Limbach Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue increased 24.9% year-over-year to $230.5 million from $184.6 million.
• Total gross profit increased 20.5% to $53.8 million from $44.7 million; total gross margin was 23.4% compared to 24.2% in the prior year period.
• Net income increased 7.5% to $9.5 million ($0.79 per diluted share) from $8.8 million ($0.73 per diluted share).
• Adjusted net income increased 29.0% to $16.4 million ($1.37 per adjusted diluted EPS) from $12.7 million ($1.05 per adjusted diluted EPS).
• Record adjusted EBITDA increased 25.9% to $27.4 million from $21.8 million.
• Net cash provided by operating activities increased to $20.3 million from $13.3 million.
• SG&A expense increased $6.3 million to $34.6 million; SG&A as a percentage of revenue decreased to 15.0% from 15.3%.
• Interest expense was $1.2 million, relatively flat period-over-period.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance is $760 million to $790 million; the company expects to be at or near the high end of this range.
• Full-year 2026 adjusted EBITDA guidance is $78 million to $84 million.
• Assumptions for 2026 include total organic revenue growth of 9-14%, ODR revenue as 70-80% of total revenue, and ODR organic revenue growth of 6-10%.
• Projected gross margin percentage is 23-24%, and SG&A expense as a percentage of revenue is 15-16%.
• Free cash flow is expected to be 75% of Adjusted EBITDA.
• Management anticipates continued execution of backlog and new bookings to support further organic revenue growth for the remainder of 2026.
• The company intends to deploy free cash flow to reduce borrowings under its revolving credit facility for the remainder of the year.

Business Segments and Product Lines:

• Owner Direct Relationships (ODR) revenue increased 6.6% to $150.7 million, representing 65.4% of total revenue.
• General Contractor Relationships (GCR) revenue increased 84.7% to $79.8 million.
• Total bookings were $311.2 million, resulting in a book-to-bill ratio of 1.4x.
• Acquisition-related revenue contributed $19.3 million (10.5% of total revenue) from the third-quarter acquisitions of CYMCOR, Inc. and 1901 Inc.
• ODR gross profit increased 7.1% to $38.2 million with a margin of 25.4% (up from 25.2%).
• GCR gross profit increased 73.6% to $15.6 million with a margin of 19.6% (down from 20.8%).
• Management is implementing operational and pricing initiatives to improve profitability of recently acquired businesses, targeting gross margins closer to historical averages over the next two to three years.

Market and Competitive Landscape:

• The company partners with building owners and operators of mission-critical facilities across healthcare, industrial and manufacturing, data centers, life sciences, higher education, and cultural and entertainment markets.
• Acquisitions of CYMCOR and 1901 broaden geographic reach and technical expertise, adding opportunities in data centers, life sciences, and advanced manufacturing.
• Management notes a return to organic growth in the owner-direct business and improving customer activity.

Risks and Challenges:

• Integration of recently acquired businesses (CYMCOR and 1901) and the ability to improve their gross margins to historical averages.
• Variability and complexity of items excluded from Adjusted EBITDA and free cash flow, which could have an unpredictable and significant impact on future results.
• Changes in customer budgets and the timing of project awards and commencements.
• Conversion of bookings and backlog into revenue.
• Level of indebtedness and compliance with covenants under PNC credit facilities.
• Potential impacts from health crises, epidemics, or pandemics, including supply chain disruptions.

Management Commentary and Tone:

• Michael McCann, President and CEO, stated that third-quarter results reflect improving customer activity and a return to organic growth.
• Management believes project timing issues discussed earlier in the year are beginning to ease, providing a clearer view of future work.
• The strategy remains centered on deepening customer relationships and delivering consistent project performance.
• Management expressed confidence in tracking at or near the high end of revenue and adjusted EBITDA guidance ranges due to core business improvements and acquisition contributions.
• The tone indicates a focus on integrating new businesses and converting customer activity into earnings and cash flow while maintaining financial flexibility for 2027.

Other Key Points:

• The company completed two acquisitions during the third quarter: CYMCOR, Inc. and 1901 Inc.
• On September 30, 2026, cash and cash equivalents were $29.1 million.
• Borrowings outstanding included $75.0 million under the PNC Revolving Credit Facility and $50.0 million under the PNC Term Loan Facility; approximately $125.0 million remained available under the Revolving Credit Facility.
• Current ratio was 1.54x as of September 30, 2026, compared to 1.44x at December 31, 2025.
• The company repurchased $10.0 million of common stock under its Share Repurchase Program during the nine months ended September 30, 2026.
• Conference call scheduled for November 4, 2026, at 9:00 a.m. Eastern Time.