What does Legence do and what are its main business segments?

What is the revenue and EPS growth rate for Legence year over year?

What is Legence's latest dividend and current dividend yield?

What were the key takeaways from Legence's earnings call?

What were the key takeaways from Legence’s earnings call?

What is Legence's gross profit margin?

What factors drove the changes in Legence's revenue and profit?

Did Legence beat or miss consensus estimates last quarter?

- **Record Growth**: Q4 2025 revenue up 35% YoY to $738M, with 32% organic growth. Full-year backlog surged 49% to $3.7B.
- **Strategic Expansion**: Acquired Bowers Group and Metrix, adding $1.5B backlog and 2,000+ workers. 2026 guidance includes full Bowers contribution.
- **Profitability**: Adjusted EBITDA margin expanded 140bps to 11.8%, driven by fabrication growth. 2026 EBITDA guidance up 30-40% YoY.
- **Long-Term Visibility**: Data center projects extend into 2029, with 50% of Q4 backlog to be completed in 2026.
- **Labor Strength**: 6,600 unionized craftsmen with no constraints, despite 1,000+ hires in H2 2025.

**【CEO Summary Section】**
- **Revenue Growth**: Q4 2025 revenue reached $738 million, up 35% YoY, with 32% organic growth. Full-year revenue was $2.6 billion, +22% YoY.
- **Backlog Expansion**: Consolidated backlog and awards hit $3.7 billion (+49% YoY), driven by data center (+66%) and engineering (+16%) segments. Q4 book-to-bill ratio was 1.9x.
- **Strategic Acquisitions**: Integrated Bowers Group (Jan 2026) and Metrix (Mar 2026), adding $1.5 billion in backlog and 2,000+ skilled workers. 2026 guidance includes full Bowers contribution.
- **Labor Force**: Expanded unionized craftsmen to 6,600 (from 4,500 in Q3 2025), with 1,000+ added in H2 2025. No labor constraints despite demand for Direct-to-Chip cooling systems.

**【CFO Financial Commentary】**
- **Q4 Financials**: GAAP net income $420 million, Non-GAAP EPS $1.08 (vs. $0.85 prior). Adjusted EBITDA $87 million (+53% YoY), margin 11.8% (vs. 10.4% YoY).
- **Full-Year Performance**: Adjusted EBITDA $299 million (+30% YoY), margin 11.7% (vs. 10.9% YoY). Revenue mix shift to higher-margin fabrication (+53% YoY) drove margin expansion.
- **2026 Guidance**: Revenue $3.7-$3.9 billion (+22-30% YoY), EBITDA $400-$430 million (+30-40% YoY). CapEx $65 million for fabrication expansion.
- **Liquidity**: $230 million cash (vs. $176M Q3), net leverage 2.0x (vs. 2.4x Q3). IPO proceeds fully used to deleverage.

**【Q&A Highlights】**
- **Supply Chain**: No material shortages; clients secure supplies upfront. 2029+ data center projects in pipeline.
- **Backlog Burn**: ~50% of Q4 backlog to be completed in 2026, with remainder extending into 2027-2028.
- **Margins**: Installation/Maintenance gross margin improved to 18.3% (vs. 15.6% YoY) due to fabrication scale. Sustained execution expected but not guaranteed.
- **Troove Software**: Minimal revenue contribution; used internally for building performance analysis.
- **Non-Data Center Growth**: Life sciences, education, and healthcare end markets growing organically, offsetting data center volatility.

Legence Inc (LGN) Q4 2025 Earnings Call Transcript

- **Record Q3 growth**: $708M revenue (+26% YoY), $88.8M EBITDA (+39% YoY), 29% backlog expansion.
- **Bowers acquisition**: $475M deal adds $767M annual revenue, 370K sq.ft. fabrication capacity in data center hub.
- **2026 outlook**: $2.65B-$2.85B revenue, $295M-$315M EBITDA. Bowers to contribute $725M-$775M in 2026 revenue.
- **Leverage strategy**: Target 2.5x long-term, 2.4x post-Q3 deleveraging.
- **Data center dominance**: 47% revenue mix (up from 39%), 70% of Bowers revenue in data centers.

**【CEO Summary Section】**
- Legence reported record Q3 2025 revenue of $708M, up 26% YoY, with 100% organic growth. EBITDA rose 39% to $88.8M, driven by strong project execution and fabrication work.
- Announced acquisition of Bowers Group for $475M, adding $767M in annual revenue and $72M in EBITDA. Bowers brings 1,700 skilled workers and 370K sq.ft. of fabrication capacity in Northern Virginia's data center hub.
- 2026 guidance: Standalone revenue $2.65B-$2.85B, EBITDA $295M-$315M. Bowers to contribute $725M-$775M in 2026 revenue and $67M-$75M EBITDA post-close in Q1 2026.

**【CFO Financial Commentary】**
- Q3 2025 results: 
  - Revenue: $708M (+26% YoY)
  - EBITDA: $88.8M (+39% YoY)
  - Backlog: $3.1B (+29% YoY)
  - Book-to-bill ratio: 1.5x
- Segment performance: 
  - Engineering & Consulting: $212M (+9.5% YoY)
  - Installation & Maintenance: $496M (+35% YoY)
- Margins: 
  - Consolidated gross margin: 20.9%
  - EBITDA margin: 12.5% (up 100bps YoY)
- Balance sheet: 
  - Cash: $176M
  - Debt: $836M (net leverage 2.4x)
  - Revolver availability: $85M
- 2026 financial outlook: 
  - Interest expense: $15M/Q4, $50M-$55M annual
  - D&A: $20M-$25M/Q4, $100M annual
  - CapEx: $20M/Q4, $50M-$55M annual

**【Q&A Key Highlights】**
- **Leverage targets**: Maintain below 3x, targeting 2.5x long-term. Pro forma Bowers leverage 2.9x, expected to delever quickly.
- **M&A pipeline**: Active in E&C (tuck-in acquisitions) and I&M (strategic scale plays). No immediate I&M deals beyond Bowers.
- **Data center growth**: 30%+ CAGR driven by new builds and retrofits. Bowers adds 70% data center revenue mix.
- **Bowers synergies**: 
  - Fabrication capacity expansion to East Coast/Midwest
  - Cross-selling E&C services to Bowers' client base
  - Shared best practices in safety and operations
- **Margin sustainability**: Installation margins benefited from fabrication mix, but I&M segment drag on overall margin. Expect gradual improvement with scale.

Actual	-0.02	-0.55
Forecast	0.0831	0.0509
Surprise	-124.07%	-1180.55%

Actual	708.01M	737.64M
Forecast	638.91M	619.31M
Surprise	+10.81%	+19.11%

LGN

LGN fundamentals

LGN Q4 2025 Earnings

Earnings Call

You can ask Aime

LGN

LGN fundamentals

LGN Q4 2025 Earnings

Earnings Call

LGN Earnings Call Summary for Q4/202510:00 AM on Mar 27, 2026

LGN Earnings Call Summary for Q3/202510:00 AM on Nov 14, 2025

You can ask Aime