Limbach Holdings' Q2 2025: Unraveling Contradictions in Gross Margins, Sales Strategies, and Growth Projections
Generated by AI AgentAinvest Earnings Call Digest
Wednesday, Aug 13, 2025 4:47 am ET1min read
LMB--
Aime Summary
Aime SummaryGCR gross margin expectations, sales hire contributions, gross margin expectations, organic growth expectations, and shift to ODR service model are the key contradictions discussed in LimbachLMB-- Holdings' latest 2025Q2 earnings call.
Revenue and ODR Growth:
- Limbach HoldingsLMB-- reported total revenue of $142.2 million for Q2 2025, up 16.4% year-on-year.
- ODR revenue grew by 31.7%, reaching $108.9 million, accounting for 76.6% of total revenue.
- This growth was driven by the company's strategic shift from GCR to ODR and expansion of its service offerings.
Gross Profit and Margin Improvement:
- Total gross profit for Q2 2025 increased by 18.9%, reaching $39.8 million.
- Gross margin improved to 28%, up from 27.4% in Q2 2024.
- The increase in gross profit and margin was attributed to the higher-margin ODR revenue and higher-quality GCR projects.
Adjusted EBITDA and Profitability:
- Adjusted EBITDA for Q2 2025 grew by 30%, reaching $17.9 million.
- Adjusted EBITDA margin improved to 12.6%, up from 11.3% in Q2 2024.
- The increased profitability was a result of the company's successful execution of its growth strategy.
Acquisition and Integration:
- Limbach completed its largest acquisition to date with the addition of Pioneer Power in July 2025.
- This acquisition aligns with Limbach's disciplined acquisition criteria and expands its reach into new geographic markets.
- The integration process is underway, with a focus on system integration, cost reduction, and enhancing Pioneer's performance.
Investment in Sales Organization and Strategic Hires:
- The company hired 40 new salespeople in the last year and appointed Amy Dorsett as Senior Vice President of Sales.
- These investments aimed to scale the sales organization and enhance customer engagement, particularly in the education and healthcare sectors.
- The strategic hires are expected to drive proactive sales and national account capture, contributing to future growth.
Revenue and ODR Growth:
- Limbach HoldingsLMB-- reported total revenue of $142.2 million for Q2 2025, up 16.4% year-on-year.
- ODR revenue grew by 31.7%, reaching $108.9 million, accounting for 76.6% of total revenue.
- This growth was driven by the company's strategic shift from GCR to ODR and expansion of its service offerings.
Gross Profit and Margin Improvement:
- Total gross profit for Q2 2025 increased by 18.9%, reaching $39.8 million.
- Gross margin improved to 28%, up from 27.4% in Q2 2024.
- The increase in gross profit and margin was attributed to the higher-margin ODR revenue and higher-quality GCR projects.
Adjusted EBITDA and Profitability:
- Adjusted EBITDA for Q2 2025 grew by 30%, reaching $17.9 million.
- Adjusted EBITDA margin improved to 12.6%, up from 11.3% in Q2 2024.
- The increased profitability was a result of the company's successful execution of its growth strategy.
Acquisition and Integration:
- Limbach completed its largest acquisition to date with the addition of Pioneer Power in July 2025.
- This acquisition aligns with Limbach's disciplined acquisition criteria and expands its reach into new geographic markets.
- The integration process is underway, with a focus on system integration, cost reduction, and enhancing Pioneer's performance.
Investment in Sales Organization and Strategic Hires:
- The company hired 40 new salespeople in the last year and appointed Amy Dorsett as Senior Vice President of Sales.
- These investments aimed to scale the sales organization and enhance customer engagement, particularly in the education and healthcare sectors.
- The strategic hires are expected to drive proactive sales and national account capture, contributing to future growth.
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