Limbach Holdings, Inc.

Management Comments

“We delivered solid first quarter results in line with our expectations and generated an exceptionally strong level of bookings that we view as the clearest indicator of strengthening demand across our end markets. This momentum positions Limbach for accelerating organic revenue growth as orders convert to sales,” said Mike McCann, President and Chief Executive Officer of Limbach. “The Company’s $209.1 million of bookings and 1.5x book to bill ratio reflect meaningful demand strength across mission critical end markets and provide strong visibility into future revenue conversion. Over the past two quarters, we generated more than $434 million of bookings, reinforcing our confidence in our revenue guidance for 2026. We also see strong momentum in the data center vertical, which represented approximately 27% of bookings in the quarter. Limbach has longstanding relationships with mission-critical and hyperscale customers, and we are building on that foundation as demand in this market continues to accelerate, driving increased participation and meaningful contributions to our overall growth.

“Margins were impacted this quarter by lower fixed cost absorption, the absence of higher net project write-ups that benefited the prior-year period, and near-term mix impact from Pioneer Power, which carries a lower margin profile today. However, we have already implemented targeted pricing, operational, integration, and sales initiatives that we expect will drive margin improvement as we progress through 2026.

“With a strong balance sheet, a durable business model, and continued investment in our national sales organization and mission critical end markets, we believe we are well positioned to execute our growth strategy. Our strategic priorities for the year are focused on driving ODR organic revenue growth, expanding margins through higher-value customer solutions, and disciplined capital allocation as we scale the business through acquisitions. We believe this positions Limbach to become a leading building solutions partner for owners of mission critical facilities and to deliver attractive long-term value for our stockholders.”

The following are results for the three months ending March 31, 2026, compared to the three months ending March 31, 2025:

•Total revenue increased 4.3%, or $5.8 million, to $138.9 million from $133.1 million. The increase in revenue was primarily attributable to Pioneer Power, which was acquired in July 2025, and contributed a full quarter of revenue in the current period with no comparable contribution in the prior-year period. Of the total increase in revenue, acquisition-related revenue represented

17.7%, or $23.5 million, which was partially offset by a decrease in organic revenue of 13.4%, or $17.8 million. The decline in organic revenue reflects the impact of lower bookings in the middle of 2025 and normal seasonal patterns among industrial customers. More recent booking activity has strengthened significantly, which the Company expects will drive revenue growth as the year progresses.

◦ODR segment revenue increased 10.4%, or $9.4 million, to $99.8 million. Acquisition-related revenue increased 15.8%, or $14.3 million, partially offset by a 5.4%, or $4.9 million decrease in organic revenue.

◦General Contractor Relationships (“GCR”) segment revenue decreased 8.6%, or $3.7 million, to $39.0 million. Organic revenue decreased 30.2%, or $12.9 million, partially offset by a 21.6%, or $9.2 million increase in acquisition-related revenue.

•Total gross profit decreased 15.1% to $31.2 million compared to $36.7 million. Total gross margin of 22.4% decreased from 27.6%.

◦ODR gross profit decreased 12.1%, or $3.2 million, to $23.0 million from $26.2 million, while gross margin decreased to 23.0% from 28.9%. The decrease in gross margin was primarily driven by lower fixed cost absorption due to seasonal revenue levels and higher fixed costs, the absence of higher net project write-ups that benefited the prior-year period and the current lower margin profile of Pioneer Power. As the Company advances its integration strategy of Pioneer Power, management expects gross margins to improve as 2026 progresses. Operational and pricing improvement initiatives are underway to enhance profitability at Pioneer Power with the goal of bringing gross margins in line with the Company average over the next two to three years.

◦GCR gross profit decreased 22.5%, or $2.4 million, to $8.2 million from $10.6 million, while gross margin decreased to 21.0% from 24.7%. The decrease in gross margin was primarily due to lower margin work associated with Pioneer Power and the absence of higher total net project write ups that benefited the prior-year period.

•Selling, general and administrative (“SG&A”) expense increased by approximately $1.6 million to $28.1 million, compared to $26.5 million in the prior year period. The increase was primarily driven by a $1.6 million increase in payroll-related expenses and incremental SG&A expense of $0.6 million associated with Pioneer Power. SG&A expense as a percentage of revenue increased to 20.2% for the three months ended March 31, 2026, compared to 19.9% for the three months ended March 31, 2025.

•Interest expense was $0.7 million, an increase of $0.2 million, compared to $0.5 million in the prior year period. The increase in interest expense was driven by increased borrowings under the Company’s revolving credit facility, as well as higher financing costs associated with a larger vehicle fleet.

•Interest income was less than $0.1 million compared to $0.4 million in the prior year period. This decrease was related to reduced cash and cash equivalent balances and lower yields on investments.

•Net income decreased 57.1% to $4.4 million from $10.2 million. Diluted earnings per share was $0.36 compared to $0.85 in the prior year period.

•Adjusted net income decreased 42.6% to $7.8 million compared to $13.5 million. Adjusted diluted earnings per share was $0.64 compared to $1.12 in the prior year period.

•Adjusted EBITDA decreased 41.7% to $8.7 million compared to $14.9 million in the prior year period.

•Net cash used in operating activities was $7.8 million compared to net cash provided by operating activities of $2.2 million in the prior year period. Cash flow in the first quarter of 2026 reflects lower net income and higher working capital timing associated with growth and bookings conversion, in addition to contingent consideration paid for the Industrial Air and Kent Island Mechanical acquisitions.