Legence (LGN) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue reached a record $738 million, up 35% year-over-year, driven primarily by organic growth, with both segments contributing.

• Adjusted EBITDA for Q4 grew 53% to $87 million, with margin expansion to 11.8%.

• Full year 2025 revenue was $2.6 billion, up 22%, and adjusted EBITDA rose 30% to $299 million.

• Backlog and awards surged 49% year-over-year to $3.7 billion, with a Q4 book-to-bill ratio of 1.9x.

• Integration of Bowers Group and acquisition of Metrix expanded capabilities and geographic reach.

Financial highlights

• Q4 adjusted gross profit was $157 million (21.2% margin), up from $112 million (20.5%) in Q4 2024.

• Installation and maintenance segment revenue grew 44% to $565 million, with fabrication services up 53%.

• Engineering and consulting segment revenue increased 10% to $173 million.

• Adjusted SG&A for Q4 was $75 million (10.1% of revenue), up from $59 million (10.8%).

• Interest expense for Q4 was $13.6 million, down $12.7 million year-over-year.

Outlook and guidance

• Q1 2026 revenue guidance: $925–$950 million; adjusted EBITDA: $90–$100 million.

• Full year 2026 revenue guidance raised to $3.7–$3.9 billion; adjusted EBITDA to $400–$430 million.

• Effective tax rate for 2026 expected in the mid-30% to 40% range; cash taxes in low $30 million range.

• CapEx for 2026 estimated at $65 million, with two-thirds for growth, including fabrication capacity expansion.