustained ODR margin performance, sales productivity gains, and stabilization of operating cash flow in the back half of the year.
Limbach delivered robust second-quarter results, with non-GAAP earnings per share of $0.93, outperforming the consensus estimate of $0.77 and marking a 27.4% increase year-over-year. Revenue reached $142.2 million, up 16.4% from Q2 2024, though missing analyst projections by 1.4%. Adjusted EBITDA climbed 29.7% to $17.9 million, while gross profit rose 18.8% to $39.8 million. GAAP net income surged 30.2% to $7.8 million. Operating leverage improved as SG&A expenses increased by $3.5 million to $26.6 million but declined to 18.7% of revenue from 19.0% in the prior year. Operating cash flow declined sharply to $2.0 million from $16.5 million in the prior-year quarter, driven by working-capital swings and higher deal-related expenses. Cash on hand at June 30 stood at $38.9 million, down roughly $6 million compared to December 31, 2024. Total debt remains modest relative to equity, though the post-quarter acquisition of Pioneer Power, Inc., involving a $66.1 million commitment, will increase leverage. Investors will be watching for improvements in cash-flow conversion and integration of recent acquisitions, including Kent Island Mechanical and Consolidated Mechanical. The Owner Direct Relationships (ODR) segment continued to fuel performance, generating $108.9 million in revenue—up 31.7% year-over-year—and representing 76.6% of total top-line. ODR gross profit climbed 24.6% to $31.6 million, accounting for 79.3% of overall gross profit. While segment margin eased to 29.0% from 30.6%, management attributed the decline to the absence of one-time project gains seen in Q2 2024. In contrast, General Contractor Relationships revenue fell 15.7%, but margins improved to 24.7% from 20.6% through stricter project selection. Limbach raised its fiscal 2025 guidance, now targeting revenue of $650 million to $680 million (previously $610 million to $630 million) and adjusted EBITDA of $80 million to $86 million (up from $78 million to $82 million). Management highlighted continued ODR growth, synergy realization from acquisitions, and sales-force expansion as key drivers. Investors should monitor sustained ODR margin performance, sales productivity gains, and stabilization of operating cash flow in the back half of the year.