Limbach Holdings, Inc. Q4 FY2025 earnings call

Good morning and welcome to the call. Mike McCann mentioned 2025 was a record year with significant revenue growth. Relocation of headquarters to Tampa. Focus on three strategic core growth pillars: grow ODR and organic total revenue, margin expansion through evolved customer solutions, strategic M&A. In Q3 discussed ODR revenue streams. Healthcare vertical had customers spending leftover budgets and early planning. Data center vertical had strong relationships and awarded projects. Industrial manufacturing vertical had steady results. Success in 2026 driven by accelerating sales and leveraging investment. Pioneer Power integration well underway with focus on margin improvement.

2025 marked a record year with total revenue growth of 24.7%. ODR-GCR mix was 75% ODR and 25% GCR. Total ODR revenue grew by 40.6%, organic ODR revenue growth 17%. Total gross margin 26.2%, 28.2% excluding acquisitions since 2021. Record full-year adjusted EBITDA $81.8 million within guidance $80 - $86 million. Cash from operations $71.9 million in 2025, $21.4 million in Q4. Fourth quarter 2025 total revenue $186.9 million vs $143.7 million in 2024, growth 30.1%. ODR revenue $145 million, growth 51.8%. GCR revenue $41.9 million, decrease 13%. Full year 2025 total revenue $646.8 million vs $518.8 million in 2024, growth 24.7%. ODR revenue $485.7 million, growth 40.6%. GCR revenue $161.1 million, decrease 7%.

2026 guidance: revenue between 730 - 760 million, year-over-year growth 13 - 17%. Adjusted EBIT 90 - 94 million, year-over-year growth 10% - 16%. Total organic revenue growth 4% - 8%, ODR organic revenue growth 9% - 12%. ODR as percent of total revenue 75% - 80%. Total growth margin 26% - 27%. S&A expense as percent of total revenue 15% - 17%. Free cash flow 75% of adjusted EBITDA for 2026. First quarter tends to be slowest due to seasonality, second half expected stronger.

Actual results may differ from forward-looking statements. Factors causing material difference in company's results compared to forward-looking statements in LIMBOX SEC filings. Risks related to project risk and reward, margin improvement at acquired companies, macro environment uncertainties like government shutdowns and DC policy changes affecting customer activities.

Q: Talk about investment in data center opportunity.

A: Building national vertical market teams, had success in Columbus, Ohio, awarded projects, focused on dedicating resources.

Q: ODR organic guide, pioneer in back half of 26%.

A: After first half of year, pioneer becomes part of organics, focus on gross profit improvement, phase two implementation.

Q: Long-term organic growth in ODR segment.

A: Focused on 2026, looking at normalized growth rate, investing in sellers, national vertical market perspective.

Q: Bookings in Q4, environment.

A: Booked $225 million vs $187 million revenue in Q4, 1.2 ratio, ability to get involved early, turning corner from sales perspective.

Q: New positions, how play into growth strategy.

A: Two new positions for sales enablement and national accounts, focus on local and national sales, combination of both.

Q: Acquisitions, going after opportunities, pay up for them.

A: Look at opportunities to be indispensable, combine geographic footprint and integrated facility planning, smart integration.

Q: National account, growth in guide.

A: Focus on 2027 for real take-off, some built in, back half of year.

Q: Data center opportunity, existing vs new construction.

A: Focused on existing buildings, direct to owner work, smart business decision.

Q: Pioneer Power integration, timelines, lessons from Jake Marshall.

A: Wrapping up phase one, learned to get through phase one quickly, listen to customers, propose solutions to drive margins.

Q: Risks for achieving gross margin guidance.

A: Focus on short duration projects, careful balance in selling work, ability to sell as important step.