Limbach Holdings ( (LMB) ) has released its Q3 earnings. Here is a breakdown of the information Limbach Holdings presented to its investors.
Limbach Holdings is a building systems solution company specializing in mechanical, electrical, and plumbing infrastructure for critical facilities across various sectors, including healthcare and data centers, in the eastern United States.
In its third-quarter 2024 earnings report, Limbach Holdings reported a net income of $7.5 million and a record quarterly adjusted EBITDA of $17.3 million, leading to an upward revision of its 2024 adjusted EBITDA guidance.
Key highlights from the report include a significant increase in Owner Direct Relationships (ODR) revenue by 41.3% to $93 million, contributing to a total revenue increase of 4.8% year-over-year. The company’s strategic focus on the ODR business and recent acquisitions, such as Kent Island Mechanical, have been pivotal in driving growth and enhancing market share, particularly in the Greater Washington, D.C. area. Gross profit also saw a boost, reaching $36.1 million, a 15.6% increase from the same period last year.
The report indicates a strategic shift towards the ODR segment, as evidenced by the decrease in General Contractor Relationships (GCR) revenue by 33.9%. The overall gross profit percentage improved to 27%, driven by higher-margin ODR projects. Management attributed these results to a successful execution of their growth strategy, which includes deeper customer engagement and expanding service offerings.
Looking ahead, Limbach Holdings is optimistic about sustained growth, with plans to continue acquiring new businesses and expanding its customer base. The company anticipates reaching its target revenue mix by 2025 and expects further growth in its top-line revenue, driven by strong demand across its key verticals.