8-K
Limbach Holdings, Inc. (LMB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 5, 2025
LIMBACH HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-36541 | 46-5399422 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
797 Commonwealth Drive, Warrendale, Pennsylvania 15086
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (412) 359-2100
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, $0.0001 par value | LMB | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On May 5, 2025, Limbach Holdings, Inc. (the “Company”) issued a press release dated the same date announcing its financial results for its quarter ended March 31, 2025. We have furnished a copy of this release as Exhibit 99.1 to this Current Report on Form 8-K.
| Item 7.01 | Regulation FD Disclosure. |
|---|
The Company is furnishing presentation materials (the “Investor Presentation”) that management intends to use, possibly with modifications, in one or more meetings from time to time with current and potential investors. The Investor Presentation includes an update on the Company’s current operations and major projects, as well as information relating to the Company’s strategic plans, goals, growth initiatives and outlook, and forecasts for future performance and industry development.
The foregoing description of the Investor Presentation does not purport to be complete and is qualified in its entirety by reference to the complete text of the Investor Presentation attached as Exhibit 99.2 to this Current Report on Form 8-K.
The information contained in the Investor Presentation is summary information that should be considered in the context of the Company’s filings with the Securities and Exchange Commission and other public announcements the Company may make by press release or otherwise from time to time. The Investor Presentation speaks as of the date of this report. While the Company may elect to update the Investor Presentation in the future to reflect events and circumstances occurring or existing after the date of this report, the Company specifically disclaims any obligation to do so.
By furnishing the portions of this Current Report on Form 8-K that are disclosed under this Item 7.01 and the Investor Presentation that is an exhibit hereto, the Company makes no admission as to the materiality of any information included under this Item 7.01, including without limitation the Investor Presentation. The Investor Presentation contains forward-looking statements. See Page 2 of the Investor Presentation for a discussion of certain forward-looking statements that are included therein and the risks and uncertainties related thereto.
The information in this Item 7.01 of this Current Report on Form 8-K and Exhibit 99.2 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d) Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | Earnings Press Release for the quarter ended March 31, 2025 |
| 99.2 | Investor Presentation |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LIMBACH HOLDINGS, INC. | |
|---|---|
| By: | /s/ Jayme L. Brooks |
| Name: Jayme L. Brooks | |
| Title: Executive Vice President and Chief Financial Officer |
Dated: May 5, 2025
Document
FOR IMMEDIATE RELEASE
Limbach Holdings, Inc. Reports First Quarter 2025 Results
Q1 2025 Net Income Reaches a Record of $10.2 Million, with Quarterly Adjusted EBITDA Increasing to $14.9 Million
WARRENDALE, PA – May 5, 2025 – Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”) today announced its financial results for the quarter ended March 31, 2025.
First Quarter 2025 Highlights Compared to First Quarter 2024
•Total revenue was $133.1 million, an increase of 11.9% from $119.0 million.
•Record quarterly net income of $10.2 million, or $0.85 per diluted share, compared to $7.6 million, or $0.64 per diluted share.
•Adjusted net income of $13.5 million, or $1.12 per adjusted diluted earnings per share, compared to adjusted net income of $9.7 million, or $0.82 per adjusted diluted earnings per share.
•Adjusted EBITDA of $14.9 million, up 26.5% from $11.8 million.
•Owner Direct Relationships (“ODR”) revenue increased 21.7%, or $16.1 million, to $90.4 million, or 67.9% of total revenue.
•Total gross profit was $36.7 million, an increase of 18.1% from $31.1 million.
•Net cash provided by operating activities of $2.2 million compared to net cash used in operating activities of $3.9 million.
Management Comments
“In the first quarter, we grew revenue, gross profit, and Adjusted EBITDA, demonstrating the scalability of our business model,” Michael McCann, President and Chief Executive Officer of Limbach, said. “While the first quarter is typically our softest due to weather and customer budget seasonality, we gained significant momentum in March. Based on Q1 results, ODR now represents 67.9% of total revenue, up from 62.4% in Q1 of the previous year. We believe by expanding the ODR segment, we are substantially enhancing margins, reducing risk, and driving more predictable, reoccurring revenue. We are pleased with the additional traction we’ve gained in key end markets like healthcare as we continue to implement our growth strategy and establish Limbach as a leading building systems solutions firm that provides solutions for mission critical existing infrastructure.
“We continue to believe our strategy to grow the ODR business has significant potential. We've only begun to tap into customer relationships and market penetration. We also believe Limbach is well-positioned for continued growth in ODR, supported by strong cash generation, operational execution, and a solid M&A pipeline. Based on our current visibility, we are confident in meeting our full-year guidance and delivering long-term value for our stockholders.”
The following are results for the three months ended March 31, 2025, compared to the three months ended March 31, 2024:
•Total revenue was $133.1 million, an increase of 11.9% from $119.0 million. ODR segment revenue of $90.4 million increased by $16.1 million, or 21.7%, while General Contractor Relationships (“GCR”) segment revenue decreased by $2.0 million, or 4.5%. The increase in period-over-period ODR segment revenue was primarily due to the Company's continued focus on the accelerated growth of its ODR business and as a result of the operations of Consolidated Mechanical, LLC (“Consolidated Mechanical”). The decrease in period-over-period GCR segment revenue was primarily due to the Company’s continued focus on the execution of its mix-shift strategy to ODR, partially offset by an increase in GCR revenue associated with the operations of Kent Island Mechanical, LLC (“Kent Island”). Kent Island and Consolidated Mechanical were not acquired entities of the Company for the three months ended March 31, 2024.
•Total gross profit was $36.7 million, compared to $31.1 million. ODR gross profit increased $4.0 million, or 18.0%, due to an increase in revenue, despite slightly lower segment margins of 28.9% versus 29.8% resulting from certain ODR-related project write-ups recognized in the first quarter of 2024. GCR gross profit increased $1.6 million, or 18.3%, due to higher margins of
24.7% compared to 20.0%, despite lower revenue. The total gross profit percentage increased from 26.1% to 27.6%, mainly driven by the mix of higher margin ODR segment work and the Company continuing to be more selective when pursuing GCR segment work.
•Selling, general and administrative (“SG&A”) expenses increased by approximately $3.6 million, to $26.5 million, compared to $22.9 million. The increase in SG&A expense was primarily due to a $2.0 million increase in payroll-related expenses, a $0.5 million increase in professional services fees, a $0.4 million increase in non-cash stock-based compensation expenses and a $0.2 million increase in travel and entertainment related expenses. These variances include SG&A associated with Kent Island and Consolidated Mechanical, which were not acquired entities of the Company during the three months ended March 31, 2024. As a percentage of revenue, SG&A expenses were 19.9%, up from 19.2% in the prior period.
•Interest expense was relatively flat at $0.5 million during both quarters.
•Interest income was $0.4 million during the current quarter, compared to $0.6 million in the first quarter of 2024. This decrease was related to lower interest rates and a lower average amount of cash invested in overnight repurchase agreements and money market funds period-over-period.
•Net income was $10.2 million compared to $7.6 million, an increase of 34.6%. Diluted earnings per share was $0.85, as compared to $0.64 in the prior period.
•Adjusted EBITDA was $14.9 million as compared to $11.8 million in the prior period, an increase of 26.5%.
•Adjusted net income was $13.5 million as compared to $9.7 million, an increase of 38.9%. Adjusted diluted earnings per share were $1.12 as compared to $0.82.
•Net cash provided by operating activities of $2.2 million compared to net cash used-in operating activities of $3.9 million in the prior period primarily due to changes in working capital.
Balance Sheet
At March 31, 2025, cash and cash equivalents were $38.1 million. Current assets were $204.5 million and current liabilities were $131.7 million at March 31, 2025, representing a current ratio of 1.55x compared to 1.46x at December 31, 2024. At March 31, 2025, the Company had $10.0 million in borrowings against its revolving credit facility and $5.1 million for standby letters of credit.
2025 Guidance
The Company is affirming its previously provided guidance for 2025 as follows:
| Revenue | $610 million - $630 million |
|---|---|
| Adjusted EBITDA | $78 million - $82 million |
With respect to projected 2025 Adjusted EBITDA guidance and Adjusted EBITDA Margin, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to certain items, which are excluded from Adjusted EBITDA. The Company expects the variability of these items to have a potentially unpredictable, and potentially significant, impact on future financial results.
Conference Call Details
| Date: | Tuesday, May 6, 2025 |
|---|---|
| Time: | 9:00 a.m. Eastern Time |
| Participant Dial-In Numbers: | |
| Domestic callers: | (877) 407-6176 |
| International callers: | +1 (201) 689-8451 |
Access by Webcast
The call will also be simultaneously webcast over the Internet via the “Investor Relations” section of Limbach’s website at www.limbachinc.com or by clicking on the conference call link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=y6XjA4hv. An audio replay of the call will be archived on Limbach’s website for 365 days.
About Limbach
Limbach is a building systems solutions firm that partners with building owners and facilities managers who have mission critical mechanical (heating, ventilation and air conditioning), electrical and plumbing infrastructure. We strive to be an indispensable partner to our customers by providing services that are essential to the operation of their businesses. We work with building owners primarily in six vertical markets: healthcare, industrial and manufacturing, data centers, life science, higher education, and cultural and entertainment. We have approximately 1,400 team members in 20 offices across the eastern United States. Our team members uniquely combine engineering expertise with field installation skills to provide custom solutions that leverage our full life-cycle capabilities, which allows us to address both the operational and capital projects needs of our customers.
Additional Information
Investors and others should note that Limbach announces material financial information to its investors using its investor relations website, U.S. Securities and Exchange Commission (the “SEC”) filings, press releases, public conference calls/videos, and webcasts. Limbach uses these channels, as well as social media, to communicate with our stockholders and the public about the Company, the Company’s services and other Company information. It is possible that the information that Limbach posts on social media could be deemed to be material information. Therefore, Limbach encourages investors, the media, and others interested in the Company to review the information posted on the social media channels listed on Limbach’s investor relations website.
Forward-Looking Statements
We make forward-looking statements in this press release within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts for future events, including, without limitation, our earnings, Adjusted EBITDA, projected EBITDA production from possible acquisitions, revenues, expenses, backlog, capital expenditures or other future financial or business performance or strategies, results of operations or financial condition, timing of the recognition of backlog as revenue, the potential for recovery of cost overruns, and the ability of Limbach to successfully remedy the issues that have led to write-downs in various business units and the Company’s business being negatively affected by the health crises or outbreaks of diseases, such as epidemics or pandemics (and related impacts, such as supply chain disruptions). These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “will likely result,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target,” “goal,” or similar expressions. These forward-looking statements are based on information available to us as of the date they were made and involve a number of risks and uncertainties, which may cause them to turn out to be wrong. There may be additional risks that we consider immaterial or which are unknown. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Please refer to our most recent annual report on Form 10-K, as well as our subsequent filings on Form 10-Q and Form 8-K, which are available on the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any forward-looking statements in this press release.
Investor Relations
Financial Profiles, Inc.
LMB@finprofiles.com
LIMBACH HOLDINGS, INC.
Condensed Consolidated Statements of Operations (Unaudited)
| Three Months Ended<br>March 31, | |||||
|---|---|---|---|---|---|
| (in thousands, except share and per share data) | 2025 | 2024 | |||
| Revenue | $ | 133,108 | $ | 118,976 | |
| Cost of revenue | 96,389 | 87,888 | |||
| Gross profit | 36,719 | 31,088 | |||
| Operating expenses: | |||||
| Selling, general and administrative | 26,518 | 22,876 | |||
| Change in fair value of contingent consideration | 427 | 623 | |||
| Amortization of intangibles | 1,863 | 1,057 | |||
| Total operating expenses | 28,808 | 24,556 | |||
| Operating income | 7,911 | 6,532 | |||
| Other income (expenses): | |||||
| Interest expense | (526) | (475) | |||
| Interest income | 370 | 562 | |||
| Gain on disposition of property and equipment | 333 | 491 | |||
| (Loss) gain on change in fair value of interest rate swap | (97) | 149 | |||
| Total other income | 80 | 727 | |||
| Income before income taxes | 7,991 | 7,259 | |||
| Income tax benefit | (2,223) | (327) | |||
| Net income | $ | 10,214 | $ | 7,586 | |
| Earnings Per Share (“EPS”) | |||||
| Earnings per common share: | |||||
| Basic | $ | 0.89 | $ | 0.68 | |
| Diluted | $ | 0.85 | $ | 0.64 | |
| Weighted average number of shares outstanding: | |||||
| Basic | 11,419,455 | 11,159,849 | |||
| Diluted | 12,051,678 | 11,894,747 |
LIMBACH HOLDINGS, INC.
Condensed Consolidated Balance Sheets (Unaudited)
| (in thousands, except share and per share data) | March 31, 2025 | December 31, 2024 | ||
|---|---|---|---|---|
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 38,090 | $ | 44,930 |
| Restricted cash | 65 | 65 | ||
| Accounts receivable (net of allowance for credit losses of $407 and $387 as of March 31, 2025 and December 31, 2024, respectively) | 110,851 | 119,659 | ||
| Contract assets | 45,018 | 47,549 | ||
| Other current assets | 10,476 | 8,131 | ||
| Total current assets | 204,500 | 220,334 | ||
| Property and equipment, net | 31,174 | 30,126 | ||
| Intangible assets, net | 39,393 | 41,228 | ||
| Goodwill | 33,142 | 33,034 | ||
| Operating lease right-of-use assets | 20,516 | 21,539 | ||
| Deferred tax asset | 7,412 | 5,531 | ||
| Other assets | 233 | 337 | ||
| Total assets | $ | 336,370 | $ | 352,129 |
| LIABILITIES | ||||
| Current liabilities: | ||||
| Current portion of long-term debt | $ | 3,419 | $ | 3,314 |
| Current operating lease liabilities | 4,192 | 4,093 | ||
| Accounts payable, including retainage | 54,901 | 60,814 | ||
| Contract liabilities | 40,173 | 44,519 | ||
| Accrued income taxes | 1,131 | 1,470 | ||
| Accrued expenses and other current liabilities | 27,923 | 36,827 | ||
| Total current liabilities | 131,739 | 151,037 | ||
| Long-term debt | 23,692 | 23,554 | ||
| Long-term operating lease liabilities | 16,682 | 17,766 | ||
| Other long-term liabilities | 3,127 | 6,281 | ||
| Total liabilities | 175,240 | 198,638 | ||
| STOCKHOLDERS’ EQUITY | ||||
| Common stock, $0.0001 par value; 100,000,000 shares authorized, issued 11,804,291 and 11,452,753, respectively, and 11,624,639 and 11,273,101 outstanding, respectively | 1 | 1 | ||
| Additional paid-in capital | 91,654 | 94,229 | ||
| Treasury stock, at cost (179,652 shares at both period ends) | (2,000) | (2,000) | ||
| Retained earnings | 71,475 | 61,261 | ||
| Total stockholders’ equity | 161,130 | 153,491 | ||
| Total liabilities and stockholders’ equity | $ | 336,370 | $ | 352,129 |
LIMBACH HOLDINGS, INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
| Three Months Ended<br>March 31, | ||||
|---|---|---|---|---|
| (in thousands) | 2025 | 2024 | ||
| Cash flows from operating activities: | ||||
| Net income | $ | 10,214 | $ | 7,586 |
| Adjustments to reconcile net income to cash provided by operating activities: | ||||
| Depreciation and amortization | 4,072 | 2,712 | ||
| Provision for credit losses | 77 | 39 | ||
| Non-cash stock-based compensation expense | 1,594 | 1,249 | ||
| Noncash operating lease expense | 994 | 1,045 | ||
| Amortization of debt issuance costs | 11 | 11 | ||
| Deferred income tax provision | (1,881) | (327) | ||
| Gain on sale of property and equipment | (333) | (491) | ||
| Loss on change in fair value of contingent consideration | 427 | 623 | ||
| Gain (loss) on change in fair value of interest rate swap | 97 | (149) | ||
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | 8,900 | 1,861 | ||
| Contract assets | 2,438 | 4,594 | ||
| Other current assets | (2,345) | (592) | ||
| Accounts payable, including retainage | (6,006) | (14,060) | ||
| Accrued taxes payable | (339) | — | ||
| Contract liabilities | (4,346) | (1,052) | ||
| Operating lease liabilities | (985) | (974) | ||
| Accrued expenses and other current liabilities | (9,582) | (5,863) | ||
| Payment of contingent consideration liability in excess of acquisition-date fair value | (711) | — | ||
| Other long-term liabilities | (55) | (156) | ||
| Net cash provided by (used in) operating activities | 2,241 | (3,944) | ||
| Cash flows from investing activities: | ||||
| Consolidated Mechanical Transaction, measurement period adjustment | (14) | — | ||
| Proceeds from sale of property and equipment | 319 | 561 | ||
| Advances from joint ventures | — | 4 | ||
| Purchase of property and equipment | (2,230) | (2,541) | ||
| Net cash used in investing activities | (1,925) | (1,976) | ||
| Cash flows from financing activities: | ||||
| Payment of contingent consideration liability up to acquisition-date fair value | (2,289) | — | ||
| Payments on finance leases | (851) | (693) | ||
| Proceeds from the sale of shares to cover employee taxes | 6,344 | — | ||
| Taxes paid related to net-share settlement of equity awards | (10,684) | (5,187) | ||
| Proceeds from contributions to Employee Stock Purchase Plan | 324 | 206 | ||
| Net cash used in financing activities | (7,156) | (5,674) | ||
| Decrease in cash, cash equivalents and restricted cash | (6,840) | (11,594) | ||
| Cash, cash equivalents and restricted cash, beginning of period | 44,995 | 59,898 | ||
| Cash, cash equivalents and restricted cash, end of period | $ | 38,155 | $ | 48,304 |
| --- | --- | --- | --- | --- |
| Supplemental disclosures of cash flow information | ||||
| Noncash investing and financing transactions: | ||||
| Kent Island Transaction, measurement period adjustment | $ | (94) | $ | — |
| Right of use assets obtained in exchange for new operating lease liabilities | — | 2,097 | ||
| Right of use assets obtained in exchange for new finance lease liabilities | 1,318 | 308 | ||
| Right of use assets disposed or adjusted modifying finance lease liabilities | — | (41) | ||
| Interest paid | 526 | 484 | ||
| Cash paid for income taxes | $ | — | $ | — |
LIMBACH HOLDINGS, INC.
Condensed Consolidated Segment Operating Results (Unaudited)
| Three Months Ended<br>March 31, | Increase/(Decrease) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands, except for percentages) | 2025 | 2024 | % | ||||||||
| Statement of Operations Data: | |||||||||||
| Revenue: | |||||||||||
| ODR | $ | 90,393 | 67.9 | % | $ | 74,256 | 62.4 | % | 21.7 | % | |
| GCR | 42,715 | 32.1 | % | 44,720 | 37.6 | % | (2,005) | (4.5) | % | ||
| Total revenue | 133,108 | 100.0 | % | 118,976 | 100.0 | % | 14,132 | 11.9 | % | ||
| Gross profit: | |||||||||||
| ODR(1) | 26,161 | 28.9 | % | 22,161 | 29.8 | % | 4,000 | 18.0 | % | ||
| GCR(2) | 10,558 | 24.7 | % | 8,927 | 20.0 | % | 1,631 | 18.3 | % | ||
| Total gross profit | 36,719 | 27.6 | % | 31,088 | 26.1 | % | 5,631 | 18.1 | % | ||
| Selling, general and administrative(3) | 26,518 | 19.9 | % | 22,876 | 19.2 | % | 3,642 | 15.9 | % | ||
| Change in fair value of contingent consideration | 427 | 0.3 | % | 623 | 0.5 | % | (196) | (31.5) | % | ||
| Amortization of intangibles | 1,863 | 1.4 | % | 1,057 | 0.9 | % | 806 | 76.3 | % | ||
| Total operating income | $ | 7,911 | 5.9 | % | $ | 6,532 | 5.5 | % | 21.1 | % |
All values are in US Dollars.
(1)As a percentage of ODR revenue.
(2)As a percentage of GCR revenue.
(3)Included within selling, general and administrative expenses was $1.6 million and $1.2 million of non-cash stock-based compensation expense for the three months ended March 31, 2025 and 2024, respectively.
Non-GAAP Financial Measures
In assessing the performance of our business, management utilizes a variety of financial and performance measures. The key measures are Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share, which are non-GAAP financial measures.
Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA as net income plus depreciation and amortization expense, interest expense, and taxes, as further adjusted to eliminate the impact of, when applicable, other non-cash items or expenses that are unusual or non-recurring that we believe do not reflect our core operating results. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. Our board of directors and executive management team focus on Adjusted EBITDA and Adjusted EBITDA Margin as two of our key performance and compensation measures. Adjusted EBITDA and Adjusted EBITDA Margin assists us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of certain items that do not necessarily reflect our core operations. We believe that Adjusted EBITDA and Adjusted EBITDA Margin are meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service.
Adjusted Net Income and Adjusted Diluted Earnings per Share
We define Adjusted Net Income as net income, adjusted to exclude certain items that do not reflect our core operating performance, such as amortization of intangible assets, stock-based compensation, restructuring charges, the change in fair value of contingent consideration, acquisition and other transaction costs and the net tax effect of reconciling items, as further adjusted to eliminate the impact of, when applicable, other non-cash or expenses that are unusual or non-recurring. We define Adjusted Diluted Earnings per Share as Adjusted Net Income divided by the weighted average diluted shares outstanding. We believe Adjusted Net Income and Adjusted Diluted Earnings per Share are useful to investors as we use these metrics to assist with strategic decision making, forecasting future results, and evaluating current performance.
We understand that these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share. Our calculations of these non-GAAP measures, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share cannot be achieved without incurring the costs that the measure excludes. A reconciliation of net income to Adjusted EBITDA and net income to Adjusted Net Income, the most comparable GAAP measures, are provided below.
We refer to our estimated revenue on uncompleted contracts, including the amount of revenue on contracts for which work has not begun, less the revenue we have recognized under such contracts, as “backlog.” Backlog includes unexercised contract options.
| Reconciliation of Net Income to Adjusted EBITDA (unaudited) | |||||||
|---|---|---|---|---|---|---|---|
| Three Months Ended<br>March 31, | |||||||
| (in thousands) | 2025 | 2024 | |||||
| Net income | $ | 10,214 | $ | 7,586 | |||
| Adjustments: | |||||||
| Depreciation and amortization | 4,072 | 2,712 | |||||
| Interest expense | 526 | 475 | |||||
| Interest income | (370) | (562) | |||||
| Stock-based compensation expense | 2,012 | 1,249 | |||||
| Change in fair value of interest rate swap | 97 | (149) | |||||
| Income tax benefit | (2,223) | (327) | |||||
| Acquisition and other transaction costs | 50 | 30 | |||||
| Change in fair value of contingent consideration | 427 | 623 | |||||
| Restructuring costs(1) | 67 | 120 | |||||
| Adjusted EBITDA | $ | 14,872 | $ | 11,757 | |||
| Revenue | $ | 133,108 | $ | 118,976 | |||
| Adjusted EBITDA Margin | 11.2 | % | 9.9 | % |
(1)For the three months ended March 31, 2025 and 2024, the majority of the restructuring costs related to our Southern California and Eastern Pennsylvania branches.
Reconciliation to Adjusted Net Income and Adjusted Diluted Earnings Per Share (unaudited)
| Three Months Ended March 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands, except share and per share amounts) | 2025 | 2024 | ||||||||
| Net income and diluted earnings per share | $ | 10,214 | $ | 0.85 | $ | 7,586 | $ | 0.64 | ||
| Pre-tax Adjustments: | ||||||||||
| Amortization of acquisition-related intangible assets | 1,863 | 0.15 | 1,057 | 0.09 | ||||||
| Stock-based compensation expense | 2,012 | 0.17 | 1,249 | 0.11 | ||||||
| Change in fair value of interest rate swap | 97 | 0.01 | (149) | (0.01) | ||||||
| Restructuring costs(1) | 67 | 0.01 | 120 | 0.01 | ||||||
| Change in fair value of contingent consideration | 427 | 0.04 | 623 | 0.05 | ||||||
| Acquisition and other transaction costs | 50 | — | 30 | — | ||||||
| Tax effect of reconciling items(2) | (1,218) | (0.10) | (791) | (0.07) | ||||||
| Adjusted net income and adjusted diluted earnings per share | $ | 13,512 | $ | 1.12 | $ | 9,725 | $ | 0.82 | ||
| Diluted weighted average shares outstanding | 12,051,678 | 11,894,747 | ||||||||
| Adjusted EBITDA per diluted share | $ | 1.12 | $ | 0.82 |
(1) For the three months ended March 31, 2025 and 2024, the majority of the restructuring costs related to our Southern California and Eastern Pennsylvania branches.
(2) The tax effect of reconciling items was calculated using a statutory tax rate of 27%.
11
lmbinvestorpresentation_
Investor Presentation Growth & Market Positioning Q1 Earnings | May 2025 NASDAQ: LMB
NASDAQ: LMB | 2 We make forward-looking statements in this presentation within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts for future events, including, without limitation, the execution of the Company’s long-term strategic roadmap and Limbach 3.0. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “will likely result,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target, ” “scenario” or similar expressions. These forward-looking statements are based on information available to us as of the date they were made and involve a number of risks and uncertainties which may cause them to turn out to be wrong. Some of these risks and uncertainties may in the future be amplified by certain health crises or outbreaks of diseases, such as epidemics or pandemics (and related impacts, such as supply chain disruptions) and there may be additional risks that we consider immaterial, or which are unknown. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Please refer to our most recent annual report on Form 10-K, as well as our subsequent filings on Form 10-Q and Form 8-K, which are available on the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any forward-looking statements in this presentation. Forward Looking Statements
Limbach is a leading building systems solutions firm specializing in revitalizing and maintaining mission-critical systems in existing facilities to keep them performing when it matters most. NASDAQ: LMB | 3
NASDAQ: LMB | 4 Limbach At-A-Glance WHO WE ARE WHO WE PARTNER WITH 1,400 TEAM MEMBERS Our people make a critical difference in providing and optimizing the environments that support life’s most important moments. We partner with Building Owners with Mission-Critical MEP Infrastructure OUR PURPOSE 20 BRANCH LOCATIONS Healthcare Data Centers Higher Education Industrial & Manufacturing Life Science Cultural & Entertainment A building systems solutions firm with expertise in mechanical, electrical, and plumbing systems.
NASDAQ: LMB | 5 Transforming Into a Building Systems Solutions Firm As a leading Building Systems Solutions firm, we uniquely combine our engineering expertise with skilled craftsmanship to deliver fully integrated solutions. With a deep commitment to our customers’ existing mission-critical infrastructure, we create long-term value through custom solutions that address full building lifecycle, enhancing reliability, efficiency, and performance across all systems. INTRUSION DETECTION INDUSTRIAL & MEDICAL GASES EQUIPMENT INDOOR AIR QUALITY SERVICES DIGITAL VIDEO & SECURITY SYSTEMS (ESS) ENVIRONMENTAL CONTROL & MONITORING ENERGY MANAGEMENT & UTILITY MONITORING WATER MANAGEMENT MOBILITY & VERTICAL TRANSPORTATION MECHANICAL, ELECTRICAL, PLUMBING (MEP) LIGHTING CONTROL AND RETROFIT FIRE DETECTION AND ALARM SECURITY AND ACCESS CONTROL SMOKE CONTROL Building Systems Solutions Firm Providing Solutions for Mission-Critical Building Systems
NASDAQ: LMB | 6 Durable Demand Through the Vertical Markets We Serve Healthcare Data Centers Higher EducationIndustrial & Manufacturing Life Sciences Cultural & Entertainment Mission-Critical Vertical Markets Revenue Diversification We operate in six distinct vertical markets, reducing dependency on any single industry. Constant Demand Mission-critical markets must stay operational, ensuring continuous work and stability through varying economic cycles. National Growth Opportunity Focusing on customers across all vertical markets with national footprints unlocks untapped potential and increases revenue opportunities.
NASDAQ: LMB | 7 Macroeconomic Resilience Equipment will break, repairs/replacements are constant Fast-Paced Execution Allowing us to adapt and efficiently allocate costs Budget Agility Catering to customer needs spanning both Operating Expense (OpEx) and Capital Project (CapEx) budgets Embedded & Difficult to Displace Deeply integrated in customer facility operations, built over years Durable Demand Through Existing Infrastructure Focus
NASDAQ: LMB | 8 Competitive Matrix - Market Positioning & Differentiation Limbach stands apart by combining the best elements of the industry to deliver comprehensive, end-to-end facility solutions, offering investors a scalable, standardized enterprise model that maximizes long-term value in mission-critical markets. Focus: Typical Work Mix: Services Provided: Strategic Approach: Vertical Markets: OEM Firms Product-Focused Sell proprietary product Product dependent solutions: Sales + Service contracts Sell products to lock customers in Numerous Contractors New-Construction Execution-Focused Transactional, new project-based work Installation, repairs, maintenance Decentralized approach, backlog-focus Numerous (Commercial + Residential) Property Managers Generalists Generalists managing building operations Facility management, vendor coordination Cost-conscious, need partners to execute Numerous (Commercial + Residential) Consulting & Engineering Firms Design-Focused Provide engineered solutions System design, energy efficiency consulting No direct execution, reliant on contractors Government, Utilities, Healthcare, Education, Housing, Commercial, Industrial Building Systems Solutions Firm Existing- Infrastructure Focused Enterprise provider with standardized platform, expert in complex MEP systems Holistic solutions, combining engineering & field expertise one-stop-shop Standardized enterprise approach, dedicated to top local & national customers Disciplined to 6: Healthcare, Industrial/Mfg., Higher Ed., Life Sciences, Data Centers, Cultural & Entertainment
NASDAQ: LMB | 9 Two Operating Segments - ODR and GCR GCR projects are characterized as having a solution in place therefore are more likely to be procured through a competitive bid process • Most E&C peers are focused on large construction, working for General Contractors • Tends to be more cyclical and dependent on macroeconomic conditions • Production labor dependent & longer schedules making it more difficult to pass along inflationary costs • GCR Quarterly Gross Margin FY 2024: ○ Q1: 20.0% ○ Q2: 20.6% ○ Q3: 15.8% ○ Q4: 26.9% ODR work is driven by developing and proposing customized solutions that are developed from our vast knowledge of the facilities, where competing firms are challenged to provide solutions • Includes reoccurring revenue from service and maintenance contracts • Better cash position by being in a direct payment relationship with owner vs. indirect • Shorter schedules and increased number of transactions • ODR Quarterly Gross Margin FY 2024: ○ Q1: 29.8% ○ Q2: 30.6% ○ Q3: 31.9% ○ Q4: 32.1% Overarching Goal: Maximized Risk Adjusted Returns Owner Direct Relationships (“ODR”) Existing Buildings General Contractor Relationships (“GCR”) New Construction
NASDAQ: LMB | 10 ODR ~80% Focused on Growth Three Pillar Approach to Scale the Business: Organic Segment Revenue Percentage Mix Shift Target Margin Expansion Through Evolved Offerings Scale Through Acquisitions Full Transition to Achieving Optimal Higher Margin Mix Transformation To OEM Gross Margins ~35-40% Expand Geographic Footprint & Market Share Within Existing Markets GCR ~20% OpEx Infrastructure Support CapEx Integrated Facility Planning Professional Services Traditional Speciality Contractor Services
NASDAQ: LMB | 11 Pillar #1 - Performance Result of Transition Towards Optimal Mix Shift Over the period from FY 2019 – FY 2024, Gross Margin has expanded nearly 1,480 bps to 27.8% This has enabled us to drive Adjusted EBITDA Margin1 more than 4x from 3.0% to 12.3% ODR Rev. % 20.0% 40.0% 60.0% 80.0% G ro ss M ar gi n / A dj us te d EB IT D A M ar gi n O D R R evenue Percentage 1. See Adjusted EBITDA margin calculation and non-GAAP reconciliation on slide 26.
NASDAQ: LMB | 12 Total Revenue Pillar #1 – Total Revenue is Static, but Higher Margin ODR Revenue is Growing Total Revenue is down 6.2% from 2019 ODR Revenue CAGR of 21.3% for 2019 to 2024 period Total revenue growth projected for 2025 as higher margin mix shift is achieved ODR Revenue $568.2M $127.2M $490.4M $140.3M $496.8M $216.4M $516.4M $262.0M 2020 2021 2022 2023 2024 $518.8M $345.5M $553.3M $115.1M 2019
NASDAQ: LMB | 13 Pillar #2 - Expanded Margins through Evolved LMB Offerings Integrated Facility Planning Rental Equipment Replacement & Retrofits Maintenance & Repairs Energy Efficiency Solutions Decarbonization Roadmaps Evolved LMB Offerings Customer Value Mission-critical building systems solutions support providing best-in-class options for long- and short-term impacts. LMB experts are onsite to reduce downtime and optimize performance, becoming essential to daily operations. Revitalizing infrastructure, we analyze asset data to reduce energy use, optimize operational costs, and meet sustainability targets. We deliver tailored solutions, strengthening relationships without pushing specific products. By becoming indispensable, we secure recurring revenue, quality margins, and long-term growth with our top customers both locally & nationally.
NASDAQ: LMB | 14 Pillar #2 - Building Relationships Locally & Nationally Ohio Facilities ● Partner For: 6 Local Acute Care Facilities ● Offerings: Engineering Consulting, Equipment Replacements & Retrofits, Rental Equipment, Maintenance & Repairs and Asset Comparison Analysis ● Notable Highlight: Design-Build Steam Plant Expansion Project Philadelphia Facilities South Florida Facilities ● Partner For: 3 Local Acute Care Facilities ● Offerings: Engineering Consulting, Equipment Replacements & Retrofits and Maintenance & Repairs ● Notable Highlight: Their Ongoing Facility Maintenance Partner ● Partner For: 2 Local Acute Care Facilities ● Offerings: Engineering Consulting, Equipment Replacements & Retrofits and Maintenance & Repairs ● Notable Highlight: Engineering Assessment led to Equipment Replacement Program & an Onsite Technician Turning Local Relationships Into National Revenue Streams. A Top 10 National Healthcare Provider’s Footprint Areas shaded in blue indicate the geographic footprint of the National Healthcare Provider
NASDAQ: LMB | 15 Pillar #2 - What We Do - Catering to Customer Needs & Budgets Operating Expense Professional ServicesCapital Projects Program Management Engineering Consulting Data Driven Solutions Capital Planning Integrated Facility Planning Maintenance & Repairs Replacements & Retrofits Rental Equipment Energy Efficiency Solutions Decarbonization Roadmaps Energy Financing Solutions
NASDAQ: LMB | 16 Limbach Location States with branch locations and potential tuck-in opportunity Potential new geographies for acquisitions Pillar #3 - Current & Target Geographies Tuck-In Acquisition Criteria ❑ Total Annual Revenue: $10-15M w/80%+ ODR Revenue ❑ +15% YoY ODR Growth ❑ Focus on Gross Profit Quality & Account Resources ❑ Ex: New Geography Acquisition Criteria ❑ Total Annual Revenue: $25M-40M w/Strong ODR Mix ❑ Local Niche with Mature Building Owner Relationships ❑ Ex: Disciplined and focused M&A strategy comprises “Tuck-In” and “Expansion” acquisitions of companies with consistent and scalable business models
NASDAQ: LMB | 17 Pillar #3 - Value Creation Through Integrating Into a Common Platform Value Creation Process: Reduction of Fixed Costs Common Organizational Structure Gross Profit Benchmarking Risk Management Tools Establish Account Focus Deploy On-Site Account Managers Evolved LMB Offerings Roll Out Fully Built Out Account Teams 1. 2. 3. 4. 5. 6. 7. 8. Characteristics We Seek: Cultural Fit Alignment with our values and “we care” culture Niche Specialized expertise in our core vertical markets Building Owner Customers Commitment to building long-term relationships with Building Owners Our acquisition strategy prioritizes alignment and specialized value, ensuring that each partnership enhances our culture and niche. By integrating into a common platform, we strengthen owner relationships and follow a proven value creation process to drive growth and long-term impact. 1. 2. 3.
NASDAQ: LMB | 18 Pillar #3 - Recent Expansion Transaction – Closed December 2nd, 2024 Total consideration paid by Limbach at closing was $23 million (subject to typical working capital adjustments), sourced from available cash, with performance-based, contingent earn-outs totaling $2 million. Consolidated Mechanical is expected to contribute annualized revenue of approximately $23 million beginning in 2025, and EBITDA of $4 million per annum. The acquisition expands Limbach’s reach into Kentucky, Illinois, and Michigan, while Consolidated Mechanical’s Western Michigan presence complements existing operations in the state's Southeast. Significant share of revenues are owner-direct in nature, with a robust mix of time and materials and cost-reimbursable revenue streams focused on repair, maintenance, and retrofit activities. Attractive Business Model: - Compelling Valuation & Structure Geographic Proximity: - Attractive Operating Footprint Supports ODR Strategy: - Increased ODR Exposure - Attractive Customer Base Capability Expansion: - Value Creation Opportunities - Emphasis on Healthcare Sector Other: - Cultural Fit M&A CRITERIA: Strong relationships with key customers extends Limbach’s reach into the industrial sector, with new exposure to the power generation, food processing, manufacturing, and metals markets.
NASDAQ: LMB | 19 Pillar #3 - Recent Tuck-In Transaction – Closed September 3rd, 2024 Total consideration paid by Limbach at closing was $15 million (subject to typical working capital adjustments), sourced from available cash, with performance-based, contingent earn-outs totaling $5 million. Kent Island is expected to contribute on average $30 million in revenue and $4 million in EBITDA on a full year basis. We believe the combination of Kent Island Mechanical and our Mid-Atlantic operating unit will create a dominant mechanical systems solutions provider in the high growth, Mid-Atlantic region. Significant share of revenues are owner-direct in nature, dovetailing well with Limbach’s focus on expanding segment opportunities. Attractive Business Model: - Compelling Valuation & Structure Geographic Proximity: - Attractive Operating Footprint Supports ODR Strategy: - Increased ODR Exposure - Attractive Customer Base Capability Expansion: - Value Creation Opportunities - Extends Reach to New Sectors Other: - Cultural Fit M&A CRITERIA: Strong relationships with key customers in the local healthcare end market which will allow us to expand our local healthcare resume.
NASDAQ: LMB | 20 Strong Balance Sheet and Disciplined Capital Allocation Strategy Balance Sheet to fund organic growth and acquisitions Investment in expanding and evolving LMB offerings Strategic acquisitions – disciplined acquisition criteria Key Balance Sheet Items March 31, 20251 December 31, 20241 Cash and Cash Equivalents $38.1 $44.9 Current Assets $204.5 $220.3 Current Liabilities $131.7 $151.0 Working Capital $72.8 $69.3 Net (Over) / Under Billing2 $(13.4) $(17.1) Revolver $10.0 $10.0 Term Loan — — Financing Liability (Sale and Leaseback Transaction) $5.4 $5.4 Vehicle Finance Leases $12.1 $11.9 Total Debt $27.5 $27.2 Net Debt (Cash)3 $(10.6) $(17.7) Equity $161.1 $153.5 Dollars in millions. 1. See the Company’s annual report on Form 10-Q for the quarter ended March 31, 2025. 2. For the calculation of the Company’s net billing position, refer to Note 4 to the condensed consolidated financial statements within the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2025. 3.The Company's calculation of the Net Debt (Cash) position is Cash and Cash Equivalents minus Total Debt. Totals may not foot due to rounding.
NASDAQ: LMB | 21 Financial Goals 1. Reflects guidance issued by the Company on May 5th, 2025. This guidance speaks only as of this date and this presentation does not constitute confirmation or updating of guidance. Free cash flow is defined as cash flow from operating activities, less changes in working capital and capital expenditures (excluding investment in rental equipment). See slide 28 for the non-GAAP reconciliation of Free Cash Flow. 2025 Guidance1 $610M to $630M Total Revenue Mix Shift 70% to 80% ODR ODR Revenue Growth 23% to 46% Total Gross Margin 28% to 29% Adjusted EBITDA $78M to $82M Adj. EBITDA Margin 12.5% to 13.5% Continued Strong Cash Flow 75% of Adj. EBITDA = Free Cash Flow Revenue Gross Margin / Adj. EBITDA Cash
NASDAQ: LMB | 22 Stockholder Value Drivers Strong Growth Strategy: Organic Expansion & Strategic Acquisitions Durable, Recurring Demand through Economic Cycles Resilient Business Model and Strong Balance Sheet Scalable Business Platform Focused on Revitalizing Existing Infrastructure
APPENDIX 23
NASDAQ: LMB | 24 Operating and Financial Update QTD 1Q’25 Performance Dollars in millions. Totals may not foot due to rounding. 1. See the Company’s quarterly earnings press release on Form 8-K for the fiscal quarter ended March 31, 2025. 2. See slide 26 for Non-GAAP Reconciliation Table. Revenue1 $119.0 Adjusted EBITDA2 + 26.5%+ 11.9% Year-Over-Year Change Year-Over-Year Change $133.1 Gross Profit and (Margin)1 + 18.1% Year-Over-Year Change $31.1 (26.1%) $36.7 (27.6%) $90.4 $42.7 $74.3 $44.7 1Q’24 1Q’25 1Q’24 1Q’25 $26.2 $10.6 $8.9 1Q’24 1Q’25 $11.8 $14.9 $22.2
NASDAQ: LMB | 25 Sustainability at Limbach Reducing Energy & Operating Costs Revitalizing Existing Infrastructure ENERGY STAR® Partner Community Engagement Culture of Belonging Social Responsibility Hearts & Minds Comp & Benefits Packages Industry Accredited Training Sustainability at PLANET GOVERNANCE PE O PL E ● We champion employee health and safety through our Hearts & Minds program ● We offer competitive compensation and a range of benefits and programs ● Our dedication to employee growth was recognized with the APEX award from Training magazine in 2022,2023 & 2024 and the ATD Best Award in 2023 & 2024 ● We take great pride in contributing to the communities where we live and operate through our Hearts & Hands ERG ● We were recognized by Newsweek as one of America’s Most Loved Workplaces and Best Practice Institute as a top place to work People: Empowering Our Team & Supporting Our Communities Planet: Revitalizing Existing Infrastructure ● Building MEP systems are a major source of carbon emissions ● Our focus: Enhancing energy efficiency and cutting operating costs by revitalizing existing infrastructure ● ENERGY STAR® Partner: Providing facility assessments and engineered solutions Governance: Governing Responsibility ● Committed to transparency, accountability and ethical conduct ● Decisions are made in the best interest of stockholders and stakeholders ● Clear policies and procedures to mitigate risks and safeguard assets ● Board oversight of sustainability policies and programs ● Code of Conduct and Ethics / Whistleblower policy
NASDAQ: LMB | 26 Non-GAAP Reconciliation Table Reconciliation of Adjusted EBITDA Margin* *Use of Non-GAAP Financial Measures In assessing the performance of our business, management utilizes a variety of financial and performance measures. The key measure is Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure. We define Adjusted EBITDA as net income plus depreciation and amortization expense, interest expense (net), and taxes, as further adjusted to eliminate the impact of, when applicable, other non-cash items or expenses that are unusual or non-recurring or that we believe do not reflect our core operating results. We believe that Adjusted EBITDA is meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service. We understand that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA. Our calculation of Adjusted EBITDA, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income (loss) calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes. Fiscal Year Ended December 31, Three Months Ended March 31, (in thousands) 2019 2020 2021 2022 2023 2024 2025 2024 Revenue: $ 553,334 $ 568,209 $ 490,351 $ 496,782 $ 516,350 $ 518,781 $ 133,108 $ 118,976 Net income (loss) ($ 1,775) $ 5,807 $ 6,714 $ 6,799 $ 20,754 $ 30,875 $ 10,214 $ 7,586 Adjustments: Depreciation and amortization 6,286 6,171 5,948 8,158 8,244 11,888 4,072 2,712 Interest expense 6,285 8,627 2,568 2,144 2,046 1,869 526 475 Interest income — — — — (1,217) (2,227) (370) (562) Stock-based compensation expense 1,766 1,068 2,601 2,742 4,910 5,773 2,012 1,249 Loss on early debt extinguishment 513 — 1,961 — 311 — — — Impairment of goodwill 4,359 — — — — — — — Change in fair value of warrant liability (588) 1,634 (14) — — — — — Change in fair value of interest rate swap — — — (310) 124 (34) 97 (149) Severance expense — 622 — — — — — — Loss on early termination of operating lease — — — 849 — — — — CEO Transition costs — — — — 958 — — — CFO Transition costs 576 — — — — — — — Gain on embedded derivative (388) — — — — — — — Restructuring costs — — — 6,016 1,770 1,427 67 120 Change in fair value of contingent consideration — — — 2,285 729 3,770 427 623 Income tax (benefit) provision (282) 1,182 2,763 2,809 7,346 9,091 (2,223) (327) Acquisition and other transaction costs — — 735 273 826 1,282 50 30 Adjusted EBITDA $ 16,752 $ 25,111 $ 23,276 $ 31,765 $ 46,801 $ 63,714 $ 14,872 $ 11,757 Adjusted EBITDA Margin 3.0% 4.4% 4.7% 6.4% 9.1% 12.3% 11.2% 9.9%
NASDAQ: LMB | 27 Non-GAAP Reconciliation Table Reconciliation of Adjusted Diluted Earnings Per Share* Fiscal Year Ended December 31, Three Months Ended March 31, (In thousands, except share and per share amounts) 2019 2020 2021 2022 2023 2024 2025 2024 Net income (loss) and diluted earnings per share $(1,775) $(0.23) $5,807 $0.72 $6,714 $0.66 $6,799 $ 0.64 $20,754 $1.76 $30,875 $2.57 $10,214 $ 0.85 $7,586 $ 0.64 Pre-tax Adjustments: Amortization of acquisition-related intangible assets 642 0.08 630 0.08 484 0.05 1,567 0.15 1,880 0.16 4,688 0.39 1,863 0.15 1,057 0.09 Stock-based compensation expense 1,766 0.23 1,068 0.13 2,601 0.25 2,742 0.26 4,910 0.42 5,773 0.48 2,012 0.17 1,249 0.11 Loss on early debt extinguishment 513 0.07 — — 1,961 0.19 — — 311 0.03 — — — — — — Impairment of goodwill 4,359 0.57 — — — — — — — — — — — — — — Loss on early termination of operating lease — — — — — — 849 0.08 — — — — — — — — Change in fair value of interest rate swap — — — — — — (310) (0.03) 124 0.01 (34) — 97 0.01 (149) (0.01) Change in fair value of warrant liability (588) (0.08) 1,634 0.20 (14) — — — — — — — — — — — Gain on embedded derivative (388) (0.05) — — — — — — — — — — — — — — Restructuring costs — — — — — — 6,016 0.56 1,770 0.15 1,427 0.12 67 0.01 120 0.01 Change in fair value of contingent consideration — — — — — — 2,285 0.21 729 0.06 3,770 0.31 427 0.04 623 0.05 Acquisition and other transaction costs — — — — 735 0.07 273 0.03 826 0.07 1,282 0.11 50 0.00 30 0.00 Severance expense — — 622 0.08 — — — — — — — — — — — — CFO transition costs 576 0.08 — — — — — — — — — — — — — — CEO transition costs — — — — — — — — 958 0.08 — — — — — — Tax effect of reconciling items(1) (1,926) (0.25) (1,107) (0.14) (1,557) (0.15) (3,623) (0.34) (3,107) (0.26) (4,564) (0.38) (1,218) (0.10) (791) (0.07) Adjusted net income and Adjusted diluted earnings per share $3,179 $0.42 $8,654 $1.07 $10,924 $1.07 $16,598 $1.56 $29,155 $2.48 $43,217 $3.60 $13,512 $ 1.12 $9,725 $0.82 Weighted average number of diluted shares outstanding 7,662,362 8,065,464 10,231,637 10,676,534 11,812,098 12,027,398 12,051,678 11,894,747 (1) The tax effect of reconciling items was calculated using a statutory tax rate of 28% for FYs 2019 and 2020 and 27% for FYs 2021 through 2024, and for the three months ended March 31, 2025 and 2024. Totals may not foot due to rounding. *Use of Non-GAAP Financial Measures In assessing the performance of our business, management utilizes a variety of financial and performance measures. The key measure is Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure. We define Adjusted EBITDA as net income plus depreciation and amortization expense, interest expense (net), and taxes, as further adjusted to eliminate the impact of, when applicable, other non-cash items or expenses that are unusual or non-recurring or that we believe do not reflect our core operating results. We believe that Adjusted EBITDA is meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service. We understand that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA. Our calculation of Adjusted EBITDA, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income (loss) calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes.
NASDAQ: LMB | 28 Non-GAAP Reconciliation Table Reconciliation of Free Cash Flow* 1. Represents non-cash activity associated with depreciation and amortization, provision for credit losses / doubtful accounts, stock-based compensation expense, operating lease expense, amortization of debt issuance costs, deferred income tax provision, gain or loss on sale of property and equipment, loss on early termination of operating lease, loss on early debt modification, changes in fair value of contingent consideration, change in fair value of warrant liability, impairment of goodwill, and changes in the fair value of the Company’s interest rate swap. 2. Excludes $4,526K of rental equipment purchases made during the twelve months ended December 31, 2024, and $2,001K and $2,031K of rental equipment purchases made during the three months ended March 31, 2025 and 2024, respectively. *Use of Non-GAAP Financial Measures In assessing the performance of our business, management utilizes a variety of financial and performance measures. The key measure is Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure. We define Adjusted EBITDA as net income plus depreciation and amortization expense, interest expense (net), and taxes, as further adjusted to eliminate the impact of, when applicable, other non-cash items or expenses that are unusual or non-recurring or that we believe do not reflect our core operating results. We believe that Adjusted EBITDA is meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service. We understand that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA. Our calculation of Adjusted EBITDA, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income (loss) calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes. Fiscal Year Ended December 31, Three Months Ended March 31, (in thousands) 2019 2020 2021 2022 2023 2024 2025 2024 Adjusted EBITDA: $ 16,752 $ 25,111 $ 23,276 $ 31,765 $ 46,801 $63,714 $ 14,872 $ 11,757 Free Cash Flow: Net Income (loss) ($ 1,775) $ 5,807 $ 6,714 $ 6,799 $ 20,754 $ 30,875 $ 10,214 $ 7,586 Non-cash operating activities(1) 16,568 13,767 16,997 17,634 18,222 24,454 5,058 4,712 Less: Purchases of property and equipment(2) (2,663) (1,483) (791) (993) (2,266) (2,998) (229) (510) Free Cash Flow $ 12,130 $ 18,091 $ 22,920 $ 23,440 $ 36,710 $ 52,331 $ 15,043 $ 11,788 Free Cash Flow Conversion % 72.4% 72.0% 98.5% 73.8% 78.4% 82.1% 101.1% 100.3%
Contact Us INVESTOR RELATIONS Financial Profiles LMB@finprofiles.com @Limbach @Limbach @Limbach @LimbachFacilityServices@Limbachinc