Limbach Holdings, Inc.

Good morning and welcome to the second quarter, 2025, Limbach Holdings, Inc., earnings conference call and webcast. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. I will now turn the conference over to your host, Lisa Fortuna of Financial Profiles. You may begin.

Good morning and thank you for joining us today to discuss Limbach Holdings financial results for the second quarter of 2025. Yesterday, Limbach issued its earnings release and filed its Form 10Q for the period ended June 30th, 2025. Both documents, as well as an updated investor presentation, are available on the investor relations section of the company's website at .limbachinc.com. Management may refer to select slides during today's call and encourages investors to review the presentation in its entirety. On today's call are Michael McCann, President and Chief Executive Officer, and Jamie Brooks, Executive Vice President and Chief Financial Officer. We will begin with prepared remarks and then open the call to questions. Before we begin, I would like to remind you that today's comments will include forward-looking statements under federal securities laws. Forward-looking statements are identified by words such as will, be, intend, believe, expect, anticipate, or other comparable words and phrases. Statements that are not historical facts, such as those about expected financial performance, are also forward-looking statements. Actual results may differ materially from those contemplated by such forward-looking statements. A discussion of the factors that could cause a material difference in the company's results compared to these forward-looking statements is contained in LIMBOX SEC filings, including reports on Form 10-K and 10-Q. Please note that on today's call, we will be referring to non-GAP measures. You can find the reconciliation of these non-GAP measures to the most directly comparable GAP measures in our second quarter 2025 earnings release and in our investor presentation, both of which can be found on LIMBOX investor relations website and have been furnished in the Form 8-K and 10-Q that was previously filed with the SEC. With that, I will now turn the call over to President and CEO, Mike McCann.

Good morning and welcome, everyone. Thank you for joining us today. LIMBOX plays a critical role in ensuring the reliability of mission-critical infrastructure within our customers' buildings and facilities. Our expertise lies in optimizing and sustaining the performance of existing systems so they function flawlessly, especially when the stakes are high. As we've consistently noted before, our growth and expansion strategy is anchored by three key initiatives. Number one, scaling our ODR business organically as we become a trusted partner to our customers. Number two, driving profitability through enhanced product and service offerings. And number three, making strategic acquisitions that expand our market presence and brand. Since we started our shift from GCR to ODR, ODR revenue as a percentage of total revenue has increased from 21% in the second quarter of 2019 to .6% in the second quarter of 2025. For the first half of 2025, ODR represented .4% of total revenue, which is in line with our 2025 guidance of between 70% and 80%. This strategy is driving margin expansion and earnings growth, while also enhancing our risk profile. Over the past year, we've been, we have began to implement this land and expand strategy, which we believe will fuel Limbock's next phase of growth. As a result of organic growth and strategic acquisitions over the past several years, we now have 21 locations and customers in 17 metropolitan service areas or MSAs. This includes several national customers with multiple locations across different states and complex maintenance needs, given the mission critical nature of their businesses. Our results continue to reflect the meaningful progress we've made in this transformation. Compared to the year ago period, second quarter 2025 total revenue grew 16.4%, ODR revenue rose 31.7%, gross profit increased by 18.9%, and adjusted EBITDA grew 30%. Damon will go into more details on the financial shortly, but we're pleased with the strong consistent momentum we've achieved over the past six years. Turning to the broader environment, we continue to navigate ongoing macroeconomic uncertainty with performance varying across end markets. Operating primarily across six distinct verticals provides diversification that helps us mitigate volatility and reduces reliance on any single industry. Next, I'd like to provide a quick update of what we are currently seeing in some of the key verticals we serve. In healthcare, deferred maintenance is driving quick or emergency repair replacement work. We are starting to have proactive discussions with customers to avoid emergencies. The goal is that even if some customers are reluctant to spend immediate dollars on short-term capital projects, we are helping them plan their spending for future years, and this gives us visibility into their future requirements. For industrial manufacturing customers, we are performing upgrades to existing manufacturing lines and providing labor for industrial shutdowns. These shutdowns are being performed as planned and customers continue to invest in their facilities. And in life science and higher education, we primarily support our customers by maintaining essential systems, upgrading critical infrastructure, and minimizing downtime, especially in mission-critical environments. In higher education, we are currently seeing the majority of our revenue in laboratory building environments. To support the ongoing expansion of ODR business, we've scaled our sales organization over the last year with the addition of 40 new salespeople, which primarily consist of onsite account managers. This marks a pivotal evolution in our -to-market strategy and how we engage with customers, emphasizing a deeper understanding of the facilities and anticipating their operational needs. To support our expanding sales team, we recently hired Amy Dorsett as Senior Vice President of Sales. Amy brings over 20 years of experience as a strategic, results-driven sales leader with expertise in business development and client relationship management. She has a proven track record of expanding business portfolios and strengthening existing relationships to drive sustainable growth. Her prior roles include sales leader positions for major OEMs, including Honeywell, Crane, and Johnson Controls, while consistently delivering high-impact results. We're excited to welcome Amy to the Limbock team. This type of expertise will be instrumental in advancing our national account capture strategy and enhancing the capabilities of our existing sales step, particularly in developing capital plans with building owners and driving proactive sales and training. Amy will also play a key role in supporting our vertical market focus. Our sales efforts are intentionally concentrated on existing customers that have complex, high-demand facilities that require ongoing system enhancements and continuous upkeep. We believe our current footprint represents just a fraction of the total opportunity within these environments. Importantly, our growth isn't dependent on new construction. It's driven by the reoccurring needs of long-standing customers. These relationships offer the greatest potential for organic growth, and our account teams are committed to strengthening them further through reliable service, proactive engagement, and high-impact solutions. One of our major initiatives for 2025 is strategically expanding from a reactive support model to a proactive partnership approach. Our goal is to play a more strategic role in shaping customer budgets ahead of the next planning cycle to turn off-banks spend or small, quick-hitting or emergency projects into proactive capital programs. We believe this evolution will not only deepen our customer relationships, but also enhance visibility and predictability to our sales pipeline. Transitioning from an -banks-type spend to a capital program isn't an immediate and can take typically six to 12 months. It could require a facility assessment, energy benchmarking, and or asset-spend analysis. Additionally, these capital programs are typically sold to the C-suite or VP level within an organization as part of an overall budget, as opposed to off-banks spend, which is sold at the facility manager level based on existing budget. Our approach is to have a local and or national account exec working with the onsite account managers to develop the program, deliver this financial sale to the customer. With Amy's executive presence and sales expertise, we are confident in our ability to help coach our sales team to turn a technical sale into a financial sale. As an example, we were recently hired by a national healthcare owner to perform energy and facility assessments for over 20 different properties. Our sales team will conduct the assessments and then present capital project solutions that help build this customer's long-term spending program. Projects won't be immediate, but this important work should set up for several years of spend that will be more predictable than off-banks reactive spend. The second element of our growth strategy, focusing on broadening our service portfolio to position Limbach as a one-stop shop for building owners to capture rising customer demand and tap into higher margin opportunities. Last quarter, we invested approximately 2 million to expand our climate control rental fleet, positioning ourselves to meet seasonal demand as temperatures climb. This initiative represents a growth opportunity and highlights our commitment to evolving beyond conventional service lines. We continue to make investments to drive ODR revenue growth and increase our value to these customers. Offering such as digital solutions that manage and monitor the performance of building systems, including data analytics, energy consumption, and sustainability will allow us to develop new revenue streams, leverage our professional service capabilities to support multi-location regional and national customers in core end markets and drive energy retrofit and performance optimization for building owners. The third part of our strategy is M&A. We've remained active. In July, we completed our largest acquisition to date with the addition of Pioneer Power. As a reminder, Pioneer provides industrial and institutional mechanical solutions to the healthcare, food, power, utility, and oil refining, and other verticals in the greater Twin Cities region in the upper Midwest. This transaction directly aligns with our discipline acquisition criteria. Pioneer brings specialized expertise in our core verticals, and the majority of their business is already focused on working directly with building owners. Additionally, Pioneer expands our footprint in the core Midwest and extends our reach into a new geographic market in the upper Midwest, bringing our MSAs to 17. Its technical capabilities and service offerings complement ours, and we see strong cultural compatibility between our teams. We are excited to welcome Pioneer's approximate 300 colleagues to our family. The integration process is well underway in terms of systems and operational processes, and our teams are already working together. Since going public in 2016, we have completed six highly selective acquisitions, each the result of discipline diligence and strategic fit analysis, and have continuously fine-tuned our integration process with every transaction. Behind those six deals are dozens of opportunities we have deliberately passed on, whether it be evaluation, limit of strategic alignment, or concerns around cultural fit. Our proven integration playbook unfolds in two distinct phases. Phase one focuses on system integration, driving fixed cost reduction, and leveraging a unified organizational structure and common platform. In addition, we apply gross profit benchmarking and implement robust risk management tools in an effort to ensure operational efficiency and financial discipline. This is typically a one to two year process. During phase two, we establish targeted account strategies, deploy onsite account managers, and introduce involved live box offerings. We also complete the full build out of dedicated account teams to deepen customer engagement. The duration of phase two can take between two to four years. Through these ever evolving value creation actions, our goal is to enhance Pioneer's performance and eventually bring its margins in line with ours. Ultimately creating additional stockholder value by acquiring a scalable business and an attractive multiple. We are prioritizing the successful integration of Pioneer while we continue to build and monitor an active M&A pipeline for the future. Overall, our acquisition strategy is grounded in a thoughtful methodical approach, targeting high quality companies that align with our values and we care culture that are committed to building long-term relationships with building owners and delivering essential solutions. This strategy has yielded meaningful results for us. At the same time, we've worked to build the Limbock brand in the market as a trustworthy and principal partner. Our goal is to become the first choice for distinguished enterprises looking to join a bigger platform. With a strong pipeline of opportunities, we expect strategic M&A will continue to play an important role in our growth strategy. I would now like to turn to guidance, where we have revised our 2025 outlook. For the full year, we anticipate generating between 650 and 680 million of revenue with adjusted EBITDA projected in the range of 80 to 86 million. While integration efforts remain on track with Pioneer, this represents the largest acquisition in our history as a public company. We are approaching our initial projections with a conservative measured outlook. As we gain greater visibility over the coming months, as we work through phase one of the integration of Pioneer, we expect to provide an update on the next quarterly call. Additionally, revenue adjusted EBITDA contributions for the company are not expected to be evenly distributed between the third and fourth quarters, as we anticipate a heavier weighting towards Q4. In summary, we are gaining strong momentum and remain committed to creating long-term value for building owners by fostering enduring relationships and becoming indispensable partner in managing their mission-critical systems. Once again, by operating at 17 MSAs and six independent verticals, we ensure there's no single market defines our trajectory. This structure enables us to absorb location or sector-specific fluctuations while sustaining consistent performance across cycles. For the balance of 2025, our key priorities are threefold. First, drive top-line revenue growth. Second, expand relationships through evolved solutions, which requires training of the sales force to evolve a technical sale into a financial sale. And number three, continue the execution of phase one of the pioneer integration and building our acquisition pipeline. Now I'll turn it over to Jamie to walk through the financials.