The following is a summary of the Limbach Holdings, Inc. (LMB) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Limbach Holdings reported a decrease in total revenue from Q2 2023 of $124.9 million to $122.2 million in Q2 2024.

• Owner Direct Revenue (ODR) increased by 40.8% to $82.8 million, while General Contractor Revenue (GCR) decreased by 40.3%.

• Gross profit increased to $33.5 million, with ODR comprising 75.7% of the total gross profit.

• Net income for Q2 2024 increased by 12.1% to $6 million.

• Adjusted EBITDA for the quarter was $13.8 million, up 16% from the previous year.

Business Progress:

• Limbach is transitioning from new construction projects to maintenance, repairs, and upgrades of existing buildings.

• The company has implemented a strategic shift from General Contractor Relationships (GCR) to Owner Direct Relationships (ODR), expected to enhance revenue consistency across economic cycles.

• Strategic investments in rental equipment for indoor climate control have enhanced service offerings, successfully deploying the entire fleet in 2024.

• Plans to make strategic acquisitions to further expand services and geographic footprint are in progress, with a strong acquisition pipeline.

Opportunities:

• The shift to ODR is expected to drive higher margins and more consistent revenue.

• Investment in rental equipment addresses immediate customer needs and supports future infrastructure projects, enhancing service offerings.

• Targeting acquisitions to expand services and geographic reach aligns with the company's growth strategy.

Risks:

• The strategic shift away from GCR could affect relationships with traditional general contractors and influence short-term revenue as the transition continues.

More details: Limbach IR

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