Legence Lifts 2026 Profit Outlook After Record Quarter

The Tip Desk · November 12, 2026 · 4 min read

Third-quarter revenue hit a record $1.31 billion, up 85% from a year earlier, and the company raised full-year 2026 non-GAAP Adjusted EBITDA guidance to $610 million to $620 million.

Legence Corp. (LGN), a provider of engineering, installation and maintenance services for mission-critical building systems, reported record third-quarter revenue of $1.31 billion, up 85.1% from $708.0 million a year earlier, as Installation & Maintenance demand and the Bowers Group acquisition lifted the top line.

Year-over-year growth slowed from 110.7% in the second quarter and 105.1% in the first. Excluding about $322.7 million of Bowers revenue, non-GAAP revenue growth was 39.5%, down from 60.0% in the second quarter.

Non-GAAP Adjusted EBITDA was $177.0 million, up 99.3% from $88.8 million a year earlier. Adjusted EBITDA margin was 13.5%. Chief Executive Officer Jeff Sprau said an increasing mix of fabrication work contributed to what the company described as the highest Adjusted EBITDA margin in its history.

Net income attributable to Legence was $89.6 million, or $1.15 a share, versus a $0.6 million loss, or $(0.02) a share, a year earlier.

Installation & Maintenance revenue was $1.11 billion, up 124.0% from $495.8 million a year earlier, and accounted for 84.7% of the mix. Excluding Bowers, the segment grew 58.9%. Installation & Fabrication revenue was $992.5 million, up 142.8%, which the company said was driven by strong demand primarily from data centers and technology clients. Maintenance & Service revenue was $118.2 million, up 35.7%, which the company said was driven primarily by the Bowers acquisition and growth from education and other clients.

Installation & Maintenance gross profit was $203.8 million, with gross margin of 18.3%. Non-GAAP Adjusted Gross Margin in the segment was 18.0%. The company attributed the margin increase to higher project margins in Installation & Fabrication and greater economies of scale in customer fulfillment support costs, partly offset by a mix shift toward that service line and lower project margins in Maintenance & Service.

Engineering & Consulting revenue was $199.9 million, down 5.8% from $212.2 million a year earlier, and accounted for 15.3% of the mix. The company said the decline was driven by a drop in Program & Project Management, at $90.8 million, and modestly lower Engineering & Design, at $109.1 million, primarily from education clients. Engineering & Consulting gross profit was $71.7 million, with gross margin of 35.9%.

Consolidated gross profit was $275.5 million, with gross margin of 21.0%. Non-GAAP Adjusted Gross Margin was 20.3%. The company said the decline in that adjusted measure was primarily due to a revenue mix shift toward Installation & Maintenance.

Backlog and awarded contracts were a record $5.90 billion at September 30, 2026, up 92.5% from $3.07 billion a year earlier. Installation & Maintenance backlog rose 117.2% to $4.71 billion, which the company said was primarily from the Bowers acquisition and growth in data centers and technology and education. Engineering & Consulting backlog rose 32.6% to $1.19 billion. The three-month book-to-bill ratio was 1.2x.

Legence raised full-year 2026 guidance to revenue of $4.87 billion to $4.91 billion and non-GAAP Adjusted EBITDA of $610 million to $620 million, from $4.70 billion to $4.80 billion and $565 million to $585 million. Fourth-quarter 2026 guidance is revenue of $1.26 billion to $1.30 billion and non-GAAP Adjusted EBITDA of $160 million to $170 million. Initial full-year 2027 guidance is revenue of $5.3 billion to $5.6 billion and non-GAAP Adjusted EBITDA of $690 million to $730 million.

The board authorized a $150 million share repurchase program in early November. On November 1, 2026, Legence completed the acquisition of Central Texas Industrial Contractors, an Austin-based mechanical contractor. The company said CTI is expected to generate about $40 million of 2026 revenue, of which $6 million to $8 million is expected in the fourth quarter. Cash and cash equivalents were about $340.8 million at September 30, 2026, and total debt about $1.02 billion, for net leverage of 1.3 times on last-12-months non-GAAP Adjusted EBITDA.