Legence Corp. (LGN)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$3.7B

Net income, last twelve months

-$45.0M

Gross margin

18.7%

Operating margin

0.8%

Net margin

-1.2%

Free cash flow

$323.2M

Return on equity

-7.5%

Market value

$3.1B

Cash

$292.0M

Debt

$1.0B

Debt to equity

1.72

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the second quarter 2026 results, filed 13 August 2026.

• Revenue more than doubled year over year. Revenue reached $1.26 billion, up 110.7% from a year earlier. Excluding the Bowers acquisition, non-GAAP revenue growth was 60.0%.
• Adjusted EBITDA rose 114%. Non-GAAP Adjusted EBITDA was $154.6 million, up from $72.2 million a year earlier. The company reported new highs for revenue, Adjusted EBITDA and backlog.
• Net loss attributable to Legence. Net loss attributable to Legence was $27.8 million, or $(0.37) per diluted share, compared with a $5.3 million net loss a year earlier.
• Impairment charges recorded this quarter. Goodwill impairment of $21.6 million and long-lived asset impairment of $19.5 million were recorded in the quarter, with none in the prior-year quarter.
• Installation & Maintenance grew 162%. Installation & Maintenance revenue was $1.06 billion, up 162.0%. Excluding Bowers, segment revenue grew 86.6%.
• Engineering & Consulting revenue rose 5.5%. Engineering & Consulting revenue was $206.9 million. Program & Project Management revenue rose 16.9% to $104.5 million, mainly from state & local government and data centers & technology clients.
• Engineering & Consulting gross profit fell. Engineering & Consulting gross profit was $56.1 million, down 12.4%, while non-GAAP Adjusted Gross Profit was $64.3 million, down 1.2%.
• Data centers remain a major driver. Management said the data centers & technology end market continues to be a significant driver of performance, alongside life sciences & healthcare, state & local government and education.
• Installation & Fabrication revenue rose 189%. Installation & Fabrication revenue reached $924.9 million, up 189.0%, mainly from data centers & technology clients. Maintenance & Service revenue rose 57.5% to $130.4 million.
• Engineering & Design revenue declined. Engineering & Design revenue was $102.3 million, down 4.1%, mainly from mixed-use clients.
• Gross margin fell on revenue mix. Non-GAAP Adjusted Gross Margin was 18.5%, against 21.8% a year earlier. Management attributed the decline to a mix shift toward Installation & Maintenance and a slight Engineering & Consulting margin decline.
• Installation & Maintenance margin edged down. Installation & Maintenance non-GAAP Adjusted Gross Margin was 16.1% against 16.2%, reflecting higher Installation & Fabrication mix and lower service line margins, largely offset by fulfillment scale.
• Engineering & Consulting margin declined. Engineering & Consulting non-GAAP Adjusted Gross Margin was 31.1% against 33.2%. Management cited rising indirect customer fulfillment costs and a mix shift toward Program & Project Management.
• Installation backlog rose 141%. Installation & Maintenance backlog and awarded contracts rose 141.2% year over year, mainly from the Bowers acquisition and data centers & technology and education demand.

Company events

The newest 8-K filings of 12 held.

Every filing

The newest filings with the SEC of 47 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Trades by members of the House

From each member's periodic transaction report.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

288 funds held it at 30 Jun 2026: 188 added and 58 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Argan Inc. (AGX): revenue $1.2B, market value $5.0B
• Sunrun Inc. (RUN): revenue $3.5B, market value $1.8B

What the company does

Legence Corp. provides engineering, installation and maintenance services for mechanical, electrical and plumbing ("MEP") systems in buildings. It is headquartered in San Jose, California, and had approximately 7,000 full-time employees and 116 physical locations across 46 U.S. states and the District of Columbia. Its team includes approximately 1,200 MEP engineers and energy consultants, and approximately 6,200 HVAC and plumbing service technicians, fitters, electricians and sheet metal workers. It serves data centers, life sciences and healthcare facilities, schools and universities, and other building owners.

How the business is organised

Legence operates through two segments, Engineering & Consulting and Installation & Maintenance. Installation & Maintenance made up 71.6% of revenue and Engineering & Consulting 28.4%. The company goes to market as "Legence" or as "a Legence Company" under other brands, depending on the services involved and the strength of the brand locally.

About 40% of revenue comes from new building projects and 60% from retrofits, upgrades and maintenance in existing buildings.

What it sells

Engineering & Consulting has two service lines. Engineering & Design covers planning, design and engineering for HVAC, process piping and other MEP systems, plus strategies to reduce a building's utility use. It supplied about 59% of the segment's revenue. Program & Project Management covers facility condition assessments, space utilization and capacity analyses, funding source identification and construction management. It supplied about 41%. For some clients it provides design-build work under Energy Savings Performance Contracts, where financing sources pay for the upgrades and recover their investment from the client's energy savings.

Installation & Maintenance also has two service lines. Installation & Fabrication supplied about 82% of the segment's revenue. It installs, refurbishes and renovates HVAC, electrical, plumbing, process and control systems. It does both "design-build" projects, where Legence designs and installs, and "plan and specification" projects, where the client designs and Legence installs to that design. It also fabricates custom components and offers modular construction. Maintenance & Service supplied about 18%. It covers preventative maintenance, emergency repair and break-fix work, usually under agreements of one to five years, and most of this work is on a cost-plus basis.

Who buys from it

By client end market, data centers and technology account for 42.7% of revenue, life sciences and healthcare 18.0%, education 16.8%, mixed-use 4.6%, state and local government 4.2%, and other industries 13.7%. The federal government is approximately 2% of revenue. The company defines "high growth industries" as the data center and technology and the life sciences and health care end markets, and these brought in more than half of revenue.

Some clients contract directly. Others reach Legence through architects and general contractors who subcontract MEP work as part of a larger project. The company served approximately 20,000 clients from 2019 through 2025. The average relationship with its top 10 clients was 23 years, and some have lasted over 40 years.

How it wins work and gets paid

Legence uses a "seller-doer" approach, in which engineers, consultants, project managers and technicians are encouraged to originate sales, supported by dedicated sales staff. It also takes part in industry organizations, conferences and events and uses digital marketing.

Most revenue has come from fixed-price contracts. When a client changes the scope, Legence charges more than the fixed price. Apart from maintenance contracts, which can span multiple years, most jobs are completed within nine months. Materials such as ductwork, pipe, valves, fittings, wire, conduit and sheet metal come from many suppliers. Import tariffs on materials bought abroad are passed through to clients. Legence is equipment vendor agnostic, with no exclusive supplier relationships. When a contract requires it to buy equipment, it typically takes no exposure to equipment price increases. Some contracts require surety bonds and carry liquidated damages provisions tied to completion dates.

Activity is seasonal. Demand is generally higher in the second and third calendar quarters and lower in winter. Schools and colleges also prefer work when classes are not in session.

Acquisitions

Legence has made approximately 24 acquisitions since December 2020. In 2024 it bought P2S, LP, which serves healthcare and education markets, and AMA Consulting Engineers Holdings LLC, which focuses on technology, media and broadcasting. On 2 January 2026 it acquired The Bowers Group, Inc., a mechanical contracting company based in Maryland.

Its people and the rules it works under

Of the roughly 7,000 full-time employees, approximately 4,500 are covered by 44 active collective bargaining agreements, which are typically renewed every three years. The company reports no significant grievances, strikes or work stoppages over the past decade. Its total recordable incident rate was 0.51 per one hundred employees. Training includes safety, technical instruction, apprenticeships and co-op programs for college students.

Engineers and technicians need state and local licenses, and the company tries to have at least two license holders in each region. Its work is also subject to worker safety, environmental, building code and public bidding rules.

Competition

Legence competes with national, regional and local firms, including many small owner-operated businesses. Named national competitors in Engineering & Consulting are Affiliated Engineers Inc., Stantec Inc. and WSP Global, Inc. In Installation & Maintenance they are Comfort Systems USA, Inc., ACCO Engineered Systems, Inc. and Southland Industries, Inc.

*From Legence's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/2052568/000205256826000008/lgn-20251231.htm)*

From the company's 10-K.