Shares of Legence Corp. (LGN) surged 5.7% to $56.00 following the release of its robust fourth-quarter and full-year 2025 financial results. The company reported significant revenue growth, a record backlog, and raised its 2026 outlook, driven by strong demand in mission-critical sectors including data centers, healthcare, and government projects.
Financial Performance: For Q4 2025, Legence posted revenue of $737.6 million, marking a substantial 34.6% increase year-over-year. Full-year revenue reached $2.55 billion, up 21.5% from 2024. Adjusted EBITDA for the quarter was $87.0 million, with a full-year total of $298.8 million. However, the company's net loss attributable to shareholders widened to $59.8 million for the year, compared to $28.6 million in 2024.
Segment Breakdown: The installation and maintenance division was the primary growth driver, with segment revenue jumping 44.4% to $565.1 million in Q4. This growth was fueled by stronger demand for installation, fabrication, and services, particularly from data center and technology clients. The engineering and consulting segment also saw growth, with revenue rising 10.0% to $172.6 million, though gross profit in this segment declined by 7.3% due to shifting revenue mix and margin pressures.
Record Backlog Signals Future Growth: A key highlight was the company's year-end backlog and awarded contracts, which hit a record $3.674 billion—a 48.6% increase from the previous year. This figure excludes the estimated $1.5 billion backlog from the recently acquired Bowers. The installation and maintenance backlog soared 65.8%, largely due to data center demand, while the engineering and consulting backlog grew 16.2%, supported by government and healthcare projects. The Q4 book-to-bill ratio was a strong 1.9x.
Raised 2026 Guidance: Bolstered by the strong finish to 2025 and recent acquisitions, Legence raised its 2026 outlook. The company now anticipates revenue between $3.7 billion and $3.9 billion and forecasts adjusted EBITDA in the range of $400 million to $430 million. The acquisitions of Bowers (completed January 2, 2026) and Metrix (closed March 1, 2026) are expected to expand the company's engineering reach and exposure to new markets like education.
