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 Generated Analysis | Feedback
- Johnson Controls, but exclusively focused on integrated decarbonization and smart energy solutions for buildings.
- Like the building energy solutions division of Siemens or Schneider Electric, but as a dedicated, end-to-end decarbonization partner.
AI Generated Analysis | Feedback
- Strategic Advisory & Sustainability Consulting: Provides strategic planning, net-zero roadmapping, and ESG reporting guidance to help clients achieve their decarbonization goals.
- Engineering & Design Services: Offers comprehensive mechanical, electrical, and plumbing (MEP) engineering, as well as design for renewable energy systems and high-performance buildings.
- Project Implementation & Delivery: Manages and executes complex energy efficiency retrofits, renewable energy installations, and other decarbonization projects from start to finish.
- Ongoing Building Optimization & Maintenance: Delivers continuous performance monitoring, data analytics, and maintenance services to ensure long-term energy efficiency and operational excellence.
AI Generated Analysis | Feedback
Legence (LGN) primarily sells its energy and infrastructure solutions to other companies and institutions, operating on a business-to-business (B2B) model.
Legence typically does not disclose the names of its individual major customers in its public filings. This is a common practice for companies with a diverse customer base, and their filings generally indicate that no single customer accounts for 10% or more of their consolidated revenues, which would otherwise necessitate disclosure.
However, based on their business description and the nature of their services, their customers broadly fall into the following categories:
- Commercial Building Owners and Developers: Companies that own, manage, or develop large-scale commercial properties, including office buildings, retail centers, and hospitality venues, seeking advanced energy efficiency, HVAC, plumbing, and electrical solutions for new construction and retrofits.
- Data Center Operators: Companies that design, build, and operate critical data infrastructure, requiring specialized and highly efficient cooling, power management, and sustainable energy solutions to ensure uptime and reduce operational costs.
- Healthcare Systems: Hospitals, clinics, and large healthcare networks that need robust, reliable, and energy-efficient mechanical, electrical, and plumbing systems for their complex and critical facilities.
- Educational Institutions: Universities, colleges, and large school districts looking to optimize the performance, energy consumption, and environmental footprint of their campuses and facilities.
- Governmental and Public Sector Entities: Federal, state, and local government agencies that manage public buildings, infrastructure, and facilities, often with specific requirements for sustainability and operational efficiency.
AI Generated Analysis | Feedback
Jeffrey Sprau, Chief Executive Officer
Jeffrey Sprau has served as the CEO of Legence since 2019, overseeing the company's strategic and operational aspects. Under his leadership, Legence, a Blackstone portfolio company, focuses on energy efficiency and sustainability solutions, accelerating the implementation of Net Zero energy solutions. Legence was formerly Therma Holdings and rebranded under his guidance when it joined the Blackstone portfolio in 2020. Since 2021, Legence has completed over 60 strategic acquisitions. Prior to Legence, he was President of BrandSafway Commercial & Industrial from 2017 to 2018, responsible for a $1.8 billion group of businesses. From 2014 to 2017, he was President of Safway Group's US Division, managing a division with $1.2 billion in revenue, 90 branch locations, and 4,000 employees. He also held other leadership positions within Safway Group and earlier management roles at Johnson Controls and Trane.
Stephen Butz, Chief Financial Officer
Stephen Butz is the Chief Financial Officer of Legence, joining the company in 2021. He has extensive experience in the financial sector, including serving as CFO for two other publicly traded offshore drilling companies prior to Legence. He also held positions as Executive Vice President and CFO at Noble Drilling, Rowan Companies, and Hercules Offshore, and served as a Board Member at ARO Drilling and Discovery Offshore, S.A. Earlier in his career, he worked in corporate credit and spent eight years in Investment Banking as an equity research analyst covering the global energy industry at firms like Jefferies, RBC Capital Markets, and Deutsche Bank. He was involved in taking a private company public within the offshore drilling industry, where he was responsible for M&A, Treasury, Investor Relations, Corporate Communications, and FP&A before being appointed CFO.
Steve Hansen, Chief Operating Officer
Steve Hansen serves as the Chief Operating Officer of Legence.
Deb Cloutier, Chief Sustainability Officer
Deb Cloutier holds the title of Chief Sustainability Officer at Legence.
Greg Barnes, Chief People & Technology Officer
Greg Barnes is the Chief People & Technology Officer at Legence. He is also listed as Chief Human Resources Officer.
AI Generated Analysis | Feedback
Legence (symbol: LGN) operates within two primary addressable markets: building management systems and the broader engineering services sector.
The worldwide market for building management systems was estimated at $19.8 billion in 2024 and is projected to exceed $82 billion by 2034, demonstrating a compound annual growth rate (CAGR) of 15.4% from 2025 to 2034. Legence's offerings, which include engineering, installation, and maintenance services for mission-critical building systems, directly address this global market.
For the engineering services sector, the global market is projected to grow from $3.66 trillion in 2025 to $5.51 trillion by 2034, with a CAGR of 4.64%. Specifically within the United States, Legence's primary operational region, the engineering services market is valued at $367.4 billion in 2025, with an anticipated annual growth rate of 1.9%. Legence provides engineering, consulting, installation, and maintenance services for technically demanding buildings in high-growth sectors such as technology, life sciences, healthcare, and education across the United States.
AI Generated Analysis | Feedback
Below are the key drivers expected to contribute to Legence's (LGN) future revenue growth over the next 2-3 years:
- Exposure to High-Growth End Markets: Legence is strategically focused on providing mechanical, electrical, and plumbing (MEP) systems for mission-critical facilities in rapidly expanding sectors. These include data centers, technology, healthcare, life sciences, and advanced manufacturing (driven by US onshoring/reshoring initiatives). Data centers, in particular, are highlighted as a significant growth area, with forecasts anticipating a 26% compound annual growth rate from 2024–2028.
- Increasing Demand for Energy-Efficient and Sustainable Infrastructure: The company is well-positioned to capitalize on the growing need for energy-efficient buildings and decarbonization efforts. This involves designing and implementing solutions that enhance energy efficiency and sustainability in both new and existing facilities, such as upgrading HVAC, lighting, and building controls, and leveraging energy-efficient infrastructure.
- Growth in Recurring Maintenance and Service Revenues: A core component of Legence's growth strategy is to expand its higher-margin recurring revenues derived from maintenance and service contracts. This focuses on increasing wallet share with existing, high-value clients.
- Strategic Bolt-On Acquisitions: Legence plans to accelerate growth through bolt-on acquisitions. This strategy involves acquiring complementary businesses to broaden its geographical reach, enhance its presence in high-demand markets, and expand its service capabilities.
AI Generated Analysis | Feedback
Share Issuance
- Legence completed its initial public offering (IPO) on September 15, 2025, offering 26,000,000 shares of its Class A common stock at a price of $28.00 per share.
- The IPO aimed to raise up to $754 million.
- Blackstone, which acquired Legence in 2020, retained approximately 74% of the combined voting power following the IPO.
Inbound Investments
- Blackstone acquired Legence, then known as Therma Holdings, from Gemspring Capital in 2020.
Outbound Investments
- Legence has made a total of 11 acquisitions, with peak activity in 2023 (5 acquisitions) and 2024 (4 acquisitions).
- Notable acquisitions include AMA Group in August 2024 and Corporate Sustainability Strategies (CSS) in April 2024.
- These acquisitions have expanded Legence's service offerings, geographic footprint, and technical capabilities in sustainable building solutions.
Capital Expenditures
- Legence's cash flow for capital expenditures for the trailing twelve months (TTM) ended June 2025 was -$14.16 million.
- For the three months ended June 2025, capital expenditures amounted to -$9 million.
- The primary focus of capital expenditures includes designing and installing heating, ventilation, and energy-efficiency systems, particularly for technically demanding buildings like data centers, which represented nearly 40% of its 2024 project pipeline for new builds.
