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Legence shares rally as revenue jumps 26% in first post-IPO report

AuthorSam Boughedda
Published 14/11/2025, 14:08
© Reuters.

Investing.com -- Legence Corp. (NASDAQ:LGN) reported third-quarter revenue of $708 million on Friday, significantly exceeding analyst expectations of $638.93 million and marking a 26% increase YoY as the company delivered its first earnings report as a public company.

The engineering and installation services provider posted an adjusted EBITDA of $88.8 million, representing a 39% increase from the same period last year. However, the company reported a net loss of -$0.02 per share for the quarter ended September 30. Shares jumped 5.8% following the announcement as investors responded positively to the revenue beat and strong backlog growth.

"I am extremely proud of our entire Legence team for the successful initial public offering," said Jeff Sprau, Chief Executive Officer of Legence. "In our inaugural quarterly report as a public company, we are pleased to deliver exceptional results, highlighted by robust organic revenue, Adjusted EBITDA and backlog growth."

The company reported record total backlog and awards of $3.1 billion, a 29% increase from a year ago, with a book-to-bill ratio of 1.5x. The Installation & Maintenance segment was particularly strong, with revenue increasing 35.1% to $495.8 million, driven primarily by higher demand from data centers and healthcare clients.

Legence also announced it has entered into a definitive agreement to acquire Bowers, a mechanical contractor in the Northern Virginia/DC Metro area, for $475 million. This follows two smaller acquisitions completed on October 1.

For the fourth quarter of 2025, Legence expects revenue between $600 million and $630 million with adjusted EBITDA of $60 million to $65 million. The company also established full year 2026 guidance for revenue of $2.65 billion to $2.85 billion and adjusted EBITDA of $295 million to $315 million.

Following its IPO, Legence reduced its total debt to $836 million and net debt to $650 million through a combination of IPO proceeds and strong cash generation.

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