Legence Corp. (NASDAQ:LGN) delivered a stronger-than-expected third-quarter report on Friday, posting revenue of $708 million—well above analyst forecasts of $638.93 million—and representing a 26% year-over-year surge in its first earnings release since going public.
The engineering and installation services firm reported adjusted EBITDA of $88.8 million, up 39% from the same period last year. Despite the operational strength, Legence logged a small net loss of -$0.02 per share for the quarter ending September 30. Shares rallied 5.8% after the announcement, buoyed by the company’s substantial revenue outperformance and robust growth in backlog.
“I am extremely proud of our entire Legence team for the successful initial public offering,” said Jeff Sprau, Chief Executive Officer of Legence. “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.”
Legence reported a record combined backlog and awards of $3.1 billion, reflecting a 29% increase from a year earlier, with a book-to-bill ratio of 1.5x. The Installation & Maintenance division led the way, generating $495.8 million in revenue—up 35.1% year-over-year—driven largely by strong project demand from data centers and healthcare clients.
The company also announced a definitive agreement to acquire Bowers, a mechanical contractor serving the Northern Virginia and Washington, D.C. metro area, in a $475 million deal. This transaction follows two smaller acquisitions completed on October 1.
Looking ahead, Legence expects fourth-quarter 2025 revenue between $600 million and $630 million, alongside adjusted EBITDA of $60 million to $65 million. For full-year 2026, the company projects revenue of $2.65–$2.85 billion and adjusted EBITDA ranging from $295 million to $315 million.
Legence also reduced its total debt to $836 million and net debt to $650 million following its IPO, supported by offering proceeds and strong operating cash flow.