Key Highlights
- LGN shares advance 5.7% following impressive Q4 revenue growth of 34% compared to last year
- Company achieves unprecedented backlog of $3.7B, indicating robust pipeline of future projects
- Installation business powers expansion with remarkable 44% quarterly revenue jump
- Company elevates 2026 revenue projections to as much as $3.9B
- Robust data center market conditions fuel order growth and enhanced long-term prospects
Shares of Legence Corp. gained 5.7% to reach $56.00 following the release of robust fourth quarter and fiscal 2025 financial results. The company demonstrated significant revenue acceleration alongside an unprecedented backlog that underpins an enhanced growth trajectory. Results highlighted expanding demand throughout mission-critical segments, particularly within data center infrastructure, healthcare facilities, and government contracts, prompting management to substantially improve its 2026 financial outlook.
Legence Corp. Class A Common stock, LGN
Core Business Segments Deliver Accelerated Top-Line Performance
For the fourth quarter of fiscal 2025, Legence reported revenue of $737.6 million, representing a 34.6% year-over-year increase. Annual revenue totaled $2.55 billion, reflecting growth of 21.5% versus fiscal 2024. Concurrently, adjusted EBITDA expanded to $87.0 million during the quarter and $298.8 million on a full-year basis.
The company’s installation and maintenance operations accounted for the majority of quarterly growth momentum. This division generated revenue of $565.1 million, up 44.4%, driven by heightened activity across installation, fabrication, and ongoing service contracts. Data center and technology customers represented the primary growth catalyst, complemented by contributions from life sciences and healthcare infrastructure projects.
The engineering and consulting division also posted positive revenue growth, though profitability metrics experienced pressure. Revenue in this segment climbed 10.0% to $172.6 million, benefiting from increased program and project management engagements. However, gross profit declined 7.3% as the revenue composition shifted and margin compression occurred across certain offerings.
Order Activity and Bottom-Line Metrics Reflect Market Strength
Despite a wider GAAP-based net loss, Legence demonstrated improved full-year profitability on an adjusted basis. Annual gross profit increased to $535.9 million, with adjusted gross margin coming in at 21.6%. The net loss attributable to shareholders expanded to $59.8 million compared to $28.6 million in the previous year.
Total backlog and awarded contracts stood at $3.674 billion as of year-end 2025, up 48.6% from the prior year. The performance yielded a book-to-bill ratio of 1.9x for the fourth quarter and 1.6x for the full twelve-month period. These metrics underscore sustained strength in new order capture and successful project awards across primary markets.
Within installation and maintenance, backlog surged 65.8%, primarily attributable to data center and technology sector demand. The engineering and consulting backlog advanced 16.2%, supported by government and healthcare-related contracts. Notably, the year-end backlog figure does not incorporate Bowers, which management estimates contributes approximately $1.5 billion in additional contracted work.
Management Upgrades Full-Year Outlook Following Strategic Acquisitions
Based on the strong finish to fiscal 2025 and recent M&A transactions, management has elevated its 2026 financial guidance. The company now anticipates revenue ranging from $3.7 billion to $3.9 billion for fiscal 2026. Additionally, adjusted EBITDA is projected to fall between $400 million and $430 million.
Legence finalized the acquisition of Bowers on January 2, 2026, and subsequently completed the Metrix transaction on March 1. The Metrix deal broadens engineering capabilities throughout the Pacific Northwest region while introducing exposure to the education sector. At the close of fiscal 2025, Legence maintained cash holdings of $230.2 million against total debt obligations of approximately $825.1 million.
