Limbach Holdings, Inc. · NASDAQ:LMB

Limbach — Q2 2024 Earnings Presentation

27 slides from Limbach's earnings presentation, Aug 7, 2024

1. Slide 1: Q2 2024 Earnings Presentation

   "/- ! ՟՝՟աâ՟Eŏɦȟǥȟdžɶٟʙdžʙɶʄ՟՝՟ա xȟʶƛɶʄȰɦÝɦƛɶƛȟʄŏʄǥȰȟ

2. Slide 2: Forward-Looking Statements

   ]gq<gG ]]XQ[O/j<jIZI[jh 7IZ<XIN]gq<gGŸY]]XQ[Ohj<jIZI[jhQ[jPQhdgIhI[j<jQ][qQjPQ[jPIZI<[Q[O]NjPI+gQp<jI/IEkgQjQIh QjQO<jQ][.IN]gZEj]NÂÊÊƐ0PIhIN]gq<gGŸY]]XQ[O hj<jIZI[jhgIY<jIj]IrdIEj<jQ][h]gN]gIE<hjhN]gNkjkgIIpI[jhQ[EYkGQ[OqQjP]kjYQZQj<jQ][jPIIrIEkjQ][]NjPI ]Zd<[s’hY][OŸjIgZhjg<jIOQEg]<GZ<d<[G QZD

3. Slide 3: Limbach is a leading building systems solutions firm

   QZD<EPQh<YI<GQ[ODkQYGQ[OhshjIZh h]YkjQ][hNQgZhdIEQ<YQvQ[OQ[ gIpQj<YQvQ[OZQhhQ][ŸEgQjQE<Y ZIEP<[QE<Y›6 IYIEjgQE<Y<[G dYkZDQ[OQ[Ng<hjgkEjkgIqQjPQ[ IrQhjQ[ODkQYGQ[Oh "/- ! œÄ

4. Slide 4: Limbach at a Glance

   QZD<EPjŸŸY<[EI 7$ 7$7 $1. 7. +.0".70 $ 1/²!+ 0 DkQYGQ[OhshjIZhh]YkjQ][hNQgZqQjPIrdIgjQhIQ[ 7Id<gj[IgqQjP kQYGQ[O$q[IghqQjP $kgdI]dYIZ<XI<EgQjQE<YGQNNIgI[EIDsN]hjIgQ[O ZIEP<[QE<YIYIEjgQE<Y<[GdYkZDQ[OhshjIZh !QhhQ][Ÿ gQjQE<Y!+[Ng<hjgkEjkgI hkhj<Q[<DYIGIpIY]dZI[j<[GQZdg]pQ[OjPI I[pQg][ZI[jhQ[qPQEPq

5. Slide 5: Focused on Mission Critical Markets with Durable Demand

   $kgIs!<gXIjhŸ]EkhIG][!QhhQ][ gQjQE<Y!<gXIjhqQjPkg<DYIIZ<[G <gpQ[O]kg]q[d<jPj]YIhhI[jPIQZd<Ej]N Z<Eg]IE][]ZQEjgI[Gh I<YjPE<gI [GkhjgQ<Y²!<[kN<EjkgQ[O !QhhQ][ŸEgQjQE<YN<EQYQjQIhqPIgI ]dIg<jQ][hZkhjgIZ<Q[][YQ[I YIrQDQYQjsQ[DkGOIjhE<jIgQ[Oj]Ekhj]ZIg[IIGhhd<[[Q[O <j< I[jIgh QNI/EQI[EIh D]jP$dIg<jQ[OrdI[

6. Slide 6: Limbach combines the best aspects of each vertical

   QZD<EP ]ZDQ[Ih IhjŸQ[Ÿ Y<hhjjgQDkjIh]NIs6IgjQE<Yh 7PQYI]kgZ<gXIjP<h[kZIg]khE]ZdIjQj]gh QZD<EPP<hE]ZDQ[IGjPIDIhj<hdIEjh]NI<EPQ[jPQhhd<EI I[<DYQ[Okhj]DIjPI][IŸhj]dŸhP]dN]gDkQYGQ[O]q[Ighj]Z<rQZQvIjPIQgQ[pIhjZI[j]NjPIQgZQhhQ][ŸEgQjQE<Y<hhIjh [Ÿ]khI 0sdQE<Y khj]Z[OQ[IIgIG fkQdZI[j› 6IgjQE<Y!<gXIj r<Zd

7. Slide 7: Two Operating Segments: ODR and GCR

   0q]$dIg<jQ[O/IOZI[jhŸ$.<[G . $q[IgQgIEj.IY<jQ][hPQdh¥“$.”¦ I[Ig<Y ][jg<Ej]g.IY<jQ][hPQdh¥“ .”¦ rQhjQ[O kQYGQ[Oh "Iq ][hjgkEjQ][ $.q]gXQhGgQpI[DsGIpIY]dQ[O<[Gdg]d]hQ[OEkhj]ZQvIGh]YkjQ][h .dg]WIEjh<gIEP<g<EjIgQvIG<hP<pQ[O<h]YkjQ][Q[dY<EIjPIgIN]gI<gI jP<j<gIGIpIY]dIGNg]Z]kgp<hjX[]qYIGOI]NjPIDkQYGQ[OqP

8. Slide 8: Focus on growth: Three-pillar approach to scale the business

   ]EkhIG][g]qjP 0PgII+QYY<gddg]<EPj]/E<YIjPI khQ[Ihh $gO<[QE/IOZI[j.IpI[kI !<gOQ[rd<[hQ][ /E<YI0Pg]kOP +IgEI[j<OI!Qr/PQNj 0Pg]kOPp]YpIG$NNIgQ[Oh EfkQhQjQ][h 0g<GQjQ][<Y /dIEQ<YQjs ][jg<Ej]g $. $. $. /IgpQEIh ÆÁÚ ÇƟÈÁÚ ¯ÉÁÚ . ÆÁÚ $[ŸIZ<[G [IgOs +g]NIhhQ][<Y  I]Og<dPQE]]jdgQ[jrd<[hQ][² . [Ng<hjgkEj

9. Slide 9: Gross Margin and Adjusted EBITDA Margin

   +QYY<g¾ÂŸ+IgN]gZ<[EIkIj]!Qr/PQNj $pIgjPIdIgQ]GNg]Z9ÃÁÂÊ 9ÃÁÃčg]hh!<gOQ[P<hIrd<[GIG[I<gYsÁÂÁDdhj]ÃĐÂÚ 0PQhP<hI[<DYIGkhj]GgQpIGWkhjIG 0!<gOQ[ÂkdZ]gIjP<[ÄrNg]ZĐÁÚj]ʐÂÚ 2'55HY *URVV0DUJLQ$GMXVWHG(%,7'$0DUJLQ 2'55HYHQXH3HUFHQWDJH /IIGWkhjIG 0Z<gOQ[E<YEkY<jQ][<[G[][Ÿ+gIE][EQYQ<jQ][][hYQGIÃƐ "/- !

10. Slide 10: Segment Mix Shift: ODR Maximized Returns

    +QYY<g¾Â $gO<[QE/IOZI[j!Qr/PQNj0]EPQIpI!<rQZQvIG.Ijkg[h P<YYI[OQ[O[Gkhjgs+<g<GQOZhŽ QOOIgQh[’j IjjIg ÃÂÚ .q]gXQhYIhhh<YIhN]EkhIGGIdI[GI[j][dg]GkEjQ][ ÃÁÂÊ ÅÊÚ ÃÁÃÄ ÆÂÚ NQIYGEg<Nj<[G]dIg<jQ][hhj<NN $.q]gXE][hQhjh]NZkYjQdYIjg<[h<EjQ][hqQjPPI<pQIg ÈÊÚ N]Ekh][h<YIh<[G<EE]k[jZ<[<OIZI[j /IOZI[j!Qr/PQNj+g

11. Slide 11: Total Revenue is Static but Higher Margin ODR Revenue is Growing

    +QYY<g¾Â 0]j<Y.IpI[kIQh/j<jQEDkjQOPIg!<gOQ[$..IpI[kIQhg]qQ[O 0]j<Y.IpI[kI $..IpI[kI ¹ÆÆĐÄ! ¹ÆÇɐÃ! ¹ÅÊÁÅ! ¹ÅÊǐÉ! ¹ÆÂǐÅ! ¹ÃÇÐÁ! ¹ÃÂǐÅ! ¹ÂÃȐÃ! ¹ÂÅÁÄ! ¹ÂÂƐÂ! ÃÁÂÊ ÃÁÃÁ ÃÁàÃÁÃà ÃÁÃÄ 0]j<Y.IpI[kIQhG]q[ǐÈÚ $..IpI[kI .]NÂʐÄÚN]g 0]j<YgIpI[kIOg]qjPdg]WIEjIG Ng]ZÃÁÂÊ ÃÁÂÊj]ÃÁÃÄdIgQ]G ][EI]djQZ<Y

12. Slide 12: Expanded margins through involved customer services

    +QYY<g¾ÃŸrd<[GIG!<gOQ[hjPg]kOPp]YpIG khj]ZIg/IgpQEIh ! ÃÁÃÄ/IgpQEIh p]YpIG ! /IgpQEIh ]ZdIjQjQpI kZd/kZ QGGQ[O $[ŸIZ<[G<EQYQjs/IgpQEIh ÃÁÃÅ kggI[j]Ekh . IhQO[ŸhhQhj gQjQE<Y/shjIZ.Id<Qgh ÃÁÃÆ+g]WIEjIG]Ekh IhQO[Ÿ kQYG <j<gQpI[/]YkjQ][h +IgN]gZ<[EI ][jg<EjQ[O !<Q[jI[<[EI²$dIg<jQ][h ÃÁÃÇ+g]WIEjIG]Ekh

13. Slide 13: Unique Service Offerings and Customer Value

    +QYY<g¾ÃŸrd<[GIG!<gOQ[hjPg]kOPp]YpIG khj]ZIg/IgpQEIh 1[QfkI/IgpQEI$NNIgQ[Oh khj]ZIg6<YkI $[ŸIZ<[G/IgpQEIh¥.I[j<YfkQd¦ !QhhQ][ŸEgQjQE<YDkQYGQ[OhshjIZhh]YkjQ][hhkdd]gj dg]pQGQ[ODIhjŸQ[ŸEY<hh]djQ][hN]gY][OŸ<[GhP]gjŸjIgZ gQjQE<Y/shjIZ.Id<Qgh QZd<Ejh IGQE<jIGgIh]kgEIh][hQjIIpIgsG<sj]DIE]ZI<[ <j<gQpI[

14. Slide 14: What We Do: Catering to Customer Needs

    +QYY<g¾ÃŸ7P<j7I]Ÿ <jIgQ[Oj] khj]ZIg"IIGh² kGOIjh $dIg<jQ[OrdI[hI <dQj<Y+g]WIEjh +g]NIhhQ][<Y/IgpQEIh $[ŸIZ<[G !<Q[jI[<[EI² !IEP<[QE<Y kQYGQ[Okj]Z<jQ][ ][hkYj<jQpI/IgpQEIh <EQYQjshhIhhZI[jh /IgpQEIh $dIg<jQ][h [Ng<hjgkEjkgI+g]WIEjh 1dOg<GIh gQjQE<Y/shjIZ.Id<Qgh fkQdZI[j1dOg<GIh IE<gD][Qv<jQ][ [IgOsNN

15. Slide 15: Current Target Geographies

    +QYY<g¾ÄŸ kggI[j²0<gOIjI]Og<dPQIh QhEQdYQ[IG<[GN]EkhIG!²hjg<jIOsE]ZdgQhIh“0kEXŸ[”<[G“rd<[hQ][” <EfkQhQjQ][h]NE]Zd<[QIhqQjPE][hQhjI[j<[GhE<Y<DYIDkhQ[IhhZ]GIYh 0kEXŸ[EfkQhQjQ][ gQjIgQ< 䙚 0]j<Y.IpI[kI¹ÂÁŸÂÆ!q›ÉÁÚÛ$..IpI[kI 䙚 ÛÂÆÚ9]9$.g]qjP 䙚 ]Ekh][g]hh+g]NQj-k<YQjs²EE]k[j .Ih]kgEIh 䙚 r "IqI]Og<dPsEfk

16. Slide 16: Recent Tuckk Transaction

    +QYY<g¾ÄŸ.IEI[j0kEXŸ[0g<[h<EjQ][ Y]hIGkYsčÃÁÃÄ !² .0. I]Og<dPQE+g]rQZQjs P<jj<[]]O< 0" Y]E<jQ][ Qh IrdIEjIG j] DI hs[IgOQhjQE qQjP QZD<EP’h IrQhjQ[O <XI jjg<EjQpI$dIg<jQ[O]]jdgQ[j !<ghP<YYhkDhQGQ<gs /kdd]gjh$./jg<jIOs [EgI<hIG$.rd]hkgI ZdP<hQh ][ Ird<[GQ[O $. /IOZI[j qQjP hQO[QNQE<[j ]q[IgŸGQg

17. Slide 17: Recent Hattaras Transaction

    +QYY<g¾ÄŸ.IEI[j"IqI]Og<dPs0g<[h<EjQ][ Y]hIG"]pIZDIgÃÁÃÄ !² .0. I]Og<dPQE+g]rQZQjs gII[hD]g]" Y]E<jQ][Qhhjg<jIOQE<YYsY]E<jIG jjg<EjQpI$dIg<jQ[O]]jdgQ[j /kdd]gjh$./jg<jIOs [EgI<hIG$.rd]hkgI /QO[QNQE<[jhP<gI]NgIpI[kIh<gI]q[IgŸGQgIEjQ[[<jkgIG]pIj<QYQ[OqIYYqQjP QZD<EP’h N]Ekh][Ird<[GQ[OhIOZI[j]dd

18. Slide 18: Strong Balance Sheet and Disciplined Capital Allocation Strategy

    /jg][O <Y<[EI/PIIj<[GQhEQdYQ[IG <dQj<YYY]E<jQ][/jg<jIOs Is <Y<[EI/PIIjjIZh k[IÄÁ IEIZDIgč ÃÁÃÅ ÃÁÃÄ <hP<[G <hPfkQp<YI[jh ¹ÆÊÆ ¹ÆÊÉ <Y<[EI/PIIjj]Nk[G]gO<[QEOg]qjP<[G<EfkQhQjQ][h kggI[jhhIjh ¹ÃÂÄÄ ¹ÃÂȐÁ kggI[j Q<DQYQjQIh ¹ÂÄÁÇ ¹ÂÅƐ 7]gXQ[O <dQj<Y ¹ÉÃÈ ¹ÈÂÊ "Ij¥$pIg¦›1[GIg QYYQ[Oà ¹¥ÂʐĦ

19. Slide 19: Financial Goals: 2024 Guidance

    Q[<[EQ<Y]<Yh ÃÁÃÅkQG<[EI .IpI[kI g]hh!<gOQ[›GW 0 <hP ¹ÆÂÆ!j]¹ÆÄÆ!0]j<Y.IpI[kI 0]j<Yg]hh!<gOQ[ÃşÃÇÚ ][jQ[kIG/jg][O <hPY]q !Qr/PQNjÇÆÚj]ÈÁÚ$. GWkhjIG 0¹ÆÆ!j]¹ÆÉ! ÈÁÚ]NGW 0ÞgII <hP $..IpI[kIg]qjPÃÉÚj]ÅÄÚ GW 0!<gOQ[ÂÁÄÚj] Y]q ÄÚ .INYIEjhOkQG<[EIQhhkIGDsjPI ]Zd<[s][kOkhjÇjPÃÁÃŐ0PQhOkQG<[EIhdI<

20. Slide 20: Investment Highlights

    [pIhjZI[jQOPYQOPjh /jg<jIOs ]ZDQ[Ih ]ZdIYYQ[O .I]EEkggQ[O!QhhQ][ /jg][O <Y<[EI CC $gO<[QEg]qjP<[G CC khj]ZIg6<YkI CC gQjQE<Y.IpI[kI CC /PIIj<[G /jg<jIOQEEfkQhQjQ][h gI<jIh ]ZdIjQjQpI <[GE][]ZQE<YYs <dQj<YYY]E<jQ][ Gp<[j<OI .IhQYQI[j khQ[Ihh /jg<jIOs <gOI!<gXIj QpIghQNQIG QZQjIGQrIG ]hjh .IpQj<YQvQ[

21. Slide 21: Q2 2024

    ++"8 ÃÂ

22. Slide 22: Operating and Financial Update

    $dIg<jQ[O<[GQ[<[EQ<Y1dG<jI -0Á-’ÁÃ+IgN]gZ<[EI .IpI[kI g]hh+g]NQj<[G¥!<gOQ[¦Â GWkhjIG 0à ¹ÂÃÅÊ ¹ÂÃÐà ¹ÃÉÆ ¹ÄÄÆ ¥ÃÐÉÚ¦ ¥ÃȐÅÚ¦ ¹ÆÉÉ ¹ÉÃÉ ¹ÂÄÉ ¹ÃƐŠ¹ÂȐà ¹ÂÂÊ ¹Çǐ ¹ÄÊÆ ¹ÂÂÄ ¹ÉÂ Ã-’ÃÄ Ã-’ÃÅ Ã-’ÃÄ Ã-’ÃÅ Ã-’ÃÄ Ã-’ÃÅ 9I<gŸ$pIgŸ9I<g 9I<gŸ$pIgŸ9I<g 9I<gŸ$pIgŸ9I<g P<[OI P<[OI P<[OI ŸÃÂÚ ÛÂȐÆ

23. Slide 23: Operating and Financial Update

    $dIg<jQ[O<[GQ[<[EQ<Y1dG<jI 90Á-’ÁÃ+IgN]gZ<[EI .IpI[kI g]hh+g]NQj<[G¥!<gOQ[¦Â GWkhjIG 0à ¹ÃÅÆÊ ¹ÃÅà ¹ÆÅÈ ¹ÇÅÇ ¥ÃÐÄÚ¦ ¥ÃǐÉÚ¦ ¹ÂÂÈÆ ¹ÂÆȐÁ ¹ÃÆÇ ¹ÅÈÆ ¹ÄĐ ¹ÃÁÇ ¹ÂÃɐŠ¹ÉŐà ¹ÃÂÇ ¹ÂȐ Ã-’ÃÄ Ã-’ÃÅ Ã-’ÃÄ Ã-’ÃÅ Ã-’ÃÄ Ã-’ÃÅ 9I<gŸ$pIgŸ9I<g 9I<gŸ$pIgŸ9I<g 9I<gŸ$pIgŸ9I<g P<[OI P<[OI P<[OI ŸÂÊÚ Û

24. Slide 24: Sustainability at Limbach

    /khj<Q[<DQYQjs<j QZD<EP +I]dYIZd]qIgQ[O$kg0I<Z²/kdd]gjQ[O$kg ]ZZk[QjQIh Ɣ 7IEP<ZdQ][IZdY]sIIPI<YjP<[Gh<NIjsjPg]kOP]kgI<gjh²!Q[Gh dg]Og<Z .IpQj Ɣ 7I]NNIgE]ZdIjQjQpIE]ZdI[h<jQ][<[G<g<[OI]NDI[INQjh<[G G <YQvQ[ QjI [Ng< OrQhjQ[ dg]Og<Zh EEgIG [Gkhjgs Q[O hjgkE jkgI O 0g<Q[ Ɣ $kgGIGQE<jQ][j]IZdY]sIIOg]q

25. Slide 25: Non-GAAP Reconciliation Table

    "][Ÿ+.IE][EQYQ<jQ][0<DYI .IE][EQYQ<jQ][]NGWkhjIG 0!<gOQ[« QhE<Y9I<gI[GIGIEIZDIgč 0PgII!][jPh[GIGk[IÄÁ /Qr!][jPh[GIGk[IÄÁ ¥Q[jP]kh<[Gh¦ ÃÁÂÊ ÃÁÃÁ ÃÁàÃÁÃà ÃÁÃÄ ÃÁÃÅ ÃÁÃÄ ÃÁÃÅ ÃÁÃÄ .IpI[kI ¹ÆÆčÄÄÅ ¹ÆÇɍÃÁÊ ¹ÅÊÁÄÆ ¹ÅÊǍÈÉà ¹ÆÂǍÄÆÁ ¹ÂÃÍÃÄÆ ¹ÂÃōÉÉà ¹Ãōà¹ÃÅƍÉÊ "IjQ[E]ZI¥Y]hh¦ ¥¹ÂÈÈƦ ¹

26. Slide 26: Non-GAAP Reconciliation Table

    "][Ÿ+.IE][EQYQ<jQ][0<DYI .IE][EQYQ<jQ][]NgII <hPY]q« QhE<Y9I<gI[GIGIEIZDIgč 0PgII!][jPh[GIGk[IÄÁ /Qr!][jPh[GIGk[IÄÁ ¥Q[jP]kh<[Gh¦ ÃÁÂÊ ÃÁÃÁ ÃÁàÃÁÃà ÃÁÃÄ ÃÁÃÅ ÃÁÃÄ ÃÁÃÅ ÃÁÃÄ GWkhjIG 0 ¹ÂǍÈÆà ¹Ãƍ ¹ÃčÃÈÇ ¹ÄÈÇÆ ¹ÅǍÉÁ ¹ÂčÉÁÊ ¹ÂÊÁÆ ¹ÃƍÆÇÇ ¹ÃÁÆÊÁ gII <hPY]q "Ij[E]ZI¥Y]hh¦ ¥¹ÂÈÈƦ ¹Æ

27. Slide 27: Contacts

    ][j<Ej1h "6/0$.. 0$"/ kYQIIOYIs Q[<[EQ<Y+g]NQYIh WXIOYIs³NQ[dg]NQYIhE]Z ÄÂÁÇÃÐÉÃÅÇ ³ QZD<EP ³ QZD<EP ³ QZD<EPQ[E ³ QZD<EP ³ QZD<EP<EQYQjs/IgpQEIh

Limbach Holdings — Q2 2024 Earnings Presentation on 6ix