Legence shares surge on earnings beat and raised guidance

Investing.com -- Legence Corp. (NASDAQ: LGN) reported first-quarter results that exceeded analyst expectations and raised its full-year outlook, sending shares up 9% premarket as investors responded positively.

The company posted adjusted earnings per share of $0.13, beating the analyst estimate of $0.08 by $0.05. Revenue reached a record $1.04 billion, representing a 105% increase YoY from $506.0 million in the first quarter of 2025. Excluding the Bowers acquisition, revenue grew 57% YoY. The company attributed the strong results to robust demand and exceptional project execution across its platform, with particular strength in data centers and technology end markets.

For the second quarter of 2026, the company expects revenue of $1.05 billion to $1.1 billion, with a midpoint of $1.075 billion that substantially exceeds the analyst consensus of $930 million. The company also raised its full-year 2026 revenue guidance to $4.1 billion to $4.3 billion from a prior range of $3.7 billion to $3.9 billion, with the midpoint of $4.2 billion well above the consensus estimate of $3.89 billion.

For the second quarter, Legence expects adjusted EBITDA of $115 million to $125 million. Full-year adjusted EBITDA guidance was raised to $470 million to $490 million from $400 million to $430 million previously.

"Legence delivered a strong start to the year, as our first quarter 2026 results reflect robust demand and exceptional project execution across the platform," said Jeff Sprau, Chief Executive Officer of Legence. "Revenues more than doubled year over year, from a combination of healthy organic growth in both Installation & Maintenance and Engineering & Consulting segments, alongside significant contributions from recent acquisitions, particularly The Bowers Group."

Adjusted EBITDA for the first quarter increased 132% to $118.1 million from $50.8 million in the prior-year period. The company also reported record total backlog and awards of $5.38 billion, a 104% increase YoY, with a first-quarter book-to-bill ratio of 1.2x.

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