Legence Q2 Revenue Doubles to $1.26B; Raises Full-Year Guidance

summarizeSummary

Legence Corp. reported Q2 2026 revenue of $1.26 billion, more than double the prior year, and raised full-year guidance. The quarter included significant impairments and a net loss, but record backlog and strong organic growth support the outlook.

check_boxKey Events · Earnings and Guidance · LGN

• Record Q2 Revenue

  Revenue of $1.26 billion, up 110.7% year-over-year; excluding Bowers acquisition, organic growth was 60%.

• Raised Full-Year Guidance

  Full-year 2026 revenue guidance raised to $4.7-$4.8 billion (from $4.1-$4.3B) and Adjusted EBITDA to $565-$585 million (from $470-$490M).

• Record Backlog

  Backlog and awarded contracts reached $5.67 billion, up 104.6% year-over-year, with a book-to-bill ratio of 1.2x.

• Impairments Drive Net Loss

  Net loss attributable to Legence was $27.8 million, including $21.6 million goodwill impairment and $19.5 million long-lived asset impairment.

auto_awesomeAnalysis · LGN · Real Estate & Construction

Record quarterly revenue of $1.26 billion, up 111% year-over-year, was driven by the Bowers acquisition and strong organic growth of 60%. The company raised its full-year 2026 revenue guidance to $4.7-$4.8 billion and Adjusted EBITDA guidance to $565-$585 million, reflecting confidence in continued demand. However, the quarter included a net loss of $27.8 million due to $41.1 million in goodwill and long-lived asset impairments, and gross margin declined to 17.4% from 21.5% a year ago due to revenue mix shift. Backlog and awarded contracts reached a record $5.67 billion, up 105%, providing strong visibility. The balance sheet shows net leverage of 1.6x, which is manageable but reflects the debt taken on for the Bowers acquisition.