Record Quarterly Revenues of $1.04 Billion, a 105% Increase from a Year Ago

Excluding Bowers Acquisition, Revenues (non-GAAP) Grew by 57% from a Year Ago(1)

Quarterly Adjusted EBITDA (non-GAAP) Increased 132% from Prior Year(2)

Record Total Backlog and Awards of $5.38 Billion, 104% Increase from a Year Ago, with Q1 Book-to-Bill of 1.2x

Establish Second Quarter 2026 Guidance for Revenue of $1.05 Billion - $1.1 Billion and Non-GAAP Adjusted EBITDA of $115 Million - $125 Million

Raise Full Year 2026 Guidance for Revenue to $4.1 Billion - $4.3 Billion and Non-GAAP Adjusted EBITDA of $470 Million - $490 Million

SAN JOSE, Calif., May 14, 2026 (GLOBE NEWSWIRE) -- Legence Corp. (Nasdaq: LGN) ("Legence" or the "Company") today reported financial results for the first quarter ended March 31, 2026.

"Legence delivered a strong start to the year, as our first quarter 2026 results reflect robust demand and exceptional project execution across the platform," said Jeff Sprau, Chief Executive Officer of Legence. "Revenues more than doubled year over year, from a combination of healthy organic growth in both Installation & Maintenance and Engineering & Consulting segments, alongside significant contributions from recent acquisitions, particularly The Bowers Group ("Bowers"). Our dedicated and skilled craftspeople and engineering professionals continue to deliver complex projects safely, efficiently, and at the highest standards for our customers. We maintain strong visibility into our business, with record quarter-ending backlog and awarded contracts, supported by solid demand and tailwinds across the diverse end markets that we serve."

____________________

(1) Excludes impact of approximately $243.3 million of first quarter 2026 revenues from Bowers. Revenue growth (excluding Bowers) is a non-GAAP financial measure. See the section titled "Non-GAAP Financial Measures" for more information.

(2) Adjusted EBITDA is a non-GAAP financial measure. Definitions of non-GAAP financial measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are included in the section titled "Non-GAAP Financial Measures."

First Quarter 2026 Consolidated Results:

Revenues for the first quarter 2026 totaled $1.04 billion, an increase of 105.1% from $506.0 million for the first quarter 2025. Excluding the impact of the Bowers acquisition, non-GAAP revenue growth was 57.1%. Gross profit for the first quarter 2026 was $186.2 million with gross margin of 17.9%, compared to gross profit of $111.7 million and gross margin of 22.1% for the first quarter 2025. Excluding the impact of compensation related to legacy Series A Interests and Restricted Series C Interests (previously referred to as "legacy profit interest units") paid for by entities outside of Legence, we generated non-GAAP Adjusted Gross Profit of $193.8 million and non-GAAP Adjusted Gross Margin of 18.7% for the first quarter 2026, compared to non-GAAP Adjusted Gross Profit of $110.9 million and non-GAAP Adjusted Gross Margin of 21.9% for the first quarter 2025. Net income attributable to Legence for the first quarter 2026 was $16.1 million, or $0.13 per diluted share, compared to a net loss attributable to Legence of $21.2 million for the first quarter 2025. Net income for the first quarter 2026 was $17.4 million, compared to a net loss of $19.1 million for the first quarter 2025. Non-GAAP Adjusted EBITDA for the first quarter 2026 was $118.1 million, an increase of 132.4% from $50.8 million for the first quarter 2025. Refer to "Non-GAAP Financial Measures" for definitions of revenue growth (excluding Bowers), Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA and Adjusted EBITDA Margin and a reconciliation of each to the most directly comparable GAAP measure.

 
 
Legence Corp. Consolidated Results 
($ in thousands)            Three Months Ended March 31, 
                    -------------------------------------------- 
                                                                     Year over Year 
                           2026                   2025                   Change 
                     -----------------       ---------------      -------------------- 
                        $           %          $          %           $          % 
                    ----------  ----------  --------  ----------  ---------  --------- 
Revenues: 
Engineering & 
 Consulting         $  165,801    16.0%     $145,447    28.7%     $ 20,354    14.0% 
Installation & 
 Maintenance           872,092    84.0%      360,506    71.3%      511,586   141.9% 
                     ---------  ------       -------  ------       ------- 
    Consolidated 
     Revenues       $1,037,893   100.0%     $505,953   100.0%     $531,940   105.1% 
                     ---------  ------       -------  ------       ------- 
 
 
                            Three Months Ended March 31, 
                    -------------------------------------------- 
                                                                     Year over Year 
                           2026                   2025                   Change 
                     -----------------       ---------------      -------------------- 
                        $        % Margin      $       % Margin       $          % 
                    ----------  ----------  --------  ----------  ---------  --------- 
Gross Profit: 
Engineering & 
 Consulting         $   50,413    30.4%     $ 59,653    41.0%     $ (9,240)    (15.5)% 
Installation & 
 Maintenance           135,741    15.6%       52,051    14.4%       83,690   160.8% 
                     ---------               -------               ------- 
    Consolidated 
     Gross Profit   $  186,154    17.9%     $111,704    22.1%     $ 74,450    66.6% 
                     ---------               -------               ------- 
    Non-GAAP 
     Adjusted 
     Gross Profit   $  193,846    18.7%     $110,871    21.9%     $ 82,975    74.8% 
                     ---------               -------               ------- 
 
Non-GAAP Adjusted 
 EBITDA             $  118,101    11.4%     $ 50,819    10.0%     $ 67,282   132.4% 
 
 

Engineering & Consulting Segment Results:

Engineering & Consulting segment revenue for the first quarter 2026 totaled $165.8 million, an increase of 14.0% from $145.4 million for the first quarter 2025, driven by higher demand for Program & Project Management services primarily from education, data centers & technology and other clients including hospitality & entertainment, partially offset by lower revenue from Engineering & Design services primarily from education and mixed use clients.

Engineering & Consulting segment gross profit for the first quarter 2026 totaled $50.4 million, a decrease of 15.5% from $59.7 million for the first quarter 2025. Excluding the impact of compensation related to legacy Series A Interests and Restricted Series C Interests paid for by entities outside of Legence, we generated non-GAAP Adjusted Gross Profit of $55.0 million and non-GAAP Adjusted Gross Margin of 33.2% for the first quarter 2026, compared to non-GAAP Adjusted Gross Profit of $59.2 million and non-GAAP Adjusted Gross Margin of 40.7% for the first quarter 2025. 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 decrease in non-GAAP Adjusted Gross Profit was primarily driven by lower non-GAAP Adjusted Gross Margin, partially offset by higher revenue. The decrease in non-GAAP Adjusted Gross Margin was primarily driven by a higher percentage of subcontractor expenses, a revenue mix shift towards the Program & Project Management service line and lower Engineering & Design margins.

 
 
Engineering & Consulting Segment Results 
($ in thousands)           Three Months Ended March 31, 
                    ------------------------------------------ 
                                                                  Year over Year 
                          2026                  2025                  Change 
                     ---------------       ---------------      ------------------- 
                       $          %          $          %          $          % 
                    --------  ----------  --------  ----------  --------  --------- 
Segment Revenues: 
Engineering & 
 Design             $ 97,571    58.8%     $106,542    73.3%     $(8,971)     (8.4)% 
Program & Project 
 Management           68,230    41.2%       38,905    26.7%      29,325    75.4% 
    Engineering & 
     Consulting 
     Revenues       $165,801   100.0%     $145,447   100.0%     $20,354    14.0% 
                     -------  ------       -------  ------       ------ 
 
 
                           Three Months Ended March 31, 
                    ------------------------------------------ 
                                                                  Year over Year 
                          2026                  2025                  Change 
                     ---------------       --------------- 
                       $       % Margin      $       % Margin      $          % 
                    --------  ----------  --------  ----------  --------  --------- 
Engineering & 
 Consulting Gross 
 Profit             $ 50,413    30.4%     $ 59,653    41.0%     $(9,240)    (15.5)% 
Engineering & 
 Consulting 
 Non-GAAP Adjusted 
 Gross Profit       $ 55,022    33.2%     $ 59,218    40.7%     $(4,196)     (7.1)% 
 
 

Installation & Maintenance Segment Results:

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May 14, 2026 07:00 ET (11:00 GMT)