Legence (LGN)
Market Price (5/10/2026): $99.51 | Market Cap: $6.2 BilSector: Industrials | Industry: Construction & Engineering
Legence (LGN)
Market Price (5/10/2026): $99.51Market Cap: $6.2 BilSector: IndustrialsIndustry: Construction & Engineering
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 22% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 10% Megatrend and thematic driversMegatrends include Sustainable & Green Buildings, and Smart Buildings & Proptech. Themes include Renewable Integration in Buildings, Building Management Systems, Show more. | Trading close to highsDist 52W High is -2.3%, Dist 3Y High is -2.3% | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 133x Stock price has recently run up significantly6M Rtn6 month market price return is 181%, 12M Rtn12 month market price return is 228% Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 128% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -5.2% Key risksLGN key risks include [1] high leverage and a history of weak profitability, Show more. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 22% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 10% |
| Megatrend and thematic driversMegatrends include Sustainable & Green Buildings, and Smart Buildings & Proptech. Themes include Renewable Integration in Buildings, Building Management Systems, Show more. |
| Trading close to highsDist 52W High is -2.3%, Dist 3Y High is -2.3% |
| Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 133x |
| Stock price has recently run up significantly6M Rtn6 month market price return is 181%, 12M Rtn12 month market price return is 228% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 128% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -5.2% |
| Key risksLGN key risks include [1] high leverage and a history of weak profitability, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Legence (LGN) stock has gained about 115% since 1/31/2026 because of the following key factors:
1. Strong Q4 2025 Financial Performance and Upbeat 2026 Guidance.
Legence reported robust fourth-quarter 2025 financial results on March 27, 2026, with revenue reaching $737.6 million, significantly exceeding analyst estimates of approximately $618.0 million and representing a 34.6% year-over-year increase. This performance was supported by a 53% rise in adjusted EBITDA to $87.0 million. The company also issued positive guidance for Q1 2026, projecting revenues between $925 million and $950 million, and raised its full-year 2026 outlook, forecasting total revenues of $3.7 billion to $3.9 billion and adjusted EBITDA between $400 million and $430 million. A record backlog of $3.7 billion further underpinned this positive outlook.
2. Strategic Positioning in High-Growth Data Center and AI Sectors, Bolstered by Acquisitions.
Legence specializes in critical infrastructure services, particularly for data centers and technology, which account for 43% of its revenue. The company is strategically positioned to benefit from the burgeoning demand for AI infrastructure, including the design, installation, and maintenance of essential liquid cooling systems. This strategic focus was further strengthened by key acquisitions, such as The Bowers Group, Inc., which closed on January 2, 2026, and is expected to contribute between $825 million and $875 million in revenue and $75 million to $85 million in EBITDA for 2026. Additionally, the acquisition of Metrix Engineers LLC on March 1, 2026, for $30 million expanded its market reach.
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1. Strong Q4 2025 Financial Performance and Upbeat 2026 Guidance.
Legence reported robust fourth-quarter 2025 financial results on March 27, 2026, with revenue reaching $737.6 million, significantly exceeding analyst estimates of approximately $618.0 million and representing a 34.6% year-over-year increase. This performance was supported by a 53% rise in adjusted EBITDA to $87.0 million. The company also issued positive guidance for Q1 2026, projecting revenues between $925 million and $950 million, and raised its full-year 2026 outlook, forecasting total revenues of $3.7 billion to $3.9 billion and adjusted EBITDA between $400 million and $430 million. A record backlog of $3.7 billion further underpinned this positive outlook.
2. Strategic Positioning in High-Growth Data Center and AI Sectors, Bolstered by Acquisitions.
Legence specializes in critical infrastructure services, particularly for data centers and technology, which account for 43% of its revenue. The company is strategically positioned to benefit from the burgeoning demand for AI infrastructure, including the design, installation, and maintenance of essential liquid cooling systems. This strategic focus was further strengthened by key acquisitions, such as The Bowers Group, Inc., which closed on January 2, 2026, and is expected to contribute between $825 million and $875 million in revenue and $75 million to $85 million in EBITDA for 2026. Additionally, the acquisition of Metrix Engineers LLC on March 1, 2026, for $30 million expanded its market reach.
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Stock Movement Drivers
Fundamental Drivers
The 112.9% change in LGN stock from 1/31/2026 to 5/9/2026 was primarily driven by a 0.0% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 1312026 | 5092026 | Change |
|---|---|---|---|
| Stock Price ($) | 46.91 | 99.89 | 112.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | � | 2,550 | 0.0% |
| P/S Multiple | � | 2.4 | 0.0% |
| Shares Outstanding (Mil) | 102 | 62 | 64.1% |
| Cumulative Contribution | 0.0% |
Market Drivers
1/31/2026 to 5/9/2026| Return | Correlation | |
|---|---|---|
| LGN | 112.9% | |
| Market (SPY) | 3.6% | 57.5% |
| Sector (XLI) | 5.0% | 54.9% |
Fundamental Drivers
The 141.5% change in LGN stock from 10/31/2025 to 5/9/2026 was primarily driven by a 0.0% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 10312025 | 5092026 | Change |
|---|---|---|---|
| Stock Price ($) | 41.37 | 99.89 | 141.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | � | 2,550 | 0.0% |
| P/S Multiple | � | 2.4 | 0.0% |
| Shares Outstanding (Mil) | 102 | 62 | 64.1% |
| Cumulative Contribution | 0.0% |
Market Drivers
10/31/2025 to 5/9/2026| Return | Correlation | |
|---|---|---|
| LGN | 141.5% | |
| Market (SPY) | 5.5% | 48.0% |
| Sector (XLI) | 12.4% | 39.8% |
Fundamental Drivers
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Market Drivers
4/30/2025 to 5/9/2026| Return | Correlation | |
|---|---|---|
| LGN | ||
| Market (SPY) | 30.4% | 44.6% |
| Sector (XLI) | 33.8% | 34.4% |
Fundamental Drivers
nullnull
Market Drivers
4/30/2023 to 5/9/2026| Return | Correlation | |
|---|---|---|
| LGN | ||
| Market (SPY) | 78.7% | 44.6% |
| Sector (XLI) | 81.1% | 34.4% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| LGN Return | - | - | - | - | 41% | 126% | 219% |
| Peers Return | 37% | 11% | 27% | 40% | 35% | 13% | 314% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 7% | 95% |
Monthly Win Rates [3] | |||||||
| LGN Win Rate | - | - | - | - | 75% | 80% | |
| Peers Win Rate | 45% | 48% | 53% | 48% | 50% | 68% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | |
Max Drawdowns [4] | |||||||
| LGN Max Drawdown | - | - | - | - | -3% | 0% | |
| Peers Max Drawdown | -6% | -17% | -9% | -8% | -21% | -19% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: DY, FLR, GVA, MGN, PWR.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 5/8/2026 (YTD)
How Low Can It Go
LGN has limited trading history. Below is the Industrials sector ETF (XLI) in its place.
| Event | XLI | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -15.8% | -18.8% |
| % Gain to Breakeven | 18.8% | 23.1% |
| Time to Breakeven | 34 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -11.7% | -9.5% |
| % Gain to Breakeven | 13.2% | 10.5% |
| Time to Breakeven | 45 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -20.1% | -24.5% |
| % Gain to Breakeven | 25.1% | 32.4% |
| Time to Breakeven | 125 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -41.6% | -33.7% |
| % Gain to Breakeven | 71.2% | 50.9% |
| Time to Breakeven | 231 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.7% | -19.2% |
| % Gain to Breakeven | 31.1% | 23.7% |
| Time to Breakeven | 120 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -11.1% | -12.2% |
| % Gain to Breakeven | 12.5% | 13.9% |
| Time to Breakeven | 51 days | 62 days |
In The Past
State Street Industrial Select Sector SPDR ETF's stock fell -15.8% during the 2025 US Tariff Shock. Such a loss loss requires a 18.8% gain to breakeven.
Preserve Wealth
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Asset Allocation
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LGN has limited trading history. Below is the Industrials sector ETF (XLI) in its place.
| Event | XLI | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -20.1% | -24.5% |
| % Gain to Breakeven | 25.1% | 32.4% |
| Time to Breakeven | 125 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -41.6% | -33.7% |
| % Gain to Breakeven | 71.2% | 50.9% |
| Time to Breakeven | 231 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.7% | -19.2% |
| % Gain to Breakeven | 31.1% | 23.7% |
| Time to Breakeven | 120 days | 105 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -22.5% | -17.9% |
| % Gain to Breakeven | 29.0% | 21.8% |
| Time to Breakeven | 114 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -60.5% | -53.4% |
| % Gain to Breakeven | 153.2% | 114.4% |
| Time to Breakeven | 700 days | 1085 days |
In The Past
State Street Industrial Select Sector SPDR ETF's stock fell -15.8% during the 2025 US Tariff Shock. Such a loss loss requires a 18.8% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Legence (LGN)
We are a leading provider of engineering, installation and maintenance services for mission-critical systems in buildings. We focus on high-growth sectors that have technically demanding buildings, including technology, life sciences, healthcare and education. We count more than 60% of the companies in the Nasdaq-100 Index as clients. Our business is growing rapidly as data centers, manufacturers, pharmaceutical companies, hospitals, schools and universities make investments in both new and existing facilities to support growing demand for their products and services, reduce energy costs and increase resiliency. From 2021 to 2024, our revenues grew at a compound annual growth rate of approximately 39% and, after giving pro forma effect to acquisitions we made over that period, 16%. In 2024, we generated more than half of our revenues from “high growth industries,” which we define as clients operating in the data center and technology and life sciences and health care end-markets. As of June 30, 2025, we had $2.8 billion of backlog and awarded contracts, representing an increase of 29% over the same date last year. We specialize in designing, fabricating and installing complex HVAC, process piping and other mechanical, electrical and plumbing (“MEP”) systems for new facilities and upgrading HVAC, lighting and building controls in existing facilities to make them more energy efficient and sustainable. In 2024, we generated 32.5% of our revenues from new building projects and 67.5% of our revenues from retrofits, upgrades and maintenance for existing buildings. Our team includes approximately 1,200 MEP engineers and energy consultants, and approximately 3,400 HVAC and plumbing service technicians, fitters, electricians and sheet metal workers, of which approximately 570 are responsible for providing maintenance services to over 5,900 clients. We completed more than 50,000 jobs each year for clients across the United States during the period from 2021 through 2024. We operate through two complementary segments: Engineering & Consulting and Installation & Maintenance. Our 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 clients’ installation and retrofit projects. From 2021 to 2024, our Engineering & Consulting segment revenues grew at a compound annual growth rate of approximately 83% and, after giving pro forma effect to acquisitions we made over that period, approximately 15%. We have completed over 30,000 jobs in our Engineering & Consulting segment since 2019. Our Engineering & Consulting segment generated 28.7% and 47.6% of our revenues and gross profit, respectively, in 2024. Our 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 for those systems. Some of our installation clients choose to co-locate our employees at their sites to perform renovation and upgrade services on an ongoing basis. We have had an on-site presence with some of our clients for more than 20 years. The preventative maintenance work we perform is recurring pursuant to annual or multi-year contracts. From 2021 to 2024, our Installation & Maintenance segment revenues grew at a compound annual growth rate of approximately 30% and, after giving pro forma effect to acquisitions we made over that period, approximately 16%. Our Installation & Maintenance segment generated 71.3% and 52.4% of our revenues and gross profit, respectively, in 2024. Approximately 25% of our revenues in 2024 were generated from clients that engaged us in both our Engineering & Consulting and Installation & Maintenance segments, after giving pro forma effect to acquisitions made over that period. From 2021 to 2024, our revenues that were generated from clients that engaged us in both segments grew at a compound annual growth rate of approximately 28%, after giving pro forma effect to acquisitions made over that period. Our revenues from clients that engaged us in both our Engineering & Consulting and Installation & Maintenance segments, after giving pro forma effect to acquisitions made as of December 31, 2024, were approximately $545 million, $463 million, $350 million and $260 million, respectively, for the years ended December 31, 2024, 2023, 2022 and 2021. Additionally, six of our top ten clients engaged us in both segments during the period from 2021 to 2024, after giving pro forma effect to acquisitions made over that period. We believe that providing a one-stop solution for engineering, installing and maintaining MEP systems results in lower total cost, fewer change orders and faster turnaround times for our clients and higher win rates, better customer retention, incremental margin and more recurring revenue for us. Our clients include large technology and industrial companies and public sector institutions who contract with us directly to provide services, as well as intermediaries such as architects and general contractors who subcontract MEP services to us as part of a larger project. We served approximately 19,000 clients from 2019 through 2024. In 2024, we generated less than 2% of our revenues from the federal government. Excluding maintenance contracts which can span multiple years, we typically complete most of our jobs within six months. Approximately 70% of our revenues over the period from 2021 to 2024 were from jobs that had contract prices of less than $10 million, after giving pro forma effect to acquisitions made over that period. Our largest client represented approximately 4% of our revenues over the period from 2021 to 2024, after giving pro forma effect to acquisitions made over that period. In certain cases, we manage third-party contractors on behalf of our clients and we may pass those costs on directly to our customers as a specific line item or incorporate them into our overall contract price for the job. In the years ended December 31, 2024 and 2023, respectively, we paid subcontractors approximately $350.7 million and $234.8 million, respectively, in connection with their work on our projects. We also frequently purchase certain equipment that we install in our clients’ buildings. We may pass the cost of equipment on directly to our customers as a specific line item or incorporate the cost into our overall contract price for the job. In the years ended December 31, 2024 and 2023, we spent approximately $457.3 million and $385.8 million, respectively, on equipment for our clients’ projects. Our principal executive offices are located at 1601 Las Plumas Avenue, San Jose, CA.
AI Analysis | Feedback
Legence is like **a specialized Johnson Controls or Trane Technologies, focused on the full lifecycle (engineering, installation, maintenance) of mission-critical HVAC and MEP systems for facilities like data centers and hospitals.**
Legence is like **the 'Intel inside' for a building's vital systems, designing, installing, and maintaining the complex mechanical and electrical infrastructure of data centers and high-tech facilities.**
AI Analysis | Feedback
Legence (LGN) provides the following major services:- Engineering & Consulting Services: Designs HVAC and other MEP systems, develops energy efficiency strategies, and offers sustainability consulting and project management.
- MEP System Installation: Fabricates and installs complex mechanical, electrical, and plumbing (MEP) systems for new facilities and major system integrations.
- Building System Retrofit & Upgrade: Enhances existing HVAC, lighting, and building controls to improve energy efficiency and sustainability.
- Preventative & Corrective Maintenance: Provides ongoing maintenance and repair services for installed building systems, often through recurring contracts.
AI Analysis | Feedback
Legence (LGN) primarily sells its services to other companies and institutions. Based on the provided background information, **no specific customer company names are disclosed.** However, Legence provides extensive details about the **types of organizations** that constitute its major customer base: * **Companies in High-Growth Industries:** These include clients operating in technically demanding sectors such as data centers, technology, life sciences, and healthcare. Notably, Legence states that it counts more than 60% of the companies in the Nasdaq-100 Index as clients. * **Public Sector Institutions:** Legence serves clients in education (e.g., schools and universities) and other public sector entities. * **Large Industrial Companies:** These clients engage Legence for complex MEP systems and related services. * **Intermediaries:** The company also works with intermediaries such as architects and general contractors who subcontract MEP services to Legence as part of larger projects. Legence serves a highly diversified customer base, with approximately 19,000 clients from 2019 through 2024, and its largest client representing approximately 4% of its revenues over the period from 2021 to 2024.AI Analysis | Feedback
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Legence (LGN) Management Team:Jeffrey Sprau, Chief Executive Officer
Jeffrey Sprau has served as the Chief Executive Officer of Legence Corp. since January 2025 and as a director of Legence Corp. since August 2025. He also served as Chief Executive Officer of Legence Parent LLC since October 2020. Prior to the formation of Legence Parent LLC, Mr. Sprau was the Chief Executive Officer of Therma, a Legence company, from April 2019. Before joining Therma, he served as President of BrandSafway from July 2017 to October 2018 and held various roles at Safway Group from January 2011 to June 2017, including President of the U.S. Division. He also worked at Johnson Controls in various capacities, including General Manager of its Wisconsin operations. Mr. Sprau began his career as a marketing engineer with Trane Technologies plc. He holds a Bachelor of Science in Industrial Engineering from Iowa State University and a Master of Business Administration from Mercer University's Stetson-Hatcher School of Business.
Stephen Butz, Chief Financial Officer
Stephen Butz joined Legence in 2021. His career began in corporate credit within the Commercial Banking industry, followed by eight years in Investment Banking as an equity research analyst covering the global energy industry. He transitioned to the offshore drilling industry, initially as a consultant, before joining a private company that he helped take public within its first year. He served as the CFO of this company for five years, overseeing M&A, Treasury, Investor Relations, Corporate Communications, and FP&A. Subsequently, Mr. Butz held the CFO position at two other publicly traded offshore drilling companies. He was also involved in forming and taking another company public in Norway and played a significant role in securing a multi-billion-dollar joint venture with Saudi Aramco.
Steve Hansen, Chief Operating Officer
Gregory Barnes, Chief Human Resources Officer
Bryce Seki, General Counsel & Secretary
AI Analysis | Feedback
Key Risks for Legence (LGN)
- Dependence on High-Growth Sectors and Economic Conditions: Legence's rapid growth and a significant portion of its revenue are directly tied to continued investments and expansion within its target high-growth industries, specifically data centers, technology, life sciences, and healthcare. A slowdown, contraction, or reduced capital expenditure in these sectors due to economic downturns or other factors could significantly diminish the demand for Legence's engineering, installation, and maintenance services, thereby impacting its growth and financial performance.
- Skilled Labor Availability and Costs: Legence's operations heavily rely on a large and specialized workforce, including approximately 1,200 MEP engineers and energy consultants, and about 3,400 HVAC and plumbing service technicians, fitters, electricians, and sheet metal workers. A shortage of skilled labor, increased competition for qualified personnel, or rising labor costs could adversely affect the company's ability to undertake and complete projects, manage its backlog, and maintain profitability.
- Supply Chain Disruptions and Volatile Equipment/Subcontractor Costs: The company incurs substantial costs for third-party subcontractors and equipment, with expenditures of approximately $350.7 million for subcontractors and $457.3 million for equipment in 2024. Disruptions in the supply chain, increased costs for materials and equipment, or volatility in subcontractor pricing and availability could lead to higher project costs, reduced margins, and potential delays in project completion, thereby negatively impacting Legence's financial results.
AI Analysis | Feedback
nullAI Analysis | Feedback
Legence (LGN) operates in several significant addressable markets within the United States, primarily focusing on Mechanical, Electrical, and Plumbing (MEP) services, HVAC systems and services, building automation systems, energy efficiency retrofits, and facility management.
Addressable Markets for Legence's Main Products or Services (U.S. Region)
- MEP Services Market: The United States MEP services market was valued at approximately USD 34.90 billion in 2025. It is projected to reach USD 34.61 billion in 2026 and grow to USD 47.05 billion by 2031, at a compound annual growth rate (CAGR) of 6.33% from 2026 to 2031.
- HVAC Systems Market: The U.S. HVAC systems market size was estimated at USD 31.71 billion in 2025 and is projected to reach USD 54.02 billion by 2033, growing at a CAGR of 6.9% from 2026 to 2033.
- HVAC Services Market: The U.S. HVAC services market was valued at USD 17.93 billion in 2025 and is estimated to grow to USD 25.35 billion by 2031, at a CAGR of 5.90% during the forecast period (2026-2031).
- Building Automation Systems (BAS) / Intelligent Building Automation Technologies Market: The U.S. intelligent building automation technologies market size was valued at USD 28.90 billion in 2024, with a projected growth at a CAGR of 10.14% from 2025 to 2034, reaching USD 75.44 billion by 2034.
- Energy Efficiency Retrofit Market (Commercial and Public Buildings): The North American energy retrofit market, which the U.S. heavily influences, accounted for approximately 47% of the global market. Based on a global valuation of USD 122.83 billion in 2025, the North American market would be approximately USD 57.73 billion in 2025.
- Facility Management Market (Hard Services): The United States facility management market was valued at USD 365.93 billion in 2025. Hard services, which include maintenance and upkeep of critical infrastructure, dominated with a 58.45% share in 2025, equating to approximately USD 213.98 billion. This market is projected to reach USD 434.16 billion by 2031, growing at a CAGR of 2.89% from 2026 to 2031.
AI Analysis | Feedback
Legence (LGN) is expected to drive future revenue growth over the next 2-3 years through several key factors:
- Continued Demand from High-Growth Industries: Legence is strategically positioned to benefit from sustained investment in mission-critical systems across high-growth sectors, including data centers, life sciences, and healthcare. The company's Q3 2025 earnings report highlighted strong demand in data centers, life sciences, and technology markets. RBC analysts project double-digit annual revenue and EBITDA growth through 2027, significantly supported by investments in data centers, which are anticipated to grow at a 26% compound annual growth rate from 2024–2028.
- Strategic Acquisitions and Organic Expansion: Legence has a history of pursuing growth through strategic acquisitions and organic expansion to enhance its market position and service capabilities. The company has completed over 20 acquisitions since December 2020 and recently acquired The Bowers Group in early 2026, which is expected to further boost its scale and market presence. S&P Global Ratings anticipates revenue growth in 2025 driven by recent acquisitions, followed by solid organic growth in 2026.
- Growing Backlog and Recurring Revenue: A substantial and increasing backlog of awarded contracts provides strong visibility for future revenue. As of Q3 2025, Legence's consolidated backlog reached $3.1 billion, representing a 29% year-over-year increase. Furthermore, the company benefits from a growing base of recurring maintenance and service revenue, which saw a 23% compound annual growth rate from 2021 to 2024 and now constitutes 15% of total revenue.
- Rising Demand for Energy-Efficient and Sustainable Building Solutions: Legence is well-positioned to capitalize on the increasing focus on energy efficiency and sustainability in buildings. The company specializes in upgrading existing facilities to make them more energy efficient and sustainable. Analysts, such as Bernstein, identify the need for energy-efficient infrastructure and higher energy prices fueling retrofit activities as key structural drivers for Legence.
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Outbound Investments
- Legence has engaged in significant acquisition activity from 2021 to 2024, contributing approximately 23% to its total revenue growth of 39% over that period.
- Acquisitions played a substantial role in the growth of both the Engineering & Consulting segment and the Installation & Maintenance segment, contributing to the difference between reported and pro forma revenue growth rates.
- The company consistently incorporates the pro forma effect of acquisitions when discussing financial performance and client relationships, indicating that strategic acquisitions are a key element of its growth strategy.
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| Legence Stock Surges 27%, With A 6-Day Winning Spree | 05/07/2026 |
| Title | |
|---|---|
| ARTICLES |
Trade Ideas
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| 04302026 | GEO | GEO | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
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| 04172026 | RSG | Republic Services | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.8% | 0.8% | -1.1% |
| 04102026 | VRSK | Verisk Analytics | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 12.3% | 12.3% | 0.0% |
| 04102026 | UHAL | U-Haul | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.3% | 0.3% | -1.0% |
Research & Analysis
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 120.88 |
| Mkt Cap | 6.3 |
| Rev LTM | 5,546 |
| Op Inc LTM | 270 |
| FCF LTM | 302 |
| FCF 3Y Avg | 228 |
| CFO LTM | 434 |
| CFO 3Y Avg | 401 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 17.9% |
| Rev Chg 3Y Avg | 13.2% |
| Rev Chg Q | 30.4% |
| QoQ Delta Rev Chg LTM | 5.8% |
| Op Inc Chg LTM | 21.6% |
| Op Inc Chg 3Y Avg | 70.5% |
| Op Mgn LTM | 5.6% |
| Op Mgn 3Y Avg | 4.8% |
| QoQ Delta Op Mgn LTM | -0.6% |
| CFO/Rev LTM | 9.4% |
| CFO/Rev 3Y Avg | 8.3% |
| FCF/Rev LTM | 6.5% |
| FCF/Rev 3Y Avg | 4.6% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 6.3 |
| P/S | 2.3 |
| P/Op Inc | 29.6 |
| P/EBIT | 29.0 |
| P/E | 33.4 |
| P/CFO | 24.1 |
| Total Yield | 2.2% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 3.2% |
| D/E | 0.2 |
| Net D/E | 0.2 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 10.2% |
| 3M Rtn | 8.0% |
| 6M Rtn | 47.0% |
| 12M Rtn | 100.0% |
| 3Y Rtn | 259.1% |
| 1M Excs Rtn | 1.8% |
| 3M Excs Rtn | 1.3% |
| 6M Excs Rtn | 34.1% |
| 12M Excs Rtn | 71.7% |
| 3Y Excs Rtn | 187.7% |
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 3/27/2026 | 3.3% | 10.8% | 53.7% |
| 11/14/2025 | 20.9% | 22.9% | 25.8% |
| SUMMARY STATS | |||
| # Positive | 2 | 2 | 2 |
| # Negative | 0 | 0 | 0 |
| Median Positive | 12.1% | 16.8% | 39.8% |
| Median Negative | |||
| Max Positive | 20.9% | 22.9% | 53.7% |
| Max Negative | |||
Recent Forward Guidance [BETA]
Latest: Q4 2025 Earnings Reported 3/27/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | 925.00 Mil | 937.50 Mil | 950.00 Mil | 52.4% | Higher New | Guidance: 615.00 Mil for Q4 2025 | |
| Q1 2026 Non-GAAP Adjusted EBITDA | 90.00 Mil | 95.00 Mil | 100.00 Mil | 52.0% | Higher New | Guidance: 62.50 Mil for Q4 2025 | |
| 2026 Revenue | 3.70 Bil | 3.80 Bil | 3.90 Bil | 38.2% | Raised | Guidance: 2.75 Bil for 2026 | |
| 2026 Non-GAAP Adjusted EBITDA | 400.00 Mil | 415.00 Mil | 430.00 Mil | 36.1% | Raised | Guidance: 305.00 Mil for 2026 | |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Blackstone, Ema Iii Llc | Parent ML | Sell | 4092026 | 54.00 | 9,528,699 | 514,549,746 | 9,642,834 | Form | |
| 2 | Blackstone, Ema Iii Llc | Parent II ML | Sell | 4092026 | 54.00 | 5,865,413 | 316,732,302 | 1,042,058,574 | Form | |
| 3 | Legence, Parent ML Llc | Parent ML | Sell | 4092026 | 54.00 | 9,528,699 | 514,549,746 | 9,642,834 | Form | |
| 4 | Legence, Parent ML Llc | Parent II ML | Sell | 4092026 | 54.00 | 5,865,413 | 316,732,302 | 1,042,058,574 | Form | |
| 5 | Legence, Parent ML Llc | Parent ML | Sell | 12162025 | 45.00 | 5,200,808 | 234,036,360 | 8,035,695 | Form |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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