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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill was $70.6 million and $33.0 million as of December 31, 2025 and 2024, respectively. The Company tests its goodwill and indefinite-lived intangible assets allocated to its reporting units for impairment annually on October 1, or more frequently if events or circumstances indicate that it is more likely than not that the fair value of its reporting units and indefinite-lived intangible assets are less than their carrying amount. The Company has the option to assess goodwill for possible impairment by performing a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. A quantitative assessment is performed if the qualitative assessments results in a more likely than not determination or if a qualitative assessment is not performed. On October 1, 2025, the Company performed a qualitative assessment. In conducting that qualitative assessment, the Company analyzed a variety of events or factors that may influence the fair value of the reporting unit or indefinite-life intangible, including, but not limited to: if applicable; changes in the carrying amount of the reporting unit or indefinite-life intangible; actual and projected revenue and operating margin; relevant market data for both the Company and its peer companies; industry outlooks; macroeconomic conditions; liquidity; changes in key personnel; and the Company's competitive position. Significant judgment was used to evaluate the totality of these events and factors to make the determination of whether it is more likely than not that the fair value of the reporting units or indefinite-life intangible is less than its carrying value. No impairment losses were identified as a result of its qualitative assessment during the year ended December 31, 2025. The following table summarizes the carrying amount and changes in goodwill associated with the Company's segments for the years ended December 31, 2025 and 2024.
(in thousands) | GCR |  | ODR |  | Total
Goodwill as of January 1, 2024 | $ | — |  |  | $ | 16,374 |  |  | $ | 16,374 |
Measurement period adjustments - Industrial Air Transaction(1) | — |  |  | 59 |  |  | 59 |
Goodwill associated with the Kent Island Transaction(2) | 4,244 |  |  | 1,240 |  |  | 5,484 |
Goodwill associated with the Consolidated Mechanical Transaction | — |  |  | 11,117 |  |  | 11,117 |
Goodwill as of December 31, 2024 | $ | 4,244 |  |  | $ | 28,790 |  |  | $ | 33,034 |
Measurement period adjustments - Kent Island Transaction(2) | 94 |  |  | — |  |  | 94 |
Measurement period adjustments - Consolidated Mechanical Transaction(3) | — |  |  | 3 |  |  | 3 |
Goodwill associated with the Pioneer Power Transaction | 10,984 |  |  | 25,630 |  |  | 36,614 |
Measurement period adjustments - Pioneer Power Transaction(4) | 256 |  |  | 599 |  |  | 855 |
Goodwill as of December 31, 2025 | $ | 15,578 |  |  | $ | 55,022 |  |  | $ | 70,600 |
(1) Includes certain adjustments to preliminary estimates of fair value within the measurement period of up to one-year from the date of the Industrial Air transaction. Measurement period adjustments related to certain working capital adjustments. (2) In connection with the Kent Island Transaction, the Company recorded preliminary goodwill of $4.8 million. During the fourth quarter of 2024, the Company recognized certain adjustments to preliminary estimates of fair value within the measurement period of up to one-year from the date of the Kent Island Transaction. The measurement period adjustments amounted to $0.7 million and related to certain working capital adjustments made in connection with the finalization of the transaction’s closing date cash consideration. In addition, during the first quarter of 2025, the Company recognized further adjustments to the preliminary estimates of fair value within the measurement period of $0.1 million related to the receipt of additional information regarding the facts and circumstances that existed as of the acquisition date. (3) During the first half of 2025, the Company recognized certain adjustments to the preliminary estimates of fair value within the measurement period amounting to less than $0.1 million associated with certain working capital adjustments made in connection with the finalization of the transaction’s closing date cash consideration. (4) Measurement period adjustments recorded during the quarter ended December 31, 2025 reflect changes to the fair value of contract assets acquired and contract liabilities assumed, resulting in a net increase of approximately $0.9 million to goodwill. Intangible Assets The Company reviews intangible assets with definite lives subject to amortization whenever events or changes in circumstances (triggering events) indicate that the carrying amount of an asset may not be recoverable. Intangible assets with definite lives subject to amortization are amortized on a straight-line or accelerated basis with estimated useful lives ranging from 1 to 15 years. Events or circumstances that might require impairment testing include the identification of other impaired assets within a reporting unit, loss of key personnel, the disposition of a significant portion of a reporting unit, a significant decline in stock price, or a significant adverse change in the Company’s business climate or regulations affecting the Company. The Company did not recognize an impairment charge on its indefinite-lived intangible assets for the years ended December 31, 2025, 2024 and 2023. Definite-lived and indefinite-lived intangible assets consist of the following:
(in thousands) | Gross carrying amount |  | Accumulated amortization |  | Net intangible assets, excluding goodwill
December 31, 2025 |  |  |  |  |
Amortized intangible assets: |  |  |  |  |
Customer relationships | $ | 47,620 |  |  | $ | (11,741) |  |  | $ | 35,879 |
Backlog | 5,960 |  |  | (5,800) |  |  | 160 |
Trade name, trademarks and intellectual property | 5,550 |  |  | (2,362) |  |  | 3,188 |
Total amortized intangible assets | 59,130 |  |  | (19,903) |  |  | 39,227 |
Unamortized intangible assets: |  |  |  |  |
Trade name – Limbach(1) | 9,960 |  |  | — |  |  | 9,960 |
Total unamortized intangible assets | 9,960 |  |  | — |  |  | 9,960 |
Total amortized and unamortized assets, excluding goodwill | $ | 69,090 |  |  | $ | (19,903) |  |  | $ | 49,187 |
(1) The Company has determined that its trade name has an indefinite useful life. The Limbach trade name has been in existence since the Company’s founding in 1901 and therefore is an established brand within the industry.
(in thousands) | Gross carrying amount |  | Accumulated amortization |  | Net intangible assets, excluding goodwill
December 31, 2024 |  |  |  |  |
Amortized intangible assets: |  |  |  |  |
Customer relationships | $ | 32,820 |  |  | $ | (7,124) |  |  | $ | 25,696 |
Backlog | 5,560 |  |  | (3,310) |  |  | 2,250 |
Trade name, trademarks and intellectual property | 4,550 |  |  | (1,228) |  |  | 3,322 |
Total amortized intangible assets | 42,930 |  |  | (11,662) |  |  | 31,268 |
Unamortized intangible assets: |  |  |  |  |
Trade name – Limbach | 9,960 |  |  | — |  |  | 9,960 |
Total unamortized intangible assets | 9,960 |  |  | — |  |  | 9,960 |
Total amortized and unamortized assets, excluding goodwill | $ | 52,890 |  |  | $ | (11,662) |  |  | $ | 41,228 |
Total amortization expense for the Company’s definite-lived intangible assets was $8.4 million, $4.7 million and $1.9 million for the years ended December 31, 2025, 2024 and 2023, respectively. For the years ended December 31, 2025, 2024 and 2023, amortization expense included approximately $0.1 million, $0.1 million and less than $0.1 million of amortization expense related to a below-market lease recognized as a result of the Industrial Air transaction, which was recorded as an increase to the Company’s operating lease right-of-use assets on its consolidated balance sheet. Amortization expense associated with the Company’s below-market lease arrangement is expected to be approximately $0.1 million for each of the next five years and is not included in the estimated amortization expense table below. The estimated remaining useful lives of definite-lived intangible assets are as follows:
Intangible Asset |  | Amortization Method |  | Weighted Average Remaining Useful Life (Years)
Customer relationships |  | Straight line / Pattern of economic benefit |  | 7.3
Trade name, trademarks and intellectual property |  | Straight line |  | 4.1
Backlog |  | Straight line |  | 0.3
Estimated amortization expense is as follows for the years ending December 31:
(in thousands) |  | Estimated Amortization Expense
2026 |  | $ | 6,661 |
2027 |  | 5,923 |
2028 |  | 5,693 |
2029 |  | 5,352 |
2030 |  | 5,148 |
2031 and thereafter |  | 10,450 |
Total |  | $ | 39,227 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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