🧾 What This Document Is

This is Limbach Holdings' 2025 Annual Report, bundled with their official Form 10-K filing with the SEC. Think of it as two things in one: a glossy, shareholder-focused annual report highlighting their great year, and the detailed, mandatory legal filing that provides the full, audited story. We'll combine the key insights from both.

🏢 What The Company Does

👉 In simple terms, Limbach is a specialized construction and maintenance firm for super important buildings.

They design, install, and maintain the critical mechanical, electrical, plumbing, and control systems (MEPC) that keep facilities like hospitals, data centers, factories, and university labs running 24/7. They focus on "mission-critical" places where system failure is not an option. With about 1,500 employees across 21 offices in the Eastern and Midwestern U.S., they act as a long-term partner to building owners.

💰 Financial Highlights: A Record Year

Limbach delivered its best financial performance ever in 2025. Here’s the breakdown:

• Revenue Surged: Total revenue hit a record $646.8 million, up a massive 24.7% from 2024.
• Profitability Grew: Gross profit also reached a record $169.3 million. More importantly, their gross margin expanded to 26.2%, showing they're not just growing, but growing more profitably.
• Cash Flow & Debt: They generated strong operating and free cash flow. They ended the year with a very healthy net debt to Adjusted EBITDA ratio of just 0.3x, meaning they have minimal debt relative to their earnings.
• The ODR Shift: A key metric is their shift towards "Owner Direct Relationships" (ODR), which are typically more profitable, long-term service contracts. ODR revenue grew 40.6% and now makes up 75.1% of total revenue, hitting their multi-year target.

🚀 Key Moves: The Pioneer Power Acquisition

In July 2025, Limbach completed its largest acquisition to date, buying Pioneer Power for approximately $66 million.

Why it matters: This wasn't just about getting bigger. It strategically expanded their footprint into the Upper Midwest (Minnesota), added new industrial and healthcare capabilities, and scaled their preferred ODR business model. They're buying companies that fit their culture and strategic focus.

📦 The Three-Pillar Growth Strategy

Management is executing a clear, disciplined plan to keep growing value. The three pillars are:

1. Pillar I - Organic Growth: Focus on growing their high-margin ODR business directly, supported by a new national sales team and better tools for their salespeople.
2. Pillar II - Margin Expansion: Become a "single-source" provider for building owners, offering more services (like energy efficiency retrofits and equipment rentals) to deepen relationships and capture more of the customer's wallet.
3. Pillar III - Strategic M&A: Use their strong cash flow to buy companies like Pioneer Power that extend their brand, market presence, and capabilities, all while maintaining strict financial discipline.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• Critical End Markets: They operate where downtime is unacceptable (hospitals, data centers), creating sticky customer relationships.
• Strategic Shift Working: Their move to a higher-margin, owner-focused (ODR) model is demonstrably working, improving profitability.
• Strong Balance Sheet: Very low debt gives them flexibility to invest in growth and return capital to shareholders.

⚠️ Risks:

• Project Execution Risk: Fixed-price contracts mean cost overruns can hurt profits. They've deliberately moved away from the largest, most complex projects to manage this.
• Economic & Cyclical Sensitivity: Construction is cyclical, and severe weather can delay projects and impact revenue timing.
• Integration Risk: Successfully integrating acquisitions like Pioneer Power is crucial to achieving the expected benefits.

👥 Leadership & Governance

The leadership team driving this strategy is led by CEO Michael McCann (age 44) and CFO Jayme Brooks (age 55). In January 2026, they bolstered their national strategy by appointing Jay Sharp as EVP of Sales and Nicholas Angerosa as EVP of National Customer Solutions.

The company has a "classified board" with staggered terms and various provisions in its charter that could make a hostile takeover more difficult.

📞 Contact Information

For investor relations, the principal executive offices are at: 797 Commonwealth Drive, Warrendale, Pennsylvania 15086 Phone: 412-359-2100 Website: https://www.limbachinc.com (where all SEC filings are available).

🧠 The Analogy

Limbach is transitioning from being a skilled plumber and electrician you hire for a big, one-time renovation (GCR work) to becoming the full-time building systems doctor on retainer for a hospital (ODR work). The doctor relationship is more valuable, more predictable, and makes the building owner's life much easier—they trust you with everything because they know you understand the critical systems inside and out.

🧩 Final Takeaway

Limbach is successfully executing a multi-year plan to transform itself into a higher-margin, solutions-led platform focused on mission-critical facilities. The 2025 record results—especially the hit of their ODR revenue target—validate the strategy. With a strong balance sheet and disciplined acquisitions, they are positioned not just to endure, but to compound value over time.