Limbach Holdings, Inc.

Limbach reported Q2 2026 revenue of $173.5 million, up from $142.2 million a year ago. Total gross profit was $37.3 million versus $39.8 million, and total gross margin was 21.5% versus 28.0%. Net income was $4.7 million versus $7.8 million, and diluted EPS was $0.39 versus $0.64. Adjusted net income was $7.6 million versus $11.3 million, adjusted diluted EPS was $0.64 versus $0.93, and adjusted EBITDA was $13.9 million versus $17.9 million. For 2026, management now expects revenue of $760 million to $790 million, adjusted EBITDA of $78 million to $84 million, gross margin of 23% to 24%, SG&A of 15% to 16% of revenue, and at least 75% adjusted EBITDA-to-free-cash-flow conversion. The company also expects CapEx to run at about $5 million and noted total liquidity of $93.1 million at June 30, plus an increased revolver capacity from $100 million to $125 million.

Mike McCann framed the quarter as below expectations because of project timing, healthcare/institutional softness, and price sensitivity, but emphasized that underlying demand remains healthy. His message was that Limbach is shifting from transformation to disciplined growth, with priorities around vertical diversification, geographic expansion, and tighter use of the integrated operating model. He repeatedly described the strategy as a way to build a more resilient, higher-quality business with better long-term returns, and said the company has “reset expectations” to match current conditions.

Jayme Brooks said Q2 revenue was $173.5 million, with ODR revenue at $128.4 million and GCR revenue at $45.0 million. She highlighted the margin compression: gross margin fell to 21.5% from 28.0%, adjusted EBITDA margin to 8.0% from 12.6%, and the decline was tied mainly to Pioneer Power’s lower margin profile, lower net project write-ups, and labor/material competition in data centers. On cash, operating cash inflow was $18.7 million, free cash flow was $13.7 million, and free cash flow conversion was 98.2% of adjusted EBITDA; cash and equivalents were $17.5 million, debt was $41.1 million, and liquidity was $93.1 million. She also noted the Simpcore acquisition was funded with cash and revolver borrowings and that 2026 guidance excludes Simpcore and future deals.

Analysts focused on three issues: the weaker ODR organic growth outlook, the sharp GCR margin decline, and what the 2026 reset implies for 2027. Management said the softer healthcare/institutional backdrop is mainly about pricing sensitivity and project timing, but pointed to $616 million of bookings over the last three quarters as evidence demand is still healthy. On GCR margins, McCann said the weakness was mostly timing and backlog/project-starting related rather than execution problems, and he argued the long-term opportunity is better mix, especially into data centers. Questions on Simpcore centered on how quickly it can create pull-through; management said the team engages very early in projects, expects immediate outreach for opportunities, and views the acquisition as a way to accelerate data center entry while limiting contractor execution risk.