Limbach Holdings Reports 4.8% Revenue Growth, 15.6% Gross Profit Increase in Q3 2024

Limbach Holdings, Inc. reported a solid performance for the three and nine months ended September 30, 2024, with notable increases in revenue and profitability compared to the same periods in 2023. For the third quarter, revenue reached $133.9 million, a 4.8% increase from $127.8 million in the prior year. Year-to-date revenue for the nine months was $375.1 million, up slightly by 0.4% from $373.7 million in 2023.

The company's gross profit for the third quarter was $36.1 million, reflecting a 15.6% increase from $31.2 million in the same quarter of 2023. The gross profit margin improved from 24.5% to 27.0%, driven by a significant rise in Owner Direct Revenue (ODR), which surged by 41.3% to $93.0 million. However, General Construction Revenue (GCR) saw a decline of 33.9%, contributing to a decrease in GCR gross profit by 46.0%.

Operating income for the third quarter increased to $10.9 million from $9.8 million, while net income rose to $7.5 million, compared to $7.2 million in the previous year. For the nine-month period, net income was $21.0 million, a substantial increase from $15.5 million in 2023, with earnings per share rising from $1.45 to $1.87.

The company’s total assets increased to $324.4 million as of September 30, 2024, up from $304.4 million at the end of 2023. Current assets remained stable, while cash and cash equivalents decreased to $51.2 million from $59.8 million. Accounts receivable and contract assets both saw increases, indicating a healthy backlog of work.

Strategically, Limbach completed several acquisitions, including Kent Island Mechanical for $15.0 million in September 2024, which is expected to enhance its market presence in the Greater Washington, DC area. The company also acquired Industrial Air for $13.5 million in November 2023 and ACME for $5.0 million in July 2023. These acquisitions are part of Limbach's strategy to focus on higher-margin projects and expand its service offerings.

Despite these positive developments, the company faced challenges, including a decrease in cash provided by operating activities, which fell to $17.5 million from $43.5 million in the previous year. This decline was attributed to changes in contract assets and liabilities, as well as an increase in accounts receivable.

Overall, Limbach Holdings, Inc. continues to navigate a competitive landscape while focusing on strategic growth through acquisitions and operational improvements, despite facing external pressures such as inflation and supply chain disruptions.