Quarterly Adjusted EBITDA (non-GAAP) Increased 39% from Prior Year
Record Total Backlog and Awards of $3.1 Billion, 29% Increase from a Year Ago, with Robust Book-to-Bill of 1.5x
Signed Definitive Agreement to Acquire Bowers, a Premier Mechanical Contractor in the Northern Virginia/DC MetroArea for Total Consideration of $475 Million
Tuck-In Acquisitions of Engineering Firm and Mechanical Contractor Provide Cross Selling Opportunities andAccess to Strategic End Markets
Total Debt and Net Debt (non-GAAP) Declines to $836 Million and $650 Million, respectively, on IPO Proceedsand Strong Cash Generation1
Establish Fourth Quarter 2025 Guidance for Revenue of $600 Million - $630 Million and Non-GAAP AdjustedEBITDA of $60 Million - $65 Million
Establish Full Year 2026 Guidance for Revenue of $2.65 Billion - $2.85 Billion and Non-GAAP Adjusted EBITDAof $295 Million - $315 Million
SAN JOSE, Calif., Nov. 14, 2025 (GLOBE NEWSWIRE) -- Legence Corp. (NASDAQ:LGN) ("Legence" or the "Company") today reported financial results for the third quarter ended September 30, 2025.
Jeff Sprau, Chief Executive Officer of Legence, commented, "I am extremely proud of our entire Legence team for the successful initial public offering, and extend my sincere gratitude to the many investors who have placed their trust and confidence with us. 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, fueled by strong demand for our services across key end markets. We are also delivering on our strategic commitment to reduce leverage, through a combination of debt paydown with proceeds from the IPO and operational execution that resulted in healthy cash generation. We remain optimistic about our future, as the comprehensive capabilities of our Legence team coupled with the market trends that have propelled our success to date, provide a firm basis for our positive outlook."
Third Quarter 2025 Consolidated Results:
Revenues for the third quarter of 2025 totaled $708.0 million, an increase of 26.2% from $560.8 million for the third quarter of 2024. Gross profit for the third quarter of 2025 was $148.1 million with gross margin of 20.9%, compared to gross profit of $118.5 million and gross margin of 21.1% for the third quarter of 2024. Net loss attributable to Legence for the third quarter of 2025 was $(0.6) million, or $(0.02) per diluted share, compared to a net loss of $1.1 million for the third quarter of 2024. Non-GAAP Adjusted EBITDA for the third quarter of 2025 was $88.8 million, an increase of 38.9% from $64.0 million for the third quarter of 2024. Refer to "Non-GAAP Financial Measures" for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure.
Legence Corp. Consolidated Results($ in thousands)
Three Months Ended September 30,
2025
2024
Year over Year Change
$
%
$
%
$
%
Revenues:
Engineering & Consulting
$
212,172
30.0
%
$
193,797
34.6
%
$
18,375
9.5
%
Installation & Maintenance
495,834
70.0
%
367,007
65.4
%
128,827
35.1
%
Consolidated Revenues
$
708,006
100.0
%
$
560,804
100.0
%
$
147,202
26.2
%
Three Months Ended September 30,
2025
2024
Year over Year Change
$
% Margin
$
% Margin
$
%
Gross Profit:
Engineering & Consulting
$
67,326
31.7
%
$
63,945
33.0
%
$
3,381
5.3
%
Installation & Maintenance
80,733
16.3
%
54,601
14.9
%
$
26,132
47.9
%
Consolidated Gross Profit
$
148,059
20.9
%
$
118,546
21.1
%
$
29,513
24.9
%
Non-GAAP Adjusted EBITDA
$
88,821
12.5
%
$
63,956
11.4
%
$
24,865
38.9
%
Engineering & Consulting Segment Results:
Engineering & Consulting segment revenue for the third quarter of 2025 totaled $212.2 million, an increase of 9.5% from $193.8 million for the third quarter of 2024, driven by higher demand for Engineering & Design service line, primarily from state & local government and life sciences & healthcare clients, and higher demand for Program & Project Management service line, primarily from hospitality & entertainment, partially offset by lower revenue from state & local government, education, and mixed-use clients.
Engineering & Consulting segment gross profit for the third quarter of 2025 totaled $67.3 million, an increase of 5.3% from $63.9 million for the third quarter of 2024. The increase was driven by organic revenue growth, partially offset by a slightly lower gross margin. The modest decrease in gross margin was driven by a higher percentage of subcontractor expenses and lower margin for the Engineering & Design service line, primarily from life sciences & healthcare and education clients, partially offset by a modest revenue mix shift towards the Engineering & Design service line.
Engineering & Consulting Segment Results($ in thousands)
Three Months Ended September 30,
2025
2024
Year over Year Change
$
%
$
%
$
%
Segment Revenues:
Engineering & Design
$
110,939
52.3
%
$
99,712
51.5
%
$
11,227
11.3
%
Program & Project Management
101,233
47.7
%
94,085
48.5
%
7,148
7.6
%
Engineering & Consulting Revenues
$
212,172
100.0
%
$
193,797
100.0
%
$
18,375
9.5
%
Three Months Ended September 30,
2025
2024
Year over Year Change
$
% Margin
$
% Margin
$
%
Engineering & Consulting Gross Profit
$
67,326
31.7
%
$
63,945
33.0
%
$
3,381
5.3
%
Installation & Maintenance Segment Results:
Installation & Maintenance segment revenue for the third quarter of 2025 totaled $495.8 million, an increase of 35.1% from $367.0 million for the third quarter of 2024. The increase was primarily due to greater demand in the Installation & Fabrication service line, primarily from data centers & technology as well as life sciences & healthcare clients, partially offset by lower revenue from mixed-use clients and hospitality & entertainment clients. Additionally, the revenue increase in our Maintenance & Service business was primarily due to strong demand from data centers & technology as well as life sciences & healthcare clients.
Installation & Maintenance segment gross profit for the third quarter of 2025 totaled $80.7 million, an increase of 47.9% from $54.6 million for the third quarter of 2024. The increase was primarily driven by strong revenue growth in both the Installation & Fabrication and Maintenance & Service service lines, as well as higher margins in the Installation & Fabrication service line, driven by strong project execution, partially offset by a revenue mix shift towards the Installation & Fabrication service line.
Installation & Maintenance Segment Results($ in thousands)
Three Months Ended September 30,
2025
2024
Year over Year Change
$
%
$
%
$
%
Segment Revenues:
Installation & Fabrication
$
408,717
82.4
%
$
289,428
78.9
%
$
119,289
41.2
%
Maintenance & Service
87,117
17.6
%
77,579
21.1
%
9,538
12.3
%
Installation & Maintenance Revenues
$
495,834
100.0
%
$
367,007
100.0
%
$
128,827
35.1
%
Three Months Ended September 30,
2025
2024
Year over Year Change
$
% Margin
$
% Margin
$
%
Installation & Maintenance Gross Profit
$
80,733
16.3
%
$
54,601
14.9
%
$
26,132
47.9
%
Backlog and Awarded Contracts2
Backlog and awarded contracts totaled $3.1 billion at September 30, 2025, an increase of 29.4% from $2.4 billion at September 30, 2024. The consolidated book-to-bill ratio was 1.5x for the three month period ended September 30, 2025. Engineering & Consulting segment backlog and awarded contracts increased by 1.5% year over year, as growth in the state & local government end market was largely offset by education, data centers & technology and mixed-use end markets. Installation & Maintenance segment backlog and awarded contracts increased by 45.9% year over year, primarily driven by new projects within the data center & technology and life science & healthcare end markets, partially offset by the education end market.
Backlog and Awarded Contracts($ in thousands)
As of September 30,
Year over Year Change
2025
2024
$
%
Engineering & Consulting
$
894,734
$
881,469
$
13,265
1.5
%
Installation & Maintenance
2,170,714
1,488,102
682,612
45.9
%
Total Backlog and Awarded Contracts
$
3,065,448
$
2,369,571
$
695,877
29.4
%
Book-to-bill ratio for the three months ended September 30
1.5
x
1.3
x
