Limbach (LMB) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 21.9% year-over-year to $173.5 million, primarily driven by the Pioneer Power acquisition, which contributed $30.9 million, while organic revenue was nearly flat.

• Net income declined 38.8% to $4.7 million, and adjusted EBITDA fell 22.3% to $13.9 million, reflecting lower gross margins and higher SG&A expenses.

• Bookings remained strong at $182 million in Q2, with a book-to-bill ratio of 1.1x, supporting confidence in future demand.

• Strategic focus includes diversifying end markets, expanding geographic reach, and leveraging an integrated operating model to improve profitability and resilience.

• Management remains confident in long-term direction, emphasizing disciplined capital allocation and execution of strategic initiatives.

Financial highlights

• Q2 2026 revenue reached $173.5 million, up from $142.2 million year-over-year, with Pioneer Power contributing $30.9 million.

• Total gross profit decreased 6.4% to $37.3 million, with gross margin dropping to 21.5% from 28.0%.

• Net income fell to $4.7 million, EPS was $0.39 versus $0.64; Adjusted EBITDA declined to $13.9 million, with margin at 8%.

• Operating cash flow was $18.7 million, the second highest Q2 since going public; free cash flow was $13.7 million.

• Liquidity at quarter-end was $93.1 million, with $17.5 million in cash and $41.1 million in total debt.

Outlook and guidance

• FY 2026 revenue outlook raised to $760–$790 million; Adjusted EBITDA guidance lowered to $78–$84 million due to margin and execution headwinds.

• Organic revenue growth expected at 9–14%, ODR revenue to comprise 70–80% of total, gross margin targeted at 23–24%.

• Free cash flow conversion of Adjusted EBITDA expected at 75%+; CapEx run rate projected at $5 million.

• Management expects margin improvement as integration progresses, but gross margins will remain below 2025 levels.

• Liquidity and borrowing capacity are sufficient to meet capital and working capital needs for at least the next 12 months.