Third Quarter 2026
Filed Nov 3, 2026Limbach Reports Third Quarter 2026 Results Expects Full-Year 2026 Revenue and Adjusted EBITDA to be At or Near the High End of Guidance
Third-quarter revenue, adjusted EBITDA, adjusted net income and operating cash flow increased year over year, supported by organic project execution and the CYMCOR and 1901 acquisitions. Gross margin declined because of a larger GCR mix and lower-margin acquired businesses, while the company added borrowing capacity and expects full-year revenue and Adjusted EBITDA to be at or near the high end of guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30GAAP | $230.5M | – | 24.9% |
| Organic revenue, three months ended September 30non-GAAP | $26.6M | – | 14.4% |
| Acquisition-related revenue, three months ended September 30non-GAAP | $19.3M | – | 10.5% of total revenue |
| Total bookings, three months ended September 30other | $311.2M | – | – |
| Book-to-bill ratio, three months ended September 30other | 1.4x | – | – |
| Total gross profit, three months ended September 30GAAP | $53.8M | – | 20.5% |
| Total gross margin, three months ended September 30GAAP | 23.4% | – | – |
| ODR gross profit, three months ended September 30GAAP | $38.2M | – | 7.1% |
| ODR gross margin, three months ended September 30GAAP | 25.4% | – | – |
| GCR gross profit, three months ended September 30GAAP | $15.6M | – | 73.6% |
| GCR gross margin, three months ended September 30GAAP | 19.6% | – | – |
| Selling, general and administrative expense, three months ended September 30GAAP | $34.6M | – | 22.1% |
| Selling, general and administrative expense as a percentage of revenue, three months ended September 30GAAP | 15.0% | – | – |
| Acquisition-related retention expense and contingent consideration, three months ended September 30GAAP | $571K | – | (6.4)% |
| Amortization of intangibles, three months ended September 30GAAP | $3.62M | – | 50.6% |
| Operating income, three months ended September 30GAAP | $15.06M | – | 12.9% |
| Interest expense, three months ended September 30GAAP | −$1.24M | – | – |
| Interest income, three months ended September 30GAAP | $96K | – | – |
| Income tax expense, three months ended September 30GAAP | $4.34M | – | – |
| Net income, three months ended September 30GAAP | $9.5M | – | 7.5% |
| Diluted earnings per share, three months ended September 30GAAP | $0.79 | – | – |
| Adjusted net income, three months ended September 30non-GAAP | $16.4M | – | 29.0% |
| Adjusted diluted earnings per share, three months ended September 30non-GAAP | $1.37 | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $27.4M | – | 25.9% |
| Adjusted EBITDA Margin, three months ended September 30non-GAAP | 11.9% | – | – |
| Net cash provided by operating activities, three months ended September 30GAAP | $20.3M | – | – |
| Total revenue, nine months ended September 30GAAP | $542.8M | – | 18.0% |
| Total gross profit, nine months ended September 30GAAP | $122.3M | – | 0.9% |
| Total gross margin, nine months ended September 30GAAP | 22.5% | – | – |
| Operating income, nine months ended September 30GAAP | $23.45M | – | (26.5)% |
| Net income, nine months ended September 30GAAP | $18.58M | – | – |
| Diluted earnings per share, nine months ended September 30GAAP | $1.54 | – | – |
| Adjusted net income, nine months ended September 30non-GAAP | $31.83M | – | – |
| Adjusted diluted earnings per share, nine months ended September 30non-GAAP | $2.65 | – | – |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $50.01M | – | – |
| Adjusted EBITDA Margin, nine months ended September 30non-GAAP | 9.2% | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $31.19M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ODR, three months ended September 30Acquisition-related ODR revenue increased 4.4%, or $6.2 million, while organic ODR revenue increased by 2.2%, or $3.1 million. | $150.7M | – | 6.6% |
| GCR, three months ended September 30Organic GCR revenue increased 54.4%, or $23.5 million, while acquisition-related GCR revenue increased 30.4%, or $13.1 million. | $79.8M | – | 84.7% |
| ODR, nine months ended September 30Organic revenue was $(5,507) (in thousands), or (1.6)%, and acquisition-related revenue was $43,659 (in thousands), or 12.8%. | $378.9M | – | 11.2% |
| GCR, nine months ended September 30Organic revenue was $14,568 (in thousands), or 12.2%, and acquisition-related revenue was $30,124 (in thousands), or 25.3%. | $163.9M | – | 37.5% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
FY 2026 outlook
- Revenue$760 million - $790 million
- Gross margin23 - 24%
- Operating expensesSG&A expense as a percentage of total revenue 15 - 16%
- NoteAdjusted EBITDA $78 million - $84 million
- NoteExpects to be at or near the high end of the range
- NoteTotal organic revenue growth 9 - 14%
- NoteODR revenue as a percentage of total revenue 70 - 80%
- NoteODR organic revenue growth 6 - 10%
- NoteFree cash flow 75% of Adjusted EBITDA
Capital returns
- Repurchases of common stock under Share Repurchase Program: $(10,000) (in thousands) for the three months ended September 30, 2026.
- Repurchases of common stock under Share Repurchase Program: $(10,000) (in thousands) for the nine months ended September 30, 2026.
What drove it
- Total revenue growth was driven by project commencements and execution within existing backlog, plus third-quarter acquisitions of 1901 and CYMCOR.
- The company stated that project timing issues discussed earlier in the year are beginning to ease and that customer activity is improving.
- The higher proportion of GCR revenue reduced total gross margin because GCR typically carries lower gross margins than ODR revenue.
- Recently acquired businesses currently operate at lower gross margin profiles than Limbach's historical levels.
- SG&A expense increased primarily from acquisition-associated SG&A expense, professional services expense, and payroll-related expenses.
Concerns
- Total gross margin was 23.4%, compared with 24.2%, as GCR represented 34.6% of third-quarter revenue versus 23.4% in the prior-year period.
- GCR gross margin was 19.6%, compared with 20.8%, and ODR gross margin was 25.4%, compared with 25.2%.
- Nine-month operating income was $23,448 (in thousands), compared with $31,898 (in thousands), and nine-month Adjusted EBITDA Margin was 9.2%, compared with 11.9%.
- The company identified successful integration of CYMCOR and 1901 and improvement of their gross margins as risks to results.
- Available amounts under the PNC facilities are subject to reduction in accordance with their respective terms and conditions, including compliance with applicable covenants.
What to watch
- Execution of backlog and anticipated new bookings to support further organic revenue growth during the remainder of 2026.
- Integration of CYMCOR and 1901, including operational and pricing initiatives intended to bring their gross margins closer to historical averages over the next two to three years.
- Whether ODR revenue as a percentage of total revenue reaches the FY 2026 guidance assumption of 70 - 80%.
- Conversion of bookings into revenue and cash flow, given that bookings can vary significantly quarter to quarter.
- Progress in reducing revolving-credit-facility borrowings through free cash flow for the remainder of the year.
Balance sheet and cash flow
- Cash and cash equivalents were $29.1 million on September 30, 2026.
- Current assets were $302.1 million and current liabilities were $196.7 million, representing a current ratio of 1.54x compared to 1.44x at December 31, 2025.
- The Company had $75.0 million in borrowings outstanding under the PNC Revolving Credit Facility and $50.0 million outstanding under the PNC Term Loan Facility.
- Approximately $125.0 million remained available under the PNC Revolving Credit Facility after giving effect to outstanding borrowings.
- No borrowings were outstanding under the PNC Delayed Draw Term Loan Facility, and its $50.0 million commitment remained undrawn.
- Net cash used in investing activities was $(96,208) (in thousands) for the three months ended September 30, 2026, including the 1901 Transaction, net of cash acquired, of $(65,978) (in thousands) and the CYMCOR Transaction, net of cash acquired, of $(29,864) (in thousands).
- The Company intends to deploy free cash flow to continue to reduce its borrowings under its revolving credit facility for the remainder of the year.
Analysis
Limbach reported record third-quarter revenue of $230.5 million, up 24.9% from $184.6 million. Organic operations contributed $26.6 million of revenue growth, or 14.4%, driven by project commencements and execution in existing backlog. CYMCOR and 1901 contributed acquisition-related revenue of $19.3 million, or 10.5% of total revenue. Total bookings were $311.2 million and the book-to-bill ratio was 1.4x.
ODR revenue grew 6.6% to $150.7 million, with organic ODR revenue growth of 2.2% and acquisition-related ODR revenue growth of 4.4%. GCR revenue grew 84.7% to $79.8 million, combining 54.4% organic growth with 30.4% acquisition-related growth. The resulting mix shift was unfavorable to gross margin because GCR generally has lower margins than ODR. Total gross margin declined to 23.4% from 24.2%, while GCR gross margin declined to 19.6% from 20.8%.
Profit growth lagged revenue growth on a GAAP basis. Net income increased 7.5% to $9.5 million and diluted EPS was $0.79, compared with $0.73. SG&A rose to $34.6 million from $28.3 million, principally due to acquisition-related SG&A and professional-services costs and higher payroll-related expense, although SG&A as a percentage of revenue improved to 15.0% from 15.3%. Adjusted EBITDA increased 25.9% to $27.4 million and Adjusted EBITDA Margin was 11.9%, compared with 11.8%.
Cash generation strengthened in the quarter, with net cash provided by operating activities of $20.3 million compared with $13.3 million. The company used $(96,208) (in thousands) in investing activities during the quarter, including the 1901 and CYMCOR transactions, while financing activity included $75,000 (in thousands) of proceeds from the PNC Revolving Credit Facility, $50,000 (in thousands) from the PNC Term Loan Facility, and $(10,000) (in thousands) of common-stock repurchases. Cash and cash equivalents were $29.1 million at September 30, 2026, and PNC revolving-facility borrowings were $75.0 million.
Management updated FY 2026 guidance to include the recent acquisitions and expects revenue and Adjusted EBITDA to be at or near the high end of their respective $760 million - $790 million and $78 million - $84 million ranges. The guide assumes total organic revenue growth of 9 - 14%, ODR organic revenue growth of 6 - 10%, total gross margin of 23 - 24%, SG&A expense at 15 - 16% of total revenue, and free cash flow of 75% of Adjusted EBITDA. The central execution issue is whether acquisition integration, pricing initiatives, and backlog conversion can sustain growth while improving the lower gross-margin profile of acquired businesses.
Management, verbatim
Our third-quarter results reflect improving customer activity and a return to organic growth in our owner-direct business.
Michael McCann, President and Chief Executive Officer of Limbach
We believe some of the project timing issues we discussed earlier this year are beginning to ease, giving us a clearer view of the work ahead.
Michael McCann, President and Chief Executive Officer of Limbach
With the improvement in our core business and contributions from two acquisitions completed during the quarter, CYMCOR, Inc. (“CYMCOR”) and 1901 Inc. (“1901”), we are tracking at or near the high end of our revenue and Adjusted EBITDA guidance ranges.
Michael McCann, President and Chief Executive Officer of Limbach
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported operating metrics were not provided.
- A reported free cash flow amount for the third quarter or nine months was not provided.
- Dividend information was not provided.
- Prior-period FY 2026 guidance was not provided; therefore, no comparison of actual results with prior guidance is available.
- GAAP tax rate was not provided.
- Backlog amount was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.