Second Quarter 2026
Filed Aug 4, 2026Limbach Reports Second Quarter 2026 Results Increases Full Year 2026 Revenue Guidance to $760 million to $790 million and Revises Adjusted EBITDA Guidance to $78 million to $84 million
Revenue, bookings and operating cash flow increased, but gross margin, net income, adjusted net income and Adjusted EBITDA declined. The Company increased revenue guidance while reducing Adjusted EBITDA and gross-margin assumptions.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $173.5 million | – | increased 21.9%, or $31.2 million |
| Total gross profitGAAP | $37.3 million | – | decreased 6.4% |
| Total gross marginGAAP | 21.5% | – | decreased from 28.0% |
| Selling, general and administrative expenseGAAP | $28.1 million | – | increased by approximately $1.5 million |
| Selling, general and administrative expense as a percentage of revenueGAAP | 16.2% | – | decreased to 16.2% from 18.7% |
| Interest expenseGAAP | $0.8 million | – | an increase of $0.2 million |
| Net incomeGAAP | $4.7 million | – | decreased 38.8% |
| Diluted earnings per shareGAAP | $0.39 per diluted share | – | – |
| Adjusted net incomenon-GAAP | $7.6 million | – | decreased 32.1% |
| Adjusted diluted earnings per sharenon-GAAP | $0.64 per adjusted diluted earnings per share | – | – |
| Adjusted EBITDAnon-GAAP | $13.9 million | – | decreased 22.3% |
| Total bookingsother | $182.0 million | – | – |
| Book-to-bill ratioother | 1.1x | – | – |
| Net cash provided by operating activitiesGAAP | $18.7 million | – | – |
| Cash and cash equivalentsGAAP | $17.5 million | – | – |
| Current assetsGAAP | $223.1 million | – | – |
| Current liabilitiesGAAP | $150.2 million | – | – |
| Current ratioother | 1.49x | – | – |
| Borrowings under revolving credit facilityother | $17.5 million | – | – |
| Standby letters of creditother | $7.0 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Owner Direct Relationships (ODR)Acquisition-related revenue increased 21.3%, or $23.2 million, partially offset by a 3.4%, or $3.7 million decrease in organic revenue. ODR revenue represented 74.0% of total revenue. Gross profit decreased 2.6%, or $0.8 million, to $30.8 million from $31.6 million, while gross margin decreased to 24.0% from 29.0%. | $128.4 million | – | increased 17.9%, or $19.5 million |
| General Contractor Relationships (GCR)Acquisition-related revenue increased 23.3%, or $7.8 million, while organic revenue increased 12.0%, or $4.0 million. Gross profit decreased 20.7%, or $1.7 million, to $6.5 million from $8.2 million, while gross margin decreased to 14.5% from 24.7%. | $45.0 million | – | increased 35.3%, or $11.8 million |
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
- 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
- NoteThe revised guidance excludes any contribution from the recently completed CYMCOR acquisition or future acquisitions.
What drove it
- Pioneer Power, acquired in July 2025, contributed a full quarter of revenue in the current period with no comparable contribution in the prior-year period.
- Acquisition-related revenue represented 21.7%, or $30.9 million, of the total revenue increase.
- The Company stated that its organic revenue increased slightly for the three months ended June 30, 2026.
- The lower margin profile of Pioneer Power drove the decline in segment gross-margin percentages.
- Gross profit margin was negatively affected by lower net project write-ups compared with the prior-year period and competition for skilled labor and materials associated with construction activity in data center markets.
- SG&A increased primarily because of a $0.7 million increase in incremental SG&A expense associated with Pioneer Power and an aggregate $0.6 million increase in total stock-based compensation and payroll-related expenses.
- Interest expense increased because of higher average borrowings under the revolving credit facility and increased financing costs associated with a larger vehicle fleet.
Concerns
- Total gross profit decreased to $37.3 million from $39.8 million despite total revenue growth.
- Total gross margin decreased to 21.5% from 28.0%.
- ODR organic revenue decreased 3.4%, or $3.7 million.
- Net income decreased 38.8% to $4.7 million, adjusted net income decreased 32.1% to $7.6 million, and Adjusted EBITDA decreased 22.3% to $13.9 million.
- FY 2026 Adjusted EBITDA guidance was revised to $78 million - $84 million from $90 million - $94 million, while the gross-margin assumption was reduced to 23 - 24% from 26 - 27%.
- Interest income decreased by $0.3 million, primarily because of lower average cash and cash equivalent balances and lower yields on investments.
What to watch
- Timing of project commencements and execution within existing backlog, together with future bookings, which the Company expects to support organic revenue growth during the remainder of 2026.
- Whether Pioneer Power gross margins improve as 2026 progresses under operational and pricing improvement initiatives intended to bring gross margins in line with the Company average over the next two to three years.
- Bookings and book-to-bill conversion after $182.0 million of quarterly bookings generated a 1.1x book-to-bill ratio.
- Execution against the revised FY 2026 gross-margin range of 23 - 24% and Adjusted EBITDA range of $78 million - $84 million.
- Use of free cash flow to reduce revolving credit facility borrowings for the remainder of the year.
- The funding impact and integration of the CYMCOR acquisition, which occurred after the end of the second quarter and is excluded from revised guidance.
Balance sheet and cash flow
- Net cash provided by operating activities was $18.7 million compared to $2.0 million in the prior year period.
- On June 30, 2026, cash and cash equivalents were $17.5 million.
- Current assets were $223.1 million and current liabilities were $150.2 million, representing a current ratio of 1.49x compared to 1.44x at December 31, 2025.
- On June 30, 2026, the Company had $17.5 million in borrowings under its revolving credit facility and $7.0 million of standby letters of credit.
- On July 24, 2026, the Company increased the aggregate principal amount of available borrowings under its revolving credit facility from $100 million to $125 million.
- On August 4, 2026, the Company completed its acquisition of CYMCOR for a purchase price at closing of $30.0 million. The acquisition was funded through a combination of available cash and borrowing under the recently expanded revolving credit facility.
Analysis
Limbach reported a mixed second quarter. Total revenue increased 21.9% to $173.5 million from $142.2 million, while total bookings were $182.0 million and the book-to-bill ratio was 1.1x. Management attributed most of the revenue increase to Pioneer Power, which contributed a full quarter after its July 2025 acquisition. Acquisition-related revenue represented 21.7%, or $30.9 million, of the total revenue increase, while the Company said total organic revenue increased slightly.
Both operating segments grew revenue, but their mix and profitability differed. ODR revenue increased 17.9% to $128.4 million and represented 74.0% of total revenue; its organic revenue decreased 3.4%, or $3.7 million. GCR revenue increased 35.3% to $45.0 million, with acquisition-related revenue growth and organic revenue growth. Management cited project timing and price sensitivity in certain markets rather than weakening underlying demand.
Profitability declined sharply. Total gross profit decreased 6.4% to $37.3 million and total gross margin declined to 21.5% from 28.0%. ODR gross margin fell to 24.0% from 29.0%, and GCR gross margin fell to 14.5% from 24.7%. The Company attributed the pressure primarily to Pioneer Power's lower current margin profile, lower net project write-ups, and competition for skilled labor and materials in data center construction markets. SG&A expense increased to $28.1 million, although SG&A expense as a percentage of revenue improved to 16.2% from 18.7%.
The resulting earnings decline exceeded the gross-profit contraction. Net income was $4.7 million, compared with $7.8 million, and diluted earnings per share was $0.39 compared with $0.64. Adjusted net income was $7.6 million compared with $11.3 million, while Adjusted EBITDA was $13.9 million compared with $17.9 million. Operating cash flow improved materially to $18.7 million from $2.0 million. At June 30, 2026, cash and cash equivalents were $17.5 million and borrowings under the revolving credit facility were $17.5 million.
The outlook raises the revenue range to $760 million - $790 million from $730 million - $760 million but reduces the Adjusted EBITDA range to $78 million - $84 million from $90 million - $94 million. The Company also lowered its gross-margin assumption to 23 - 24% from 26 - 27%, reduced the ODR organic growth assumption to 6 - 10% from 9 - 12%, and revised total organic revenue growth to 9 - 14% from 4 - 8%. Management expects Pioneer Power margins to improve as 2026 progresses. The CYMCOR acquisition closed on August 4, 2026 for a purchase price at closing of $30.0 million, is excluded from revised guidance, and was funded with available cash and borrowings under the expanded credit facility.
Management, verbatim
Our second quarter results were primarily affected by project timing and price sensitivity in certain markets rather than a deterioration in underlying demand leading to results that fell below our expectations. Importantly, bookings remained strong at $182.0 million, producing a 1.1x book-to-bill ratio, and reinforcing our confidence that customer demand remains healthy. Based on our strong bookings and the visibility we have into the second half of the year, we believe our revised outlook appropriately reflects the current operating environment and positions us to execute successfully.
Michael McCann, President and Chief Executive Officer of Limbach
This quarter highlights the importance of executing our strategy of expanding into attractive end markets where we can broaden our service offerings and improve the long-term durability and quality of our earnings. This includes earlier engagement across facility lifecycles to generate opportunities to deliver a broader range of higher-value services while strengthening customer relationships over time. This strategy builds a more balanced and resilient platform positioned to capitalize on attractive secular growth trends. Supported by our strong balance sheet, disciplined capital allocation, and continued operational execution, we believe these initiatives will strengthen margins, enhance earnings power, and increase long-term shareholder value.
Michael McCann, President and Chief Executive Officer of Limbach
Not in the filing
stated, not guessed- GAAP operating income or loss was not reported in the provided document.
- GAAP operating margin was not reported in the provided document.
- Free cash flow for the reported quarter was not reported in the provided document.
- Capital expenditures for the reported quarter were not reported in the provided document.
- Income tax expense, effective tax rate, and tax-rate guidance were not reported in the provided document.
- Share repurchases and dividends were not reported in the provided document.
- Prior-quarter comparisons were not reported for the presented key metrics.
- Prior-year revenue values for the ODR and GCR segment revenue rows were not printed.
- A separate previous earnings release or previous outlook document was not provided; therefore, no actual-versus-prior-guidance comparison is included.
- The provided filing text contains no CFO commentary.
AlphaAI analysis generated 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 cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.