Legence (LGN) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $1.04 billion, up 105% year-over-year, with organic growth of 57% excluding Bowers and significant contributions from the Bowers acquisition.

• Adjusted EBITDA rose 132% year-over-year to $118.1 million, with margin expansion to 11.4%.

• Net income reached $17.4 million, reversing a net loss of $19.1 million in the prior year quarter.

• Backlog and awarded contracts hit a record $5.4 billion, up 104% year-over-year, with a book-to-bill ratio of 1.2x.

• Integration of Bowers is progressing well, expanding capabilities and geographic reach.

Financial highlights

• Revenue for Q1 2026 was $1,037.9 million, a 105.1% increase year-over-year; organic growth accounted for 57%, with Bowers contributing over $240 million.

• Adjusted gross profit was $194 million (margin 18.7%), up from $110.9 million (21.9%) a year ago; gross profit was $186.2 million (margin 17.9%).

• Free cash flow exceeded $100 million, with cash flow from operations at $120.1 million, up from $29.5 million.

• Net leverage ratio improved to 1.8x from 2.9x nine months ago; total debt was $1.02 billion, with $244.6 million in cash.

• Adjusted SG&A as a percentage of revenue improved to 8% from 12.6% year-over-year.

Outlook and guidance

• Q2 2026 revenue guidance: $1.05–$1.1 billion; adjusted EBITDA: $115–$125 million.

• Full-year 2026 revenue guidance raised to $4.1–$4.3 billion; adjusted EBITDA to $470–$490 million.

• Effective tax rate for 2026 estimated in the mid-20% to low 30% range.

• Management expects sufficient liquidity for at least the next twelve months.

• CapEx for 2026 expected at $65 million, with two-thirds for growth.