Legence Corp. (LGN) Q1 2026 Financial Results Summary

Release Date: May 14, 2026

Legence Corp. (Nasdaq: LGN) reported its financial results for the first quarter of 2026, ending March 31, 2026. The company demonstrated significant growth across various financial metrics primarily driven by robust demand and operational execution.

Key Highlights:

• Revenue:
  • Total revenue for Q1 2026 was $1.04 billion, which represents a 105.1% increase from $506.0 million in Q1 2025.
  • Excluding the impact of the Bowers acquisition, revenue growth was 57.1% year-over-year.
• Adjusted EBITDA:
  • Q1 Adjusted EBITDA reached $118.1 million, an increase of 132.4% from $50.8 million in Q1 2025.
• Gross Profit:
  • Gross profit rose to $186.2 million, compared to $111.7 million a year ago, resulting in a gross margin of 17.9% (down from 22.1% in Q1 2025).
  • Non-GAAP Adjusted Gross Profit was $193.8 million with an Adjusted Gross Margin of 18.7%.
• Net Income:
  • Net income attributable to Legence for the first quarter was $16.1 million, compared to a net loss of $21.2 million in Q1 2025.
  • The diluted earnings per share were $0.13.
• Segments Performance:
  • Engineering & Consulting:
    • Revenue was $165.8 million (up 14.0%) year-over-year.
    • Gross profit was $50.4 million, a decrease of 15.5%.
  • Installation & Maintenance:
    • Revenue surged to $872.1 million, representing a 141.9% increase.
    • Gross profit rose to $135.7 million, an increase of 160.8%.
• Backlog and Awards:
  • The total backlog and awarded contracts reached $5.38 billion, up 104% from $2.64 billion in Q1 2025.
  • The book-to-bill ratio was 1.2x.
• Balance Sheet:
  • Cash and equivalents were approximately $244.6 million, with total debt amounting to about $1.02 billion, resulting in a net leverage ratio of 2.1 times.

Guidance:

• Q2 2026 Guidance:
  • Expected revenue to range between $1.05 billion and $1.1 billion.
  • Non-GAAP Adjusted EBITDA guidance is projected at $115 million to $125 million.
• Full-Year 2026 Guidance:
  • Revenue forecast raised to $4.1 billion to $4.3 billion (from previous guidance of $3.7 billion to $3.9 billion).
  • Non-GAAP Adjusted EBITDA increased to $470 million to $490 million (up from $400 million to $430 million).

Shareholder Returns:

• The company announced no declaration of a quarterly dividend for this period.
• There was no mention of share repurchase plans in the report.

Conclusion:

Legence has posted remarkable financial results for Q1 2026, with double-digit growth across revenue, adjusted EBITDA, and gross profit. The strong performance has led to increased guidance for the remainder of the year, reflecting the company's robust market position and operational capabilities.

Here are the extracted tables from the provided press release.

Note: All amounts in the following tables are in thousands.

Legence Corp. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited)

Three Months Ended March 31,	2026	2025
Revenue	$1,037,893	$505,953
Cost of revenue	851,739	394,249
Gross profit	186,154	111,704
Selling, general and administrative	116,095	69,459
Depreciation and amortization	36,828	26,092
Acquisition-related costs	11,432	157
Gain on sale of property and equipment	(64)	(98)
Equity in earnings of joint venture	(504)	(460)
Income from operations	22,367	16,554
Other expense (income):
Interest expense (including $1,680 and $4,296 for the three months in 2026 and 2025, respectively, from related parties)	17,000	29,641
Interest income	(1,320)	(755)
Credit agreement amendment fees	3,243	2,877
Other income, net	(569)	(108)
Total other expense, net	18,354	31,655
Income (loss) before income tax	4,013	(15,101)
Income tax (benefit) expense	(13,381)	4,038
Net income (loss)	17,394	(19,139)
Net income attributable to noncontrolling interests	1,300	2,074
Net income (loss) attributable to Legence	$16,094	(21,213)
Earnings per share:
Basic	$0.24
Diluted	$0.13
Weighted-average Class A Common Stock outstanding	Basic 67,151
Diluted	108,431

Legence Corp. Condensed Consolidated Balance Sheets (In thousands) (Unaudited)

March 31, 2026	December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$244,620	$230,166
Accounts receivable, net	827,255	584,060
Contract assets, net	355,750	259,941
Prepaid expenses and other current assets	42,974	36,179
Total current assets	1,470,599	1,110,346
Property and equipment, net of accumulated depreciation of $106,729 and $98,650 as of March 31, 2026 and December 31, 2025, respectively	115,361	92,333
Operating lease right-of-use assets (including $19,082 and $20,025 as of March 31, 2026 and December 31, 2025, respectively, from related parties)	143,794	117,139
Goodwill	841,958	764,336
Intangible assets, net	843,266	551,420
Other assets	68,130	43,822
Total assets	$3,483,108	$2,679,396
Liabilities and Equity
Current liabilities:
Accounts payable	$350,316	$246,161
Accrued compensation and benefits	120,264	68,064
Accrued and other current liabilities	73,849	16,475
Contract liabilities	543,280	339,462
Current portion of operating lease liabilities (including $3,946 and $3,920 as of March 31, 2026 and December 31, 2025, respectively, from related parties)	27,402	21,300
Current portion of long-term debt	18,297	16,694
Total current liabilities	1,133,408	708,156
Long-term debt, net of current portion (including $96,545 and $84,735 as of March 31, 2026 and December 31, 2025, respectively, from related parties)	1,008,769	812,398
Operating lease liabilities, net of current portion (including $16,290 and $17,282 as of March 31, 2026 and December 31, 2025, respectively, from related parties)	123,250	103,762
Tax receivable agreement liability—related party	208,838	207,448
Deferred tax liabilities, net	45,149	46,714