📈 Price History

Ratio Health

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By Category

📊 Peer Medians

About

Legence Corp. provides engineering, installation, and maintenance services for mission-critical systems in buildings in the United States. The company operates through two segments, Engineering & Consulting, and Installation & Maintenance. The Engineering & Consulting segment designs HVAC and other MEP systems for buildings, develops strategies to help reduce energy usage and make buildings more sustainable and provides program and project management services for client’s installation and retrofit projects. This segment also offers engineering & design and program and project management services. The Installation & Maintenance segment fabricates and installs HVAC systems, process piping and other MEP systems in new and existing industrial, commercial and institutional buildings and provides ongoing preventative and corrective maintenance services, emergency repair, and break-fix services, as well as facility energy analysis, automation, optimization, and system certification and testing. It serves data centers, technology, life sciences, healthcare, education, mixed-use, state and local government, and other markets. The company was founded in 1914 and is based in San Jose, California.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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⭐ Superinvestors Holding LGN

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Manager	Shares	Value	% of Fund	Period
Jim Simons Renaissance Technologies LLC	579.7K	$32.7M	0.05%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 3 quarters analysed

Q3 2025

Confident Specific

Management repeatedly highlighted 'record-setting quarter' with specific growth percentages (26% revenue, 39% EBITDA, 29% backlog), emphasized that growth was 'all organic', and used definitive language like 'we had an incredible record-setting quarter'.

Q4 2025

Confident Specific

Management used strong positive language such as 'incredibly strong fourth quarter', 'well ahead of prior guidance', 'record revenue', and 'robust backlog growth'. Specific metrics were provided including 35% revenue growth, 53% adjusted EBITDA growth, and 1.9x book-to-bill. Upward guidance revisions further reinforced the confident tone.

Q1 2026 latest

Confident Specific

Management consistently used positive, specific language: 'strong first quarter results that exceeded quarterly guidance', 'robust 57% organic growth', 'record backlog', and 'raising full year 2026 guidance' with specific dollar ranges. No cautionary or defensive language was present.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis is stronger after this call. The company delivered a beat-and-raise quarter, with both organic and acquisitive growth accelerating. The D.C. Virginia data center exposure is deepening, and the integration of Bowers is exceeding expectations. Margin expansion is real, driven by better project execution and scale. The main watch items for next quarter are: whether backlog growth can sustain the 1.2x book-to-bill pace, any signs of labor constraints, and the trajectory of E&C margins as mix shifts. The raised guidance suggests high visibility, but the 85% free cash flow conversion in Q1 may be unsustainable. Investors should also monitor M&A activity given the company's dry powder and stated flexibility.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Confident Specific → Stable 3 quarters Full tone analysis in Intelligence →

📊 MIXED Q1 revenue $1.04B, backlog $5.4B, raises FY2026 guidance

Revenue & Profitability

Q1 2026 revenue was $1.038 billion, up 105% year-over-year. Adjusted EBITDA was $118 million, up 132% year-over-year, with adjusted EBITDA margin of 11.4% (up 133 bps). Adjusted gross profit was approximately $194 million with adjusted gross margin of 18.7%. Free cash flow exceeded $100 million, converting over 85% of adjusted EBITDA. The company raised full-year 2026 revenue guidance to $4.1–$4.3 billion and adjusted EBITDA to $470–$490 million.

Outlook

Management describes a very healthy demand environment for mission-critical building systems, particularly in data centers and technology. Backlog and awards reached a record $5.4 billion, up 104% year-over-year, providing visibility into 2027. Labor is not expected to be a material constraint. The company sees expanding interest from pharmaceutical and semiconductor clients for fabrication services.

Growth Drivers

Growth is driven primarily by data center and technology clients, which accounted for most of the 57% organic revenue growth (ex-Bowers) in Q1. INM segment grew 142% overall, with organic growth in life sciences and healthcare, including larger hospital projects. E&C saw 75% growth in program/project management, driven by K-12 schools and data center work. Fabrication services are expanding into pharma and semiconductor markets.

Balance Sheet & CapEx

Full-year 2026 capital expenditure is expected to be approximately $65 million, with about two-thirds classified as growth capex. The company currently has 1.3 million sq ft of fabrication capacity largely up and running, with room to meet additional demand. They are considering further expansion if demand continues to grow, and are leveraging automation and shift extensions to increase throughput.

Margins

Adjusted EBITDA margin improved 133 bps year-over-year to 11.4%, driven by strong project execution and SG&A leverage (8% of revenue vs 12.6% a year ago). INM adjusted gross margin improved to 15.9% from 14.3%, benefiting from scale and fabrication efficiencies. E&C adjusted gross margin was 33.2% (down from 40.7% due to mix shift toward program management), expected to remain in the low-to-mid 30s. The company raised margin expectations for the full year.

Key Risks

Risks include the impact of mark-to-market profit interest expense on reported results, tax rate uncertainty (effective rate in mid-20% to low 30% range), and timing of large awards causing quarterly volatility in book-to-bill ratios. Labor availability is monitored but not expected to be a constraint. Forward-looking statements are subject to risks and uncertainties detailed in SEC filings.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (3 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (3)

Q1 2026 Q1 2026 2026-05-14

Revenue more than doubled year-over-year to $1.038 billion, driven by strong demand in data centers, robust project execution, and the Bowers acquisition. Adjusted EBITDA rose 132% to $118 million, and backlog reached a record $5.4 billion. Full-year 2026 guidance for both revenue and EBITDA was raised by about 10–15%.

Q4 2025 Q4 2025 2026-03-27

Fourth quarter and full-year results showed strong organic growth in revenue, EBITDA, and backlog, driven by robust demand in data centers and technology, as well as contributions from life sciences, healthcare, and education. Guidance for 2026 was raised, reflecting continued momentum and recent acquisitions.

Q3 2025 Q3 2025 2025-11-14

Delivered record Q3 results with 26% organic revenue growth and 39% EBITDA growth, driven by strong performance in data center and technology markets. Announced the acquisition of Bowers Group, enhancing scale and capabilities, and provided robust guidance for 2026.

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