Stocks for Limbach Holdings spike following Q2 earnings surpassing estimates; boosts 2025 forecast
Limbach Holdings, a leading provider of mechanical systems, reported robust Q2 2025 results, showcasing the success of its growth strategy. The company's strategic focus on expanding Owner Direct Relationships (ODR) has yielded significant results, with ODR revenue accounting for 76.6% of total revenue and growing 31.7% year-over-year.
Chief Executive Michael McCann stated, "The strategic shift to higher margin ODR business is driving meaningful results." He added, "We believe we are still in the early stages of fully realizing the value of our customer relationships and market reach."
The financial numbers reflect this performance. Limbach reported total revenue of $142.2 million, a 16.4% year-over-year increase, and net income of $7.8 million, or $0.93 a share, surpassing the consensus estimate of $0.77. Adjusted EBITDA rose 30% to $17.9 million in Q2.
In light of these results, the company lifted its full-year 2025 revenue guidance to $650 million–$680 million (previously $610 million–$630 million) and adjusted EBITDA guidance to $80 million–$86 million (up from $78 million–$82 million).
The company's cash position also remains strong. Limbach ended the quarter with $38.9 million in cash, and recently expanded its revolving credit facility from $50 million to $100 million to support continued growth initiatives, including M&A.
The ODR segment of Limbach Holdings was particularly impressive. Gross profit from the ODR segment climbed by 24.6%, despite a modest dip in segment margin. The Owner Direct Relationships segment accounted for more than three-quarters of its total revenue.
Reflecting the market's positive outlook, analysts remain bullish on Limbach. Multiple firms rate the stock a "buy" or "strong-buy" with price targets in the range of $133 to $163. Roth Capital projects full-year 2025 EPS of around $4.37 and 2026 EPS at approximately $4.93, indicating expected continued earnings growth despite a recent downward revision to Q3 2025 EPS estimates.
Following the strong Q2 results, Limbach Holdings (NASDAQ:LMB) shares increased by 5.1% in extended trading on Tuesday. The company remains confident in its ODR-driven strategy and the recently completed acquisition of Pioneer Power. CEO McCann concluded, "The momentum continues to build."
References:
[1] Limbach Holdings Inc. (2025). Limbach Holdings Reports Q2 2025 Results. [Press Release]. Retrieved from https://www.limbach.com/investor-relations/press-releases/
[2] Zacks Investment Research (2025). Limbach Holdings Q2 2025 Earnings Call Transcript. Retrieved from https://www.zacks.com/commentary/1829679/limbach-holdings-q2-2025-earnings-call-transcript
[3] Yahoo Finance (2025). Limbach Holdings Inc. (LMB) Q2 2025 Earnings Call Transcript. Retrieved from https://finance.yahoo.com/news/limbach-holdings-inc-lmb-q2-251000696.html
The strong emphasis on the Owner Direct Relationships (ODR) business in Limbach Holdings' growth strategy has contributed significantly to their financial performance, with the ODR segment accounting for the majority of total revenue and experiencing a substantial year-over-year growth. Consequently, this strategic focus on ODR could potentially capitalize on their customer relationships and market reach, making it an attractive investment option in the finance and business sectors.
