Limbach (NASDAQ: LMB) Q1 earnings drop as margins compress but 2026 outlook reaffirmed

Rhea-AI Filing Summary

Limbach Holdings reported first quarter 2026 revenue of $138.9 million, up 4.3% from $133.1 million, but profitability declined sharply. Net income fell to $4.4 million, or $0.36 per diluted share, from $10.2 million, or $0.85, as gross margin compressed from 27.6% to 22.4% and Adjusted EBITDA dropped to $8.7 million from $14.9 million.

Owner Direct Relationships revenue grew 10.4% to $99.8 million, while General Contractor Relationships revenue decreased 8.6% to $39.0 million, with acquisition-related revenue from Pioneer Power offsetting a 13.4% organic decline. Bookings were strong at $209.1 million, producing a 1.5x book-to-bill ratio and supporting management’s outlook.

The company ended March 31, 2026 with $15.8 million of cash and $32.4 million drawn on its revolving credit facility and reaffirmed full-year 2026 guidance for revenue of $730–$760 million and Adjusted EBITDA of $90–$94 million.

Positive

• Strong bookings and visibility: Q1 2026 bookings reached $209.1 million, yielding a 1.5x book-to-bill ratio and supporting management’s confidence in the 2026 outlook.
• Guidance reaffirmed: The company reaffirmed full-year 2026 guidance for revenue of $730–$760 million and Adjusted EBITDA of $90–$94 million despite weaker first-quarter margins.
• ODR growth and mix: Owner Direct Relationships revenue grew 10.4% to $99.8 million and represented 71.9% of total revenue, reinforcing the strategic focus on higher-value owner-direct work.

Negative

• Sharp earnings and margin decline: Net income fell 57.1% to $4.4 million and Adjusted EBITDA dropped 41.7% to $8.7 million as gross margin contracted from 27.6% to 22.4%.
• Organic revenue pressure: Total organic revenue declined 13.4%, with a 5.4% organic drop in ODR and a 30.2% organic decline in GCR, reflecting earlier booking softness and seasonal effects.
• Weaker cash generation: Net cash used in operating activities was $7.8 million versus $2.2 million provided in the prior-year quarter, driven by lower net income, working capital timing, and contingent consideration payments.

Insights

Industrial services equity analyst

Mixed quarter: margins and cash flow weakened, but bookings and 2026 guidance remained strong.

Limbach posted modest Q1 2026 revenue growth to $138.9M, driven largely by the Pioneer Power acquisition, while organic revenue declined 13.4%. Owner Direct Relationships expanded, but General Contractor revenue shrank, highlighting a shift toward direct owner work.

Profitability deteriorated meaningfully: gross margin fell from 27.6% to 22.4%, and Adjusted EBITDA dropped from $14.9M to $8.7M. Management attributes margin pressure to lower fixed cost absorption, fewer project write-ups, and Pioneer Power’s currently lower-margin profile, with initiatives underway to improve integration and pricing.

Bookings were a clear bright spot at $209.1M and a 1.5x book-to-bill ratio, with data center projects about 27% of bookings. The company reaffirmed full-year 2026 revenue guidance of $730–$760M and Adjusted EBITDA of $90–$94M, suggesting confidence that recent booking strength and integration efforts can offset current margin headwinds.

8-K Event Classification

3 items: 2.02, 7.01, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q1 2026 revenue: $138.9 million Q1 2026 net income: $4.4 million Q1 2026 Adjusted EBITDA: $8.7 million +5 more

8 metrics

Q1 2026 revenue $138.9 million Quarter ended March 31, 2026; up 4.3% year over year

Q1 2026 net income $4.4 million Down from $10.2 million in Q1 2025

Q1 2026 Adjusted EBITDA $8.7 million Decreased from $14.9 million in Q1 2025

Gross margin 22.4% Q1 2026, down from 27.6% in prior-year quarter

Q1 2026 bookings $209.1 million Book-to-bill ratio of 1.5x for the quarter

FY 2026 revenue guidance $730–$760 million Reaffirmed full-year 2026 outlook

FY 2026 Adjusted EBITDA guidance $90–$94 million Reaffirmed full-year 2026 Adjusted EBITDA target

Net cash from operating activities -$7.8 million Net cash used in operations in Q1 2026 vs $2.2M provided in Q1 2025

Key Terms

Adjusted EBITDA, Owner Direct Relationships, General Contractor Relationships, book-to-bill ratio, +2 more

6 terms

Adjusted EBITDA financial

"Reaffirms Full Year 2026 Revenue Guidance of $730 million to $760 million and Adjusted EBITDA of $90 million to $94 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

Owner Direct Relationships financial

"Owner Direct Relationships (“ODR”) revenue increased 10.4%, or $9.4 million, to $99.8 million"

Owner direct relationships are the direct, contractual or communicative connections a business maintains with the actual owners of assets, products or customer accounts, without going through middlemen. For investors this matters because direct ties give a company more control over pricing, service, data and loyalty—similar to a store selling straight to shoppers instead of relying on wholesalers—which can boost margins, reduce dependence on partners and make future revenue more predictable.

General Contractor Relationships financial

"General Contractor Relationships (“GCR”) segment revenue decreased 8.6%, or $3.7 million, to $39.0 million"

The ongoing working ties between a company and the general contractors it hires to manage and deliver construction or large-scale projects. These relationships matter to investors because the contractor’s reliability, pricing, timeliness and ability to manage subcontractors directly affect project costs, completion dates, regulatory compliance and potential liabilities—similar to how a homeowner depends on a main builder to coordinate crews and finish a renovation on time and on budget.

book-to-bill ratio financial

"Total sales booked during the quarter were $209.1 million, generating a book-to-bill ratio of 1.5x"

The book-to-bill ratio compares the value of new orders a company receives to the value of products it ships out or bills for over a certain period. If the ratio is above 1, it means the company is getting more orders than it is completing, which can indicate growth. If it's below 1, it suggests demand is slowing down.

free cash flow financial

"Free cash flow (2) | | 75% of Adjusted EBITDA"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

non-GAAP financial measures financial

"The key measures are Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share, which are non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

Earnings Snapshot

Revenue: $138.9 million · Guidance included

Q1 2026

Revenue $138.9 million +4.3% year over year

Net income $4.4 million -57.1% year over year

Adjusted EBITDA $8.7 million -41.7% year over year

Diluted EPS $0.36 down from $0.85 in Q1 2025

Guidance

Full-year 2026 revenue of $730–$760 million and Adjusted EBITDA of $90–$94 million reaffirmed.

Understanding 8-K Material Events →

false000160616300016061632026-05-052026-05-05

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 5, 2026

LIMBACH HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware			001-36541			46-5399422
(State or other jurisdiction of incorporation)			(Commission File Number)			(IRS Employer Identification No.)

5102 W Laurel Street, Suite 700, Tampa, Florida 33607

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (412) 359-2100

797 Commonwealth Drive, Warrendale, Pennsylvania 15086

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐						Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐						Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐						Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐						Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common stock, $0.0001 par value			LMB			The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

Item 2.02 Results of Operations and Financial Condition.

On May 5, 2026, Limbach Holdings, Inc. (the “Company”) issued a press release dated the same date announcing its financial results for its quarter ended March 31, 2026. We have furnished a copy of this release as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01 Regulation FD Disclosure.

The Company is furnishing presentation materials (the “Investor Presentation”) that management intends to use, possibly with modifications, in one or more meetings from time to time with current and potential investors. The Investor Presentation includes an update on the Company’s current operations and major projects, as well as information relating to the Company’s strategic plans, goals, growth initiatives and outlook, and forecasts for future performance and industry development.

The foregoing description of the Investor Presentation does not purport to be complete and is qualified in its entirety by reference to the complete text of the Investor Presentation attached as Exhibit 99.2 to this Current Report on Form 8-K.

The information contained in the Investor Presentation is summary information that should be considered in the context of the Company’s filings with the Securities and Exchange Commission and other public announcements the Company may make by press release or otherwise from time to time. The Investor Presentation speaks as of the date of this report. While the Company may elect to update the Investor Presentation in the future to reflect events and circumstances occurring or existing after the date of this report, the Company specifically disclaims any obligation to do so.

By furnishing the portions of this Current Report on Form 8-K that are disclosed under this Item 7.01 and the Investor Presentation that is an exhibit hereto, the Company makes no admission as to the materiality of any information included under this Item 7.01, including without limitation the Investor Presentation. The Investor Presentation contains forward-looking statements. See Page 2 of the Investor Presentation for a discussion of certain forward-looking statements that are included therein and the risks and uncertainties related thereto.

The information in this Item 7.01 of this Current Report on Form 8-K and Exhibit 99.2 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.						Description
99.1						Earnings Press Release for the quarter ended March 31, 2026
99.2						Investor Presentation
104						Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			LIMBACH HOLDINGS, INC.
			By:			/s/ Jayme L. Brooks
						Name: Jayme L. Brooks
						Title: Executive Vice President and Chief Financial Officer

Dated: May 5, 2026

FOR IMMEDIATE RELEASE

Limbach Holdings, Inc. Reports First Quarter 2026 Results

Reaffirms Full Year 2026 Revenue Guidance of $730 million to $760 million and Adjusted EBITDA of $90 million to $94 million

TAMPA, Fla. – May 5, 2026 – Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”), a building systems solutions firm that partners with building owners and operators who have mission-critical mechanical, electrical, plumbing, and controls, or MEPC, systems today announced its financial results for the quarter ended March 31, 2026.

First Quarter 2026 Highlights Compared to First Quarter 2025

•Total revenue increased 4.3% to $138.9 million from $133.1 million

•Owner Direct Relationships (“ODR”) revenue increased 10.4%, or $9.4 million, to $99.8 million, or 71.9% of total revenue

•Total sales booked during the quarter were $209.1 million, generating a book-to-bill ratio of 1.5x

•Net income of $4.4 million, or $0.36 per diluted share, compared to $10.2 million, or $0.85 per diluted share

•Adjusted net income of $7.8 million, or $0.64 per adjusted diluted earnings per share, compared to adjusted net income of $13.5 million, or $1.12 per adjusted diluted earnings per share

•Adjusted EBITDA of $8.7 million, compared to $14.9 million

•Total gross profit of $31.2 million, compared to $36.7 million

•Net cash used in operating activities of $7.8 million compared to net cash provided by operating activities of $2.2 million

Management Comments

“We delivered solid first quarter results in line with our expectations and generated an exceptionally strong level of bookings that we view as the clearest indicator of strengthening demand across our end markets. This momentum positions Limbach for accelerating organic revenue growth as orders convert to sales,” said Mike McCann, President and Chief Executive Officer of Limbach. “The Company’s $209.1 million of bookings and 1.5x book to bill ratio reflect meaningful demand strength across mission critical end markets and provide strong visibility into future revenue conversion. Over the past two quarters, we generated more than $434 million of bookings, reinforcing our confidence in our revenue guidance for 2026. We also see strong momentum in the data center vertical, which represented approximately 27% of bookings in the quarter. Limbach has longstanding relationships with mission-critical and hyperscale customers, and we are building on that foundation as demand in this market continues to accelerate, driving increased participation and meaningful contributions to our overall growth.

“Margins were impacted this quarter by lower fixed cost absorption, the absence of higher net project write-ups that benefited the prior-year period, and near-term mix impact from Pioneer Power, which carries a lower margin profile today. However, we have already implemented targeted pricing, operational, integration, and sales initiatives that we expect will drive margin improvement as we progress through 2026.

“With a strong balance sheet, a durable business model, and continued investment in our national sales organization and mission critical end markets, we believe we are well positioned to execute our growth strategy. Our strategic priorities for the year are focused on driving ODR organic revenue growth, expanding margins through higher-value customer solutions, and disciplined capital allocation as we scale the business through acquisitions. We believe this positions Limbach to become a leading building solutions partner for owners of mission critical facilities and to deliver attractive long-term value for our stockholders.”

The following are results for the three months ending March 31, 2026, compared to the three months ending March 31, 2025:

•Total revenue increased 4.3%, or $5.8 million, to $138.9 million from $133.1 million. The increase in revenue was primarily attributable to Pioneer Power, which was acquired in July 2025, and contributed a full quarter of revenue in the current period with no comparable contribution in the prior-year period. Of the total increase in revenue, acquisition-related revenue represented

17.7%, or $23.5 million, which was partially offset by a decrease in organic revenue of 13.4%, or $17.8 million. The decline in organic revenue reflects the impact of lower bookings in the middle of 2025 and normal seasonal patterns among industrial customers. More recent booking activity has strengthened significantly, which the Company expects will drive revenue growth as the year progresses.

◦ODR segment revenue increased 10.4%, or $9.4 million, to $99.8 million. Acquisition-related revenue increased 15.8%, or $14.3 million, partially offset by a 5.4%, or $4.9 million decrease in organic revenue.

◦General Contractor Relationships (“GCR”) segment revenue decreased 8.6%, or $3.7 million, to $39.0 million. Organic revenue decreased 30.2%, or $12.9 million, partially offset by a 21.6%, or $9.2 million increase in acquisition-related revenue.

•Total gross profit decreased 15.1% to $31.2 million compared to $36.7 million. Total gross margin of 22.4% decreased from 27.6%.

◦ODR gross profit decreased 12.1%, or $3.2 million, to $23.0 million from $26.2 million, while gross margin decreased to 23.0% from 28.9%. The decrease in gross margin was primarily driven by lower fixed cost absorption due to seasonal revenue levels and higher fixed costs, the absence of higher net project write-ups that benefited the prior-year period and the current lower margin profile of Pioneer Power. As the Company advances its integration strategy of Pioneer Power, management expects gross margins to improve as 2026 progresses. Operational and pricing improvement initiatives are underway to enhance profitability at Pioneer Power with the goal of bringing gross margins in line with the Company average over the next two to three years.

◦GCR gross profit decreased 22.5%, or $2.4 million, to $8.2 million from $10.6 million, while gross margin decreased to 21.0% from 24.7%. The decrease in gross margin was primarily due to lower margin work associated with Pioneer Power and the absence of higher total net project write ups that benefited the prior-year period.

•Selling, general and administrative (“SG&A”) expense increased by approximately $1.6 million to $28.1 million, compared to $26.5 million in the prior year period. The increase was primarily driven by a $1.6 million increase in payroll-related expenses and incremental SG&A expense of $0.6 million associated with Pioneer Power. SG&A expense as a percentage of revenue increased to 20.2% for the three months ended March 31, 2026, compared to 19.9% for the three months ended March 31, 2025.

•Interest expense was $0.7 million, an increase of $0.2 million, compared to $0.5 million in the prior year period. The increase in interest expense was driven by increased borrowings under the Company’s revolving credit facility, as well as higher financing costs associated with a larger vehicle fleet.

•Interest income was less than $0.1 million compared to $0.4 million in the prior year period. This decrease was related to reduced cash and cash equivalent balances and lower yields on investments.

•Net income decreased 57.1% to $4.4 million from $10.2 million. Diluted earnings per share was $0.36 compared to $0.85 in the prior year period.

•Adjusted net income decreased 42.6% to $7.8 million compared to $13.5 million. Adjusted diluted earnings per share was $0.64 compared to $1.12 in the prior year period.

•Adjusted EBITDA decreased 41.7% to $8.7 million compared to $14.9 million in the prior year period.

•Net cash used in operating activities was $7.8 million compared to net cash provided by operating activities of $2.2 million in the prior year period. Cash flow in the first quarter of 2026 reflects lower net income and higher working capital timing associated with growth and bookings conversion, in addition to contingent consideration paid for the Industrial Air and Kent Island Mechanical acquisitions.

Balance Sheet

On March 31, 2026, cash and cash equivalents were $15.8 million. Current assets were $191.8 million and current liabilities were $112.4 million, representing a current ratio of 1.71x compared to 1.44x at December 31, 2025. On March 31, 2026, the Company had $32.4 million in borrowings under its revolving credit facility and $7.0 million of standby letters of credit. The Company intends to deploy free cash flow to continue to reduce its borrowings under its revolving credit facility for the remainder of the year.

2

2026 Guidance

The Company is reaffirming its previous guidance for FY 2026 as summarized in the table below:

Revenue						$730 million - $760 million
Adjusted EBITDA						$90 million - $94 million
Assumptions:
Total organic revenue growth(1)						4 - 8%
ODR revenue as a percentage of total revenue						75 - 80%
ODR organic revenue growth(1)						9 - 12%
Gross margin percentage						26 - 27%
SG&A expense as a percentage of total revenue						15 - 17%
Free cash flow(2)						75% of Adjusted EBITDA

(1) The Company discloses organic revenue and organic revenue growth, which are non-GAAP financial measures, to provide investors with insight into the performance of the Company's existing operations, excluding the impact of acquisitions. These measures are not defined under GAAP and should not be considered as an alternative to total revenue growth or segment-related revenue growth as determined in accordance with GAAP. Refer to additional information at the end of this release regarding certain non-GAAP supplemental revenue disclosures.

(2) Free cash flow is defined as cash flow from operating activities excluding changes in working capital minus capital expenditures (excluding investment in rental equipment).

With respect to projected 2026 Adjusted EBITDA guidance and Adjusted EBITDA Margin (and the assumptions underlying those projections), a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to certain items, which are excluded from Adjusted EBITDA (and components that go into the calculation of Adjusted EBITDA). The Company expects the variability of these items to have a potentially unpredictable, and potentially significant, impact on future financial results.

Conference Call Details

Date:			Wednesday, May 6, 2026
Time:			9:00 a.m. Eastern Time
Participant Dial-In Numbers:
Domestic callers:			(877) 407-6176
International callers:			+1 (201) 689-8451

Access by Webcast

The call will also be simultaneously webcast over the Internet via the “Investor Relations” section of Limbach’s website at www.limbachinc.com or by clicking on the conference call link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=lpYdHKl3. An audio replay of the call will be archived on Limbach’s website for 365 days.

About Limbach

Limbach is a building systems solutions firm that designs, delivers, and maintains mechanical (heating, ventilation, and air conditioning), electrical, plumbing, and controls (“MEPC”) systems that support life’s most important moments. We partner with building owners and operators of mission-critical facilities across healthcare, industrial and manufacturing, data centers, life sciences, higher education, and cultural and entertainment markets. With approximately 1,600 team members across 21 offices throughout the Eastern and Midwestern regions of the United States, we strive to be an indispensable partner by combining our national capabilities with strong local execution and talent to deliver proactive, safe, and reliable solutions for complex facilities. Operating on a connected platform, we integrate engineering expertise with field execution to provide customized MEPC infrastructure solutions that address both operational and capital project needs, optimizing performance, enhancing reliability, and ensuring long-term safety.

3

Additional Information

Investors and others should note that Limbach announces material financial information to its investors using its investor relations website, U.S. Securities and Exchange Commission (the “SEC”) filings, press releases, public conference calls/videos, and webcasts. Limbach uses these channels, as well as social media, to communicate with our stockholders and the public about the Company, the Company’s services and other Company information. It is possible that the information that Limbach posts on social media could be deemed to be material information. Therefore, Limbach encourages investors, the media, and others interested in the Company to review the information posted on the social media channels listed on Limbach’s investor relations website.

Forward-Looking Statements

We make forward-looking statements in this press release 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, our earnings, Adjusted EBITDA, projected EBITDA production from possible acquisitions, bookings, projected full year 2026 organic ODR and/or organic revenue growth, revenues, expenses, backlog, capital expenditures or other future financial or business performance or strategies, results of operations or financial condition, timing of the recognition of backlog as revenue, the potential for recovery of cost overruns, and the ability of Limbach to successfully remedy the issues that have led to write-downs in various business units and the Company’s business being negatively affected by the health crises or outbreaks of diseases, such as epidemics or pandemics (and related impacts, such as supply chain disruptions). These statements also may include our assumptions related to our 2026 guidance of full year revenue and Adjusted EBITDA. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “will likely result,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target,” “goal,” or similar expressions. These forward-looking statements are based on information available to us as of the date they were made and involve a number of risks and uncertainties, which may cause them to turn out to be wrong. There may be additional risks that we consider immaterial or which are unknown. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Please refer to our most recent annual report on Form 10-K, as well as our subsequent filings on Form 10-Q and Form 8-K, which are available on the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any forward-looking statements in this press release.

Investor Relations

Financial Profiles, Inc.

Lisa Fortuna

LMB-IR@limbachinc.com

4

LIMBACH HOLDINGS, INC.

Condensed Consolidated Statements of Operations (Unaudited)

						Three Months Ended March 31,
(in thousands, except share and per share data)						2026						2025
Revenue						$	138,859					$	133,108
Cost of revenue						107,689						96,389
Gross profit						31,170						36,719
Operating expenses:
Selling, general and administrative						28,114						26,518
Acquisition-related retention expense and contingent consideration						149						427
Amortization of intangibles						1,774						1,863
Total operating expenses						30,037						28,808
Operating income						1,133						7,911
Other (expenses) income:
Interest expense						(701)						(526)
Interest income						15						370
Gain on disposition of property and equipment						238						333
Gain (loss) on change in fair value of interest rate swap						38						(97)
Total other (expense) income						(410)						80
Income before income taxes						723						7,991
Income tax benefit						(3,657)						(2,223)
Net income						$	4,380					$	10,214
Earnings Per Share (“EPS”)
Earnings per common share:
Basic						$	0.37					$	0.89
Diluted						$	0.36					$	0.85
Weighted average number of shares outstanding:
Basic						11,759,399						11,419,455
Diluted						12,067,589						12,051,678

5

LIMBACH HOLDINGS, INC.

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share data)			March 31, 2026						December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents			$	15,766					$	11,345
Restricted cash			65						65
Accounts receivable (net of allowance for credit losses of $396 at both period ends)			120,506						133,205
Contract assets, net			46,485						45,467
Other current assets			8,937						4,967
Total current assets			191,759						195,049
Property and equipment, net			40,975						43,309
Intangible assets, net			47,442						49,187
Goodwill			70,668						70,600
Operating lease right-of-use assets			19,252						19,792
Deferred tax asset			6,574						2,917
Other assets			302						276
Total assets			$	376,972					$	381,130
LIABILITIES
Current liabilities:
Current portion of long-term debt			$	4,906					$	5,031
Current operating lease liabilities			4,598						4,379
Accounts payable, including retainage			62,127						74,172
Contract liabilities, net			18,060						20,936
Accrued income taxes			1,152						1,152
Accrued expenses and other current liabilities			21,532						29,416
Total current liabilities			112,375						135,086
Long-term debt			51,743						30,536
Long-term operating lease liabilities			15,224						15,925
Other long-term liabilities			1,295						3,922
Total liabilities			180,637						185,469
STOCKHOLDERS’ EQUITY
Common stock, $0.0001 par value; 100,000,000 shares authorized, issued 12,100,719 and 11,806,466, respectively, and 11,921,067 and 11,626,814 outstanding, respectively			1						1
Additional paid-in capital			93,629						97,335
Treasury stock, at cost (179,652 shares at both period ends)			(2,000)						(2,000)
Retained earnings			104,705						100,325
Total stockholders’ equity			196,335						195,661
Total liabilities and stockholders’ equity			$	376,972					$	381,130

6

LIMBACH HOLDINGS, INC.

Condensed Consolidated Statements of Cash Flows (Unaudited)

			Three Months Ended March 31,
(in thousands)			2026						2025
Cash flows from operating activities:
Net income			$	4,380					$	10,214
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization			4,417						4,072
Provision for credit losses			116						77
Non-cash stock-based compensation expense			1,854						1,594
Non-cash operating lease expense			1,100						994
Amortization of debt issuance costs			16						11
Deferred income tax benefit			(3,657)						(1,881)
Gain on sale of property and equipment			(238)						(333)
Acquisition-related retention expense and contingent consideration			149						427
(Gain) loss on change in fair value of interest rate swap			(38)						97
Changes in operating assets and liabilities:
Accounts receivable			12,583						8,900
Contract assets and contract liabilities, net			(3,962)						(1,908)
Other current assets			(3,970)						(2,345)
Accounts payable, including retainage			(12,045)						(6,006)
Accrued taxes payable			—						(339)
Operating lease liabilities			(1,072)						(985)
Accrued expenses and other current liabilities			(4,248)						(9,582)
Payment of contingent consideration liability in excess of acquisition-date fair value			(2,895)						(711)
Other long-term liabilities			(300)						(55)
Net cash (used in) provided by operating activities			(7,810)						2,241
Cash flows from investing activities:
Consolidated Mechanical Transaction, measurement period adjustment			—						(14)
Proceeds from sale of property and equipment			299						319
Advances from joint ventures			1						—
Purchase of property and equipment			(407)						(2,230)
Net cash used in investing activities			(107)						(1,925)
Cash flows from financing activities:
Payments on Wintrust Revolving Loan			(32,112)						—
Proceeds from Wintrust Revolving Loan			54,492						—
Payment of contingent consideration liability up to acquisition-date fair value			(3,105)						(2,289)
Payments on finance leases			(1,264)						(851)
Proceeds from the sale of shares to cover employee taxes			5,945						6,344
Taxes paid related to net-share settlement of equity awards			(12,037)						(10,684)
Proceeds from contributions to Employee Stock Purchase Plan			419						324
Net cash provided by (used in) financing activities			12,338						(7,156)
Increase (decrease) in cash, cash equivalents and restricted cash			4,421						(6,840)

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Cash, cash equivalents and restricted cash, beginning of period			11,410						44,995
Cash, cash equivalents and restricted cash, end of period			$	15,831					$	38,155
Supplemental disclosures of cash flow information
Noncash investing and financing transactions:
Kent Island Transaction, measurement period adjustment			$	—					$	(94)
Right of use assets obtained in exchange for new operating lease liabilities			589						—
Right of use assets obtained in exchange for new finance lease liabilities			—						1,318
Right of use assets disposed or adjusted modifying finance lease liabilities			9						—
Interest paid			689						526
Cash paid for income taxes			$	—					$	—

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LIMBACH HOLDINGS, INC.

Condensed Consolidated Segment Operating Results (Unaudited)

			Three Months Ended March 31,																								Increase/(Decrease)
(in thousands, except for percentages)			2026												2025												$						%
Statement of Operations Data:
Revenue:
ODR			$	99,811					71.9		%				$	90,393					67.9		%				$	9,418					10.4		%
GCR			39,048						28.1		%				42,715						32.1		%				(3,667)						(8.6)		%
Total revenue			138,859						100.0		%				133,108						100.0		%				5,751						4.3		%
Gross profit:
ODR(1)			22,984						23.0		%				26,161						28.9		%				(3,177)						(12.1)		%
GCR(2)			8,186						21.0		%				10,558						24.7		%				(2,372)						(22.5)		%
Total gross profit			31,170						22.4		%				36,719						27.6		%				(5,549)						(15.1)		%
Selling, general and administrative(3)			28,114						20.2		%				26,518						19.9		%				1,596						6.0		%
Acquisition-related retention expense and contingent consideration			149						0.1		%				427						0.3		%				(278)						(65.1)		%
Amortization of intangibles			1,774						1.3		%				1,863						1.4		%				(89)						(4.8)		%
Total operating income			$	1,133					0.8		%				$	7,911					5.9		%				$	(6,778)					(85.7)		%

(1)As a percentage of ODR revenue.

(2)As a percentage of GCR revenue.

(3)Included within selling, general and administrative expenses was $1.9 million and $1.6 million of non-cash stock-based compensation expense for the three months ended March 31, 2026 and 2025, respectively.

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Non-GAAP Financial Measures

In assessing the performance of our business, management utilizes a variety of financial and performance measures. The key measures are Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share, which are non-GAAP financial measures.

Adjusted EBITDA and Adjusted EBITDA Margin

We define Adjusted EBITDA as net income plus depreciation and amortization expense, interest expense, and taxes, as further adjusted to eliminate the impact of, when applicable, other non-cash items or expenses that are unusual or non-recurring that we believe do not reflect our core operating results. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. Our board of directors and executive management team focus on Adjusted EBITDA and Adjusted EBITDA Margin as two of our key performance and compensation measures. Adjusted EBITDA and Adjusted EBITDA Margin assists us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of certain items that do not necessarily reflect our core operations. We believe that Adjusted EBITDA and Adjusted EBITDA Margin are meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service.

Adjusted Net Income and Adjusted Diluted Earnings per Share

We define Adjusted Net Income as net income, adjusted to exclude certain items that do not reflect our core operating performance, such as amortization of intangible assets, stock-based compensation, restructuring charges, the change in fair value of contingent consideration, acquisition and other transaction costs and the net tax effect of reconciling items, as further adjusted to eliminate the impact of, when applicable, other non-cash or expenses that are unusual or non-recurring. We define Adjusted Diluted Earnings per Share as Adjusted Net Income divided by the weighted average diluted shares outstanding. We believe Adjusted Net Income and Adjusted Diluted Earnings per Share are useful to investors as we use these metrics to assist with strategic decision making, forecasting future results, and evaluating current performance.

We understand that these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share. Our calculations of these non-GAAP measures, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Diluted Earnings per Share cannot be achieved without incurring the costs that the measure excludes. A reconciliation of net income to Adjusted EBITDA and net income to Adjusted Net Income, the most comparable GAAP measures, are provided below.

Backlog and Bookings

We refer to our estimated revenue on uncompleted contracts, including the amount of revenue on contracts for which work has not begun, less the revenue we have recognized under such contracts, as “backlog.” Backlog includes unexercised contract options.

Bookings (we also refer to bookings in certain instances as sales booked) represent the total contract value agreed upon when a customer commits to services. We believe bookings provide an indication of trends in our operating results, including potential cash flows, that are not necessarily reflected in our revenue because we recognize revenue in accordance with ASC 606 – Revenue from Contracts with Customers, which is different from how we present bookings. See Note 4 – Revenue from Contracts with Customers within our Form 10-Q for the Quarter ended March 31, 2026, for additional discussion on revenue recognition. Our bookings may vary significantly quarter to quarter depending in part on the timing of the execution of our agreements with our customers. Our book-to-bill ratio is defined as bookings for the defined period divided by revenue for the defined period. Measuring bookings involves the use of estimates and judgments and there are no independent standards or requirements

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governing the calculation of bookings. The extent and timing of conversion of bookings to revenue may be impacted by, among other factors, the types of services sold, agreement duration, the pace of customer spending, actual volumes of services delivered as compared to the volumes anticipated at the time of sale, and agreement modifications, including terminations, over the lifetime of agreements. Some of our arrangements are terminable by the customer. We do not update our bookings for subsequent terminations. Information regarding our bookings is not comparable to, nor should it be substituted for, an analysis of our reported revenue. However, management believes that it is a key indicator of potential future business and provides a useful indicator of the volume of our business over time as a key metric.

Reconciliation of Net Income to Adjusted EBITDA (unaudited)
			Three Months Ended March 31,
(in thousands)			2026						2025
Net income			$	4,380					$	10,214
Adjustments:
Depreciation and amortization			4,417						4,072
Interest expense			701						526
Interest income			(15)						(370)
Stock-based compensation expense			2,639						2,012
Change in fair value of interest rate swap			(38)						97
Income tax benefit			(3,657)						(2,223)
Acquisition and other transaction costs			—						50
Acquisition-related retention expense and contingent consideration			149						427
Restructuring costs(1)			94						67
Adjusted EBITDA			$	8,670					$	14,872
Revenue			$	138,859					$	133,108
Adjusted EBITDA Margin			6.2		%				11.2		%

(1)For the three months ended March 31, 2026 and 2025, the majority of the restructuring costs related to our Southern California and Eastern Pennsylvania branches.

Reconciliation to Adjusted Net Income and Adjusted Diluted Earnings Per Share (unaudited)

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			Three Months Ended March 31,
(in thousands, except share and per share amounts)			2026												2025
Net income and diluted earnings per share			$	4,380					$	0.36					$	10,214					$	0.85
Pre-tax Adjustments:
Amortization of acquisition-related intangible assets			1,774						0.15						1,863						0.15
Stock-based compensation expense			2,639						0.22						2,012						0.17
Change in fair value of interest rate swap			(38)						—						97						0.01
Restructuring costs(1)			94						0.01						67						0.01
Acquisition-related retention expense and contingent consideration			149						0.01						427						0.04
Acquisition and other transaction costs			—						—						50						—
Tax effect of reconciling items(2)			(1,247)						(0.10)						(1,218)						(0.10)
Adjusted net income and adjusted diluted earnings per share			$	7,751					$	0.64					$	13,512					$	1.12
Weighted average number of shares outstanding: Diluted									12,067,589												12,051,678

(1)    For the three months ended March 31, 2026 and 2025, the majority of the restructuring costs related to our Southern California and Eastern Pennsylvania branches.

(2)    The tax effect of reconciling items was calculated using a statutory tax rate of 27%.

Supplemental Revenue Disclosures

Organic and acquisition-related revenue are not defined under GAAP and may not be comparable to similarly-titled measures used by other companies and should not be considered a substitute for revenue as determined in accordance with GAAP. Management believes these non-GAAP measures provide useful information to investors by highlighting the underlying growth trends of the Company’s existing operations, separate from the effects of recent acquisitions. Organic revenue reflects the change in revenue from the Company’s continuing operations excluding the impact of acquisitions, while acquisition-related revenue represents the incremental contribution from businesses acquired only for the twelve-month period following the date of acquisition. These measures are intended to enhance investors’ understanding of the Company’s performance and trends over time, and should be considered in conjunction with, but not as a substitute for, GAAP revenue.

The following are reconciliations of reported revenue to organic / acquisition-related revenue for the three months ended March 31, 2026, compared to revenue for the three months ended March 31, 2025:

(in thousands except for percentages)			ODR			%			GCR			%			Total Revenue			%
Revenue: Three months ended March 31, 2025			$	90,393					$	42,715					$	133,108
Components of revenue change:
Organic revenue decline			(4,882)			(5.4)		%	(12,909)			(30.2)		%	(17,791)			(13.4)		%
Acquisition-related revenue(1)			14,300			15.8		%	9,242			21.6		%	23,542			17.7		%
Revenue: Three months ended March 31, 2026			$	99,811		10.4		%	$	39,048		(8.6)		%	$	138,859		4.3		%

(1)    Acquisition-related revenue reflects revenue attributable to the July 2025 acquisition of Pioneer Power.

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FAQ

How did Limbach (LMB) perform financially in Q1 2026?

Limbach’s Q1 2026 revenue rose 4.3% to $138.9 million, but net income dropped to $4.4 million from $10.2 million. Adjusted EBITDA declined to $8.7 million from $14.9 million as gross margin compressed from 27.6% to 22.4%.

What were Limbach’s Q1 2026 bookings and book-to-bill ratio?

Limbach reported Q1 2026 bookings of $209.1 million, producing a book-to-bill ratio of 1.5x. This high bookings level, including strong data center activity, supports management’s expectation for accelerating organic revenue growth through the remainder of 2026.

Did Limbach (LMB) reaffirm its full-year 2026 guidance?

Yes. Limbach reaffirmed full-year 2026 revenue guidance of $730–$760 million and Adjusted EBITDA of $90–$94 million. Assumptions include 4–8% total organic revenue growth and gross margin in the 26–27% range.

How did Limbach’s margins and Adjusted EBITDA change in Q1 2026?

Total gross margin declined to 22.4% from 27.6%, and Adjusted EBITDA fell to $8.7 million from $14.9 million. Management cites lower fixed cost absorption, fewer project write-ups, and Pioneer Power’s lower-margin profile as key drivers.

What is happening with Limbach’s Owner Direct and GCR segments?

In Q1 2026, ODR revenue grew 10.4% to $99.8 million, while GCR revenue fell 8.6% to $39.0 million. Organic revenue declined in both segments, but acquisition-related revenue from Pioneer Power contributed significantly to total growth.

What was Limbach’s cash flow and debt position at March 31, 2026?

Net cash used in operating activities was $7.8 million in Q1 2026. At March 31, 2026, the company held $15.8 million in cash and had $32.4 million outstanding under its revolving credit facility, plus $7.0 million of standby letters of credit.

How is Limbach’s data center business contributing to growth?

Limbach highlighted strong momentum in data centers, noting this vertical represented approximately 27% of Q1 2026 bookings. The company emphasized longstanding relationships with mission-critical and hyperscale customers as a foundation for future growth.

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