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Investing.com -- Limbach Holdings Inc. (NASDAQ:LMB) reported second quarter earnings that exceeded analyst expectations on Tuesday, but shares fell 3.8% after the company missed revenue estimates despite raising its full-year outlook.
The building systems solutions provider posted adjusted earnings per share of $0.93 for the quarter ended June 30, 2025, surpassing the analyst consensus of $0.77 by $0.16. However, revenue came in at $142.2 million, falling short of the $145.68 million analysts had expected, despite representing a 16.4% increase from $122.2 million in the same period last year.
The revenue miss appears to be driving investor concern despite the company’s strong bottom-line performance. Limbach’s Owner Direct Relationships (ODR) segment, which focuses on higher-margin business, grew 31.7% to $108.9 million, now accounting for 76.6% of total revenue compared to approximately 21% in Q2 2019.
"We delivered strong second quarter performance, with improvement in key metrics year over year — clear evidence that our strategic shift to higher margin ODR business is driving meaningful results," said Michael McCann, President and CEO of Limbach.
The company raised its full-year 2025 guidance, now expecting revenue between $650 million and $680 million, up from its previous forecast of $610 million to $630 million and above the analyst consensus of $627.6 million. Adjusted EBITDA guidance was also increased to between $80 million and $86 million from the previous range of $78 million to $82 million.
Adjusted EBITDA for the quarter rose 30% to $17.9 million compared to $13.8 million in the prior-year period. The company’s gross margin improved from 27.4% to 28.0%, driven by the higher proportion of ODR segment work.
Limbach completed its acquisition of Pioneer Power, Inc. on July 1, 2025, for $66.1 million, funded through a combination of available cash and its revolving credit facility.
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