Limbach’s first quarter performance was met with a positive market reaction, reflecting the company’s ability to outperform Wall Street expectations on both revenue and adjusted profits. Management attributed the robust results to the ongoing shift towards owner-direct relationships, with the Owner Direct Relationship (ODR) segment now making up nearly 68% of revenue. CEO Michael McCann highlighted the company’s focus on building long-term partnerships with customers, particularly in the healthcare sector, which benefited from rising demand for deferred maintenance and infrastructure upgrades. McCann also noted the impact of recent investments in sales personnel, stating, “This investment is an important step in the continued evolution of our relationship with our customers.”
Is now the time to buy LMB? Find out in our full research report (it’s free).
Limbach (LMB) Q1 CY2025 Highlights:
- Revenue: $133.1 million vs analyst estimates of $121.1 million (11.9% year-on-year growth, 10% beat)
- Adjusted EPS: $1.12 vs analyst estimates of $0.43 (significant beat)
- Adjusted EBITDA: $14.87 million vs analyst estimates of $10.34 million (11.2% margin, 43.8% beat)
- The company reconfirmed its revenue guidance for the full year of $620 million at the midpoint
- EBITDA guidance for the full year is $80 million at the midpoint, above analyst estimates of $78.6 million
- Operating Margin: 6.3%, in line with the same quarter last year
- Market Capitalization: $1.58 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Limbach’s Q1 Earnings Call
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Rob Brown (Lake Street Capital): Brown asked about the healthcare vertical’s rebound and how deferred maintenance is impacting project activity. CEO Michael McCann described a “slow ramp up” as hospitals prioritize long-term capital planning, supported by stable demand.
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Rob Brown (Lake Street Capital): Brown also questioned the effect of tariffs and whether project pull-forwards pose a risk. McCann stated that tariffs have been neutral so far, with the company’s nimble model allowing quick cost pass-through and rapid project cycles.
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Chris Moore (CJS Securities): Moore inquired about the criteria for assigning account managers to ODR clients and the process for developing deep partnerships. McCann explained that account managers are deployed after careful analysis of client potential, with a focus on scaling local relationships to national accounts.
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Gerry Sweeney (ROTH Capital Partners): Sweeney sought details about the ramp-up and integration of new sales hires. McCann indicated that most new hires are onsite account managers, with a typical ramp dependent on client type and sales role.
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Brian Brophy (Stifel): Brophy asked if the acceleration seen in March was above normal seasonality and about recent industry disruptions. McCann attributed the uptick to both seasonality and the impact of new sales personnel, while noting that equipment transitions from regulatory changes can create decision points for customers.
Catalysts in Upcoming Quarters
Looking forward, our analysts will be watching (1) the pace of ODR revenue growth and the ability to increase its share of total sales, (2) the effectiveness of new sales hires in winning recurring and higher-margin business, and (3) progress on geographic expansion through both acquisitions and organic growth. Additionally, integration success of recent acquisitions and responsiveness to tariff or input cost volatility will be key markers of execution.
Limbach currently trades at $136.63, up from $103.13 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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