Legence Corp. (LGN) Stock: Jumps 5.7% as Revenue Surges 34% and Backlog Hits Record $3.7B

TLDR

• Legence stock jumps 5.7% as Q4 revenue surges 34% year over year
• Backlog hits record $3.7B, signaling strong future demand momentum
• Installation segment drives growth with 44% revenue increase in Q4
• Legence raises 2026 outlook with revenue forecast up to $3.9B
• Strong data center demand boosts orders and long-term growth outlook

Legence Corp. shares climbed 5.7% to $56.00 after the company posted strong fourth quarter and full-year 2025 results. Revenue rose sharply, while backlog reached a record level and supported a stronger growth outlook. The update also showed rising demand across mission-critical projects, especially in data centers, healthcare, and government work, and improved its 2026 growth outlook materially from here.

Legence Corp. Class A Common stock, LGN

Revenue Growth Strengthens Across Core Operations

Legence posted fourth-quarter 2025 revenue of $737.6 million, up 34.6% from the prior year period. Full-year revenue reached $2.55 billion, which marked a 21.5% increase from 2024. Meanwhile, adjusted EBITDA climbed to $87.0 million for the quarter and $298.8 million for the year.

The company’s installation and maintenance division drove most of the expansion during the quarter. Segment revenue increased 44.4% to $565.1 million on stronger installation, fabrication, and service demand. Data center and technology clients led activity, while life sciences and healthcare projects also added support.

Engineering and consulting revenue also improved, although margins softened during the quarter. Segment revenue rose 10.0% to $172.6 million, supported by program and project management demand. However, gross profit fell 7.3% as revenue mix shifted and margins narrowed in key service lines.

Profitability and Orders Point to Stronger Demand

Legence also reported stronger full-year profitability on an adjusted basis despite wider net losses under GAAP. Full-year gross profit rose to $535.9 million, while adjusted gross margin reached 21.6%. Net loss attributable to the company widened to $59.8 million from $28.6 million a year earlier.

Backlog and awarded contracts reached $3.674 billion at year-end 2025, up 48.6% year over year. The fourth-quarter book-to-bill ratio improved to 1.9x, while the twelve-month ratio reached 1.6x. That performance reflected sustained order strength and stronger project wins across major end markets.

Installation and maintenance backlog rose 65.8%, driven mainly by data center and technology demand. Engineering and consulting backlog increased 16.2%, supported by government and healthcare-related work. The year-end backlog excluded Bowers, which Legence estimated added about $1.5 billion separately.

Guidance Rises as Acquisitions Expand Reach

Management also raised 2026 guidance after the strong finish to 2025 and recent acquisition activity. Legence now expects 2026 revenue between $3.7 billion and $3.9 billion. It also forecast adjusted EBITDA of $400 million to $430 million for the year.

The company completed the Bowers acquisition on January 2, 2026, and closed Metrix on March 1. Metrix expands engineering reach in the Pacific Northwest and adds exposure to the education market. Legence ended 2025 with $230.2 million in cash and about $825.1 million in total debt.