Legence (LGN) Q1 2026 earnings summary

Executive summary

• First quarter 2026 revenue more than doubled year-over-year to $1.04 billion, driven by strong organic growth and acquisitions, notably Bowers, with organic revenue up 57% excluding Bowers.

• Adjusted EBITDA rose 132% year-over-year to $118 million, with margin expansion to 11.4%.

• Net income swung to $17.4 million from a loss of $19.1 million in Q1 2025, reflecting improved operating performance and tax benefits.

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

• Major acquisitions expanded capabilities and geographic reach, with Bowers adding mechanical contracting and Metrix enhancing engineering services.

Financial highlights

• Revenue: $1.04 billion, up 105% year-over-year; Bowers contributed $243.3 million.

• Adjusted EBITDA: $118 million, up 132% year-over-year; margin improved to 11.4%.

• Adjusted gross profit: $194 million; adjusted gross margin 18.7% vs. 21.9% prior year, reflecting mix shift.

• Net income for Q1 2026 was $17.4 million, compared to a net loss of $19.1 million last year.

• Cash flow from operations was $120.1 million, up from $29.5 million.

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 (from $3.7–$3.9 billion); adjusted EBITDA to $470–$490 million (from $400–$430 million).

• Backlog and awarded contracts reached $5.38 billion, up from $2.64 billion a year ago.

• Management expects sufficient liquidity for at least the next twelve months, with $244.6 million in cash and $169.3 million available under the revolver.

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