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."
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(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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