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Limbach Holdings
(NASDAQ:LMB)
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Rating:67Neutral
Price Target:
$54.00
▲(29.40% Upside)
Action:Reiterated
Date:09/09/26
The score is driven primarily by solid financial performance, especially strong and improving free cash flow and manageable leverage, but it is held back by clear near-term margin compression highlighted in both the financials and the latest earnings call. Technicals add meaningful pressure due to a weak trend setup (below key moving averages and negative MACD), while valuation appears reasonable (P/E ~19) without dividend support.
Positive Factors
Strong bookings and revenue visibility
Sustained bookings momentum provides meaningful forward revenue visibility for a project-based business. A strong order pipeline can support utilization, customer relationships, and scale over the next several quarters, while reducing reliance on near-term contract wins.
Negative Factors
Severe margin compression
The sharp decline in gross and EBITDA margins shows that revenue growth is currently producing less profit. If lower-margin acquired work, project timing, and execution pressures persist, weaker earnings conversion could constrain reinvestment and delay the expected benefits of scale.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong bookings and revenue visibility
Sustained bookings momentum provides meaningful forward revenue visibility for a project-based business. A strong order pipeline can support utilization, customer relationships, and scale over the next several quarters, while reducing reliance on near-term contract wins.
Read all positive factors
Limbach Holdings Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows gross profit for each business segment after direct costs, highlighting which parts of the company deliver healthy margins and which are under margin pressure. For Limbach, segment-level gross margins reveal the effects of labor and subcontracting costs, material price swings, and project cost overruns, helping investors see whether growth is translating into profitable revenue or being driven by low-margin contracts.
Shows gross profit for each business segment after direct costs, highlighting which parts of the company deliver healthy margins and which are under margin pressure. For Limbach, segment-level gross margins reveal the effects of labor and subcontracting costs, material price swings, and project cost overruns, helping investors see whether growth is translating into profitable revenue or being driven by low-margin contracts.
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The Fly
The FlyLimbach Holdings (LMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$566.91M
Dividend YieldN/A
Average Volume (3M)287.08K
Price to Earnings (P/E)18.7
Beta (1Y)0.98
Revenue Growth23.67%
EPS Growth-16.61%
CountryUS
Employees1,600
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)2.59
Shares Outstanding11,924,993
10 Day Avg. Volume209,280
30 Day Avg. Volume287,084
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)4.63
Price to Sales (P/S)1.40
P/FCF Ratio21.61
Enterprise Value/Market Cap1.71
Enterprise Value/Revenue1.42
Enterprise Value/Gross Profit6.01
Enterprise Value/Ebitda16.18
Forecast
1Y Price Target
$72.50Price Target Upside73.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)3.99
Revenue Forecast (FY)$788.30M
Limbach Holdings Business Overview & Revenue Model
Company Description
Limbach Holdings, Inc. operates as a building systems solution company in the United States. The company operates through two segments, Owner Direct Relationships and General Contractor Relationships. It engages in the construction or renovation p...
How the Company Makes Money
Limbach makes money primarily by delivering MEP-related services across the lifecycle of a building’s critical systems. A major revenue stream comes from project-based work, where the company is paid under customer contracts to engineer, fabricate...
Limbach Holdings Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed picture: clear commercial momentum (revenue growth, strong bookings, improved cash conversion, expanded liquidity and strategic acquisition of Simpcore) but meaningful near-term margin and profitability pressures (material gross margin compression, lower EBITDA and net income). Management emphasized a strategic shift toward diversification, geographic expansion and disciplined acquisitions to address margin headwinds and build a more resilient long-term model, while acknowledging execution risk and that margin recovery will take time.Positive Updates
Revenue Growth Driven by Acquisitions
Total revenue of $173.5M in Q2 2026 vs $142.2M in Q2 2025, a +22.0% increase (primarily driven by $30.9M revenue contribution from Pioneer Power).
Negative Updates
Decline in Gross Profit and Margins
Total gross profit decreased 6.4% to $37.3M (from $39.8M). Total gross margin fell to 21.5% from 28.0% in the prior-year quarter (down ~650 basis points), reflecting margin pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth Driven by Acquisitions
Total revenue of $173.5M in Q2 2026 vs $142.2M in Q2 2025, a +22.0% increase (primarily driven by $30.9M revenue contribution from Pioneer Power).
Read all positive updates
Company Guidance
Limbach revised its fiscal 2026 guidance to revenue of $760–$790 million and adjusted EBITDA of $78–$84 million (both ranges exclude the recently closed Simpcore acquisition and any future M&A), with operating assumptions of total organic revenue growth of 9–14%, ODR representing 70–80% of revenue and ODR organic growth of 6–10%, a gross margin target of 23–24%, SG&A of 15–16% of revenue, a capex run‑rate of ~ $5 million, and an expectation to convert at least 75% of adjusted EBITDA into free cash flow. Management pointed to recent momentum — Q2 revenue of $173.5 million, bookings of $182 million in the quarter and $616 million over the last three quarters, Q2 adjusted EBITDA of $13.9 million (8% margin) and a Q2 free‑cash‑flow conversion of adjusted EBITDA of 98.2% — and emphasized balance sheet flexibility (cash $17.5M, total debt $41.1M with $17.5M drawn, total liquidity $93.1M and an expanded $125M revolver). The Simpcore deal (purchase price $30M) is expected to drive program‑management revenue of ~$12M and ~$4M of adjusted EBITDA in 2027, though those amounts are not included in 2026 guidance.Limbach Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 683.77M | 646.80M | 518.78M | 516.35M | 496.78M | 490.35M |
| Gross Profit | 161.23M | 169.31M | 144.28M | 119.29M | 93.74M | 85.91M |
| EBITDA | 59.89M | 69.89M | 53.72M | 38.39M | 19.91M | 17.99M |
| Net Income | 30.21M | 48.63M | 30.88M | 20.75M | 6.80M | 6.71M |
Balance Sheet | ||||||
| Total Assets | 404.01M | 381.13M | 352.13M | 304.44M | 294.56M | 267.51M |
| Cash, Cash Equivalents and Short-Term Investments | 17.53M | 11.35M | 44.93M | 59.83M | 36.00M | 14.48M |
| Total Debt | 59.59M | 55.87M | 48.73M | 41.98M | 50.30M | 60.64M |
| Total Liabilities | 200.86M | 185.47M | 198.64M | 183.52M | 199.11M | 179.67M |
| Stockholders Equity | 203.15M | 195.66M | 153.49M | 120.92M | 95.44M | 87.84M |
Cash Flow | ||||||
| Free Cash Flow | 50.61M | 41.89M | 29.26M | 55.10M | 34.38M | -25.02M |
| Operating Cash Flow | 52.39M | 45.70M | 36.78M | 57.37M | 35.37M | -24.23M |
| Investing Cash Flow | -66.10M | -67.59M | -42.57M | -17.09M | -495.00K | -19.30M |
| Financing Cash Flow | -7.70M | -11.70M | -9.12M | -16.49M | -13.35M | 15.87M |
Limbach Holdings Technical Analysis
Negative
41.73
Price Trends
47.98
Negative
60.85
Negative
72.61
Negative
Market Momentum
-0.64
Positive
41.53
Neutral
14.31
Positive
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 41.73 is below the 20-day moving average (MA) of 49.44, below the 50-day MA of 47.98, and below the 200-day MA of 72.61, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 41.53 is Neutral, neither overbought nor oversold. The STOCH value of 14.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LMB.
Limbach Holdings Risk Analysis
Limbach Holdings disclosed 60 risk factors in its most recent earnings report. Limbach Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Limbach Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.16B | 23.08 | 35.36% | 0.82% | 8.57% | 8.25% | |
75 Outperform | $91.48B | 26.17 | 26.94% | 1.06% | 6.81% | 70.90% | |
69 Neutral | $8.42B | 29.86 | 12.37% | 2.07% | 20.63% | 27.00% | |
67 Neutral | $566.91M | 18.66 | 15.56% | ― | 23.67% | -16.61% | |
66 Neutral | $14.70B | 17.14 | -406.43% | 1.70% | -0.56% | 15.03% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $5.76B | 58.16 | 2.46% | ― | -9.38% | -86.05% |
* Industrials Sector Average
LMB
Limbach Holdings
47.55
-46.65
-49.52%
AWI
Armstrong World
171.39
-30.14
-14.95%
BLDR
Builders Firstsource
57.54
-66.66
-53.67%
JCI
Johnson Controls
143.00
33.77
30.91%
MAS
Masco
78.05
9.83
14.41%
SPXC
SPX
160.01
-30.39
-15.96%
Limbach Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Limbach Holdings Secures New $300 Million Credit Facility
Positive
Sep 9, 2026
Limbach Facility Services LLC, a wholly owned subsidiary of Limbach Holdings, Inc., operates in the mechanical and specialty contracting sector, providing facility services that typically include HVAC, plumbing, and related infrastructure solution...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Limbach Closes Acquisition of Midwest Contractor 1901 Inc.
Positive
Sep 1, 2026
On September 1, 2026, Limbach Holdings, Inc. announced it had closed the acquisition of Madison, Wisconsin-based union MEP contractor 1901 Inc. for an initial purchase price of $63 million, funded with cash and borrowings under its expanded revolv...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Limbach Holdings Raises Revenue Outlook Amid CYMCOR Acquisition
Neutral
Aug 4, 2026
On August 4, 2026, Limbach reported second-quarter 2026 results showing revenue up 21.9% year-on-year to $173.5 million, driven largely by the Pioneer Power acquisition, with strong bookings of $182.0 million and a 1.1x book-to-bill ratio. However...
Business Operations and StrategyPrivate Placements and Financing
Limbach Expands Revolving Credit Facility, Enhancing Liquidity
Positive
Jul 24, 2026
On July 24, 2026, Limbach Facility Services LLC and affiliated loan parties amended their existing credit agreement with Wheaton Bank Trust Company, increasing the senior secured revolving credit facility from $100 million to $125 million and red...
Executive/Board ChangesShareholder Meetings
Limbach Holdings Stockholders Approve Directors and Governance Measures
Positive
Jun 11, 2026
On June 9, 2026, Limbach Holdings held its annual meeting of stockholders, with 10,432,247 common shares represented in person or by proxy. Shareholders elected Joshua S. Horowitz, Linda G. Alvarado, and Terence P. Dugan as Class A directors to se...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.