Limbach Holdings, Inc.

Good morning and welcome to the Limbark Holdings First Quarter 2026 Earnings Conference Call and Webcast. All participants will be in 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 Profile. You may begin.

Good morning, and thank you for joining us today to discuss Limbach Holdings' financial results for the first quarter of 2026. Yesterday, Limbach issued its earnings release and filed its Form 10-Q for the period ended March 31, 2026. 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 LIMBOC's SEC filings, including reports on Form 10-K and 10-Q. Please note on today's call, we will be referring to non-GAAP measures. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in our first quarter 2026 earnings release and in our investor presentation, both of which can be found on LINBOC's investor relations website and have been furnished in the form 8K filed with the SEC. With that, I'll turn the call over to President and CEO, Mike McCann.

Good morning and welcome to our stockholders, analysts, and interested investors. We appreciate you joining us today. Yesterday, we reported our first quarter 2026 results, which were in line with the expectations we discussed on our last earnings call in March. Before turning to the details of the quarter, I want to briefly recap where we've been and where we're headed. Our long-term vision and strategy are to become an indispensable building system solutions partner for our customers' mission-critical facilities. We provide cost-effective, innovative, and dependable services designed to support uninterrupted operations. We operate as an integrated organization that aligns our people, capabilities, and service offerings. Our culture is built on the value of caring. At Lindbach, our people care about our customers and our dedicated delivering and maintaining systems that support some of their most critical assets while staying safe. Over the last five years, we've transitioned and scaled our business to focus on direct relationships with building owners. This has raised our margin profile, improved the quality of our revenue, and deepened our relationships with customers who operate mission-critical facilities. Our revenue mix between ODR and GCR has reached stabilization. reflecting progress toward what we view as the optimal balance between the two business segments. Going forward, we intend to continue to prioritize ODR growth while selectively pursuing high-quality GCR opportunities where customer, partner, risk profile, and end market align with our strategy, particularly in data centers where demand is accelerating rapidly. As we move forward into 2026, our focus is on scale and growth. We see significant opportunities to deepen and expand our customer relationships supported by the strong foundation we have built over the previous five years. Now turning to our first quarter results. First quarter revenue was $138.9 million, in line with our expectations. Although total revenue growth was 4.3%, organic revenue was down as expected, decreasing by 13.4%. As previously discussed, the results reflect the impact of lower bookings in the middle of 2025 and normal seasonal patterns among industrial customers. The revenue mix was 71.9% ODR and 28.1% GCR, with ODR revenue growing 10.4% and organic ODR revenue declining 5.4%. Total gross margin was 22.4%, primarily due to lower fixed cost absorption in our ODR segment from lower revenue during the quarter. The absence of higher net project write-ups that benefit the prior year period, which is largely timing-related, and the current lower gross margin profile of Pioneer Power. Adjusted EBIT was 8.7 million, which was also in line with our expectations. As anticipated, we experienced a cash outflow due to lower net income and higher working capital needs in Q1. Q1 bookings were exceptionally strong at 209 million, generating a book-to-bill ratio of 1.5. Approximately 27% of bookings came from data center opportunities, reflecting strong demand in this vertical, and the value of Limbox's existing customers with brand name hyperscaler customers. As a reminder, in 2026, we remain highly focused on our three strategic growth pillars, ODR organic and total revenue growth, margin expansion through evolved customer solutions, scaling the business through acquisitions. While first quarter organic revenue was down as expected, the more important development of the quarter was the acceleration of demand. Over the past two quarters, we recorded more than $434 million of bookings, including 209 million in Q1 of 2026 and 225 million in Q4 of 2025. Our Q1 2026 book-to-bill ratio of 1.5 times is a strong indicator that revenue momentum is building as we move through 2026. We believe the strength of these bookings reflect the traction we are getting from recent investments in our national sales, vertical market teams, customer solution teams, as well as our ability to serve increasingly complex mission-critical facilities. Earlier this year, we invested in dedicated sales enablement tools to support productivity. This type of sales support is only possible in an organization that works collaboratively and shares best practices. During the first quarter, we rolled out an updated sales process system designed to better highlight what differential inbox in the marketplace. We also continue to invest across three national vertical market teams. The healthcare team is now fully built and delivered strong bookings over the past two quarters, positioning revenue to accelerate in the second half as those bookings convert. In addition, during the first half of the year, we are focused on adding resources to our data center team, combining experienced Limbach employees with new hires to drive scale and deepen existing customer relationships. Our second pillar is to expand margins by driving more evolved customer solutions. We differentiate ourselves from our competition by delivering creative, integrated solutions that solve real business problems. Our strategy is focused on six core customer solutions, including integrated facility planning, service and maintenance, replacement equipment and retrofits, rental equipment, MEPC infrastructure upgrades, and energy efficiency decarbonization projects. Over time, our goal is to deliver all six customer solutions at both the national and local level across our customer base. By bundling these offerings, we can create a more comprehensive solutions for customers while layering on incremental margins. Our third strategic pillar is targeted acquisitions, designed to extend the Limbach brand, strengthen our market presence, and expand our capabilities. By pursuing disciplined acquisitions, we seek to diversify our vertical market exposure, broaden our geographic reach, and add new offerings that enhance and scale our customer solutions. Given robust demand from customers with national operations who are increasingly seeking partners with comparable geographic reach and technical capabilities, we believe there's an opportunity to further refine our acquisition strategy. We're actively evaluating acquisitions and are open to larger acquisitions where the strategic rationale is compelling. Many of our customers operate nationally and increasingly want partners whose geographic footprint and technical capabilities can match the scale of their own businesses. We're focused on businesses that expand and extend our local service capabilities, deepen our presence in attractive geographies, and enhance our ability to deliver mission-critical solutions across a larger national platform. Our integration of Pioneer Power is progressing well. Pioneer expands our capabilities, broadens our customer base, gives us additional avenues to participate in high-growth, mission-critical end markets, including data centers. We're in the process of increasing gross margin of Pioneer Power to align with our company average. Our key strategic priorities to achieve this include... reviewing and renegotiating existing contracts for better pricing, optimizing project mix with prioritizing revenue by specific target margins, leveraging cross-selling opportunities, and implementing LIMBOC sales and operating tools. We expect Pioneer's margins to begin improving in 2026 with continued progress over the next two to three years. From a macro perspective, conditions were generally favorable in the first quarter. We believe the optimal mix for LIMBOC is centered on three key areas. institutional markets led by healthcare and higher education, industrial markets, and data centers. Our experience in 2025 reinforced that market vertical diversification and geographic expansion will make our business model more resilient. Starting with healthcare, customers remain focused on near-term, mission-critical spending while thoughtfully planning longer-term capital investments. As discussed last quarter, D.C. policy changes extended budgeted timelines for several of our customers. We are now seeing those budgets normalized, with spending expected to pick up in the second half of the year and align with historical patterns. At the national level, our team is gaining traction with key customers and aligning sales efforts with anticipated funding releases. Locally, customers remain disciplined in how they allocate capital, prioritizing investments to maintain and upgrade critical systems. Our local engineering team expertise, and solution-oriented approach remain key differentiators, and it's our responsibility to structure opportunities that clearly meet each customer's ROI requirements. Jake Marshall was a key contributor to our margin expansion over the last four years. They've been focused on building relationships in the healthcare sector. This momentum continued in the first quarter with the award of a multi-phase renovation project at Chattanooga-based facility, further strengthening our presence with this customer. Our Chattanooga team has successfully deployed multiple customer solutions, including maintenance agreements, rental fleet utilization, and on-site account management. These solutions enabled us to win this significant infrastructure project. Turning to data centers, we want to emphasize that LIMBOC has longstanding 10-plus year relationships with brand name hyperscaler customers, and we are focused on building on that foundation as demand accelerates. What has changed is the scale and urgency of demand in the market and our ability to bring a broader, more coordinated set of capabilities to those customers. As mentioned on our fourth quarter call, we were awarded a unique infrastructure data center project. Additionally, in the first quarter, we successfully won a similar but even larger project from one of the hyperscalers in the market. We will be providing a fabricated package encompassing of steel structures, piping systems, and the execution is expected to be rapid. We anticipate the final contract value of this project to exceed $30 million and expect to generate the revenue over the next few quarters. Our experienced and disciplined approach has made us highly selective around customer quality, contract structure, project execution risk, and partner alignment, we are approaching this opportunity with discipline. We are not pursuing growth for growth's sake. We are pursuing data center work where we believe LIMBOC has a differentiated right to win and where the risk adjusted return profile is attractive. One of the key value creation issues of Pioneer Power is expanding its reach into the data center market. In the first quarter, we rewarded one of the initial projects with an existing data center, which is expected to provide immediate contributions beginning in the second quarter. The contract value is approximately $6 million, features a rapid execution schedule, involves a complete retrofit of the space to support new server installation. Layering data center work into Pioneer's existing customer profile remains an important driver of the margin expansion over time. We continue to see meaningful opportunities within this vertical market and expect momentum to build through the year. To support this growth, we are developing a dedicated data center vertical market team focused on leveraging both our fabrication resources and our available field talent. Industrial manufacturing activity began to show meaningful momentum starting in April, with our strengths in this vertical beginning to translate into new opportunities. Our other vertical markets are trending in a positive direction, though we expect most of the growth to come in the latter part of the year. Moving to our outlook, we are reaffirming the full-year guidance we provided for 2026 back in March. We expect revenue between $730 and $760 million, implying year-over-year growth of 13% to 17%. Adjusted EBIT of 90 to 94 million, implying year-over-year growth of 10 to 16%. The following underlying assumptions support this guidance. Total organic revenue growth of 4 to 8%. ODR organic revenue growth of 9 to 12%. ODR is the percentage of total revenue to be in the range of 75 to 80%, reflecting the stabilization of the mixed shift. Total gross margin of 26 to 27%. SG&A expenses, the percentage of total annual revenue to be 15% to 17%, and free cash flow to be 75% of adjusted EBITDA. For the second quarter of 2026, we expect sequential improvement of revenue adjusted EBITDA and are comfortable with the consensus expectations currently stand. With that, I'll turn the call over to Jamie to walk through the financials in more detail. Jamie?