Limbach’s record revenue rises 24.9% to $230.5 million in the third quarter
Key Facts
Limbach reported results on November 3 for the quarter ended September 30, posting record revenue of $230.5 million, up 24.9% from $184.6 million in the third quarter of 2025, according to the company’s filing with the U.S. Securities and Exchange Commission. Adjusted EBITDA, a measure of adjusted earnings before interest, taxes, depreciation and amortization, rose 25.9% to $27.4 million from $21.8 million a year earlier. Net income was $9.5 million, or $0.79 per diluted share, compared with $8.8 million and $0.73 per share in the year-earlier period. Chief Executive Michael McCann said the results reflect "improving customer activity and a return to organic growth in our Owner Direct business." The results highlight broadening activity, with total revenue and adjusted earnings growing at similar rates.
Revenue growth came from organic activity and contributions from acquisitions. Organic revenue rose 14.4%, or $26.6 million, as new projects began and the company carried out work from its existing portfolio, according to its quarterly report. The 1901 and CYMCOR acquisitions contributed combined revenue of $19.3 million during the three months ended September 30. By business segment, General Contractor Relationships revenue surged 84.7% to $79.8 million, an increase of $36.6 million. Owner Direct Relationships revenue rose 6.6%, or $9.3 million, to $150.7 million, equivalent to 65.4% of total revenue. This means the General Contractor Relationships segment grew faster than the company’s Owner Direct business during the quarter.
Demand indicators also improved: quarterly bookings were $311.2 million, and the book-to-bill ratio was 1.4 times, according to the results filing. Bookings exceeded revenue recorded in the quarter, indicating that new work was added to the project base. Bookings were $182 million in the second quarter of 2026, when the book-to-bill ratio was 1.1 times. Total revenue growth also accelerated to 24.9% in the third quarter, compared with 21.9% growth in the second quarter, when revenue was $173.5 million versus $142.2 million a year earlier. The company said some project timing delays had begun to ease, and that continued execution of its backlog, together with expected new bookings, should support further organic growth through the rest of 2026.
Gross profit growth did not keep pace with revenue: gross profit rose 20.5% to $53.8 million, but its margin declined to 23.4% from 24.2% in the year-earlier quarter. The company attributed the lower margin to a higher revenue mix from General Contractor Relationships work and contributions from acquired companies at margins below their historical levels. Meanwhile, net cash from operating activities rose to $20.3 million from $13.3 million in the third quarter of 2025. The figures show two aspects of operating performance: improved cash generation alongside pressure on gross profit margin. Changes in the business mix and margins at acquired companies make the margin trend a notable factor alongside revenue and bookings growth.
Limbach kept its financial guidance for fiscal 2026 at revenue of $760 million to $790 million and Adjusted EBITDA of $78 million to $84 million, and said it expects results at or near the upper end of both ranges. The company announced these ranges on August 4, when it raised its annual revenue outlook and revised its adjusted earnings range. On November 4, McCann said the company’s financial flexibility supports continued investment in its business as it looks ahead to 2027. The company held its third-quarter results call that day at 9:00 a.m. Eastern time. LMB shares closed at $56.03 on November 13, 2026, according to EL7 data.