# Limbach Holdings, Inc. (LMB) Informational only - not investment advice. CIK: 0001606163 SIC: 1700 Construction - Special Trade Contractors SIC breadcrumb: [Construction](/division/C/) > [SIC Major Group 17](/major-group/17/) > [SIC 1700 Construction - Special Trade Contractors](/industry/1700/) Latest 10-K filed: 2026-03-02 SEC page: https://www.sec.gov/edgar/browse/?CIK=1606163 Filing source: https://www.sec.gov/Archives/edgar/data/1606163/000162828026013285/lmb-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-03-02 · accession 0001628280-26-013285 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001606163.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 646,804,000 USD | 2025 | verified | | Net income | 39,064,000 USD | 2025 | verified | | Assets | 381,130,000 USD | 2025 | verified | | Free cash flow | 41,893,000 USD | 2025 | computed | | Net margin | 6.04% | 2025 | computed | | Operating margin | 7.65% | 2025 | computed | | Revenue YoY | +24.68% | 2025 | computed | | ROE | 19.97% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | LMB | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 6.0% | 2.4% | 71 | 8 | | Operating margin | 7.6% | 6.9% | 57 | 8 | | Revenue growth | 24.7% | 14.8% | 71 | 8 | | ROA | 10.2% | 1.0% | 86 | 8 | | Current ratio | 1.44 | 1.52 | 29 | 8 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 1700 Construction - Special Trade Contractors, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 646804000 | USD | 2025 | 2026-03-02 | | Net income | 39064000 | USD | 2025 | 2026-03-02 | | Assets | 381130000 | USD | 2025 | 2026-03-02 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-02. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001606163.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | 485,739,000 | 546,526,000 | 553,334,000 | 568,209,000 | 490,351,000 | 496,782,000 | 516,350,000 | 518,781,000 | 646,804,000 | | Net income | -339,604 | | 712,000 | -1,845,000 | -1,775,000 | 5,807,000 | 6,714,000 | 6,799,000 | 20,754,000 | 30,875,000 | 39,064,000 | | Operating income | -390,974 | | 6,018,000 | 1,070,000 | 8,067,000 | 17,155,000 | 13,990,000 | 12,010,000 | 29,284,000 | 38,624,000 | 49,454,000 | | Gross profit | | | 65,623,000 | 59,431,000 | 71,877,000 | 81,386,000 | 85,910,000 | 93,741,000 | 119,290,000 | 144,281,000 | 169,314,000 | | Diluted EPS | | | -0.13 | -0.52 | -0.23 | 0.72 | 0.66 | 0.64 | 1.76 | 2.57 | 3.23 | | Operating cash flow | | | -4,065,000 | 25,322,000 | -926,000 | 39,815,000 | -24,233,000 | 35,373,000 | 57,366,000 | 36,783,000 | 45,700,000 | | Capital expenditures | | | 3,303,000 | 3,877,000 | 2,663,000 | 1,483,000 | 791,000 | 993,000 | 2,266,000 | 7,524,000 | 3,807,000 | | Share buybacks | | | | | | | 0.00 | 2,000,000 | 0.00 | 0.00 | | | Assets | | 206,875,000 | 213,020,000 | 253,634,000 | 261,617,000 | 262,157,000 | 267,512,000 | 294,556,000 | 304,439,000 | 352,129,000 | 381,130,000 | | Liabilities | | 149,053,000 | 156,901,000 | 207,266,000 | 214,747,000 | 208,425,000 | 179,674,000 | 199,114,000 | 183,524,000 | 198,638,000 | 185,469,000 | | Stockholders' equity | | 47,448,000 | 48,160,000 | 46,368,000 | 46,870,000 | 53,732,000 | 87,838,000 | 95,442,000 | 120,915,000 | 153,491,000 | 195,661,000 | | Cash and cash equivalents | | 7,406,000 | 626,000 | 1,619,000 | 8,344,000 | 42,147,000 | 14,476,000 | 36,001,000 | 59,833,000 | 44,930,000 | 11,345,000 | | Free cash flow | | | -7,368,000 | 21,445,000 | -3,589,000 | 38,332,000 | -25,024,000 | 34,380,000 | 55,100,000 | 29,259,000 | 41,893,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | 0.15% | -0.34% | -0.32% | 1.02% | 1.37% | 1.37% | 4.02% | 5.95% | 6.04% | | Operating margin | | | 1.24% | 0.20% | 1.46% | 3.02% | 2.85% | 2.42% | 5.67% | 7.45% | 7.65% | | Return on equity | | | 1.48% | -3.98% | -3.79% | 10.81% | 7.64% | 7.12% | 17.16% | 20.12% | 19.97% | | Return on assets | | | 0.33% | -0.73% | -0.68% | 2.22% | 2.51% | 2.31% | 6.82% | 8.77% | 10.25% | | Liabilities / equity | | 3.14 | 3.26 | 4.47 | 4.58 | 3.88 | 2.05 | 2.09 | 1.52 | 1.29 | 0.95 | | Current ratio | | 1.22 | 1.23 | 1.13 | 1.25 | 1.33 | 1.49 | 1.42 | 1.50 | 1.46 | 1.44 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001606163.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.34 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.27 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.46 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | 5,320,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 127,768,000 | | 0.61 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 142,691,000 | 5,249,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 118,976,000 | 7,586,000 | 0.64 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | 7,586,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 122,235,000 | | 0.50 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | 5,963,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 133,920,000 | | 0.62 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 143,650,000 | 9,842,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 133,108,000 | 10,214,000 | 0.85 | reported discrete quarter | | 2025-Q2 | 2025-03-31 | | 10,214,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 142,241,000 | | 0.64 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | | 7,762,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 184,583,000 | | 0.73 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 186,872,000 | 12,300,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 138,859,000 | 4,380,000 | 0.36 | reported discrete quarter | | 2026-Q2 | 2026-03-31 | | 4,380,000 | | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 173,457,000 | | 0.39 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from LMB's latest 10-K: [/company/LMB/business/](/company/LMB/business/). ## Risk Factors Verbatim Item 1A Risk Factors from LMB's latest 10-K: [/company/LMB/risk-factors/](/company/LMB/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1606163/000162828026052622/lmb-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-08-04 Report date: 2026-06-30 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion should be read in conjunction with the condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from our management’s expectations. See “Cautionary Note Regarding Forward-Looking Statements” contained above in this Quarterly Report on Form 10-Q. The Company assumes no obligation to update any of these forward-looking statements, unless required to do so by applicable law. Unless the context otherwise requires, a reference to a “Note” herein refers to the accompanying Notes to Condensed Consolidated Financial Statements (Unaudited) contained in Part I, "Item 1. Financial Statements." Overview The Company is a building systems solutions firm that designs, delivers, and maintains mechanical (heating, ventilation, and air conditioning), electrical, plumbing, and controls (“MEPC”) systems. The Company partners with building owners and operators of mission-critical facilities across healthcare, industrial and manufacturing, data centers, life sciences, higher education, and cultural and entertainment markets. As of June 30, 2026, the Company had approximately 1,600 team members across 21 offices throughout the Eastern and Midwestern regions of the United States. The Company strives to be an indispensable partner by combining its national capabilities with strong local execution and talent to deliver proactive, safe, and reliable solutions for complex facilities. Operating on a connected platform, the Company integrates engineering expertise with field execution to provide customized MEPC infrastructure solutions that address both operational and capital project needs, optimizing performance, enhancing reliability, and ensuring long-term safety. The Company’s core market sectors consist of the following customer base with mission-critical systems: •Healthcare, including research, acute care and inpatient hospitals for regional and national hospital groups; •Industrial and manufacturing, including automotive, energy and general manufacturing plants; •Data centers, including facilities composed of networked computers, storage systems and computing infrastructure that organizations use to assemble, process, store and disseminate large amounts of data; •Life sciences, including organizations and companies whose work is centered around research and development focused on living organisms and biological systems; •Higher education, including both public and private colleges, universities and research centers; and •Cultural and entertainment, including entertainment facilities (including casinos) and amusement rides and parks. The Company operates in two segments, (i) ODR, in which the Company performs owner direct projects and/or provides maintenance or service primarily on MEPC systems, and specialty contracting projects to existing buildings direct to, or assigned by, building owners or operators, and (ii) GCR, in which the Company generally manages new construction or renovation projects that involve primarily MEPC systems awarded to the Company by general contractors or construction managers. The Company’s work is primarily performed under fixed-price, modified fixed-price, and time and materials contracts over periods of typically less than two years. Key Components of Condensed Consolidated Statements of Operations Revenue The Company’s revenue is primarily derived from construction-type and services contracts to deliver MEPC systems services to its customers. Such work is primarily performed under fixed-price, modified fixed-price, and time and materials contracts over periods of typically less than two years. Construction-type contract revenue is primarily derived from fixed-price and modified fixed-price contracts. For the majority of these contracts, the Company’s performance obligations are satisfied over time because the customer controls the asset as it is created or enhanced or because the Company’s performance does not create an asset with an alternative use and the Company has an enforceable right to payment for performance completed to date. For contracts satisfied over time, the Company recognizes revenue using an input method based on costs incurred relative to total estimated costs at completion (the cost-to-cost method), which management believes depicts the transfer of control of services to the customer. The Company believes its extensive experience with MEPC systems projects, together with its internal cost estimation and review processes, enables it to reasonably estimate contract costs and mitigate the risk of cost overruns. 25 Table of Contents With respect to service contracts, the Company’s service arrangements generally include (i) fixed-price service contracts, typically for maintenance, repair and retrofit work over a period, commonly one year, and (ii) time and materials or similar service work performed on an as-needed basis. Revenue from fixed-price service contracts is generally recognized over time on a systematic basis that depicts performance over the contract term, which is typically on a straight-line basis when services are provided evenly over the contract period. Revenue derived from time and materials and other service work is recognized when the services are performed. The Company generally invoices customers on a monthly basis based on a schedule of values that breaks down the contract amount into discrete billing items. Costs and estimated earnings in excess of billings on uncompleted contracts are recorded as a contract asset until billable under the contract terms. Billings in excess of costs and estimated earnings on uncompleted contracts are recorded as a contract liability until the related revenue is recognizable. Cost of Revenue Cost of revenue primarily consists of labor, equipment, material, subcontract and other job costs in connection with fulfilling the terms of the Company’s contracts. Labor costs consist of wages plus taxes, fringe benefits and insurance. Equipment costs consist of the ownership and operating costs of company-owned assets, in addition to outside-rented equipment. If applicable, job costs include estimated contract losses to be incurred in future periods. Due to the varied nature of the Company’s services, and the risks associated therewith, contract costs as a percentage of contract revenue have historically fluctuated, and this fluctuation is expected to continue in future periods as well. Selling, General and Administrative Selling, general and administrative (“SG&A”) expenses consist primarily of personnel costs for the Company’s administrative, estimating, human resources, safety, information technology, legal, finance and accounting team members and executives. Also included in SG&A expenses are non-personnel costs, such as travel-related expenses, legal and other professional fees and other corporate expenses to support the growth of the Company’s business and to meet the compliance requirements associated with operating as a public company. Those costs include additional consulting, legal and audit fees, insurance costs, Board of Directors’ compensation and the costs of achieving and maintaining compliance with Section 404 of the Sarbanes-Oxley Act of 2002. Acquisition-related Retention Expense and Contingent Consideration As part of the acquisition of Pioneer Power, the Company implemented retention arrangements for certain key employees of the acquired business. Retention-related compensation is recognized as expense ratably over the service period, which runs through December 2027, and is contingent on continued employment. Certain of the Company’s prior acquisitions include contingent earnout arrangements in which the Company may be required to make additional payments contingent upon the acquired businesses achieving specified performance targets over specified periods. The change in fair value of contingent consideration relates to the remeasurement of the contingent consideration arrangements resulting from the acquisitions of each of ACME, Industrial Air, Kent Island and Consolidated Mechanical. The carrying values of the ACME, Industrial Air, Kent Island and Consolidated Mechanical Earnout Payments are subject to remeasurement at fair value at each reporting date through the end of the respective earnout periods with any changes in the fair value reported as a separate component of operating income in the condensed consolidated statements of operations. See Note 8 – Fair Value Measurements in the accompanying notes to the Company’s condensed consolidated financial statements for further information on the Company’s contingent earnout arrangements. Amortization of Intangibles Amortization expense represents periodic non-cash charges that consist of amortization of various intangible assets primarily including customer relationships, backlog, trade name, trademarks and intellectual property and favorable leasehold interests. Each of the Jake Marshall, ACME, Industrial Air, Kent Island, Consolidated Mechanical and Pioneer Power-related intangible assets were recorded under the acquisition method of accounting at their estimated fair values at the acquisition date. See Note 5 – Goodwill and Intangible Assets in the accompanying notes to the Company’s condensed consolidated financial statements for further information on the Company’s intangible assets. Other (Expenses) Income Other (expenses) income consists primarily of interest expense incurred in connection with the Company’s indebtedness, gains and losses on dispositions of property and equipment, changes in the fair value of the Company’s interest rate swap, and interest income earned on overnight repurchase agreements. Deferred financing costs are amortized to interest expense using the effective interest method. 26 Table of Contents Provision for Income Taxes The Company is taxed as a C corporation, and its financial results include the effects of federal income taxes, which are paid at the parent level. The Company’s provision for income taxes (including federal, state and local income taxes) is calculated based on the estimated annual effective tax rate. The Company accounts for income taxes in accordance with Accounting Standards Update (“ASC”) Topic 740 – Income Taxes, which requires an asset and liability approach. Under this approach, deferred tax assets and liabilities and income or expense are recognized for the expected future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, using enacted tax rates expected to apply in the periods in which those temporary differences are expected to reverse. Changes in deferred tax assets and liabilities are included in the provision for income taxes. Impact of Acquisitions In order to provide a more meaningful discussion of period-over-period changes in the Company’s operating results, the Company may discuss the impact of acquisitions on revenue, gross profit, selling, general and administrative expenses, and operating income. Because acquired businesses are included in the Company’s results only from their respective acquisition dates, the size and timing of acquisitions may affect the comparability of period-over-period results. Accordingly, such comparisons may not be fully indicative of ongoing trends in the Company’s operating performance. On July 1, 2025, the Company completed an acquisition of Woodbury, Minnesota-based mechanical contractor, Pioneer Power, Inc. (“Pioneer Power”). See Note 3 – Acquisition in the accompanying notes to the Company’s condensed consolid [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1606163/000162828026013285/lmb-20251231.htm Complete FY 2025 MD&A: /company/LMB/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-03-02 Report date: 2025-12-31 Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations 36 The following discussion should be read in conjunction with the consolidated financial statements and related notes thereto included elsewhere in this Annual Report on Form 10-K. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from its management’s expectations. Factors that could cause such differences are discussed in “Forward-Looking Statements”, “Risk Factor Summary” and “Risk Factors” in this Annual Report on Form 10-K. The Company assumes no obligation to update any of these forward-looking statements, unless required to do so by applicable law. The discussion that follows includes a comparison of the Company’s results of operations and liquidity and capital resources for the fiscal years ended December 31, 2025 and 2024. In accordance with Item 303(b) of Regulation S-K, the Company has elected to omit discussion of the earliest of the three years covered by the consolidated financial statements presented. For a discussion and analysis of fiscal year ended December 31, 2023 and of changes from the fiscal year ended December 31, 2024 to the fiscal year ended December 31, 2023, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (filed with the SEC on March 10, 2025). Overview The Company is a building systems solutions firm that designs, delivers, and maintains mechanical (heating, ventilation, and air conditioning), electrical, plumbing, and controls (“MEPC”) systems. The Company partners with building owners and operators of mission-critical facilities across healthcare, industrial and manufacturing, data centers, life sciences, higher education, and cultural and entertainment markets. With approximately 1,500 team members across 21 offices throughout the Eastern and Midwestern regions of the United States, the Company strives to be an indispensable partner by combining its national capabilities with strong local execution and talent to deliver proactive, safe, and reliable solutions for complex facilities. Operating on a connected platform, the Company integrates engineering expertise with field execution to provide customized MEPC infrastructure solutions that address both operational and capital project needs, optimizing performance, enhancing reliability, and ensuring long-term safety. The Company’s core market sectors consist of the following customer base with mission-critical systems: •Healthcare, including research, acute care and inpatient hospitals for regional and national hospital groups; •Industrial and manufacturing, including automotive, energy and general manufacturing plants; •Data centers, including facilities composed of networked computers, storage systems and computing infrastructure that organizations use to assemble, process, store and disseminate large amounts of data; •Life sciences, including organizations and companies whose work is centered around research and development focused on living organisms and biological systems; •Higher education, including both public and private colleges, universities and research centers; and •Cultural and entertainment, including entertainment facilities (including casinos) and amusement rides and parks. The Company operates in two segments, (i) ODR, in which the Company performs owner direct projects and/or provides maintenance or service primarily on MEPC systems, and specialty contracting projects to existing buildings direct to, or assigned by, building owners or operators, and (ii) GCR, in which the Company generally manages new construction or renovation projects that involve primarily MEPC systems awarded to the Company by general contractors or construction managers. The Company's work is primarily performed under fixed-price, modified fixed-price, and time and materials contracts over periods of typically less than two years. Key Components of Consolidated Statements of Operations Revenue The Company’s revenue is primarily derived from construction-type and services contracts to deliver MEPC systems services to its customers. Such work is primarily performed under fixed-price, modified fixed-price, and time and materials contracts over periods of typically less than two years. Construction-type contract revenue is primarily derived from fixed-price and modified fixed-price contracts. For the majority of these contracts, the Company’s performance obligations are satisfied over time because the customer controls the asset as it is created or enhanced or because the Company’s performance does not create an asset with an alternative use and the Company has an enforceable right to payment for performance completed to date. For contracts satisfied over time, the Company 37 recognizes revenue using an input method based on costs incurred relative to total estimated costs at completion (the cost-to-cost method), which management believes depicts the transfer of control of services to the customer. The Company believes its extensive experience with MEPC systems projects, together with its internal cost estimation and review processes, enables it to reasonably estimate contract costs and mitigate the risk of cost overruns. With respect to service contracts, the Company’s service arrangements generally include (i) fixed-price service contracts, typically for maintenance, repair and retrofit work over a period, commonly one year, and (ii) time and materials or similar service work performed on an as-needed basis. Revenue from fixed-price service contracts is generally recognized over time on a systematic basis that depicts performance over the contract term, which is typically on a straight-line basis when services are provided evenly over the contract period. Revenue derived from time and materials and other service work is recognized when the services are performed. The Company generally invoices customers on a monthly basis based on a schedule of values that breaks down the contract amount into discrete billing items. Costs and estimated earnings in excess of billings on uncompleted contracts are recorded as a contract asset until billable under the contract terms. Billings in excess of costs and estimated earnings on uncompleted contracts are recorded as a contract liability until the related revenue is recognizable. Cost of Revenue Cost of revenue primarily consists of labor, equipment, material, subcontract and other job costs in connection with fulfilling the terms of the Company’s contracts. Labor costs consist of wages plus taxes, fringe benefits and insurance. Equipment costs consist of the ownership and operating costs of company-owned assets, in addition to outside-rented equipment. If applicable, job costs include estimated contract losses to be incurred in future periods. Due to the varied nature of the Company's services, and the risks associated therewith, contract costs as a percentage of contract revenue have historically fluctuated, and this fluctuation is expected to continue in future periods as well. Selling, General and Administrative Selling, general and administrative (“SG&A”) expenses consist primarily of personnel costs for the Company’s administrative, estimating, human resources, safety, information technology, legal, finance and accounting team members and executives. Also included in SG&A expenses are non-personnel costs, such as travel-related expenses, legal and other professional fees and other corporate expenses to support the growth of the Company's business and to meet the compliance requirements associated with operating as a public company. Those costs include additional consulting, legal and audit fees, insurance costs, Board of Directors’ compensation and the costs of achieving and maintaining compliance with Section 404 of the Sarbanes-Oxley Act of 2002. Acquisition-related Retention Expense and Contingent Consideration As part of the acquisition of Pioneer Power, the Company implemented retention arrangements for certain key employees of the acquired business. Retention-related compensation is recognized as expense ratably over the service period, which runs through December 2027, and is contingent on continued employment. Certain of the Company's prior acquisitions include contingent earnout arrangements in which the Company may be required to make additional payments contingent upon the acquired businesses achieving specified performance targets over specified periods. The change in fair value of contingent consideration relates to the remeasurement of the contingent consideration arrangements resulting from the acquisitions of each ACME Industrial Piping, LLC (“ACME”), Industrial Air, LLC (“Industrial Air”), Kent Island and Consolidated Mechanical. The carrying values of the ACME, Industrial Air, Kent Island and Consolidated Mechanical Earnout Payments are subject to remeasurement at fair value at each reporting date through the end of the respective earnout periods with any changes in the fair value reported as a separate component of operating income in the consolidated statements of operations. See Note 9 – Fair Value Measurements in the accompanying notes to the Company’s consolidated financial statements for further information on the Company’s contingent earnout arrangements. Amortization of Intangibles Amortization expense represents periodic non-cash charges that consist of amortization of various intangible assets primarily including favorable leasehold interests and certain customer relationships. Each of the Jake Marshall, LLC (“Jake Marshall”), ACME, Industrial Air, Kent Island, Consolidated Mechanical and Pioneer Power-related intangible assets were recorded under the acquisition method of accounting at their estimated fair values at the acquisition date. See Note 3 – Acquisitions in the accompanying notes to the Company’s consolidated financial statements for further discussion of the Company’s acquired intangible assets as a result of the Pioneer Power Transaction. In addition, see Note 5 – Goodwill and Intangible Assets in the 38 accompanying notes to the Company’s consolidated financial statements for further information on the Company’s intangible assets. Other (Expenses) Income Other (expenses) income consists primarily of interest expense incurred in connection with the Company’s indebtedness, gains and losses on dispositions of property and equipment, changes in the fair value of the Company’s interest rate swap, and interest income earned on overnight repurchase agreements, money market investments, and U.S. Treasury bills. Deferred financing costs are amortized to interest expense using the effective interest method. Provision for Income Taxes The Company is taxed as a C corporation, and its financial results include the effects of federal income taxes, which are paid at the parent level. The Company’s provision for income taxes (including federal, state and local income taxes) is calculated based on the estimated annual effective tax rate. The Company accounts for income taxes in accordance with Accounting Standards Update (“ASC”) Topic 740 — Income Taxes, which requires an asset and liability approach. Under this approach, deferred tax assets and liabilities and income or expense are recognized for the expected future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, using enacted tax rates expected to apply in the periods in which those temporary differences are expected to reverse. Changes in deferred tax assets and liabilities are included in the provision for income taxes. Impact of Acquisitions In order t [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/LMB/mda/fy2025/ All MD&A years: /company/LMB/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/LMB/mda/fy2024/): filed 2025-03-10; accession 0001628280-25-011745 (https://www.sec.gov/Archives/edgar/data/1606163/000162828025011745/lmb-20241231.htm) - [FY 2023 MD&A](/company/LMB/mda/fy2023/): filed 2024-03-13; accession 0001628280-24-010995 (https://www.sec.gov/Archives/edgar/data/1606163/000162828024010995/lmb-20231231.htm) - [FY 2022 MD&A](/company/LMB/mda/fy2022/): filed 2023-03-08; accession 0001628280-23-007012 (https://www.sec.gov/Archives/edgar/data/1606163/000162828023007012/lmb-20221231.htm) - [FY 2021 MD&A](/company/LMB/mda/fy2021/): filed 2022-03-16; accession 0001628280-22-006391 (https://www.sec.gov/Archives/edgar/data/1606163/000162828022006391/lmb-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 1700 Construction - Special Trade Contractors) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm Macro-to-micro threads including this sector: [Growth & output](/thread/growth-output/), [Housing & construction](/thread/housing-construction/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/LMB.md · JSON record: /company/LMB.json · verified financials: /company/LMB/financials.json / /company/LMB/financials.csv · machine TOC for the whole site: /llms.txt