Quarterly Adjusted EBITDA (non-GAAP) Increased 53% from Prior Year1
Record Total Backlog and Awards of $3.7 Billion, 49% Increase from a Year Ago, with Robust Q4 Book-to-Bill of 1.9x
Tuck-In Acquisition of Seattle Area-Based Engineering Firm
Establish First Quarter 2026 Guidance for Revenue of $925 Million - $950 Million and Non-GAAP Adjusted EBITDA of $90 Million - $100 Million
Raise Full Year 2026 Guidance for Revenue to $3.7 Billion - $3.9 Billion and Non-GAAP Adjusted EBITDA of $400 Million - $430 Million
SAN JOSE, Calif., March 27, 2026 (GLOBE NEWSWIRE) -- Legence Corp. (NASDAQ:LGN) ("Legence" or the "Company") today reported financial results for the fourth quarter and year ended December 31, 2025.
"Our fourth quarter 2025 performance punctuates a milestone year for Legence," said Jeff Sprau, Chief Executive Officer of Legence. "We achieved record quarterly revenues which increased by 34.6% year over year, driven almost entirely by organic growth. Total backlog and awarded contracts surged by 49% to a record $3.7 billion, led by Data Centers & Technology, along with State & Local Government and Life Science & Healthcare end markets. This exceptional performance is made possible by the dedication of our outstanding team of skilled labor and engineering professionals, who continue to execute at the highest and safest level for our customers.
Our latest results speak to the demand momentum for mission-critical building systems, which we anticipate will continue throughout 2026 and beyond. The combination of robust industry tailwinds, our record backlog, and the strategic addition of The Bowers Group, Inc. ("Bowers"), along with several recent tuck-in acquisitions over the past year, positions Legence for an exciting new phase of growth."
Fourth Quarter and Full Year 2025 Consolidated Results:
Revenues for the fourth quarter 2025 totaled $737.6 million, an increase of 34.6% from $548.2 million for the fourth quarter 2024. Gross profit for the fourth quarter 2025 was $147.5 million with gross margin of 20.0%, compared to gross profit of $112.9 million and gross margin of 20.6% for the fourth quarter 2024. Excluding the impact of stock-based compensation related to legacy profit interest units paid for by entities outside of Legence, we generated non-GAAP Adjusted Gross Profit of $156.6 million and non-GAAP Adjusted Gross Margin of 21.2% for the fourth quarter 2025, compared to non-GAAP Adjusted Gross Profit of $112.3 million and non-GAAP Adjusted Gross Margin of 20.5% for the fourth quarter 2024. Net loss attributable to Legence for the fourth quarter 2025 was $32.7 million, or $(0.55) per diluted share, compared to a net loss of $18.7 million for the fourth quarter 2024. Non-GAAP Adjusted EBITDA for the fourth quarter 2025 was $87.0 million, an increase of 53.2% from $56.8 million for the fourth quarter 2024. Refer to "Non-GAAP Financial Measures" for definitions of Adjusted Gross Profit, Adjusted Gross Margin and Adjusted EBITDA and a reconciliation of each to the most directly comparable GAAP measure.
Legence Corp. Consolidated Results
($ in thousands)
Three Months Ended December 31,
2025
2024
Year over Year Change
$
%
$
%
$
%
Revenues:
Engineering & Consulting
$
172,580
23.4
%
$
156,872
28.6
%
$
15,708
10.0
%
Installation & Maintenance
565,062
76.6
%
391,343
71.4
%
173,719
44.4
%
Consolidated Revenues
$
737,642
100.0
%
$
548,215
100.0
%
$
189,427
34.6
%
Three Months Ended December 31,
2025
2024
Year over Year Change
$
% Margin
$
% Margin
$
%
Gross Profit:
Engineering & Consulting
$
47,779
27.7
%
$
51,518
32.8
%
$
(3,739
)
(7.3)%
Installation & Maintenance
99,709
17.6
%
61,423
15.7
%
38,286
62.3
%
Consolidated Gross Profit
$
147,488
20.0
%
$
112,941
20.6
%
$
34,547
30.6
%
Non-GAAP Adjusted Gross Profit
$
156,560
21.2
%
$
112,315
20.5
%
$
44,245
39.4
%
Non-GAAP Adjusted EBITDA
$
86,981
11.8
%
$
56,788
10.4
%
$
30,193
53.2
%
Revenues for the full year 2025 totaled $2.6 billion, an increase of 21.5% from $2.1 billion for the full year 2024. Gross profit for the full year 2025 was $535.9 million with gross margin of 21.0%, compared to gross profit of $430.8 million and gross margin of 20.5% for the full year 2024. Excluding the impact of stock-based compensation related to legacy profit interest units paid for by entities outside of Legence, we generated non-GAAP Adjusted Gross Profit of $549.7 million and non-GAAP Adjusted Gross Margin of 21.6% for the full year 2025, compared to non-GAAP Adjusted Gross Profit of $432.1 million and non-GAAP Adjusted Gross Margin of 20.6% for the full year 2024. Net loss attributable to Legence for the full year 2025 was $59.8 million, compared to a net loss of $28.6 million for the full year 2024. Non-GAAP Adjusted EBITDA for the full year 2025 was $298.8 million, an increase of 30.1% from $229.6 million for the full year 2024. Refer to "Non-GAAP Financial Measures" for definitions of Adjusted Gross Profit, Adjusted Gross Margin and Adjusted EBITDA and a reconciliation of each to the most directly comparable GAAP measure.
Legence Corp. Consolidated Results
($ in thousands)
Twelve Months Ended December 31,
2025
2024
Year over Year Change
$
%
$
%
$
%
Revenues:
Engineering & Consulting
$
726,293
28.5
%
$
601,602
28.7
%
$
124,691
20.7
%
Installation & Maintenance
1,824,198
71.5
%
1,497,000
71.3
%
327,198
21.9
%
Consolidated Revenues
$
2,550,491
100.0
%
$
2,098,602
100.0
%
$
451,889
21.5
%
Twelve Months Ended December 31,
2025
2024
Year over Year Change
$
% Margin
$
% Margin
$
%
Gross Profit:
Engineering & Consulting
$
238,869
32.9
%
$
205,085
34.1
%
$
33,784
16.5
%
Installation & Maintenance
297,056
16.3
%
225,682
15.1
%
71,374
31.6
%
Consolidated Gross Profit
$
535,925
21.0
%
$
430,767
20.5
%
$
105,158
24.4
%
Non-GAAP Adjusted Gross Profit
$
549,665
21.6
%
$
432,083
20.6
%
$
117,582
27.2
%
Non-GAAP Adjusted EBITDA
$
298,825
11.7
%
$
229,625
10.9
%
$
69,200
30.1
%
Engineering & Consulting Segment Results:
Engineering & Consulting segment revenue for the fourth quarter 2025 totaled $172.6 million, an increase of 10.0% from $156.9 million for the fourth quarter 2024, driven by higher demand for Program & Project Management services, primarily from education and other clients including hospitality & entertainment, partially offset by modestly lower revenue from our Engineering & Design service line, primarily from education and data centers & technology clients.
Engineering & Consulting segment gross profit for the fourth quarter 2025 totaled $47.8 million, a decrease of 7.3% from $51.5 million for the fourth quarter 2024. Excluding the impact of stock-based compensation related to legacy profit interest units paid for by entities outside of Legence, we generated non-GAAP Adjusted Gross Profit of $53.4 million and non-GAAP Adjusted Gross Margin of 30.9% for the fourth quarter 2025, compared to non-GAAP Adjusted Gross Profit of $51.2 million and non-GAAP Adjusted Gross Margin of 32.6% for the fourth quarter 2024. Refer to "Non-GAAP Financial Measures" for definitions of Adjusted Gross Profit and Adjusted Gross Margin and a reconciliation of each to the most directly comparable GAAP measure. The increase in non-GAAP Adjusted Gross Profit was driven by revenue growth, partially offset by lower non-GAAP Adjusted Gross Margin. The decrease in non-GAAP Adjusted Gross Margin was primarily driven by a higher mix of revenue from the Program & Project Management service line and lower Program & Project Management margins.
Engineering & Consulting Segment Results
($ in thousands)
Three Months Ended December 31,
2025
2024
Year over Year Change
$
%
$
%
$
%
Segment Revenues:
Engineering & Design
$
100,848
58.4
%
$
101,583
64.8
%
$
(735
)
(0.7)%
Program & Project Management
71,732
41.6
%
55,289
35.2
%
16,443
29.7
%
Engineering & Consulting Revenues
$
172,580
100.0
%
$
156,872
100.0
%
$
15,708
10.0
%
Three Months Ended December 31,
2025
2024
Year over Year Change
$
% Margin
$
% Margin
$
%
Engineering & Consulting Gross Profit
$
47,779
27.7
%
$
51,518
32.8
%
$
(3,739
)
(7.3)%
Engineering & Consulting Non-GAAP Adjusted Gross Profit
53,405
30.9
%
51,185
32.6
%
2,220
4.3
%
Engineering & Consulting segment revenue for the full year 2025 totaled $726.3 million, an increase of 20.7% from $601.6 million for the full year 2024. Approximately 80% of the revenue increase resulted from the full year impact of acquisitions completed in 2024 and partial impact of an acquisition completed in late 2025. Our Engineering & Design service line revenue increased by 22.8%, driven primarily from life sciences & healthcare and other clients including hospitality & entertainment. Our Program & Project Management service line revenue increased by 17.9%, driven primarily from other clients including hospitality & entertainment.
Engineering & Consulting segment gross profit for the full year 2025 totaled $238.9 million, an increase of 16.5% from $205.1 million for the full year 2024. Excluding the impact of stock-based compensation related to legacy profit interest units paid for by entities outside of Legence, we generated non-GAAP Adjusted Gross Profit of $247.3 million and non-GAAP Adjusted Gross Margin of 34.0% for the full year 2025, compared to non-GAAP Adjusted Gross Profit of $205.9 million and non-GAAP Adjusted Gross Margin of 34.2% for the full year 2024. Refer to "Non-GAAP Financial Measures" for definitions of Adjusted Gross Profit and Adjusted Gross Margin and a reconciliation of each to the most directly comparable GAAP measure. The increase in non-GAAP Adjusted Gross Profit was driven by revenue growth, partially offset by modestly lower non-GAAP Adjusted Gross Margin. The decline in non-GAAP Adjusted Gross Margin was driven by lower Engineering & Design margin, primarily from life sciences & healthcare, state & local government and education clients.
Engineering & Consulting Segment Results
($ in thousands)
Twelve Months Ended December 31,
2025
2024
Year over Year Change
$
%
$
%
$
%
Segment Revenues:
Engineering & Design
$
425,014
58.5
%
$
345,977
57.5
%
$
79,037
22.8
%
Program & Project Management
301,279
41.5
%
255,625
42.5
%
45,654
17.9
%
Engineering & Consulting Revenues
$
726,293
100.0
%
$
601,602
100.0
%
$
124,691
20.7
%
Twelve Months Ended December 31,
2025
2024
Year over Year Change
$
% Margin
$
% Margin
$
%
Engineering & Consulting Gross Profit
$
238,869
32.9
%
$
205,085
34.1
%
$
33,784
16.5
%
Engineering & Consulting Non-GAAP Adjusted Gross Profit
247,282
34.0
%
205,922
34.2
%
41,360
20.1
%
Installation & Maintenance Segment Results:
Installation & Maintenance segment revenue for the fourth quarter 2025 totaled $565.1 million, an increase of 44.4% from $391.3 million for the fourth quarter 2024. The increase was driven by robust demand for our Installation & Fabrication services, primarily from data centers & technology and life sciences & healthcare clients, partially offset by lower revenue from mixed-use and other clients. Additionally, the increase in Maintenance & Service revenue was primarily from data centers & technology clients.
Installation & Maintenance segment gross profit for the fourth quarter 2025 totaled $99.7 million, an increase of 62.3% from $61.4 million for the fourth quarter 2024. Excluding the impact of stock-based compensation related to legacy profit interest units paid for by entities outside of Legence, we generated non-GAAP Adjusted Gross Profit of $103.2 million and non-GAAP Adjusted Gross Margin of 18.3% for the fourth quarter 2025, compared to non-GAAP Adjusted Gross Profit of $61.1 million and non-GAAP Adjusted Gross Margin of 15.6% for the fourth quarter 2024. Refer to "Non-GAAP Financial Measures" for definitions of Adjusted Gross Profit and Adjusted Gross Margin and a reconciliation of each to the most directly comparable GAAP measure. The increase in non-GAAP Adjusted Gross Profit was primarily driven by revenue growth, as well as higher non-GAAP Adjusted Gross Margin. The increase in non-GAAP Adjusted Gross Margin was primarily due to higher margins in the Installation & Fabrication service line, driven by strong project execution, partially offset by a higher mix of revenue from the Installation & Fabrication service line.
Installation & Maintenance Segment Results
($ in thousands)
Three Months Ended December 31,
2025
2024
Year over Year Change
$
%
$
%
$
%
Segment Revenues:
Installation & Fabrication
$
475,406
84.1
%
$
310,269
79.3
%
$
165,137
53.2
%
Maintenance & Service
89,656
15.9
