Limbach Holdings 2025 Q2 Earnings Strong Performance with 30.2% Net Income Growth

Limbach Holdings (LMB) reported its fiscal 2025 Q2 earnings on Aug 05, 2025, with results that significantly exceeded expectations. The company’s revenue and net income both posted strong year-over-year growth, and it raised its full-year revenue and EBITDA guidance, reflecting confidence in ongoing momentum.

Revenue
Limbach Holdings reported total revenue of $142.24 million in 2025 Q2, representing a 16.4% increase compared to $122.23 million in the same period last year. The Owner Direct Relationships (ODR) segment, which now accounts for 76.6% of total revenue, contributed $108.95 million, reflecting a robust 31.7% year-over-year increase. Meanwhile, the GCR segment added $33.29 million in revenue. The strong performance in ODR underscores the company’s strategic shift toward higher-margin business lines.

Earnings/Net Income
Earnings per share (EPS) grew by 26.4% to $0.67 in 2025 Q2, up from $0.53 in 2024 Q2, while net income rose 30.2% to $7.76 million from $5.96 million. This marked a record high for Q2 net income in a decade, demonstrating the company's improved profitability. The EPS increase highlights continued financial strength and effective cost management.

Price Action
Despite the earnings beat, the stock price experienced a downturn, with a 0.95% decline on the latest trading day, a 1.18% decline for the week, and a more significant 10.11% drop month-to-date.

Post-Earnings Price Action Review
The post-earnings strategy of buying Limbach Holdings shares after a revenue increase quarter-over-quarter has historically delivered impressive returns. Over the past three years, the approach generated a 3005.79% return, significantly outperforming the 0.00% benchmark. The strategy's 227.42% compound annual growth rate (CAGR) reflects strong compounding, and while the 61.41% volatility may be high, the Sharpe ratio of 3.70 indicates favorable risk-adjusted returns.

CEO Commentary
Michael McCann, President and CEO, credited the strong Q2 results to a strategic focus on the ODR segment, which saw a 24.6% increase in gross profit. He highlighted investments in the sales organization and national account strategy, as well as a robust M&A pipeline. McCann expressed optimism about Limbach's long-term potential, noting the company’s leadership position in essential building systems solutions and the early stages of capturing customer relationship value.

Guidance
Limbach Holdings raised its full-year 2025 revenue guidance to a range of $650 million to $680 million, up from prior expectations. The company also increased its Adjusted EBITDA guidance to $80 million to $86 million. These upward revisions reflect the strong performance in the ODR segment and successful integration of recent acquisitions, including Consolidated Mechanical, Kent Island, and Pioneer Power, Inc.

Additional News
In the three weeks following the earnings report, Limbach Holdings made several strategic acquisitions, including Consolidated Mechanical and Kent Island, which are expected to further strengthen its position in the HVAC and mechanical contracting markets. The company also announced the integration of Pioneer Power, Inc., adding capabilities in power generation and electrical services. Limbach reaffirmed its commitment to disciplined operations and continued M&A activity to expand its national footprint. Additionally, the company announced a new executive hire in the finance department, further solidifying its leadership team. No dividend or buyback announcements were made during this period.