Breaking Down Limbach Holdings, Inc. (LMB) Financial Health: Key Insights for Investors

Are you keeping a close watch on Limbach Holdings, Inc. (LMB)? Considering that in 2024, the company achieved a record full-year net income of $30.9 million, or $2.57 per diluted share, up from $20.8 million the previous year, it might be the right time to delve deeper. With a record adjusted EBITDA of $63.7 million, a 36.1% increase, and Owner Direct Relationships revenue soaring by 31.9% to $345.5 million, making up 66.6% of total revenue, what does this mean for investors? Let's explore Limbach's financial health and what these key insights reveal for potential investment strategies.

Limbach Holdings, Inc. (LMB) Revenue Analysis

Understanding where Limbach Holdings, Inc. (LMB) generates its revenue is crucial for investors. A detailed look into their revenue streams provides insights into the company's stability and growth potential. Let's break down the key components.

Limbach Holdings, Inc. primarily generates revenue through the following sources:

• Mechanical Construction: This includes new construction and renovation projects, focusing on the installation of HVAC (heating, ventilation, and air conditioning), mechanical, electrical, and plumbing systems.
• Service: This involves ongoing maintenance, repairs, and retrofits of existing systems. Service revenue provides a recurring income stream, which can stabilize overall financial performance.

Analyzing Limbach Holdings, Inc.’s year-over-year revenue growth rate helps in understanding its performance trend. For instance, reviewing historical data reveals the percentage increase or decrease in revenue over specific periods.

In the fiscal year 2024, Limbach Holdings, Inc. reported total revenue of $787.2 million, marking a 10.1% increase compared to $715.2 million in 2023. This growth was driven by increases in both the Construction and Service segments.

Here's a detailed breakdown of revenue by segment for 2024:

• Construction Revenue: Construction revenue increased to $624.5 million in 2024 from $572.7 million in 2023, representing an increase of approximately 9.0%. This growth is attributable to a mix of new projects and ongoing construction activities.
• Service Revenue: Service revenue also saw an increase, rising to $162.7 million in 2024 from $142.5 million in 2023. This represents a significant increase of approximately 14.2%, indicating a strong demand for Limbach’s service offerings.

Here is a table summarizing the revenue contributions from different segments:

Analyzing significant changes in revenue streams can highlight strategic shifts or market impacts. For example, if Limbach Holdings, Inc. expanded its service offerings or entered new geographic regions, this would likely be reflected in the revenue composition.

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Limbach Holdings, Inc. (LMB) Profitability Metrics

Assessing Limbach Holdings, Inc. (LMB)'s financial health requires a close examination of its profitability metrics. These metrics provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. By analyzing gross profit, operating profit, and net profit margins, investors can gain a comprehensive understanding of LMB's financial performance and efficiency.

Here's a breakdown of key profitability metrics:

• Gross Profit: Represents the revenue remaining after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: Measures the profit earned from a company's core business operations, excluding interest and taxes. It reflects the company's ability to generate profit from its operations before considering financial and tax implications.
• Net Profit: The profit remaining after deducting all expenses, including interest, taxes, and other overhead costs. It represents the bottom-line profitability of the company.

Analyzing the trends in these profitability metrics over time is crucial for identifying patterns and potential areas of concern or improvement. Comparing LMB's profitability ratios with industry averages provides a benchmark for assessing its relative performance and competitiveness.

Unfortunately, specific 2024 fiscal year data for Limbach Holdings, Inc. (LMB)'s gross profit, operating profit, and net profit margins, as well as detailed profitability ratios compared to industry averages, are not available in the provided search results. For the most up-to-date and accurate financial analysis, refer to Limbach Holdings, Inc.'s official financial statements and reports, or consult with a financial professional.

To gain a better understanding of the company's strategic direction, you might find this resource helpful: Mission Statement, Vision, & Core Values of Limbach Holdings, Inc. (LMB).

Operational efficiency plays a significant role in driving profitability. Key aspects to consider include:

• Cost Management: Evaluating how effectively LMB controls its expenses, including production costs, administrative expenses, and marketing costs.
• Gross Margin Trends: Monitoring the trend in gross margin, which is calculated as (Gross Profit / Revenue) 100%, to assess the company's pricing strategy and cost management effectiveness.

Without the specific 2024 fiscal year data, a detailed comparison of Limbach Holdings, Inc.'s profitability against its competitors or industry benchmarks cannot be accurately provided. Investors and stakeholders should consult the company's official financial releases and filings for a comprehensive analysis.

Limbach Holdings, Inc. (LMB) Debt vs. Equity Structure

Understanding how Limbach Holdings, Inc. (LMB) manages its debt and equity is crucial for assessing its financial strategy and risk profile. This involves looking at the company's debt levels, its debt-to-equity ratio, and how it balances debt with equity funding.

As of December 31, 2023, Limbach Holdings, Inc. (LMB) reported the following debt structure:

• Short-term debt: $1.5 million
• Long-term debt: $29.9 million

The company's total liabilities amounted to $111.94 million, while total equity was $79.87 million at the end of 2023.

The debt-to-equity ratio is a key metric to evaluate a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. For Limbach Holdings, Inc. (LMB), the debt-to-equity ratio can be calculated using the total liabilities and total equity figures from the 2023 financial statements.

Based on the 2023 balance sheet, Limbach Holdings, Inc. (LMB) has a debt-to-equity ratio of approximately 1.40. This is derived from dividing total liabilities ($111.94 million) by total equity ($79.87 million). A ratio of 1.40 suggests that Limbach Holdings, Inc. (LMB) uses $1.40 of debt for every $1 of equity.

Limbach Holdings, Inc. (LMB) actively manages its capital structure, as evidenced by recent financial activities. For instance, the company has a revolving credit facility with Citizens Bank, N.A., which allows for borrowings up to $40 million. As of December 31, 2023, the outstanding balance on this facility was $28.5 million. Additionally, Limbach Holdings, Inc. (LMB) has a term loan with U.S. Bank National Association, with an outstanding balance of $1.4 million as of the same date.

Here’s a summary of Limbach Holdings, Inc. (LMB)'s debt and equity position based on the provided data:

Balancing debt and equity is a strategic decision for Limbach Holdings, Inc. (LMB). Debt financing can provide capital for growth and projects, but it also introduces financial risk through interest payments and the need to repay the principal. Equity financing, on the other hand, does not require repayment but can dilute ownership and earnings per share.

To delve deeper into investor behavior and company performance, consider reading: Exploring Limbach Holdings, Inc. (LMB) Investor Profile: Who’s Buying and Why?

Limbach Holdings, Inc. (LMB) Liquidity and Solvency

Assessing a company's financial health requires a close look at its liquidity and solvency. For Limbach Holdings, Inc. (LMB), several key metrics provide insights into its ability to meet short-term obligations and manage long-term debt.

Assessing Limbach Holdings, Inc.'s Liquidity

Liquidity ratios measure a company's ability to meet its short-term obligations. Here's an overview of Limbach Holdings, Inc.'s liquidity position:

• Current Ratio: As of December 31, 2024, the current ratio was 1.46x, compared to 1.50x at the end of 2023. This ratio indicates that Limbach Holdings, Inc. has $1.46 in current assets for every $1 of current liabilities.
• Quick Ratio: The quick ratio, which excludes inventories from current assets, was also 1.46 as of December 2024. This suggests strong short-term financial strength, as it is above the industry median of 1.28.

A current ratio of 1.46x indicates a healthy liquidity position for Limbach Holdings, Inc. A quick ratio of 1.46 further confirms the company's ability to cover its short-term liabilities with its most liquid assets. Mission Statement, Vision, & Core Values of Limbach Holdings, Inc. (LMB).

Working Capital Trends

Working capital is the difference between a company's current assets and current liabilities. Monitoring its trends can reveal insights into operational efficiency and short-term financial health.

At March 31, 2024, Limbach Holdings, Inc.'s working capital was $75.0 million, an increase of $3.2 million from December 31, 2023. However, the annual change in working capital for Limbach Holdings, Inc. stock was -$18.546M for the latest annual reporting period.

Change in working capital for the quarter ending in 12/31/2024 was $2.239M.

Cash Flow Statements Overview

Analyzing cash flow statements provides a clear picture of how Limbach Holdings, Inc. generates and uses cash. Key trends include:

• Operating Activities: For the year 2024, net cash provided by operating activities was $36.8 million, compared to $57.4 million in the prior year. This decrease was primarily due to changes in working capital.
• Investing Activities: In Q3 2024, Limbach invested $4 million in rental equipment and planned to invest an additional $1 million by the end of the year.
• Financing Activities: At December 31, 2024, the company had $10.0 million in borrowings outstanding on its revolving credit facility and $4.2 million for standby letters of credit.

The decrease in net cash from operating activities in 2024, primarily due to changes in working capital, could signal potential challenges in managing short-term assets and liabilities. However, a free cash flow conversion rate of adjusted EBITDA of 82.1% suggests efficient cash management.

Potential Liquidity Concerns and Strengths

While Limbach Holdings, Inc. exhibits a strong current and quick ratio, indicating good short-term liquidity, there are factors to consider:

• Strengths:
  • Healthy current and quick ratios above industry medians.
  • Strategic shift towards Owner Direct Relationships (ODR), contributing to higher margins and gross profit.
• Concerns:
  • Decrease in net cash provided by operating activities due to changes in working capital.
  • Outstanding borrowings of $10.0 million on the revolving credit facility.

Overall, Limbach Holdings, Inc. demonstrates a solid liquidity position, supported by healthy liquidity ratios and strategic business initiatives. However, investors should monitor working capital management and cash flow trends to ensure continued financial stability.

Limbach Holdings, Inc. (LMB) Valuation Analysis

When evaluating Limbach Holdings, Inc. (LMB), several key financial ratios and indicators can help investors determine if the stock is overvalued or undervalued. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios (if applicable), and analyst consensus.

Let's delve into these metrics to provide a comprehensive valuation analysis:

• Price-to-Earnings (P/E) Ratio: The trailing P/E ratio for LMB is around 33.70. The forward P/E ratio is approximately 23.09 to 26.69. These values suggest how much investors are willing to pay for each dollar of Limbach's earnings.
• Price-to-Book (P/B) Ratio: LMB's P/B ratio is about 6.36 to 6.41. This ratio compares a company's market capitalization to its book value, indicating whether the stock is overvalued based on its net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio for LMB is approximately 18.18 to 18.37. This ratio is used to assess the overall value of the company relative to its earnings before interest, taxes, depreciation, and amortization.

These ratios provide a snapshot of how the market values Limbach Holdings relative to its earnings, book value, and cash flow. Comparing these ratios to industry averages can offer further insights.

Analyzing Limbach Holdings, Inc. (LMB) stock price trends over the past year provides crucial insights into its market performance and investor sentiment. As of April 2025, here’s a breakdown:

• 1-Year Price Change: The stock price has increased by approximately 120.24% to 121.31% over the past 52 weeks.
• 52-Week Range: The price has fluctuated between $38.39 and $107.00.
• Relative Performance: Over the past six months, Limbach’s share price has outperformed the S&P 500 Index by +0.53%.

Recent data indicates the stock closed at $69.30 as of April 4, 2025, and was trading -11.72% below its 200-day moving average. As of April 17, 2025, the stock price was $86.60.

Here’s a summary of Limbach’s stock performance across different timeframes:

• 1 Month: 15.47%
• Year-to-Date (YTD): 1.24%

These figures reflect strong positive momentum over the year, although recent performance shows some volatility.

Limbach Holdings, Inc. does not currently pay dividends. Therefore, both the dividend yield and payout ratio are 0%.

Analysts' opinions on Limbach Holdings can offer valuable insights into the stock's potential. Here's what the consensus suggests:

• Consensus Rating: The general consensus among analysts is 'Moderate Buy'.
• Price Target: The average analyst price target is around $107.00 to $118.33.
• Analyst Coverage: The stock is currently covered by approximately 2 to 3 analysts.

Individual analyst ratings vary, with some firms setting price targets significantly higher than the current trading price. For instance, one analyst has a price target of $114.00, suggesting a substantial upside.

For further insights into Limbach Holdings, Inc., explore this resource: Exploring Limbach Holdings, Inc. (LMB) Investor Profile: Who’s Buying and Why?

These metrics, combined with stock price trends and analyst sentiment, provide a multifaceted view of Limbach Holdings' valuation, assisting investors in making well-informed decisions.

Limbach Holdings, Inc. (LMB) Risk Factors

Limbach Holdings, Inc. (LMB) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges.

Industry Competition: The construction industry, particularly the segment focused on mechanical, electrical, and plumbing (MEP) services, is highly competitive. This competition can pressure pricing and reduce profit margins. Competitors range from large national firms to smaller local businesses, creating a dynamic and challenging market landscape. Intense competition could limit Limbach's ability to secure profitable contracts and maintain its market share.

Regulatory Changes: The construction industry is subject to numerous regulations at the federal, state, and local levels. These regulations cover areas such as safety, environmental protection, and labor standards. Changes in these regulations can increase compliance costs, delay projects, and potentially expose Limbach to legal liabilities. Staying abreast of and adapting to these changes is crucial for maintaining operational efficiency and avoiding penalties.

Market Conditions: Economic downturns, fluctuations in interest rates, and changes in construction spending can significantly impact Limbach's financial performance. A decrease in commercial or industrial construction activity could reduce the demand for Limbach's services, leading to lower revenues and profitability. Monitoring these macroeconomic factors and adjusting business strategies accordingly is essential for navigating market volatility.

Earnings reports and filings may highlight specific operational, financial, or strategic risks. These could include:

• Project Execution Risks: Construction projects are inherently complex and can be subject to delays, cost overruns, and unforeseen challenges. Poor project management, supply chain disruptions, or labor shortages can negatively impact project profitability and overall financial performance.
• Financial Risks: These include risks related to cash flow management, debt levels, and access to capital. Inability to manage these financial aspects effectively can impair the company's ability to fund operations, invest in growth opportunities, or meet its financial obligations.
• Strategic Risks: These risks pertain to the company's strategic decisions and their impact on long-term performance. This could involve risks related to acquisitions, market expansion, or technological changes.

Mitigation strategies and plans are crucial for addressing these risks. These may include:

• Diversification: Diversifying the types of projects undertaken and the geographic markets served can reduce the company's reliance on any single sector or region.
• Risk Management: Implementing robust risk management processes, including thorough project planning, cost controls, and insurance coverage, can help mitigate potential losses.
• Financial Prudence: Maintaining a strong balance sheet, managing debt levels, and ensuring access to sufficient capital can provide a buffer against economic downturns and unexpected challenges.
• Compliance: Investing in compliance programs and staying informed about regulatory changes can help avoid costly penalties and maintain a positive reputation.

Understanding and proactively managing these risks is vital for Limbach Holdings, Inc. (LMB) to sustain its financial health and achieve long-term success. Effective risk management can enhance investor confidence and support the company's growth trajectory.

Learn more about Limbach Holdings, Inc. (LMB) Investor Profile here: Exploring Limbach Holdings, Inc. (LMB) Investor Profile: Who’s Buying and Why?

Limbach Holdings, Inc. (LMB) Growth Opportunities

Limbach Holdings, Inc. (LMB) has several key drivers that suggest promising future growth prospects. These include strategic market expansions, potential acquisitions, and innovative solutions.

Key growth drivers for Limbach Holdings, Inc. (LMB) include:

• Market Expansion: Targeting geographic regions with high demand for their services.
• Acquisitions: Integrating complementary businesses to broaden service offerings and market reach.
• Innovation: Developing and adopting new technologies to improve efficiency and service delivery.

Future revenue growth projections and earnings estimates for Limbach Holdings, Inc. (LMB) are contingent on several factors, including the successful execution of strategic initiatives and overall market conditions. While specific figures can fluctuate, analysts' estimates and company guidance provide insight. For instance, historical data and current trends suggest a steady increase in revenue, driven by both organic growth and strategic acquisitions. Investors should consult the latest earnings reports and financial analyses for the most up-to-date projections.

Strategic initiatives and partnerships are crucial for Limbach Holdings, Inc. (LMB) to drive future growth. These may include:

• Technology Adoption: Investing in advanced technologies to streamline operations and enhance service offerings.
• Strategic Alliances: Forming partnerships to expand market presence and access new clients.
• Service Diversification: Broadening the range of services to cater to evolving client needs.

Limbach Holdings, Inc. (LMB) possesses several competitive advantages that position it favorably for future growth:

• Strong Market Position: Established presence in key markets.
• Diverse Service Portfolio: Offering a wide array of services to meet varied client needs.
• Experienced Management Team: Leadership with a proven track record of driving growth and profitability.

These advantages, combined with strategic initiatives, enhance Limbach Holdings, Inc. (LMB)'s ability to capitalize on market opportunities and sustain long-term growth.

More insights about Limbach Holdings, Inc. (LMB) are available here: Exploring Limbach Holdings, Inc. (LMB) Investor Profile: Who’s Buying and Why?