LGN

Company Overview — What Does Legence Corp. Do?

We are a leading provider of engineering, installation and maintenance services for mission-critical systems in buildings. We focus on high-growth sectors that have technically demanding buildings, including technology, life sciences, healthcare and education. We count more than 60% of the companies in the Nasdaq-100 Index as clients. Our business is growing rapidly as data centers, manufacturers, pharmaceutical companies, hospitals, schools and universities make investments in both new and existing facilities to support growing demand for their products and services, reduce energy costs and increase resiliency. From 2021 to 2024, our revenues grew at a compound annual growth rate of approximately 39% and, after giving pro forma effect to acquisitions we made over that period, 16%. In 2024, we generated more than half of our revenues from “high growth industries,” which we define as clients operating in the data center and technology and life sciences and health care end-markets. As of June 30, 2025, we had $2.8 billion of backlog and awarded contracts, representing an increase of 29% over the same date last year. We specialize in designing, fabricating and installing complex HVAC, process piping and other mechanical, electrical and plumbing (“MEP”) systems for new facilities and upgrading HVAC, lighting and building controls in existing facilities to make them more energy efficient and sustainable. In 2024, we generated 32.5% of our revenues from new building projects and 67.5% of our revenues from retrofits, upgrades and maintenance for existing buildings. Our team includes approximately 1,200 MEP engineers and energy consultants, and approximately 3,400 HVAC and plumbing service technicians, fitters, electricians and sheet metal workers, of which approximately 570 are responsible for providing maintenance services to over 5,900 clients. We completed more than 50,000 jobs each year for clients across the United States during the period from 2021 through 2024. We operate through two complementary segments: Engineering & Consulting and Installation & Maintenance. Our Engineering & Consulting segment designs HVAC and other MEP systems for buildings, develops strategies to help reduce energy usage and make buildings more sustainable and provides program and project management services for clients’ installation and retrofit projects. From 2021 to 2024, our Engineering & Consulting segment revenues grew at a compound annual growth rate of approximately 83% and, after giving pro forma effect to acquisitions we made over that period, approximately 15%. We have completed over 30,000 jobs in our Engineering & Consulting segment since 2019. Our Engineering & Consulting segment generated 28.7% and 47.6% of our revenues and gross profit, respectively, in 2024. Our Installation & Maintenance segment fabricates and installs HVAC systems, process piping and other MEP systems in new and existing industrial, commercial and institutional buildings and provides ongoing preventative and corrective maintenance services for those systems. Some of our installation clients choose to co-locate our employees at their sites to perform renovation and upgrade services on an ongoing basis. We have had an on-site presence with some of our clients for more than 20 years. The preventative maintenance work we perform is recurring pursuant to annual or multi-year contracts. From 2021 to 2024, our Installation & Maintenance segment revenues grew at a compound annual growth rate of approximately 30% and, after giving pro forma effect to acquisitions we made over that period, approximately 16%. Our Installation & Maintenance segment generated 71.3% and 52.4% of our revenues and gross profit, respectively, in 2024. Approximately 25% of our revenues in 2024 were generated from clients that engaged us in both our Engineering & Consulting and Installation & Maintenance segments, after giving pro forma effect to acquisitions made over that period. From 2021 to 2024, our revenues that were generated from clients that engaged us in both segments grew at a compound annual growth rate of approximately 28%, after giving pro forma effect to acquisitions made over that period. Our revenues from clients that engaged us in both our Engineering & Consulting and Installation & Maintenance segments, after giving pro forma effect to acquisitions made as of December 31, 2024, were approximately $545 million, $463 million, $350 million and $260 million, respectively, for the years ended December 31, 2024, 2023, 2022 and 2021. Additionally, six of our top ten clients engaged us in both segments during the period from 2021 to 2024, after giving pro forma effect to acquisitions made over that period. We believe that providing a one-stop solution for engineering, installing and maintaining MEP systems results in lower total cost, fewer change orders and faster turnaround times for our clients and higher win rates, better customer retention, incremental margin and more recurring revenue for us. Our clients include large technology and industrial companies and public sector institutions who contract with us directly to provide services, as well as intermediaries such as architects and general contractors who subcontract MEP services to us as part of a larger project. We served approximately 19,000 clients from 2019 through 2024. In 2024, we generated less than 2% of our revenues from the federal government. Excluding maintenance contracts which can span multiple years, we typically complete most of our jobs within six months. Approximately 70% of our revenues over the period from 2021 to 2024 were from jobs that had contract prices of less than $10 million, after giving pro forma effect to acquisitions made over that period. Our largest client represented approximately 4% of our revenues over the period from 2021 to 2024, after giving pro forma effect to acquisitions made over that period. In certain cases, we manage third-party contractors on behalf of our clients and we may pass those costs on directly to our customers as a specific line item or incorporate them into our overall contract price for the job. In the years ended December 31, 2024 and 2023, respectively, we paid subcontractors approximately $350.7 million and $234.8 million, respectively, in connection with their work on our projects. We also frequently purchase certain equipment that we install in our clients’ buildings. We may pass the cost of equipment on directly to our customers as a specific line item or incorporate the cost into our overall contract price for the job. In the years ended December 31, 2024 and 2023, we spent approximately $457.3 million and $385.8 million, respectively, on equipment for our clients’ projects. Our principal executive offices are located at 1601 Las Plumas Avenue, San Jose, CA. Legence Corp. (LGN) is classified as a mid-cap stock in the Industrials sector, specifically within the Construction industry. The company is led by CEO Jeffrey Sprau and employs approximately 6,000 people, headquartered in SAN JOSE, California. With a market capitalization of $4.0B, LGN is one of the notable companies in the Industrials sector.

Legence Corp. (LGN) Stock Rating — Hold (April 2026)

As of April 2026, Legence Corp. receives a Hold rating with a composite score of 36.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.LGN ranks #1,179 out of 4,446 stocks in our coverage universe. Within the Industrials sector, Legence Corp. ranks #190 of 752 stocks, placing it in the upper half of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

LGN Stock Price and 52-Week Range

Legence Corp. (LGN) currently trades at $63.20. The stock gained $3.45 (5.8%) in the most recent trading session. The 52-week high for LGN is $58.10, which means the stock is currently trading 8.8% from its annual peak. The 52-week low is $26.96, putting the stock 134.4% above its annual trough. Recent trading volume was 4.5M shares, reflecting moderate market activity.

Is LGN Overvalued or Undervalued? — Valuation Analysis

Legence Corp. (LGN) carries a value factor score of 46/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The price-to-book ratio stands at 4.93x, versus the sector average of 2.23x. The price-to-sales ratio is 0.38x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, LGN trades at 6.00x EV/EBITDA, versus 5.70x for the sector.

Overall, LGN's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

Legence Corp. Profitability — ROE, Margins, and Quality Score

Legence Corp. (LGN) earns a quality factor score of 33/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -39.2%, compared to the Industrials sector average of 8.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -11.5% versus the sector average of 3.3%.

On a margin basis, Legence Corp. reports gross margins of 21.0%, compared to 35.8% for the sector. The operating margin is 2.4% (sector: 6.2%). Net profit margin stands at -3.0%, versus 3.9% for the average Industrials stock. Revenue growth is running at 26.3% on a trailing basis, compared to 6.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

LGN Debt, Balance Sheet, and Financial Health

Legence Corp. has a debt-to-equity ratio of 240.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.57x, suggesting adequate working capital coverage. Total debt on the balance sheet is $829M. Cash and equivalents stand at $176M.

LGN has a beta of 2.66, meaning it is more volatile than the broader market — a $10,000 investment in LGN would be expected to move 165.6% more than the S&P 500 on any given day. The stability factor score for Legence Corp. is 36/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.

Legence Corp. Revenue and Earnings History — Quarterly Trend

In TTM 2026, Legence Corp. reported revenue of $2.55B. Net income for the quarter was $-77M. Gross margin was 21.0%. Operating income came in at $62M.

In FY 2025, Legence Corp. reported revenue of $2.55B. Net income for the quarter was $-77M. Gross margin was 21.0%. Operating income came in at $62M.

In Q3 2025, Legence Corp. reported revenue of $708M. Net income for the quarter was $379,000. Gross margin was 20.9%. Operating income came in at $37M.

LGN Dividend Yield and Income Analysis

Legence Corp. (LGN) does not currently pay a dividend. This is common among smaller companies in the Construction industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.

LGN Momentum and Technical Analysis Profile

Legence Corp. (LGN) has a momentum factor score of 48/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 16/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

LGN vs Competitors — Industrials Sector Ranking and Peer Comparison

Within the Industrials sector, Legence Corp. (LGN) ranks #190 out of 752 stocks based on the Blank Capital composite score. This places LGN in the upper half of all Industrials stocks in our coverage universe. Key competitors and sector peers include South Bow Corp (SOBO) with a score of 56.5/100, TSAKOS ENERGY NAVIGATION LTD (TEN) with a score of 61.4/100, Great Lakes Dredge & Dock CORP (GLDD) with a score of 56.7/100, Tri Pointe Homes, Inc. (TPH) with a score of 57.3/100, and Clear Channel Outdoor Holdings, Inc. (CCO) with a score of 52.2/100.

Comparing LGN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full LGN vs S&P 500 (SPY) comparison to assess how Legence Corp. stacks up against the broader market across all factor dimensions.

LGN Next Earnings Date

No upcoming earnings date has been announced for Legence Corp. (LGN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy LGN? — Investment Thesis Summary

Legence Corp. presents a balanced picture with arguments on both sides. The quality score of 33/100 flags below-average profitability. High volatility (stability score 36/100) increases portfolio risk.

In summary, Legence Corp. (LGN) earns a Hold rating with a composite score of 36.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on LGN stock.

Related Resources for LGN Investors

Explore more research and tools: LGN vs S&P 500 comparison, top Industrials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare LGN head-to-head with peers: LGN vs SOBO, LGN vs TEN, LGN vs GLDD.