Limbach (LMB) investor relations material

Customer relationships and market positioning

• Focus on large-scale, mission-critical customers, especially in healthcare, industrial manufacturing, and data centers, with a preference for those with national footprints and complex needs.

• Shift from transactional, general contractor relationships to owner-direct, long-term partnerships, emphasizing programmatic solutions and deep facility knowledge.

• National approach leverages consistency and quality, addressing labor shortages and operational complexity for clients.

• On-site account managers drive deeper engagement, leading to maintenance contracts and capital projects, with a strategy to sell at all organizational levels.

• Relationships are described as sticky, with recurring revenue streams and a focus on expanding share within existing accounts.

Organizational strategy and growth initiatives

• Recent organizational changes include dedicated executives for sales enablement and national accounts to boost productivity and connect local and national relationships.

• Growth strategy combines local market penetration, national account expansion, and targeted acquisitions to scale operations through 2026–2028.

• Acquisitions are aimed at expanding geographic footprint and adding professional services, especially in underrepresented MSAs and verticals.

• Integration playbook for acquisitions focuses on rapid systems alignment and subsequent value creation through margin improvement.

• Example given of raising acquired business margins from low teens to above 28% through focused integration and operational improvements.

Financial performance and margin outlook

• Margins for legacy business are around 28%, with a goal to reach 35–40% by layering engineered, non-commoditized solutions and leveraging installation capabilities.

• Geographic expansion initially dilutes margins, but full footprint and specialized services are expected to drive margin growth.

• Owner-direct projects average $240,000, with recurring revenue from quick-turn projects and maintenance contracts.

• Revenue segmentation and margin profiles are being shared to provide investors with clearer insights.

• Acquisitions may temporarily lower margins but are expected to align with long-term targets through integration.