Limbach Holdings Announces Third Quarter 2025 Financial Results
Limbach Holdings, Inc. (Nasdaq: LMB) announced its financial results for the third quarter ended September 30, 2025, highlighting continued progress in its strategic transformation toward a more resilient, higher-margin business model. The Company’s results reflect a strong increase in revenue driven by the expansion of its Owner Direct Relationships (ODR) business and contributions from recently completed acquisitions.
Third Quarter 2025 Overview
For the third quarter of 2025, Limbach reported total revenue of $184.6 million, representing a 37.8% increase compared with $133.9 million in the same period of 2024. This growth was largely attributable to the Company’s ongoing focus on developing direct customer partnerships and integrating its newly acquired businesses. ODR revenue rose sharply by 52.0%, or $48.4 million, reaching $141.4 million, which accounted for 76.6% of total revenue. Organic ODR growth—growth excluding acquisitions—came in at 12.2%, demonstrating continued market demand and deepening customer relationships.
Net income for the quarter was $8.8 million, or $0.73 per diluted share, compared to $7.5 million, or $0.62 per diluted share, in the third quarter of 2024. Adjusted net income came in at $12.7 million, or $1.05 per adjusted diluted share, up from $10.9 million, or $0.91, in the prior-year period. The Company also reported Adjusted EBITDA of $21.8 million, a 25.6% increase from $17.3 million in the third quarter of the previous year. Total gross profit increased to $44.7 million, up 23.7% from $36.1 million in 2024.
Cash flow from operating activities was notably stronger, rising to $13.3 million, compared with $4.9 million in the prior year. This improvement was primarily driven by more efficient working capital management and billing processes.
Strategic Commentary from Management
President and Chief Executive Officer Michael McCann emphasized that the quarter’s results reinforce the success of the Company’s ongoing strategic transition. According to McCann, shifting the revenue mix toward the higher-margin ODR segment has enabled Limbach to reduce risk, improve earnings consistency, and strengthen customer loyalty.
“ODR revenue growth of 52.0% year-over-year shows the effectiveness of our focused strategy,” McCann stated. “With ODR now accounting for roughly 76.6% of total revenue, we are aligned with our target mix range of 70% to 80%. We expect full-year organic ODR growth of 20% to 25%, while maintaining strong margins.”
McCann also highlighted the Company’s progress in disciplined mergers and acquisitions, a core component of its long-term expansion strategy. During the quarter, Limbach completed the acquisition of Pioneer Power, which extends its geographic reach into the Upper Midwest and strengthens its presence in key industrial sectors such as power generation. While Pioneer Power currently operates at lower margins than Limbach’s legacy operations, management has outlined clear plans to enhance operational efficiency and improve margin performance over time.
“Our acquisition pipeline and integration framework are designed to accelerate revenue growth, broaden our service capabilities, and deepen customer trust,” McCann added. “We remain focused on building a durable platform capable of delivering sustainable value to shareholders.”
Detailed Results by Business Segment
The significant increase in revenue was driven primarily by both acquisitions and organic growth in the ODR segment:
- Total revenue increased by $50.7 million, of which $47.3 million, or 35.3%, came from acquisition contributions. Organic revenue accounted for the remaining 2.5%, or $3.3 million.
- ODR segment revenue rose to $141.4 million, an increase of $48.4 million. Approximately $37.1 million came from acquired businesses, while $11.3 million, or 12.2%, represented organic growth.
- General Contractor Relationships (GCR) revenue grew modestly to $43.2 million, a 5.6% increase. However, organic GCR revenue declined by $8.0 million, consistent with the Company’s strategic focus to reduce its reliance on lower-margin contractor-driven projects.
In terms of profitability:
- ODR gross profit increased to $35.7 million, up 20.3% year-over-year, though margins decreased to 25.2% from 31.9%, primarily due to the lower-margin profile of Pioneer Power during its early integration stage.
- GCR gross profit increased 39.3% to $9.0 million, with gross margins improving to 20.8%, compared to 15.8% a year ago, reflecting stronger project selection and execution discipline.
Selling, general and administrative expenses rose to $28.3 million, driven by increases in payroll expense, the addition of overhead from Pioneer Power and Consolidated Mechanical, and higher non-cash stock-based compensation. However, as a percentage of revenue, SG&A decreased from 17.7% to 15.3%, demonstrating enhanced operating leverage.
Balance Sheet Position
As of September 30, 2025, the Company reported $9.8 million in cash and cash equivalents. Current assets totaled $216.8 million, while current liabilities stood at $151.2 million, resulting in a current ratio of 1.43x, largely consistent with year-end 2024 levels. Limbach had $34.5 million in borrowings under its revolving credit facility and noted plans to allocate free cash flow toward debt reduction for the remainder of the fiscal year.
