{ "docId": "019dd923-622c-750b-8b99-b80c260b0389", "docSlug": "dee45f9e8542", "documentTitle": "Limbach Holdings, Inc. (LMB)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2025-07-22 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 53, "pageCount": 86, "prevPage": 52, "nextPage": 54, "slideType": "preempt_rebuttal", "function": "preempt_rebuttal", "density": "dense", "nDataPoints": 0, "notes": "Includes a red-line emphasis on a specific risk disclosure from the company's 10-Q.", "elementsJson": [ "headline_text", "callout_box", "paragraph", "screenshot" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-b80c260b0389/53", "deckHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389#slide-53", "components": [ { "bbox": null, "kind": "callout", "text": "the Company may be unable to offset all price increases or to secure adequate alternative sources of supply in a timely manner.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-5370-75b3-9c63-d3a60c2de045", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.28, "w": 0.96, "x": 0.02, "y": 0.67 }, "kind": "paragraph", "text": "In February 2025, the United States government imposed new import tariffs, including duties on steel and aluminum. The higher cost of imported steel and aluminum has prompted domestic suppliers to raise their own prices for these inputs. These tariffs, along with any additional duties or trade restrictions that may be enacted by the United States or other countries, could increase costs, alter competitive dynamics and reduce the availability of steel, aluminum, resins and other imported components and materials. Because the Company's ODR segment typically operates on a short sales cycle, it can often pass cost increases on to the customers; however, the Company may be unable to offset all price increases or to secure adequate alternative sources of supply in a timely manner. Although retaliatory tariffs imposed by other countries on the United States have not yet had a material impact, future developments are uncertain, and the ultimate effect of current or future tariffs on the Company cannot be quantified at this time. Currently the environment related to both domestic and foreign tariffs is fluid and evolving and it is likely that such matters will continue to develop. Given that these matters have been hard to anticipate and are continuing to evolve it is not practical for the Company to predict what, if any, impact these matters may have on the Company in the near and long term but as those matters develop it is possible that the imposition of tariffs and similar matters may impact the Company, and in some cases in material ways.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "32d791a1-8f28-4899-8882-9ad6c90a6cf2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.96, "x": 0.02, "y": 0.17 }, "kind": "paragraph", "text": "In its Q1'25 10-Q, Limbach included a note on the potential impacts of tariffs on steel and aluminum, noting that such tariffs could increase costs or lead to reduced materials availability. On June 3, 2025, the White House announced it was raising tariffs on global steel and aluminum imports from 25% to 50%. The Boston Consulting Group released a note on the new tariffs, stating that steel and aluminum prices are likely to rise in the short term and that some non-US steel will be priced out of the US market altogether.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d29c1722-0ea3-4fdd-92ff-65d4fd050bf8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.5, "x": 0.02, "y": 0.96 }, "kind": "source-note", "text": "Source: White House fact sheet, Limbach Q1'25 10-Q, Red line emphasis by Spruce Point", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ce6743e8-b38c-483f-b401-0fe904643590", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.96, "x": 0.02, "y": 0.38 }, "kind": "title", "text": "Fact Sheet: President Donald J. Trump Increases Section 232 Tariffs on Steel and Aluminum", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "63e0486c-d627-4568-9146-6b044ebc4258", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.6, "x": 0.34, "y": 0.03 }, "kind": "title", "text": "We Believe Tariffs Pose An Underappreciated Risk To Limbach", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8099cd3e-30ce-4e00-b4c1-6a6639cf8cd7", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 64, "from": 35, "beatId": "fb9a213b-6405-45e9-85ce-458dc475f57c", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Preempt Rebuttal", "beatSlug": null, "evidence": "The document preempts potential rebuttals by addressing potential counterarguments and providing additional evidence to support its claims", "position": 2, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null }, { "to": 80, "from": 31, "beatId": "05b3e7fe-8524-4292-9dca-69fe4e431e99", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Thesis Headline", "beatSlug": null, "evidence": "The document presents a clear thesis, highlighting several concerns and potential risks with Limbach's financials and operations", "position": 3, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }