Limbach (LMB) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 11.9% year-over-year to $133.1 million, with net income up 34.7% to $10.2 million and adjusted EBITDA rising 26.5% to $14.9 million, driven by the ODR strategy and recent acquisitions.

• ODR revenue rose 21.7% to $90.4 million, now 67.9% of total revenue, reflecting a strategic shift away from GCR and toward higher-margin, recurring business.

• Recent acquisitions in Kentucky, Illinois, Michigan, and the Mid-Atlantic region expanded geographic reach and ODR exposure, contributing to revenue and margin growth.

• Added approximately 40 new sales professionals in the past year, representing about one-third of the sales team, to support ODR growth and deepen customer relationships.

• Continued investment in data-driven facility assessments, proactive customer engagement, and digital/energy management offerings to drive long-term partnerships and sales pipeline predictability.

Financial highlights

• Q1 2025 total revenue was $133.1 million, up from $119 million in Q1 2024; adjusted EBITDA was $14.9 million (up 26.5%), with a margin of 11.2%.

• Gross profit increased 18.1% to $36.7 million, with consolidated gross margin rising to 27.6% from 26.1%.

• Net income grew 34.7% to $10.2 million; adjusted net income rose 38.9% to $13.5 million.

• Free cash flow improved to $15 million, with a free cash flow conversion of adjusted EBITDA at 101.1%.

• Cash and cash equivalents at quarter-end were $38.1 million; total debt was $27.5 million.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: revenue of $610–$630 million and adjusted EBITDA of $78–$82 million.

• Gross margin expected at 28–29%; targeting a free cash flow conversion rate of at least 75% for 2025.

• Management expects continued ODR segment growth, margin expansion, and further strategic acquisitions in 2025.