Limbach (LMB) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 4.8% to $133.9 million, driven by a 41.3% rise in ODR revenue and a strategic shift from GCR, with ODR now 69.4% of total revenue.

• Net income for Q3 2024 was $7.5 million, up from Q3 2023, with diluted EPS of $0.62–$0.66 and net margin of 5.6%.

• Record Adjusted EBITDA of $17.3 million, up 27.2% year-over-year, reflecting margin expansion and ODR mix shift.

• Four acquisitions since November 2021, including Kent Island Mechanical in September 2024, supporting ODR growth and market expansion.

• Company specializes in revitalizing mission-critical infrastructure, expanding into energy management, automation, and decarbonization.

Financial highlights

• Q3 2024 revenue: $133.9 million (up 4.8% YoY); YTD revenue: $375.1 million (up 0.4%).

• Gross profit for Q3 2024: $36.1 million (up 15.6%); gross margin expanded to 27.0% from 24.5%.

• Adjusted EBITDA for Q3 2024: $17.3 million (up 27.2%); margin at 12.9%.

• ODR revenue for Q3 2024: $93.0 million (up 41.3%); GCR revenue: $40.9 million (down 33.9%).

• SG&A expense for Q3 2024: $23.7 million (17.7% of revenue), up from $21 million.

Outlook and guidance

• FY 2024 revenue guidance raised to $520–$540 million; Adjusted EBITDA guidance increased to $60–$63 million.

• Gross margin expected at 26–27%; free cash flow conversion targeted at 70% of Adjusted EBITDA.

• ODR mix projected at 65–70% for 2024, with ODR revenue growth of 29–44%.

• Management anticipates continued ODR growth and 2–3 acquisitions per year.

• Company expects current cash, operating cash flow, and $35.7 million in available credit to be sufficient for at least the next 12 months.