Limbach Holdings Inc. (LMB) experienced a 5.08% decline in its stock price during Tuesday's trading session, following the release of its first-quarter 2026 financial results.

The building systems firm reported a 57.1% year-over-year drop in net income to $4.38 million, despite revenue rising 4.3% to $138.86 million and beating analyst estimates. The company's gross margin narrowed by 5.2 percentage points to 22.4%, pressured by lower fixed-cost absorption, fewer net project write-ups compared to the prior year, and the lower margin profile of the recently acquired Pioneer Power business.

Management noted that organic revenue declined due to lower bookings in mid-2025 and normal seasonal patterns among industrial customers. While the company reaffirmed its full-year 2026 revenue guidance of $730 million to $760 million and adjusted EBITDA forecast of $90 million to $94 million, investors appeared focused on the significant near-term profitability challenges revealed in the quarterly report.