10-Q · May 5, 2026
Limbach Holdings reported strong Q1 2026 results with revenue of $138.9 million, a 4.3% increase from the prior year, bolstered by its ODR segment, which grew 10.4%. Despite a significant EPS beat at $0.64 compared to…
Earnings analysis · 10-Q
LMB earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Limbach delivered 21.9% Q2 revenue growth to $173.457 million, but nearly all of the increase came from Pioneer Power and organic revenue was essentially flat. Gross margin contracted to 21.5% from 28.0%, driving…
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Limbach delivered 21.9% Q2 revenue growth to $173.457 million, but nearly all of the increase came from Pioneer Power and organic revenue was essentially flat. Gross margin contracted to 21.5% from 28.0%, driving operating income down to $7.252 million from $10.642 million and GAAP diluted EPS to $0.39 from $0.64. Backlog, operating cash flow, and working capital improved, but management expects margins to remain below 2025 levels for the rest of 2026 despite anticipated sequential improvement.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.39
What stood out
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Revenue grew 21.9% to $173.5M
Q2 revenue increased 21.9% year over year to $173.457 million, including a $30.9 million contribution from Pioneer Power. Sequentially, revenue increased from $139 million in Q1 2026 to $173.457 million.
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Both segments grew, led by GCR
Both operating segments expanded: ODR revenue rose 17.9% to $128.414 million and GCR revenue rose 35.3% to $45.043 million. GCR also produced $4.0 million of organic growth, while ODR organic revenue declined $3.7 million.
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Backlog supports second-half activity
Backlog improved materially: ODR backlog rose to $283.6 million from $255.8 million at December 31, 2025, and GCR backlog increased to $200.1 million from $141.8 million. Management estimates 68% of ODR backlog and 57% of GCR backlog will convert to revenue during the remainder of 2026.
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Operating cash flow improved $6.7M
Six-month operating cash flow increased to $10.928 million from $4.242 million. Less $1.0 million of property-and-equipment purchases, implied free cash flow was approximately $9.928 million, with capex equal to about 0.3% of six-month revenue.
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Working capital and liquidity improved
Working-capital liquidity strengthened, with net working capital increasing to $72.902 million from $59.963 million and the current ratio rising to 1.49 from 1.44. Cash was $17.529 million and revolver availability was $75.550 million at June 30.
What to watch
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Severe gross-margin compression
Profitability weakened sharply despite revenue growth: gross margin fell 650 basis points year over year to 21.5% from 28.0%, while operating margin fell 330 basis points to 4.2% from 7.5%. Management attributes pressure to Pioneer Power's lower margin profile, lower net project write-ups, and skilled-labor/material competition in data-center work.
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EPS and earnings declined despite growth
Q2 net income declined 38.8% to $4.747 million from $7.762 million, and GAAP diluted EPS was $0.39 versus $0.64 in Q2 2025. Revenue was $173.457 million, below the $177.492 million consensus estimate provided.
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Organic growth remained weak
Growth remains acquisition-dependent: Pioneer Power supplied $30.9 million of the $31.2 million quarterly revenue increase, while total organic revenue increased only $0.3 million, or 0.2%. For the first six months, organic revenue declined $17.5 million.
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Receivables and leverage increased
Receivables consumed $16.347 million of cash in the first six months, a $22.802 million unfavorable swing versus the prior-year period. Total debt increased to $41.050 million from $35.921 million at year-end, including revolver borrowings of $17.500 million versus $10.000 million.
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Tariff, labor and material-cost exposure
Management cites continued uncertainty from tariffs, inflation, supply-chain conditions, and labor availability. Although effects were not material in the first six months, fixed-price work and long-lead equipment may create cost and margin risk; GCR gross margin was only 14.5% in Q2, down from 24.7%.
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No new material risk-factor update
Item 1A states there were no material risk-factor changes from the 2025 Form 10-K, other than the risk factor incorporated from the March 31, 2026 10-Q. Accordingly, this filing does not disclose a new quantified risk-factor update.
Management's outlook
The 10-Q provides no explicit numeric revenue or EPS guidance. Management expects organic revenue growth and improved gross margins during the remainder of 2026, but says margins will remain below comparable 2025 levels; numeric outlook was deferred to the earnings release/call.
Earlier filings 4
10-K · March 2, 2026
Limbach reported record 2025 results driven by its strategic shift to Owner Direct Relationships (ODR): revenue of $646.8 million and gross profit of $169.3 million, with ODR revenue up 40.6% to $485.7 million (75.1% of…
10-Q · November 4, 2025
Limbach reported Q3 revenue of $184.583M, up $50.663M (+37.9%) versus Q3 2024, with gross profit of $44.685M but a compressed gross margin of 24.2%. Operating income rose to $13.345M and diluted EPS increased to $0.73…
10-Q · August 5, 2025
Limbach reported Q2 revenue of $142.241M, up $20.006M (+16.4%) year-over-year and up $9.133M (+6.9%) sequentially, with gross margin of 28.0% and operating income of $10.642M. Net income was $7.762M (diluted EPS $0.64),…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.