Limbach (LMB) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 16.4% year-over-year to $142.2 million, driven by a 31.7% increase in ODR segment revenue and recent acquisitions, with ODR now representing 76.6% of total revenue.

• Net income for Q2 2025 was $7.8 million, up 30% year-over-year, with adjusted EBITDA of $17.9 million, a 30% increase.

• The company completed its largest acquisition to date, Pioneer Power, for $66.1 million, expanding into the Upper Midwest and strengthening its position in core verticals.

• Strategic transformation to a solutions-based, recurring revenue model, emphasizing long-term customer relationships and expansion across six verticals and 17 MSAs.

• Management highlights ongoing investments in sales, a robust M&A pipeline, and a new Senior VP of Sales to drive national account strategy.

Financial highlights

• Q2 2025 gross profit increased 18.9% to $39.8 million, with a consolidated gross margin of 28%, up from 27.4%.

• Adjusted net income was $11.3 million, or $0.93 per adjusted diluted share, up from $8.7 million and $0.73, respectively.

• Six-month revenue grew 14.2% year-over-year to $275.3 million; net income for the period was $18.0 million, up from $13.5 million.

• Free cash flow was $16.1 million, up from $10.9 million; free cash flow conversion of adjusted EBITDA was 89.7%.

• SG&A as a percentage of revenue declined to 18.7% in Q2 2025, down from 19%.

Outlook and guidance

• 2025 revenue guidance is $650–$680 million, with adjusted EBITDA of $80–$86 million and 70–80% of revenue from ODR.

• ODR revenue growth expected at 35–50% year-over-year; gross margin projected at 28–29%.

• Free cash flow conversion rate for 2025 is targeted at least 75%; CapEx run rate expected at $4 million, excluding $3.5 million in rental equipment investment.

• Revenue and adjusted EBITDA contributions are expected to be weighted more heavily toward Q4.

• Management expects continued margin expansion and growth from ODR focus and recent acquisitions.