Limbach Holdings (LMB) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: N/A
• Average Volume (3M): 221.79K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 1.55
• Revenue Growth: 8.06%
• EPS Growth: 32.33%
• Country: US
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.93
• Shares Outstanding: 11,626,814
• 10 Day Avg. Volume: 242,827
• 30 Day Avg. Volume: 221,790
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 3.10
• Enterprise Value/Gross Profit: 10.96
• Enterprise Value/Ebitda: 30.96
• 1Y Price Target: $151.00
• Price Target Upside: 43.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: $126.00 ▲(20.13% Upside)

Limbach Holdings' strong financial performance and strategic growth initiatives are key strengths, contributing positively to the stock score. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The earnings call provided a balanced view with significant growth but highlighted areas needing attention, such as cash flow management.

Limbach Holdings Business Overview & Revenue Model

Company Description

Limbach Holdings, Inc. operates as an integrated building systems solutions company in the United States. It operates in two segments, General Contractor Relationships and Owner Direct Relationships. The company engages in the design, prefabrication, installation, management, and maintenance of mechanical, electrical, plumbing, and control systems, as well as heating, ventilation, air-conditioning (HVAC) system. Its facility services comprise mechanical construction, HVAC service and maintenance, energy audits and retrofits, engineering and design build, constructability evaluation, equipment and materials selection, offsite/prefabrication construction, and sustainable building solutions and practices. The company serves research, acute care, and inpatient hospitals; public and private colleges, universities, research centers and K-12 facilities; sports arenas; entertainment facilities, and amusement rides; passenger terminals and maintenance facilities for rail and airports; government facilities comprising federal, state, and local agencies; hotels and resorts; office building and other commercial structures; data centers; and industrial manufacturing facilities. The company was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

Limbach Holdings generates revenue through multiple key streams, primarily from providing mechanical and electrical contracting services for new construction projects, renovation projects, and ongoing maintenance services for existing facilities. The company typically engages in fixed-price contracts or time-and-material contracts, which allows for predictable revenue. Additionally, Limbach benefits from long-term service agreements that provide recurring income from maintenance and repair services. Strategic partnerships with construction firms, architects, and engineers enhance their market reach and project acquisition capabilities, contributing significantly to their earnings. The focus on energy-efficient solutions and sustainability practices also positions Limbach to capitalize on growing demand in the green building sector, potentially increasing revenue from these specialized services.

Limbach Holdings Financial Statement Overview

Summary

Limbach Holdings demonstrates strong financial performance with consistent revenue growth and improving profit margins. The balance sheet is stable with a healthy debt-to-equity ratio and strong return on equity. However, declining free cash flow growth suggests the need for careful cash management.

Income Statement

Limbach Holdings demonstrates strong revenue growth with a TTM increase of 3.75% and consistent improvement in gross and net profit margins. The gross profit margin improved to 27.94% and net profit margin to 6.29%, indicating enhanced profitability. However, the EBIT and EBITDA margins show slight declines, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.30, reflecting prudent financial leverage. Return on equity is robust at 22.72%, indicating effective use of equity to generate profits. The equity ratio stands at 49.73%, showcasing a stable financial structure. However, the total debt has increased slightly, which could pose a risk if not managed carefully.

Cash Flow

Operating cash flow to net income ratio is moderate at 0.33, and free cash flow to net income ratio is strong at 0.83, indicating good cash generation relative to earnings. However, the free cash flow growth rate has declined by 33.71%, highlighting potential challenges in sustaining cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	552.92M	518.78M	516.35M	496.78M	490.35M	568.21M
Gross Profit	156.23M	144.28M	119.29M	93.74M	85.91M	81.39M
EBITDA	55.31M	54.28M	38.39M	24.17M	22.26M	24.86M
Net Income	35.30M	30.88M	20.75M	6.80M	6.71M	5.81M
Balance Sheet
Total Assets	342.98M	352.13M	304.44M	294.56M	267.51M	262.16M
Cash, Cash Equivalents and Short-Term Investments	38.94M	44.93M	59.83M	36.00M	14.48M	42.15M
Total Debt	54.39M	48.73M	41.98M	50.30M	60.64M	62.44M
Total Liabilities	172.45M	198.64M	183.52M	199.11M	179.67M	208.43M
Stockholders Equity	170.53M	153.49M	120.92M	95.44M	87.84M	53.73M
Cash Flow
Free Cash Flow	23.70M	29.26M	55.10M	34.38M	-25.02M	38.33M
Operating Cash Flow	28.46M	36.78M	57.37M	35.37M	-24.23M	39.81M
Investing Cash Flow	-39.49M	-42.57M	-17.09M	-495.00K	-19.30M	-1.32M
Financing Cash Flow	-9.57M	-9.12M	-16.49M	-13.35M	15.87M	-4.69M

Limbach Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.89
• 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 104.89 is below the 20-day moving average (MA) of 110.00, below the 50-day MA of 120.27, and below the 200-day MA of 106.30, indicating a bearish trend. The MACD of -4.99 indicates Negative momentum. The RSI at 42.47 is Neutral, neither overbought nor oversold. The STOCH value of 50.68 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
WLDN	80 Outperform	1.55B	44.10	13.22%	―	13.82%	96.16%
LMB	70 Outperform	$1.22B	35.85	23.26%	―	8.06%	32.33%
AMRC	68 Neutral	1.69B	27.62	5.62%	―	22.85%	8.26%
MTRX	64 Neutral	370.79M	-12.45	0.00%	―	5.64%	-16.41%
TPC	63 Neutral	3.52B	-26.36	-11.16%	―	12.03%	-93.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Limbach Holdings Corporate Events

Limbach Holdings Completes Acquisition of Pioneer Power

On July 1, 2025, Limbach Holdings, Inc. completed the acquisition of Pioneer Power, Inc. for $66.1 million, financed through cash and a credit facility. This acquisition expands Limbach’s presence in the Midwest and aligns with its strategic focus on Owner Direct Relationships (ODR). Pioneer Power’s expertise in industrial solutions complements Limbach’s recent acquisitions and is expected to contribute significantly to revenue and EBITDA in the coming years. The acquisition is anticipated to enhance Limbach’s long-term financial targets and create additional value for stockholders.

Limbach Holdings Reports Strong Q2 2025 Results

Limbach Holdings reported a strong second quarter for 2025, with a net income of $7.8 million and an adjusted EBITDA of $17.9 million, reflecting a strategic shift towards higher-margin ODR business. The company increased its full-year revenue guidance to $650-$680 million and adjusted EBITDA to $80-$86 million, highlighting its ongoing growth and strategic investments in sales and market reach. The acquisition of Pioneer Power, Inc. and an expanded credit facility further position Limbach for continued expansion and value creation for stakeholders.

Limbach Holdings Acquires Pioneer Power for $66.1 Million

On June 27, 2025, Limbach Holdings LLC and its subsidiary entered into a second amendment to their credit agreement with Wheaton Bank & Trust Company, increasing their revolving credit facility from $50 million to $100 million, extending the maturity date, and modifying several financial terms. Additionally, on July 1, 2025, Limbach Holdings announced the acquisition of Pioneer Power, Inc. for $66.1 million, funded through cash and the company’s credit facility, potentially enhancing its market position in the mechanical contracting industry.

Limbach Holdings Approves Incentive Plan Amendment

On June 11, 2025, Limbach Holdings, Inc. held its annual stockholders meeting where key decisions were made, including the election of directors and approval of executive compensation. Notably, the stockholders approved an amendment to the Omnibus Incentive Plan, which introduces accelerated vesting provisions for restricted stock units and performance stock units in cases of death, disability, retirement, or reduction in force, potentially impacting employee retention and motivation strategies.