Limbach Holdings, Inc. (LMB) has authorized a $50 million share repurchase program that will remain in effect through December 15, 2027. The board’s decision gives the company the flexibility to buy back shares at its discretion, a move that signals confidence in the firm’s cash‑flow generation and its belief that the stock is undervalued after a 45 % decline over the past six months.
The repurchase program comes at a time when Limbach is accelerating a strategic shift toward its higher‑margin Other Direct Revenue (ODR) business. In the most recent quarter, ODR revenue grew 52 % year‑over‑year to $141 million and now accounts for roughly 77 % of total revenue. Management attributes the mix shift to a focus on data‑center, life‑science, and higher‑education markets, where the company can command stronger pricing and margin profiles.
Quarterly results for the third quarter of 2025 showed revenue of $184.6 million, a modest beat of $120 k over the consensus estimate of $184.48 million. The beat was driven by a 4 % increase in ODR revenue, offsetting a 3 % decline in the General Contracting Revenue (GCR) segment. Net income rose to $8.8 million, and adjusted diluted earnings per share were $1.05, missing the consensus of $1.17 by $0.12. The miss was largely due to a 2 % increase in operating expenses, driven by higher labor costs and a one‑time restructuring charge related to the ODR transition.
Limbach’s free cash flow of $32 million over the past twelve months and a current ratio of 1.43 provide a solid liquidity foundation for the buyback. The company reaffirmed its full‑year 2025 revenue guidance of $650 million to $680 million and adjusted EBITDA guidance of $80 million to $86 million, unchanged from the prior guidance. The guidance reflects management’s confidence that the ODR mix will continue to expand, while cost controls will keep margin compression in check.
CEO Mike McCann emphasized that the share repurchase authorization “reflects our confidence in Limbach’s growth strategy, our strong cash‑flow generation, and our disciplined, balanced approach to capital allocation.” He added that the program also helps manage potential dilution from incentive‑compensation plans, reinforcing the company’s commitment to long‑term shareholder value.
The program’s timing and size—representing about 5.4 % of the company’s $933 million market capitalization—underscores the board’s view that the current share price does not fully reflect Limbach’s underlying fundamentals. By reducing outstanding shares, the buyback is expected to support earnings per share and potentially improve valuation metrics over the program’s lifespan.
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