LMB earnings analysis
What we found in LMB's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
- 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%.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.39
- Gross margin
- 21.5%
- Operating margin
- 4.2%
- Segment
- ODR revenue: $128.414 million, up $19.466 million or 17.9% year over year; gross margin 24.0% versus 29.0%.
- Segment
- GCR revenue: $45.043 million, up $11.750 million or 35.3% year over year; gross margin 14.5% versus 24.7%.
What they said about what is next.
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.
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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