Building systems solutions provider Limbach's Q3 revenue beats estimates on acquisitions

Overview

• Limbach Q3 revenue grows 37.8% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q3 rises 25.6%, reflecting strategic focus on ODR

• Company reaffirms FY 2025 revenue guidance of $650 mln to $680 mln

Outlook

• Limbach reaffirms FY 2025 revenue guidance of $650 mln to $680 mln

• Company expects full-year ODR organic revenue growth of 20% to 25%

• Limbach revises gross margin outlook due to Pioneer Power revenue

Result Drivers

• ODR REVENUE GROWTH - ODR revenue increased 52.0%, driven by strategic focus on higher margin business, now 76.6% of total revenue

• ACQUISITIONS - Revenue growth primarily due to acquisitions, with Pioneer Power exceeding expectations

• MARGIN IMPACT - Lower gross margins due to Pioneer Power's current margin profile, with plans to improve

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Limbach Holdings Inc is $129.50, about 27.8% above its November 3 closing price of $93.45

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 36 three months ago

Press Release: ID:nBw1fJ3mna

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)