Limbach Holdings, Inc. · NASDAQ:LMB
Limbach — Q1 2025 Earnings Presentation
29 slides from Limbach's earnings presentation, May 6, 2025
Slide 1: Investor Presentation: Growth & Market Positioning
NASDAQ: LMB Q1 Earnings | May 2025 Investor Presentation Growth & Market Positioning
Slide 2: Forward Looking Statements
Forward Looking Statements We make forward-looking statements in this presentation within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts for future events, including, without limitation, the execution of the C
Slide 3: Limbach is a leading building systems solutions firm
Limbach is a leading building systems solutions firm specializing in revitalizing and maintaining mission-critical systems in existing facilities to keep them performing when it matters most. NASDAQ: LMB | 3
Slide 4: Limbach At-A-Glance
Limbach At-A-Glance WHO WHO WE OUR WE ARE PARTNER WITH PURPOSE A building systems solutions firm with expertise in We partner with Building Owners with Our people make a critical difference in providing and mechanical, electrical, and plumbing systems. Mission-Critical MEP Infrastructure optimizing
Slide 5: Transforming Into a Building Systems Solutions Firm
Transforming Into a Building Systems Solutions Firm As a leading Building Systems Solutions firm, we uniquely combine our engineering expertise with skilled craftsmanship to deliver fully integrated solutions. With a deep commitment to our customers’ existing mission-critical infrastructure, we crea
Slide 6: Mission-Critical Vertical Markets
Durable Demand Through the Vertical Markets We Serve Mission-Critical Vertical Markets Healthcare Industrial & Manufacturing Data Centers Life Sciences Higher Education Cultural & Entertainment Revenue Constant National Growth Diversification Demand Opportunity We operate in six distinct vertical Mi
Slide 7: Durable Demand Through Existing Infrastructure Focus
Durable Demand Through Existing Infrastructure Focus Macroeconomic Resilience Equipment will break, repairs/replacements are constant Fast-Paced Execution Allowing us to adapt and efficiently allocate costs Budget Agility Catering to customer needs spanning both Operating Expense (OpEx) and Capital
Slide 8: Competitive Matrix - Market Positioning & Differentiation
Competitive Matrix - Market Positioning & Differentiation Limbach stands apart by combining the best elements of the industry to deliver comprehensive, end-to-end facility solutions, offering investors a scalable, standardized enterprise model that maximizes long-term value in mission-critical marke
Slide 9: Two Operating Segments - ODR and GCR
Two Operating Segments - ODR and GCR Owner Direct Relationships (“ODR”) General Contractor Relationships (“GCR”) Existing Buildings New Construction ODR work is driven by developing and proposing customized solutions GCR projects are characterized as having a solution in place therefore that are dev
Slide 10: Focused on Growth
Focused on Growth Three Pillar Approach to Scale the Business: Organic Segment Revenue Margin Expansion Scale Through Percentage Mix Shift Target Through Evolved Offerings Acquisitions Traditional Speciality Contractor GCR Services ~20% ODR ~80% OpEx CapEx Infrastructure Integrated Professional Supp
Slide 11: Pillar #1 - ODR Revenue Percentage and Margin Expansion
Pillar #1 - Performance Result of Transition Towards Optimal Mix Shift Over the period from FY 2019 – FY 2024, Gross Margin has expanded nearly 1,480 bps to 27.8% This has enabled us to drive Adjusted EBITDA Margin1 more than 4x from 3.0% to 12.3% ODR Rev. % 80.0% Gross Margin / Adjusted EBITDA Marg
Slide 12: Pillar #1 – Total Revenue is Static, but Higher Margin ODR Revenue is Growing
Pillar #1 – Total Revenue is Static, but Higher Margin ODR Revenue is Growing Total Revenue ODR Revenue $518.8M $516.4M $553.3M $568.2M $490.4M $496.8M $345.5M $262.0M $216.4M $127.2M $140.3M $115.1M 2019 2020 2021 2022 2023 2024 Total revenue growth projected Total Revenue is ODR Revenue CAGR of 21
Slide 13: Pillar #2 - Expanded Margins through Evolved LMB Offerings
Pillar #2 - Expanded Margins through Evolved LMB Offerings Evolved LMB Offerings Customer Value Mission-critical building systems solutions support Integrated Facility Planning providing best-in-class options for long- and short-term impacts. Rental Equipment LMB experts are onsite to reduce downtim
Slide 14: Pillar #2 - Building Relationships Locally & Nationally
Pillar #2 - Building Relationships Locally & Nationally A Top 10 National Ohio Facilities Healthcare Provider’s Footprint ● Partner For: 6 Local Acute Care Facilities ● Offerings: Engineering Consulting, Equipment Replacements & Retrofits, Rental Equipment, Maintenance & Repairs and Asset Comparison
Slide 15: Pillar #2 - What We Do - Catering to Customer Needs & Budgets
Pillar #2 - What We Do - Catering to Customer Needs & Budgets Operating Expense Capital Projects Professional Services Replacements & Maintenance & Integrated Facility Energy Efficiency Engineering Capital Retrofits Repairs Planning Solutions Consulting Planning Rental Energy Financing Decarbonizati
Slide 16: Pillar #3 - Current & Target Geographies
Pillar #3 - Current & Target Geographies Disciplined and focused M&A strategy comprises “Tuck-In” and “Expansion” acquisitions of companies with consistent and scalable business models Tuck-In Acquisition Criteria ❑ Total Annual Revenue: $10-15M w/80%+ ODR Revenue ❑ +15% YoY ODR Growth ❑ Focus on Gr
Slide 17: Pillar #3 - Value Creation Through Integrating Into a Common Platform
Pillar #3 - Value Creation Through Integrating Into a Common Platform Our acquisition strategy prioritizes alignment and specialized value, ensuring that each partnership enhances our culture and niche. By integrating into a common platform, we strengthen owner relationships and follow a proven valu
Slide 18: Pillar #3 - Recent Expansion Transaction
Pillar #3 - Recent Expansion Transaction – Closed December 2nd, 2024 M&A CRITERIA: The acquisition expands Limbach’s reach into Kentucky, Illinois, and Michigan, while Geographic Proximity: Consolidated Mechanical’s Western Michigan presence complements existing - Attractive Operating Footprint oper
Slide 19: Pillar #3 - Recent Tuck-In Transaction
Pillar #3 - Recent Tuck-In Transaction – Closed September 3rd, 2024 M&A CRITERIA: We believe the combination of Kent Island Mechanical and our Mid-Atlantic operating Geographic Proximity: unit will create a dominant mechanical systems solutions provider in the high growth, - Attractive Operating Foo
Slide 20: Strong Balance Sheet and Disciplined Capital Allocation Strategy
Strong Balance Sheet and Disciplined Capital Allocation Strategy Key Balance Sheet Items March 31, December 31, 20251 20241 Cash and Cash Equivalents $38.1 $44.9 Balance Sheet to fund organic growth and acquisitions Current Assets $204.5 $220.3 Current Liabilities $131.7 $151.0 Working Capital $72.8
Slide 21: Financial Goals
Financial Goals 2025 Guidance1 Revenue Gross Margin / Adj. EBITDA Cash $610M to $630M Total Revenue Total Gross Margin 28% to 29% Continued Strong Cash Flow Mix Shift 70% to 80% ODR Adjusted EBITDA $78M to $82M 75% of Adj. EBITDA = Free Cash ODR Revenue Growth 23% to 46% Adj. EBITDA Margin 12.5% to
Slide 22: Stockholder Value Drivers
Stockholder Value Drivers Strong Growth Durable, Recurring Resilient Business Scalable Business Strategy: Organic Demand through Model and Strong Platform Focused on Expansion & Strategic Economic Cycles Balance Sheet Revitalizing Existing Acquisitions Infrastructure NASDAQ: LMB | 22
Slide 23: Appendix
APPENDIX 23
Slide 24: Operating and Financial Update
Operating and Financial Update QTD 1Q’25 Performance Revenue1 Gross Profit and (Margin)1 Adjusted EBITDA2 $133.1 $36.7 (27.6%) $119.0 $31.1 $14.9 $90.4 (26.1%) $26.2 $74.3 $22.2 $11.8 $44.7 $42.7 $10.6 $8.9 1Q’24 1Q’25 1Q’24 1Q’25 1Q’24 1Q’25 Year-Over-Year Year-Over-Year Year-Over-Year Change Chang
Slide 25: Sustainability at Limbach
Sustainability at Limbach People: Empowering Our Team & Supporting Our Communities ● We champion employee health and safety through our Hearts & Minds program Revit dited alizin ● We offer competitive compensation and a range of benefits and programs Accre Infra g Existin Industry ing struc ture g ●
Slide 26: Non-GAAP Reconciliation Table: Adjusted EBITDA Margin
Non-GAAP Reconciliation Table Reconciliation of Adjusted EBITDA Margin* Fiscal Year Ended December 31, Three Months Ended March 31, (in thousands) 2019 2020 2021 2022 2023 2024 2025 2024 Revenue: $ 553,334 $ 568,209 $ 490,351 $ 496,782 $ 516,350 $ 518,781 $ 133,108 $ 118,976 Net income (loss) ($ 1,7
Slide 27: Non-GAAP Reconciliation Table: Adjusted Diluted EPS
Non-GAAP Reconciliation Table Reconciliation of Adjusted Diluted Earnings Per Share* Fiscal Year Ended December 31, Three Months Ended March 31, (In thousands, except share and per share amounts) 2019 2020 2021 2022 2023 2024 2025 2024 Net income (loss) and diluted earnings per share $(1,775) $(0.23
Slide 28: Non-GAAP Reconciliation Table: Free Cash Flow
Non-GAAP Reconciliation Table Reconciliation of Free Cash Flow* Fiscal Year Ended December 31, Three Months Ended March 31, (in thousands) 2019 2020 2021 2022 2023 2024 2025 2024 Adjusted EBITDA: $ 16,752 $ 25,111 $ 23,276 $ 31,765 $ 46,801 $63,714 $ 14,872 $ 11,757 Free Cash Flow: Net Income (loss)
Slide 29: Contact Us
Contact Us INVESTOR RELATIONS Financial Profiles LMB@finprofiles.com @Limbach @Limbach @Limbachinc @Limbach @LimbachFacilityServices