Legence (LGN)
Market Price (11/5/2026): $31.65 | Market Cap: $2.4 BilSector: Industrials | Industry: Construction & Engineering
Legence (LGN)
Market Price (11/5/2026): $31.65Market Cap: $2.4 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 69% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 10% Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -47% Attractive yieldFCF Yield is 13% Megatrend and thematic driversMegatrends include Sustainable & Green Buildings, and Smart Buildings & Proptech. Themes include Renewable Integration in Buildings, Building Management Systems, Show more. | Weak multi-year price returns2Y Excs Rtn is -25%, 3Y Excs Rtn is -76% | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 169x 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 -6.0% 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 69% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 10% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -47% |
| Attractive yieldFCF Yield is 13% |
| Megatrend and thematic driversMegatrends include Sustainable & Green Buildings, and Smart Buildings & Proptech. Themes include Renewable Integration in Buildings, Building Management Systems, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -25%, 3Y Excs Rtn is -76% |
| Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 169x |
| 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 -6.0% |
| Key risksLGN key risks include [1] high leverage and a history of weak profitability, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Updated on 11/4/2026
Legence (LGN) stock has lost about 50% since 7/31/2026 because of the following key factors:
1. Legence reported a significant earnings miss and an impairment charge in fiscal Q2 2026, despite strong revenue growth.
On August 13, 2026, Legence announced a GAAP loss of $0.37 per share for fiscal Q2 2026 (ended June 30, 2026), missing the consensus analyst estimate of a positive $0.37 per share. This loss included a $41.1 million impairment charge related to goodwill and long-lived assets within its sustainability consulting business, attributed to lower demand for these services. Despite a 110.7% year-over-year increase in revenue to $1.262 billion, beating estimates, the substantial earnings miss and impairment negatively impacted investor sentiment, causing the stock to decline 7.9% the day after the announcement.
2. Deterioration in gross margins, particularly within the Engineering segment, signaled profitability concerns.
During fiscal Q2 2026, Legence's overall gross margin declined to 17.4% from 21.5% in the prior year's comparable quarter. The Engineering and Consulting segment, specifically, saw its gross profit fall by 12.4%, indicating challenges in maintaining profitability despite revenue expansion. This margin compression contributed to investor apprehension about the company's operational efficiency and future earnings potential.
Show more
Legence (LGN) stock has lost about 50% since 7/31/2026 because of the following key factors:
1. Legence reported a significant earnings miss and an impairment charge in fiscal Q2 2026, despite strong revenue growth.
On August 13, 2026, Legence announced a GAAP loss of $0.37 per share for fiscal Q2 2026 (ended June 30, 2026), missing the consensus analyst estimate of a positive $0.37 per share. This loss included a $41.1 million impairment charge related to goodwill and long-lived assets within its sustainability consulting business, attributed to lower demand for these services. Despite a 110.7% year-over-year increase in revenue to $1.262 billion, beating estimates, the substantial earnings miss and impairment negatively impacted investor sentiment, causing the stock to decline 7.9% the day after the announcement.
2. Deterioration in gross margins, particularly within the Engineering segment, signaled profitability concerns.
During fiscal Q2 2026, Legence's overall gross margin declined to 17.4% from 21.5% in the prior year's comparable quarter. The Engineering and Consulting segment, specifically, saw its gross profit fall by 12.4%, indicating challenges in maintaining profitability despite revenue expansion. This margin compression contributed to investor apprehension about the company's operational efficiency and future earnings potential.
Show more
Updated on 11/4/2026
Legence (LGN) stock has lost about 50% since 7/31/2026 because of the following key factors:
1. Legence reported a significant earnings miss and an impairment charge in fiscal Q2 2026, despite strong revenue growth.
On August 13, 2026, Legence announced a GAAP loss of $0.37 per share for fiscal Q2 2026 (ended June 30, 2026), missing the consensus analyst estimate of a positive $0.37 per share. This loss included a $41.1 million impairment charge related to goodwill and long-lived assets within its sustainability consulting business, attributed to lower demand for these services. Despite a 110.7% year-over-year increase in revenue to $1.262 billion, beating estimates, the substantial earnings miss and impairment negatively impacted investor sentiment, causing the stock to decline 7.9% the day after the announcement.
2. Deterioration in gross margins, particularly within the Engineering segment, signaled profitability concerns.
During fiscal Q2 2026, Legence's overall gross margin declined to 17.4% from 21.5% in the prior year's comparable quarter. The Engineering and Consulting segment, specifically, saw its gross profit fall by 12.4%, indicating challenges in maintaining profitability despite revenue expansion. This margin compression contributed to investor apprehension about the company's operational efficiency and future earnings potential.
3. A wave of analyst downgrades and reduced price targets eroded investor confidence.
Throughout October 2026, Legence experienced a series of downgrades and price target reductions from major financial institutions. Zacks Research notably lowered its rating on LGN from "Strong Buy" to "Hold." Concurrently, several Wall Street banks revised their price targets downward; for example, Goldman Sachs reduced its target to $83 from $95, Barclays to $60 from $80, and RBC Capital Markets to $90 from $101. These revisions signaled a decreased outlook from the analyst community, intensifying selling pressure on the stock.
4. Macroeconomic and sector-specific concerns regarding the AI data center capital expenditure cycle and potential regulatory changes created significant headwinds.
Legence's stock suffered due to broader market questions about the long-term sustainability and durability of capital expenditures within the AI data center sector, a market to which Legence has significant exposure (data centers accounted for 62.5% of its Q2 2026 revenue). Adding to this pressure were concerns stemming from U.S. midterm election results in early November 2026, which raised fears of potential local and federal restrictions on new AI data center construction in key states like Texas and Georgia. Investors also weighed the risk of a divided Congress potentially reducing or eliminating federal tax breaks, such as the 100% bonus depreciation rule, which could further slow down tech companies' infrastructure spending. These macroeconomic and political uncertainties contributed to a sector-wide reassessment and Legence's stock hitting a 52-week low around $32.95 on November 4, 2026.
Show less
Legence (LGN) stock has lost about 50% since 7/31/2026 because of the following key factors:
1. Legence reported a significant earnings miss and an impairment charge in fiscal Q2 2026, despite strong revenue growth.
On August 13, 2026, Legence announced a GAAP loss of $0.37 per share for fiscal Q2 2026 (ended June 30, 2026), missing the consensus analyst estimate of a positive $0.37 per share. This loss included a $41.1 million impairment charge related to goodwill and long-lived assets within its sustainability consulting business, attributed to lower demand for these services. Despite a 110.7% year-over-year increase in revenue to $1.262 billion, beating estimates, the substantial earnings miss and impairment negatively impacted investor sentiment, causing the stock to decline 7.9% the day after the announcement.
2. Deterioration in gross margins, particularly within the Engineering segment, signaled profitability concerns.
During fiscal Q2 2026, Legence's overall gross margin declined to 17.4% from 21.5% in the prior year's comparable quarter. The Engineering and Consulting segment, specifically, saw its gross profit fall by 12.4%, indicating challenges in maintaining profitability despite revenue expansion. This margin compression contributed to investor apprehension about the company's operational efficiency and future earnings potential.
3. A wave of analyst downgrades and reduced price targets eroded investor confidence.
Throughout October 2026, Legence experienced a series of downgrades and price target reductions from major financial institutions. Zacks Research notably lowered its rating on LGN from "Strong Buy" to "Hold." Concurrently, several Wall Street banks revised their price targets downward; for example, Goldman Sachs reduced its target to $83 from $95, Barclays to $60 from $80, and RBC Capital Markets to $90 from $101. These revisions signaled a decreased outlook from the analyst community, intensifying selling pressure on the stock.
4. Macroeconomic and sector-specific concerns regarding the AI data center capital expenditure cycle and potential regulatory changes created significant headwinds.
Legence's stock suffered due to broader market questions about the long-term sustainability and durability of capital expenditures within the AI data center sector, a market to which Legence has significant exposure (data centers accounted for 62.5% of its Q2 2026 revenue). Adding to this pressure were concerns stemming from U.S. midterm election results in early November 2026, which raised fears of potential local and federal restrictions on new AI data center construction in key states like Texas and Georgia. Investors also weighed the risk of a divided Congress potentially reducing or eliminating federal tax breaks, such as the 100% bonus depreciation rule, which could further slow down tech companies' infrastructure spending. These macroeconomic and political uncertainties contributed to a sector-wide reassessment and Legence's stock hitting a 52-week low around $32.95 on November 4, 2026.
Show less
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Stock Movement Drivers
Fundamental Drivers
The -49.7% change in LGN stock from 7/31/2026 to 11/4/2026 was primarily driven by a -53.2% change in the company's P/S Multiple.| (LTM values as of) | 7312026 | 11042026 | Change |
|---|---|---|---|
| Stock Price ($) | 63.93 | 32.13 | -49.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,082 | 3,746 | 21.5% |
| P/S Multiple | 1.4 | 0.7 | -53.2% |
| Shares Outstanding (Mil) | 67 | 76 | -11.7% |
| Cumulative Contribution | -49.7% |
Market Drivers
7/31/2026 to 11/4/2026| Return | Correlation | |
|---|---|---|
| LGN | -49.7% | |
| Market (SPY) | 2.6% | 23.5% |
| Sector (XLI) | -5.8% | 51.3% |
Fundamental Drivers
The -63.1% change in LGN stock from 4/30/2026 to 11/4/2026 was primarily driven by a -69.1% change in the company's P/S Multiple.| (LTM values as of) | 4302026 | 11042026 | Change |
|---|---|---|---|
| Stock Price ($) | 86.96 | 32.13 | -63.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,550 | 3,746 | 46.9% |
| P/S Multiple | 2.1 | 0.7 | -69.1% |
| Shares Outstanding (Mil) | 62 | 76 | -18.5% |
| Cumulative Contribution | -63.1% |
Market Drivers
4/30/2026 to 11/4/2026| Return | Correlation | |
|---|---|---|
| LGN | -63.1% | |
| Market (SPY) | 7.0% | 39.3% |
| Sector (XLI) | -2.7% | 52.8% |
Fundamental Drivers
The -22.3% change in LGN stock from 10/31/2025 to 11/4/2026 was primarily driven by a 33.8% change in the company's Shares Outstanding (Mil).| (LTM values as of) | 10312025 | 11042026 | Change |
|---|---|---|---|
| Stock Price ($) | 41.37 | 32.13 | -22.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | � | 3,746 | 0.0% |
| P/S Multiple | � | 0.7 | 0.0% |
| Shares Outstanding (Mil) | 102 | 76 | 33.8% |
| Cumulative Contribution | 0.0% |
Market Drivers
10/31/2025 to 11/4/2026| Return | Correlation | |
|---|---|---|
| LGN | -22.3% | |
| Market (SPY) | 13.4% | 43.6% |
| Sector (XLI) | 10.2% | 46.5% |
Fundamental Drivers
nullnull
Market Drivers
10/31/2023 to 11/4/2026| Return | Correlation | |
|---|---|---|
| LGN | ||
| Market (SPY) | 89.7% | 42.2% |
| Sector (XLI) | 79.2% | 43.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| LGN Return | - | - | - | - | 41% | -25% | 5% |
| Peers Return | 55% | 15% | 43% | 61% | 52% | 11% | 587% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 11% | 102% |
Monthly Win Rates [3] | |||||||
| LGN Win Rate | - | - | - | - | 75% | 45% | |
| Peers Win Rate | 60% | 57% | 70% | 63% | 62% | 47% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 36% | |
Max Drawdowns [4] | |||||||
| LGN Max Drawdown | - | - | - | - | - | -69% | |
| Peers Max Drawdown | -25% | -27% | -25% | -16% | -36% | -39% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: DY, FLR, GVA, PWR, FIX.
[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 11/4/2026 (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% | 23.8% |
| 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
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
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% | 23.8% |
| 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)
Legence (LGN) is a premier provider of engineering, installation, and maintenance services for mission-critical mechanical, electrical, and plumbing (MEP) systems within buildings. The company specializes in creating, upgrading, and sustaining complex infrastructure crucial for high-growth sectors, ensuring facilities operate with optimal energy efficiency, resiliency, and sustainability. Legence's expertise covers everything from designing intricate HVAC and process piping systems to their fabrication, installation, and ongoing preventative and corrective maintenance.
Legence serves a diverse and demanding client base primarily within the technology, life sciences, healthcare, and education sectors, including over 60% of Nasdaq-100 companies. Its business is bifurcated into Engineering & Consulting, which focuses on system design and energy strategies, and Installation & Maintenance, handling new system deployment and comprehensive upkeep of existing infrastructure. Over half of Legence's 2024 revenues were derived from data center, technology, life sciences, and healthcare markets, with the majority of its work (67.5% in 2024) stemming from retrofits, upgrades, and maintenance contracts, which provide a significant component of recurring revenue.
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.**
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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.
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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.
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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
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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.
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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.
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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.
Peer Outperformance in Construction & Engineering
nullShare of Construction & Engineering constituents that LGN has outperformed, by holding period. Peers without a full price history over a given window are excluded from that window.
1Y
45%
of 33 industry peers · -16.1% return
3Y
—
insufficient peer history
5Y
—
insufficient peer history
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Median price return by industry across the Industrials sector, ranked by 5Y. Construction & Engineering is LGN's own industry. Use this to see which corners of the sector have carried the returns.
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Construction & Engineering ← | 29 | -12.8% | 78.4% | 144.7% | FIX 1084% · STRL 944% · AGX 620% |
| Marine Transportation | 5 | 28.7% | 38.5% | 123.2% | MATX 149% · KEX 123% |
| Construction Machinery & Heavy Transportation Equipment | 13 | 12.2% | 58.9% | 107.9% | ALSN 278% · WAB 230% · CAT 216% |
| Aerospace & Defense | 54 | -7.4% | 61.7% | 59.6% | ATI 980% · FTAI 885% · HWM 598% |
| Industrial Machinery & Supplies & Components | 71 | 6.3% | 50.5% | 38.7% | CRS 887% · MLI 333% · SYM 274% |
| Trading Companies & Distributors | 19 | 17.2% | 41.9% | 38.4% | DXPE 356% · AIT 215% · URI 202% |
| Rail Transportation | 7 | 37.9% | 59.1% | 33.8% | CSX 57% · UNP 46% · NSC 34% |
| Diversified Support Services | 33 | 21.0% | 37.1% | 28.3% | CXW 235% · OPLN 162% · CACI 120% |
| Building Products | 34 | -3.2% | 12.5% | 21.7% | MOD 793% · GFF 380% · TT 142% |
| Cargo Ground Transportation | 16 | 33.7% | 17.8% | 7.7% | XPO 276% · R 265% · ARCB 26% |
| Office Services & Supplies | 10 | 29.7% | 26.2% | 3.1% | TILE 170% · PBI 166% · HNI 48% |
| Industrial Conglomerates | 17 | 23.0% | -3.6% | 1.0% | CSW 125% · CSL 83% · DD 74% |
| Electrical Components & Equipment | 39 | -5.2% | 68.2% | -2.8% | POWL 1633% · VRT 667% · BE 564% |
| Data Processing & Outsourced Services | 6 | -14.9% | 3.1% | -12.6% | EXLS 60% · BR 21% · MMS -12% |
| Security & Alarm Services | 9 | -49.8% | 13.7% | -19.8% | BCO 70% |
| Research & Consulting Services | 13 | 4.9% | -16.9% | -20.8% | HURN 224% · FCN 35% · BAH 11% |
| Agricultural & Farm Machinery | 16 | 17.3% | -6.1% | -21.8% | BLBD 184% · DE 106% · TTC 19% |
| Environmental & Facilities Services | 29 | -29.1% | 25.0% | -25.8% | GEO 210% · CLH 173% · RSG 96% |
| Passenger Airlines | 11 | 10.5% | 55.1% | -28.2% | LTM 3048% · UAL 136% · DAL 126% |
| Air Freight & Logistics | 12 | -23.0% | -5.0% | -37.3% | FDX 86% · EXPD 60% · CHRW 57% |
| Human Resource & Employment Services | 22 | 21.6% | -6.2% | -42.7% | ADP 50% · FA 22% · PAYX 13% |
| Passenger Ground Transportation | 3 | -13.2% | 46.3% | -53.7% | UBER 54% · CAR -54% · LYFT -62% |
| Airport Services | 4 | -48.6% | -62.5% | -86.1% | JOBY -48% |
Median of constituents with a full price history over each window. Top names are limited to companies above $2B market cap.
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| Legence Stock Surges 27%, With A 6-Day Winning Spree | 05/07/2026 |
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 171.46 |
| Mkt Cap | 6.5 |
| Rev LTM | 9,712 |
| Op Inc LTM | 456 |
| FCF LTM | 456 |
| FCF 3Y Avg | 361 |
| CFO LTM | 651 |
| CFO 3Y Avg | 493 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 37.5% |
| Rev Chg 3Y Avg | 20.0% |
| Rev Chg Q | 49.6% |
| QoQ Delta Rev Chg LTM | 10.9% |
| Op Inc Chg LTM | 43.6% |
| Op Inc Chg 3Y Avg | 77.3% |
| Op Mgn LTM | 7.0% |
| Op Mgn 3Y Avg | 5.9% |
| QoQ Delta Op Mgn LTM | 0.4% |
| CFO/Rev LTM | 10.7% |
| CFO/Rev 3Y Avg | 9.3% |
| FCF/Rev LTM | 8.4% |
| FCF/Rev 3Y Avg | 7.0% |
Price Behavior
Price Behavior
| Market Price | $32.13 | |
| Market Cap ($ Bil) | 2.4 | |
| Distance from 52W High | -68.6% | |
| 50 Days | 200 Days | |
| DMA Price | $49.16 | $63.24 |
| DMA Trend | down | indeterminate |
| Distance from DMA | -34.6% | -49.2% |
| 3M | 1YR | |
| Volatility | 74.8% | 75.6% |
| Downside Capture | 435.60 | 247.93 |
| Upside Capture | 173.19 | 213.18 |
| Correlation (S&P 500) | 38.7% | 47.7% |
LGN Betas & Captures as of 10/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 4.53 | 2.93 | 2.50 | 2.76 | 2.76 | 0.25 |
| Up Beta | 8.18 | 1.03 | 0.61 | 2.95 | 2.83 | -0.24 |
| Down Beta | 3.50 | 4.32 | 4.37 | 3.12 | 3.67 | 0.82 |
| Up Capture | 235% | 187% | 126% | 154% | 427% | 55% |
| Bmk +ve Days | 12 | 18 | 28 | 62 | 130 | 427 |
| Stock +ve Days | 10 | 21 | 30 | 62 | 137 | 156 |
| Down Capture | 557% | 337% | 334% | 253% | 166% | 98% |
| Bmk -ve Days | 10 | 25 | 36 | 64 | 121 | 325 |
| Stock -ve Days | 12 | 22 | 34 | 64 | 114 | 129 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with LGN | |
|---|---|---|---|---|
| LGN | -22.5% | 75.6% | -0.02 | - |
| Sector ETF (XLI) | 10.8% | 17.4% | 0.42 | 46.5% |
| Equity (SPY) | 13.2% | 12.9% | 0.68 | 43.6% |
| Gold (GLD) | 1.0% | 28.8% | 0.03 | 26.0% |
| Commodities (DBC) | 35.9% | 21.2% | 1.34 | 2.7% |
| Real Estate (VNQ) | 14.3% | 14.1% | 0.70 | -1.5% |
| Bitcoin (BTCUSD) | -28.2% | 43.4% | -0.65 | 19.9% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with LGN | |
|---|---|---|---|---|
| LGN | 1.0% | 74.1% | 0.37 | - |
| Sector ETF (XLI) | 12.1% | 17.6% | 0.51 | 43.0% |
| Equity (SPY) | 12.5% | 17.2% | 0.55 | 42.2% |
| Gold (GLD) | 17.3% | 19.1% | 0.73 | 24.3% |
| Commodities (DBC) | 8.0% | 19.6% | 0.29 | 2.5% |
| Real Estate (VNQ) | 1.8% | 18.9% | -0.01 | -2.3% |
| Bitcoin (BTCUSD) | 5.5% | 51.5% | 0.29 | 18.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with LGN | |
|---|---|---|---|---|
| LGN | 0.5% | 74.1% | 0.37 | - |
| Sector ETF (XLI) | 13.4% | 20.1% | 0.58 | 43.0% |
| Equity (SPY) | 15.4% | 18.0% | 0.73 | 42.2% |
| Gold (GLD) | 11.9% | 16.5% | 0.59 | 24.3% |
| Commodities (DBC) | 7.4% | 18.1% | 0.33 | 2.5% |
| Real Estate (VNQ) | 5.7% | 20.7% | 0.23 | -2.3% |
| Bitcoin (BTCUSD) | 61.0% | 66.2% | 1.01 | 18.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Earnings Returns History
Updated 9/16/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/13/2026 | -7.9% | -9.0% | -17.5% |
| 5/14/2026 | -11.0% | -17.5% | -14.0% |
| 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 | 2 | 2 | 2 |
| Median Positive | 12.1% | 16.8% | 39.8% |
| Median Negative | -9.5% | -13.3% | -15.8% |
| Max Positive | 20.9% | 22.9% | 53.7% |
| Max Negative | -11.0% | -17.5% | -17.5% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/13/2026 | -7.9% | -9.0% | -17.5% |
| 5/14/2026 | -11.0% | -17.5% | -14.0% |
| 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 | 2 | 2 | 2 |
| Median Positive | 12.1% | 16.8% | 39.8% |
| Median Negative | -9.5% | -13.3% | -15.8% |
| Max Positive | 20.9% | 22.9% | 53.7% |
| Max Negative | -11.0% | -17.5% | -17.5% |
Recent Forward Guidance
Updated 11/2/2026Latest: Q2 2026 Earnings Reported 8/13/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Revenue | Reported | 1.23 Bil | 1.25 Bil | 1.27 Bil | ||||
| Q3 2026 Non-GAAP Adjusted EBITDA | Reported | 150.00 Mil | 155.00 Mil | 160.00 Mil | ||||
| 2026 Revenue | Reported | 4.70 Bil | 4.75 Bil | 4.80 Bil | 13.1% | Raised | Guidance: 4.20 Bil for 2026 | |
| 2026 Non-GAAP Adjusted EBITDA | Reported | 565.00 Mil | 575.00 Mil | 585.00 Mil | 19.8% | Raised | Guidance: 480.00 Mil for 2026 | |
Prior: Q1 2026 Earnings Reported 5/14/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | Reported | 1.05 Bil | 1.07 Bil | 1.10 Bil | 14.7% | Higher New | Guidance: 937.50 Mil for Q1 2026 | |
| Q2 2026 Non-GAAP Adjusted EBITDA | Reported | 115.00 Mil | 120.00 Mil | 125.00 Mil | 26.3% | Higher New | Guidance: 95.00 Mil for Q1 2026 | |
| 2026 Revenue | Reported | 4.10 Bil | 4.20 Bil | 4.30 Bil | 10.5% | Raised | Guidance: 3.80 Bil for 2026 | |
| 2026 Non-GAAP Adjusted EBITDA | Reported | 470.00 Mil | 480.00 Mil | 490.00 Mil | 15.7% | Raised | Guidance: 415.00 Mil for 2026 | |
Q4 2025 Earnings Reported 3/27/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | Reported | 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 | Reported | 90.00 Mil | 95.00 Mil | 100.00 Mil | 52.0% | Higher New | Guidance: 62.50 Mil for Q4 2025 | |
| 2026 Revenue | Reported | 3.70 Bil | 3.80 Bil | 3.90 Bil | 38.2% | Raised | Guidance: 2.75 Bil for 2026 | |
| 2026 Non-GAAP Adjusted EBITDA | Reported | 400.00 Mil | 415.00 Mil | 430.00 Mil | 36.1% | Raised | Guidance: 305.00 Mil for 2026 | |
Insider Activity
Updated 9/22/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Le, Bris Philippe | Chief Accounting Officer | Direct | Sell | 9222026 | 55.01 | 1,058 | 58,201 | 261,242 | Form |
| 2 | Le, Bris Philippe | Chief Accounting Officer | Direct | Sell | 9172026 | 54.06 | 4,196 | 226,836 | 332,361 | Form |
| 3 | Blackstone, Ema Iii Llc | Parent ML | Sell | 4092026 | 54.00 | 9,528,699 | 514,549,746 | 9,642,834 | Form | |
| 4 | Blackstone, Ema Iii 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 | 4092026 | 54.00 | 9,528,699 | 514,549,746 | 9,642,834 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Le, Bris Philippe | Chief Accounting Officer | Direct | Sell | 9222026 | 55.01 | 1,058 | 58,201 | 261,242 | Form |
| 2 | Le, Bris Philippe | Chief Accounting Officer | Direct | Sell | 9172026 | 54.06 | 4,196 | 226,836 | 332,361 | Form |
| 3 | Blackstone, Ema Iii Llc | Parent ML | Sell | 4092026 | 54.00 | 9,528,699 | 514,549,746 | 9,642,834 | Form | |
| 4 | Blackstone, Ema Iii 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 | 4092026 | 54.00 | 9,528,699 | 514,549,746 | 9,642,834 | Form | |
| 6 | Legence, Parent ML Llc | Parent II ML | Sell | 4092026 | 54.00 | 5,865,413 | 316,732,302 | 1,042,058,574 | Form | |
| 7 | Legence, Parent ML Llc | Parent ML | Sell | 12162025 | 45.00 | 5,200,808 | 234,036,360 | 8,035,695 | Form | |
| 8 | Legence, Parent ML Llc | Parent II ML | Sell | 12162025 | 45.00 | 3,201,370 | 144,061,650 | 1,153,934,955 | Form | |
| 9 | Blackstone, Ema Iii Llc | Parent ML | Sell | 12162025 | 45.00 | 5,200,808 | 234,036,360 | 8,035,695 | Form | |
| 10 | Blackstone, Ema Iii Llc | Parent II ML | Sell | 12162025 | 45.00 | 3,201,370 | 144,061,650 | 1,153,934,955 | Form | |
| 11 | Keenen, Terrence | Direct | Buy | 9152025 | 28.00 | 8,928 | 249,984 | 249,984 | Form |
Investor Activity (13F)
Updated Nov 5, 202613F holdings as of Mar 31, 2026 (Q1 2026)
Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
Legence — Investor Video Playlist
Leadership
Installation & Maintenance Leadership Spotlight: Josh Fair, IMD, a Legence company
Investor / Analyst
2026 Legence Sustainability Report
Investor / Analyst
Legence is Now Nasdaq-Listed: LGN
Products & Services
Building Resilience: Climate Risk Mitigation for Commercial Real Estate
Leadership
Inside Legence: Jeff Sprau Shares Top Qualities of a Legence Company
Products & Services
Data-Driven Sustainability: Transforming the Built Environment for a Greener Tomorrow with Trove™
Industry Resources
| Industrials Resources |
| IndustryWeek |
| Manufacturing.net |
| Aviation Week |
| Construction & Engineering Resources |
| Engineering News-Record (ENR) |
| Construction Dive |
| Civil Engineering Magazine |
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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Core Cache Last Updated: 11/4/2026