olivLaw · US equity research
Legence Corp. LGN
Construction - Special Trade Contractors · SIC 1700 · Vertical: Construction - Special Trade Contractors (SIC 1700)
Legence Corp. (LGN) designs, installs and maintains MEP (mechanical, electrical and plumbing) systems for technically demanding buildings, with focus on data centers, life sciences, healthcare and education. The business has grown fast: revenue in fiscal 2025 exceeded 2.5 billion USD, and in the second quarter 2026 revenue rose 110.7% year over year, partly due to the Bowers acquisition.
At the close of 04 Nov 2026, Legence Corp. (LGN) stock was 32.13 USD (−17.95% on the day), with beta 2.50, 52-week range 32.13–102.27 USD. Latest reported quarter (Q2 2026): revenue of 1.3 bn USD (+110.7% YoY), net income of -27.8 m USD, diluted EPS -0.37 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 30.1
- weak (30–45)
- Bollinger (20, 2)
- 31.51 – 52.25
- in the lower half of the band · %B 0.03 · band width 49.5%
- SMA 50 / 200
- 49.16 / 63.24
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -4.19 / -3.94
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −40.3% | −1.1% | −39.2 pp | — |
| 3 months | −51.0% | −0.5% | −50.5 pp | — |
| 6 months | −68.6% | +4.4% | −73.0 pp | — |
| Year to date | −25.3% | +12.3% | −37.7 pp | — |
| 1 year | −16.1% | +13.5% | −29.7 pp | −55.4% |
| 3 years | unavailable | +76.4% | unavailable | −18.7% |
| 5 years | unavailable | +63.7% | unavailable | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 560.8 m | 548.2 m | 506.0 m | 598.9 m | 708.0 m | 737.6 m | 1.0 bn | 1.3 bn |
| Cost of revenue | 442.3 m | 435.3 m | 394.2 m | 470.2 m | 559.9 m | 590.2 m | 851.7 m | 1.0 bn |
| Gross profit | 118.5 m | 112.9 m | 111.7 m | 128.7 m | 148.1 m | 147.5 m | 186.2 m | 220.2 m |
| SG&A | 67.2 m | 63.0 m | 69.5 m | 72.5 m | 85.9 m | 114.8 m | 116.1 m | 147.6 m |
| Operating income | 27.0 m | 5.6 m | 16.6 m | 31.3 m | 37.2 m | -23.5 m | 22.4 m | -6.6 m |
| Depreciation & amortisation | 25.5 m | 26.4 m | 26.1 m | 25.3 m | 24.2 m | 24.7 m | 36.8 m | 38.0 m |
| Interest expense | 23.7 m | 26.2 m | 29.6 m | 30.4 m | 28.2 m | 13.6 m | 17.0 m | 16.9 m |
| Pre-tax income | 3.9 m | -23.2 m | -15.1 m | 1.7 m | 4.5 m | -46.2 m | 4.0 m | -23.5 m |
| Income tax | 4.6 m | -5.0 m | 4.0 m | 5.5 m | 4.1 m | 8.5 m | -13.4 m | 11.1 m |
| Net income | -1.1 m | -18.7 m | -21.2 m | -5.3 m | -576.0 k | -32.7 m | 16.1 m | -27.8 m |
| Diluted EPS | — | — | — | — | — | — | 0.13 | -0.37 |
| Operating cash flow | — | 6.0 m | 29.5 m | 33.1 m ≈ | 99.6 m ≈ | 94.7 m | 120.1 m | 74.4 m ≈ |
| Capex | — | 6.2 m | 5.4 m | 8.8 m ≈ | 10.6 m ≈ | 13.2 m | 17.8 m | 24.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
EPS unavailable in the issuer's structured filings (e.g. a partnership reports per unit, not per share).
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 1.6 bn | 2.1 bn | 2.6 bn |
| Revenue YoY | unavailable | +29.9% | +21.5% |
| Net income | -46.0 m | -28.6 m | -59.8 m |
| Net income YoY | unavailable | unavailable | unavailable |
| Diluted EPS | unavailable | unavailable | unavailable |
| Diluted EPS YoY | unavailable | unavailable | unavailable |
| net % | -2.8% | -1.4% | -2.3% |
| Free cash flow | 16.8 m | 10.3 m | 218.9 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 230.2 m USD
- Financial debt
- 16.7 m USD
- Net debt
- -213.5 m USD
- Equity
- 788.8 m USD
- Total assets
- 2.7 bn USD
- Debt / equity
- 0.02x
- Current ratio
- 1.57x
- ROE
- unavailable
- ROA
- -2.4%
- FCF margin
- 8.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 1.6 bn | 2.1 bn | 2.6 bn | SEC (XBRL)· 30 Mar 2026verified |
| Cost of revenue | 1.3 bn | 1.7 bn | 2.0 bn | SEC (XBRL)· 30 Mar 2026verified |
| Gross profit | 315.1 m | 430.8 m | 535.9 m | SEC (XBRL)· 30 Mar 2026verified |
| SG&A | 186.1 m | 242.9 m | 342.6 m | SEC (XBRL)· 30 Mar 2026verified |
| Operating income | 10.3 m | 70.4 m | 61.6 m | SEC (XBRL)· 30 Mar 2026verified |
| Depreciation & amortisation | 80.2 m | 97.2 m | 100.4 m | SEC (XBRL)· 30 Mar 2026verified |
| EBITDA | 90.5 m ≈ | 167.5 m ≈ | 161.9 m ≈ | SEC (XBRL)· 30 Mar 2026derived |
| Interest expense | 68.2 m | 91.6 m | 101.8 m | SEC (XBRL)· 30 Mar 2026verified |
| Pre-tax income | -53.9 m | -23.1 m | -55.1 m | SEC (XBRL)· 30 Mar 2026verified |
| Income tax | -7.9 m | 4.5 m | 22.2 m | SEC (XBRL)· 30 Mar 2026verified |
| Net income | -46.0 m | -28.6 m | -59.8 m | SEC (XBRL)· 30 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | — | 81.2 m | 230.2 m | SEC (XBRL)· 30 Mar 2026verified |
| Inventories | — | 10.2 m | 11.3 m | SEC (XBRL)· 30 Mar 2026verified |
| Current assets | — | 756.4 m | 1.1 bn | SEC (XBRL)· 30 Mar 2026verified |
| Property, plant & equipment, net | — | 73.4 m | — | SEC (XBRL)· 14 Nov 2025verified |
| Goodwill | 676.0 m | 781.2 m | 764.3 m | SEC (XBRL)· 30 Mar 2026verified |
| Intangibles (excl. goodwill) | — | 624.3 m | 551.4 m | SEC (XBRL)· 30 Mar 2026verified |
| Total assets | — | 2.4 bn | 2.7 bn | SEC (XBRL)· 30 Mar 2026verified |
| Accounts payable | — | 126.5 m | 246.2 m | SEC (XBRL)· 30 Mar 2026verified |
| Short-term debt | — | 23.0 m | 16.7 m | SEC (XBRL)· 30 Mar 2026verified |
| Current liabilities | — | 411.1 m | 708.2 m | SEC (XBRL)· 30 Mar 2026verified |
| Total liabilities | — | 2.1 bn | 1.9 bn | SEC (XBRL)· 30 Mar 2026verified |
| Equity | — | — | 788.8 m | SEC (XBRL)· 30 Mar 2026verified |
Cash flow · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 33.9 m | 29.3 m | 256.9 m | SEC (XBRL)· 30 Mar 2026verified |
| Capex | 17.1 m | 19.0 m | 37.9 m | SEC (XBRL)· 30 Mar 2026verified |
| Free cash flow | 16.8 m ≈ | 10.3 m ≈ | 218.9 m ≈ | SEC (XBRL)· 30 Mar 2026derived |
| Investing cash flow | -133.9 m | -244.0 m | -54.0 m | SEC (XBRL)· 30 Mar 2026verified |
| Financing cash flow | 128.5 m | 207.0 m | -53.8 m | SEC (XBRL)· 30 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 37.5% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Key indicators
Coverage and freshness
Score by group
38% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/Eunavailable · input data missing
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 37.5% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 3.5% | 57 (vs peers) | 28% |
| Net margin · Quality | -1.2% | 56 (vs peers) | 17% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | -1.7x | 100 (on a fixed band) | 28% |
| Interest coverage · Balance sheet | 0.4x | 0 (on a fixed band) | 17% |
| Current ratio · Balance sheet | 1.3x | 45 (on a fixed band) | 11% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet59/100 · 3/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality57/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Legence Corp. (LGN). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 2.6 bn USD in 2025; YoY growth 21.5%; net margin -1.2%; ROE -7.5%; net debt/EBITDA -1.7x.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 37.5% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net debt / EBITDA: -1.7x
What contradicts it
- Interest coverage: 0.4x
Not assessed (insufficient data or a ratio without meaning): FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Construction - Special Trade Contractors (SIC 1700) · same industry (4-digit SIC) · compared with 18 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AGXArgan Inc | 4.1 bn | 23.0 | 39.8% | 15.1% | +8.1% | −26% / +523% |
| BBUCBrookfield Business Corporation | 2.7 bn | — | 2.4% | 1.4% | −32.4% | −11% / +70% |
| RUNSunrun Inc. | 2.1 bn | 4.4 | 16.2% | 14.0% | +45.1% | −57% / −32% |
| LMBLimbach Holdings, Inc. | 681.6 m | 22.7 | 16.0% | 4.2% | +24.7% | −18% / +52% |
| BBCPConcrete Pumping Holdings, Inc. | 510.5 m | 59.8 | 3.9% | 2.4% | −7.7% | +61% / +36% |
| PHOEPhoenix Asia Holdings Limited | 401.7 m | — | -25.9% | -16.7% | −2.2% | +32% / unavailable |
| MTRXMatrix Service Company | 258.3 m | — | -1.8% | -0.3% | +13.6% | −22% / −8% |
| MSGYMasonglory Limited | 66.8 m | 7.0 | -135.4% | -34.0% | +1.0% | −82% / unavailable |
| SPWRSunpower Inc. | 50.5 m | — | — | -3.8% | +175.9% | −86% / −79% |
| FGLFounder Group Limited | 24.7 m | — | -31.9% | -5.6% | unavailable | −100% / unavailable |
| SMXTSolarMax Technology, Inc. | 19.5 m | — | — | -7.9% | +295.8% | −63% / unavailable |
| PMAMing Shing Group Holdings Limited | 16.9 m | — | — | -39.4% | −56.8% | −23% / unavailable |
| WXMWF International Limited | 14.4 m | — | -71.9% | -24.5% | −13.7% | −62% / unavailable |
| CETXCemtrex, Inc. | 1.7 m | — | -152.4% | -38.4% | +14.4% | −97% / −100% |
| KAZRSkyline Builders Group Holding Limited | — | — | 20.6% | 18.1% | +8.9% | −54% / unavailable |
| LGNLegence Corp. | — | — | -7.5% | -1.2% | +21.5% | −16% / unavailable |
| ZEOZeo Energy Corp. | 0 | — | — | -15.4% | −5.3% | −83% / −98% |
| AMRCAmeresco, Inc. | — | — | 5.5% | 3.3% | +28.8% | −39% / −29% |
| PBKPOWERBANK Corp | — | — | -174.4% | -74.7% | −28.9% | −90% / unavailable |
1- and 3-year price returns: for LGN from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Legence Corp. (LGN) designs, installs and maintains MEP (mechanical, electrical and plumbing) systems for technically demanding buildings, with focus on data centers, life sciences, healthcare and education. The business has grown fast: revenue in fiscal 2025 exceeded 2.5 billion USD 1, and in the second quarter 2026 revenue rose 110.7% year over year 2, partly due to the Bowers acquisition.
SWOT
Strengths
Weaknesses
Opportunities
- Retrofits of existing buildings and demand for energy efficiency could generate recurring maintenance revenue 1.
- The acquisition strategy could expand capabilities and access to new clients and regions 1.
- Healthcare, education and state and local government markets could add growth if public investment holds 2.
Risks
- Fixed-price contract riskhigh
Unforeseen costs or delays could reduce profit or lead to losses on individual projects 1.
- Dependence on the construction cyclehigh
A decline in demand could lead to price pressure and lower revenue 1.
- Acquisition integration riskmedium
Integrating acquired companies such as Bowers could bring extra costs and operational difficulties 12.
- Subcontractor and supplier riskmedium
Delays or underperformance by partners could affect project schedules and margins 1.
- Client payment riskmedium
Clients relying on outside financing or facing financial stress could delay payments 1.
Investment thesis
What would need to be true (bull case)
- Rapid growth in revenue and backlog, especially in data centers, could support expansion over the coming years if demand stays healthy 2.
- Raised full-year 2026 guidance suggests management sees favorable conditions in the second half of the year 2.
- A large share of retrofits and maintenance could bring steadier revenue if that mix holds 1.
What would break the thesis
- Reliance on fixed-price contracts and on the data center sector could amplify the impact of an investment pullback 1.
- A lower gross margin in the second quarter 2026 could signal margin pressure as growth continues 2.
- Repeated acquisitions may bring integration risks and added debt if expected synergies do not materialize 12.
What to watch
- Trend in Adjusted Gross Margin by segmentQ3 2026
- Delivery against 2026 revenue and Adjusted EBITDA guidance2026
- Book-to-bill ratio and backlog growthQ3 2026
- Integration of Bowers and its contribution to marginsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Legence is a provider of engineering, installation and maintenance services for mission-critical systems in buildings, headquartered in San Jose, California 1. It operates through two segments, Engineering & Consulting and Installation & Maintenance, and focuses on sectors with technically complex buildings such as technology, life sciences, healthcare and education 1. Its model mixes new projects with retrofits and maintenance contracts, which made up about 60% of 2025 revenue 1.
The company works mostly on fixed-price contracts, and most jobs are typically completed within nine months, excluding multi-year maintenance agreements 1. Legence has made roughly 24 acquisitions since December 2020, and in January 2026 it acquired The Bowers Group, a mechanical contractor based in Maryland 1. The Bowers acquisition contributed about 303.8 million USD of second quarter 2026 revenue 2.
Staffing includes about 1,200 MEP engineers and energy consultants, and about 6,200 HVAC and plumbing technicians, fitters and electricians 1. About 4,500 employees are covered by 44 collective bargaining agreements, making the workforce an important execution factor 1.
Segments
Installation & Maintenance
This segment fabricates and installs HVAC and MEP systems in new and existing buildings; in 2025 installation and fabrication made up about 82% of segment revenue, with the rest from maintenance 1. In the second quarter 2026 segment revenue reached 1.06 billion USD, up 162.0% year over year, largely due to Bowers and data center demand 2.
Market context
Demand for Legence services depends on commercial construction activity and investment in technology infrastructure, both of which are cyclical 1. Data centers and technology made up about 42.7% of 2025 revenue, and life sciences and healthcare about 18% 1.
The company describes its market as shaped by client demand for energy efficiency and building resilience, which could support demand even in slower economic periods, though this is not assured 1. Seasonality also matters, with higher demand in the second and third quarters when schools and campuses schedule work 1.
Trends
- Data center and AI investmenttailwind
Demand from technology companies for new and upgraded facilities could continue if infrastructure investment stays high; in 2025 this sector drove most of the growth 12.
- Third-party financing dynamicsheadwind
Many clients rely on outside financing for projects; if access to capital tightens, projects could be delayed or cancelled 1.
- Equipment and subcontractor costsmixed
Rising equipment and subcontractor costs could compress margins if they cannot be fully passed on to clients in contract prices 12.
- Acquisition integrationmixed
Recent acquisitions expand scale, but integrating them can add short-term operating costs, particularly if margins shift 12.
Competitive position
Legence competes with national, regional and local companies, including many small owner-operated firms working in limited geographies 1. National rivals in engineering are Affiliated Engineers, Stantec and WSP Global, while in installation and maintenance they are Comfort Systems USA, ACCO Engineered Systems and Southland Industries 1.
The company argues that its integrated offering of engineering, installation and maintenance gives it an edge over smaller or narrower rivals 1. Competitive pressure remains high, since some rivals have greater resources or lower cost structures 1.
- Affiliated Engineers Inc.
National competitor in building engineering services, named by the company 1.
- Stantec Inc.
National competitor in engineering and consulting, named by the company 1.
- WSP Global, Inc.
National competitor in engineering services, named in the consulting segment 1.
- Comfort Systems USA, Inc.FIX
National competitor in HVAC installation and maintenance, named by the company 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Legence (LGN) Doubled Revenue While Margins And Losses WidenedYahoo Finance — News · 04 Sept 2026 · EN
SEC filings
- Current report18 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report13 Aug 2026
- Current report13 Aug 2026Results of operations · Financial statements and exhibits
- Current report11 Jun 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Quarterly report14 May 2026
- Current report14 May 2026Results of operations · Financial statements and exhibits
- Proxy statement29 Apr 2026
- Annual report30 Mar 2026
- Current report27 Mar 2026Results of operations · Financial statements and exhibits
- Current report (amendment)19 Mar 2026Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Legence Corp. · 30 Mar 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Legence Corp. · 13 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.