Limbach (LMB) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 4.3% year-over-year to $138.9 million, driven by the Pioneer Power acquisition and strong bookings, despite a decline in organic revenue.

• Net income dropped 57.1% to $4.4 million, with diluted EPS at $0.36, reflecting lower gross margins and higher SG&A expenses.

• Bookings reached $209 million, with a 1.5x book-to-bill ratio and 27% from data centers, indicating strong future demand.

• Strategic focus remains on ODR growth, margin expansion, and scaling through acquisitions, with integration of Pioneer Power progressing.

• Management reaffirmed full-year 2026 revenue guidance of $730–$760 million and Adjusted EBITDA of $90–$94 million.

Financial highlights

• Total revenue grew 4.3% year-over-year to $138.9 million, with ODR revenue up 10.4% to $99.8 million and GCR revenue down 8.6% to $39.0 million.

• Gross profit declined 15.1% to $31.2 million; gross margin dropped to 22.4% from 27.6% year-over-year.

• Adjusted EBITDA decreased 41.7% to $8.7 million; margin fell to 6.2% from 11.2%.

• Net income dropped to $4.4 million; adjusted net income fell 42.6% to $7.8 million; adjusted EPS was $0.64.

• Operating cash outflow was $7.8 million, compared to $2.2 million inflow last year; cash and equivalents at quarter-end were $15.8 million.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $730–$760 million, with ODR projected at 75–80% of total revenue.

• Adjusted EBITDA expected at $90–$94 million; gross margin expected at 26–27%; SG&A to be 15–17% of revenue.

• ODR organic revenue growth projected at 9–12%; overall organic revenue growth at 4–8%.

• Free cash flow targeted at 75% of adjusted EBITDA.

• Sequential improvement in revenue and adjusted EBITDA anticipated for Q2 2026.