Legence Reports Third Quarter 2026 Financial Results

(NASDAQ:LGN) Legence Corp. reported financial results for the third quarter ended September 30, 2026. Revenues for the third quarter 2026 totaled $1.31 billion, an increase of 85.1% from $708.0 million for the third quarter 2025. Excluding the impact of the acquisition of The Bowers Group, Inc., non-GAAP revenue growth was 39.5%. Gross profit for the third quarter 2026 was $275.5 million with a gross margin of 21.0%, compared to gross profit of $148.1 million and gross margin of 20.9% for the third quarter 2025. Non-GAAP Adjusted Gross Profit for the third quarter 2026 was $266.6 million and non-GAAP Adjusted Gross Margin was 20.3%, compared to $151.9 million and 21.5% for the third quarter 2025. Net income attributable to Legence for the third quarter 2026 was $89.6 million, or $1.15 per diluted share, compared to a net loss of $0.6 million, or $(0.02) per diluted share, for the third quarter 2025. Net income for the third quarter 2026 was $133.9 million, compared to $0.4 million for the third quarter 2025. Non-GAAP Adjusted EBITDA for the third quarter 2026 was $177.0 million, an increase of 99.3% from $88.8 million for the third quarter 2025. Engineering & Consulting segment revenue for the third quarter 2026 was $199.9 million, a decrease of (5.8)% from $212.2 million for the third quarter 2025, with gross profit of $71.7 million, up 6.5% from $67.3 million. Engineering & Consulting non-GAAP Adjusted Gross Profit was $66.6 million and non-GAAP Adjusted Gross Margin was 33.3% for the third quarter 2026, compared to $69.6 million and 32.8% for the third quarter 2025. Installation & Maintenance segment revenue for the third quarter 2026 was $1.11 billion, an increase of 124.0% from $495.8 million for the third quarter 2025, with gross profit of $203.8 million, up 152.4% from $80.7 million. Installation & Maintenance non-GAAP Adjusted Gross Profit was $200.1 million and non-GAAP Adjusted Gross Margin was 18.0% for the third quarter 2026, compared to $82.3 million and 16.6% for the third quarter 2025. Backlog and awarded contracts totaled $5.90 billion at September 30, 2026, an increase of 92.5% from $3.07 billion at September 30, 2025. The consolidated book-to-bill ratio for the three-month period ended September 30, 2026 was 1.2x. On November 1, 2026, Legence completed the acquisition of Central Texas Industrial Contractors (CTI), which is expected to generate revenue of approximately $40 million for calendar year 2026, with $6 to $8 million expected to be recorded by Legence in the fourth quarter of 2026. In early November 2026, the Board of Directors authorized a $150 million share repurchase plan. At September 30, 2026, Legence had cash and cash equivalents of approximately $340.8 million and total debt of approximately $1.02 billion, resulting in net leverage of 1.3 times based on non-GAAP Adjusted EBITDA for the last 12 months. Guidance for the fourth quarter of 2026 is total revenues of $1.26 billion to $1.30 billion and non-GAAP Adjusted EBITDA of $160 million to $170 million. Revised full year 2026 guidance is total revenues of $4.87 billion to $4.91 billion and non-GAAP Adjusted EBITDA of $610 million to $620 million. Initial full year 2027 guidance is total revenues of $5.3 billion to $5.6 billion and non-GAAP Adjusted EBITDA of $690 million to $730 million. Legence will host a webcast and conference call to discuss its financial results on November 12, 2026 at 10:00 a.m. (Eastern Time).

Legence Announces Improved Term Loan Pricing on Credit Rating Upgrade

(NASDAQ:LGN) Legence Corp. announced an update regarding its $995 million term loan credit facility. On June 5, 2026, S&P Global Ratings upgraded the Company’s issuer credit rating to BB- from B+, with a positive outlook. As previously disclosed on May 28, 2026, the Company entered into an amendment of its credit agreement, providing for a 25 basis point decrease in pricing, with an additional 25 basis point reduction at the time of a ratings upgrade by either major agency. As a result of the credit rating upgrade, pricing on the Term Loan has now declined to Secured Overnight Financing Rate (“SOFR”) plus 1.75%. Legence counts over 60% of the Nasdaq-100 Index among its clients. The company specializes in designing, fabricating, and installing complex HVAC, process piping, and other mechanical, electrical and plumbing (MEP) systems. The company projects long-term performance through strategic upgrades and holistic solutions.