Limbach Holdings Reports 11.9% Revenue Growth to $133.1 Million in Q1 2025

Limbach Holdings, Inc. reported a revenue increase of 11.9% for the first quarter of 2025, reaching $133.1 million compared to $119.0 million in the same period of 2024. The growth was primarily driven by a 21.7% rise in revenue from the Owner Direct Relationships (ODR) segment, which generated $90.4 million, while the General Contractor Relationships (GCR) segment saw a decline of 4.5%, contributing $42.7 million. The company's gross profit also improved, rising to $36.7 million from $31.1 million year-over-year, with a gross profit margin of 27.6%, up from 26.1%.

The company’s net income for the quarter was $10.2 million, or $0.89 per share, compared to $7.6 million, or $0.68 per share, in the prior year. This increase in profitability was attributed to higher revenues and improved operational efficiency, despite a rise in selling, general, and administrative expenses, which increased to $26.5 million from $22.9 million. The increase in expenses was largely due to higher payroll costs and professional services fees, reflecting the company's ongoing investments in growth.

Strategically, Limbach has made significant acquisitions, including Kent Island Mechanical and Consolidated Mechanical, which have expanded its market presence and service capabilities. The Kent Island acquisition, completed in September 2024, is expected to enhance the company's offerings in the Greater Washington, D.C. area, while the Consolidated Mechanical acquisition in December 2024 allows Limbach to penetrate the industrial sector more deeply. These acquisitions are anticipated to contribute positively to revenue and profitability in the coming quarters.

Operationally, Limbach reported a total employee count of approximately 1,400 across 20 offices, with a focus on enhancing its ODR segment, which is expected to yield higher margins. The company’s backlog as of March 31, 2025, was $369.2 million, with ODR backlog increasing to $249.0 million, indicating strong future revenue potential. The GCR backlog, however, decreased to $120.2 million, reflecting a strategic shift towards more profitable projects.

Looking ahead, Limbach Holdings aims to continue its focus on the ODR segment, targeting a revenue mix of 65-70% from this area. The company is also committed to expanding its service offerings and pursuing strategic acquisitions to enhance its market position. Despite potential macroeconomic challenges, including inflation and geopolitical risks, Limbach remains optimistic about its growth trajectory and operational strategies for 2025.