Legence (LGN) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 revenue of $708 million, up 26% year-over-year, with 39% Adjusted EBITDA growth and a 29% increase in backlog to $3.1 billion, all organic.

• Completed a successful IPO in September 2025, raising $780.2 million in net proceeds, primarily used to repay debt and reduce net leverage to 2.4x.

• Announced the acquisition of Bowers Group for $475 million, enhancing scale in the Northern Virginia/DC data center market, and completed two tuck-in acquisitions (AZPE and IMD) to expand engineering and installation presence.

• Net loss attributable to the company for Q3 2025 was $0.6 million, an improvement from a $1.1 million loss in Q3 2024.

• Backlog and awarded contracts reached $3.1 billion as of September 30, 2025, with a robust book-to-bill ratio of 1.5x.

Financial highlights

• Q3 2025 revenue reached $708 million, up $147 million (26%) from Q3 2024, entirely organic.

• Adjusted EBITDA was $88.8 million, up 39% year-over-year; Adjusted EBITDA margin improved to 12.5%.

• Gross profit increased 25% to $148.1 million; consolidated gross margin was 20.9%.

• Installation & Maintenance segment revenue grew 35% to $495.8 million; Engineering & Consulting segment revenue rose 9.5% to $212.2 million.

• Net loss attributable to the company for Q3 2025 was $0.6 million.

Outlook and guidance

• Q4 2025 standalone revenue guidance: $600–$630 million; Adjusted EBITDA: $60–$65 million.

• Full year 2026 standalone revenue guidance: $2.65–$2.85 billion; Adjusted EBITDA: $295–$315 million, excluding Bowers.

• Bowers expected to contribute $725–$775 million in revenue and $67–$75 million in EBITDA for 2026 (partial year impact).

• Data center and technology end market expected to continue 30% CAGR growth.

• Backlog and awarded contracts support continued revenue growth; book-to-bill ratio above 1.0 in both segments.