{ "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": 77, "pageCount": 86, "prevPage": 76, "nextPage": 78, "slideType": "testimonial", "function": "cite_precedent", "density": "dense", "nDataPoints": 1, "notes": "The slide uses red text to emphasize key strategic points within the quotes.", "elementsJson": [ "headline_text", "paragraph", "comparison_table" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-b80c260b0389/77", "deckHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-b80c260b0389#slide-77", "components": [ { "bbox": null, "kind": "callout", "text": "Several highlight a clear intent to provide end-to-end lifecycle solutions, placing OEMs in direct competition with Limbach’s ODR business.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-5370-75b3-9c67-806384ef7a6c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.96, "x": 0.02, "y": 0.16 }, "kind": "paragraph", "text": "Below is a selection of recent statements from building systems OEM executives that showcase a deliberate push to expand their service and solutions offerings. Several highlight a clear intent to provide end-to-end lifecycle solutions, placing OEMs in direct competition with Limbach’s ODR business.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7738fe46-abf6-459c-a450-18b3925930f0", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"And so I joined Danaher. And with the team there, we evolved the Danaher Business System to be far beyond factories. So over the last 14 years in Danaher -- and I'm sure you've seen that in investor presentations how much we, at the time, they know, talk about what we did on sales, on marketing, on service, on how to accelerate innovation and so on. All of those things are 100% applicable at Johnson Controls.\" — JCI Wolfe Conference 5/25/2025; \"On the services side, it's all about ensuring that the value of delivering and the way we deliver that value, that strong customer relationship translates into strong project to service conversion, and we're quite pleased on what we're seeing there as well as our software solutions to where now you're able to decouple ourselves from the natural investment cycles, investment cycles are either building a new building or they have a refurbishment plan coming up.\" — HON Wolfe Conference 5/20/2025; \"We built a very strong service organization with dedicated and centralized playbooks that help serve our customers with life cycle management solutions.\" — CARR Carrier's Analyst Day 5/19/2025; \"And some of our customers want an OEM that stand behind the system and service the assets over its life, and hopefully, is there for the replacement down the line.\" — JCI BofA Conference 5/14/2025; \"Finally, our technological capabilities and our product domains are impressive. Our capabilities are evidenced by our many industry firsts and nearly 8,000 patents with more coming. Johnson Controls has come a long way over the last several years. But as I said, there's still great potential to unlock in this iconic technology-based and service-enabled company.\" — JCI Q2'25 Earnings Call 5/07/2025; \"Yes. I mean I think the service business, obviously -- these are very sophisticated systems. So think of it as, the more sophisticated the system, the more aptitude there is for the OEM to do the service work, I'd start with that.\" — TT J.P. Morgan Conference 3/11/2025; \"So that's the strength of the equipment markets. It brings the service tail and that service tail doesn't really start in those first 2 or 3 years post installation, right? There's warranty periods, and we get through that warranty period and then the newer product probably needs a little bit less service, but you start growing that over time. The service dollars really bring that 8x to 10x the value of services versus the original equipment. That really starts kicking in a few years after installation.\" — TT Barclays Conference 2/19/2025", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-5370-75b3-9c67-86faa9da454c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.15, "x": 0.02, "y": 0.96 }, "kind": "source-note", "text": "Source: Spruce Point research", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "00189b0c-46f7-4127-827a-58e002b9cc4b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.68, "w": 0.96, "x": 0.02, "y": 0.26 }, "kind": "table", "text": "OEM Executive Comments On Growing Services Businesses", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f93a80c2-dbc0-4839-8f2b-742e4c5ff898", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.63, "x": 0.34, "y": 0.05 }, "kind": "title", "text": "Comments From Executives Of Building Systems OEMs Confirm Interest In Growing Their Services And Solutions Businesses", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "68e261c1-6c37-4486-8f85-b81380eb585e", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "02d21f13-42a0-4af8-8393-0387939ccc68", "evidence": "Uses executive quotes to validate the thesis of OEM competition.", "confidence": 0.9 } ], "arcBeats": [ { "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 }