Limbach (LMB) Oppenheimer 20th Annual Industrial Growth Conference summary

Growth strategy and market positioning

• Focused on transitioning from new construction to revitalizing mission-critical systems in existing buildings, especially in healthcare and industrial manufacturing.

• Operates in six key verticals with durable demand, prioritizing environments where spending is non-discretionary.

• Differentiates through account focus, engineering expertise, and being indispensable to building owners.

• Aims to be a holistic building system solutions firm, primarily in mechanical, electrical, and plumbing, with potential to expand services.

• Seeks long-term, embedded relationships with customers, making displacement difficult.

Revenue mix shift and margin improvement

• Transitioned business from general contractor (GCR) model to owner-direct, now guiding 70%-80% owner-direct revenue.

• Owner-direct work yields higher margins and less commoditization, with a target gross margin of 35%-40% over time.

• Revenue has remained static or declined since 2019, but gross profit and margin have improved significantly due to mix shift.

• Focus on customers with scale and multiple locations to maximize value and recurring work.

Acquisition and expansion plans

• Geographic expansion is primarily through acquisitions, targeting 20-30 new MSAs in the East and Central Time Zones.

• Goal to acquire $8-$10 million in adjusted EBITDA per year, with five deals completed since late 2021.

• Acquisition targets must have cultural fit, margin improvement potential, and valuable customer lists.

• Value creation process aims to enhance margins and integrate acquisitions to match existing branches.

• Recent deals have diversified market exposure and strengthened presence in key regions.