Legence Corp Reports 105% Q1 Revenue Surge to $1.04B, Raises Guidance
LGN•Legence Corp posted Q1 revenue of $1.038 billion, up 105% year-over-year, and adjusted EBITDA of $118 million, a 132% increase with margins up 133 basis points to 11.4%. Backlog doubled to $5.4 billion and the company raised full-year revenue guidance to $4.1–4.3 billion and EBITDA guidance to $470–490 million.
1. Q1 Financial Highlights
Legence Corp achieved Q1 revenue of $1.038 billion, marking a 105% year-over-year increase, and delivered adjusted EBITDA of $118 million, up 132% with margins improving by 133 basis points to 11.4%. Gross profit rose 67% to $186 million, while adjusted gross margin was 18.7%.
2. Segment Performance
Installation & maintenance revenue reached $872 million, up 142% year-over-year, driven by Bowers integration. Engineering & consulting revenue climbed 14% to $166 million, but its gross margin declined from 40.7% to 33.2% due to a mix shift toward lower-margin services and higher subcontractor costs.
3. Backlog and Cash Flow
The company’s backlog and awards swelled 104% to $5.4 billion, providing strong revenue visibility. Free cash flow topped $100 million, converting over 85% of adjusted EBITDA, while net leverage improved to 1.8 times from 2.9 times nine months earlier.
4. Raised 2026 Guidance
Legence Corp lifted its full-year 2026 revenue outlook to $4.1–4.3 billion and adjusted EBITDA projection to $470–490 million. With leverage below 2 times, management highlights increased flexibility for targeted bolt-on acquisitions.
