Legence (LGN) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $1.3 billion in Q2 2026, up 111% year-over-year, with organic growth (excluding Bowers acquisition) of 60%.

• Adjusted EBITDA rose 114% year-over-year to $155 million, with margin expansion and Adjusted Gross Profit increasing to $234 million.

• Backlog and awarded contracts reached a record $5.7 billion, up 105% year-over-year, with a book-to-bill ratio of 1.2x.

• Net loss for Q2 2026 was $34.6 million, compared to a loss of $3.9 million in Q2 2025, impacted by higher compensation, goodwill and asset impairments, and acquisition-related costs.

• Data center and technology end markets led growth, with strong contributions from life sciences, healthcare, education, and manufacturing.

Financial highlights

• Q2 2026 revenue: $1.262 billion, up $663 million (111%) from Q2 2025; Bowers Group contributed ~$300 million.

• Adjusted EBITDA: $155 million, up 114% year-over-year; margin improved to 12.2%.

• Adjusted gross profit: $234 million; adjusted gross margin: 18.5% (down from 21.8% in Q2 2025).

• Net loss for Q2 2026: $34.6 million; gross profit: $220.2 million (17.4% margin).

• Cash and cash equivalents at quarter end: $292 million; total debt: just over $1 billion.

Outlook and guidance

• Q3 2026 revenue guidance: $1.225–$1.275 billion; adjusted EBITDA: $150–$160 million.

• Full-year 2026 revenue guidance raised to $4.7–$4.8 billion; adjusted EBITDA to $565–$585 million.

• Guidance increase reflects Q2 outperformance, growing backlog, and strong execution.

• Management expects liquidity to be sufficient for ongoing requirements for at least the next twelve months.