Limbach Holdings Reports 4.3% Revenue Increase to $138.9 Million in Q1 2026

Limbach Holdings, Inc. reported a revenue increase of 4.3% for the first quarter of 2026, totaling $138.9 million compared to $133.1 million in the same period of 2025. The growth was primarily driven by the acquisition of Pioneer Power, which contributed $23.5 million in revenue. However, organic revenue declined by $17.8 million, attributed to lower bookings in mid-2025 and seasonal patterns affecting industrial customers. The Owner Direct Relationships (ODR) segment saw a 10.4% increase in revenue to $99.8 million, while the General Contractor Relationships (GCR) segment experienced an 8.6% decrease to $39.0 million.

Despite the revenue growth, Limbach's gross profit fell by 15.1% to $31.2 million, with gross margins decreasing from 27.6% to 22.4%. The decline in gross profit was attributed to lower margins in both segments, particularly due to the integration of Pioneer Power, which operates at a lower margin profile. Selling, general, and administrative expenses rose by 6.0% to $28.1 million, reflecting increased payroll costs and acquisition-related expenses. The company reported an operating income of $1.1 million, a significant decrease from $7.9 million in the prior year.

Limbach's net income for the quarter was $4.4 million, down from $10.2 million in the same period last year, resulting in earnings per share of $0.37 compared to $0.89. The company also recorded an income tax benefit of $3.7 million, leading to an effective tax rate of -505.6%. The decrease in net income was influenced by a combination of lower gross profit and increased operational costs.

In terms of operational developments, Limbach's employee headcount remained stable at approximately 1,600 across 21 offices in the Eastern and Midwestern United States. The company continues to focus on integrating Pioneer Power into its operations, aiming to enhance efficiencies and profitability over time. The ODR backlog increased to $276.4 million, while the GCR backlog rose to $188.2 million, reflecting the company's ongoing efforts to secure future projects.

Looking ahead, Limbach anticipates continued revenue growth driven by improved booking activity and a focus on enhancing margins through operational efficiencies. The company remains committed to its strategic objectives of organic growth, margin expansion, and targeted acquisitions, despite facing challenges from macroeconomic conditions and market volatility.