Legence (LGN) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 2025 revenue of $738 million, up 35% year-over-year, with most growth organic and both segments contributing.

• Adjusted EBITDA grew 53% in Q4 2025, with margin expansion of 140 basis points; full-year adjusted EBITDA rose 30%.

• Backlog and awarded contracts reached a record $3.7 billion, up 49% year-over-year, with a Q4 book-to-bill ratio of 1.9x.

• Integration of Bowers Group and acquisition of Metrix expanded capabilities and regional presence.

• Labor force expanded to 6,600 skilled craftspeople, supporting execution and growth.

Financial highlights

• Q4 2025 revenue: $738 million (+35% YoY); full-year 2025 revenue: $2.6 billion (+22% YoY).

• Q4 2025 adjusted gross profit: $157 million (21.2% margin), up from $112 million (20.5%) YoY.

• Q4 2025 adjusted EBITDA: $87 million (+53% YoY), margin 11.8% (+140 bps YoY).

• Full-year 2025 adjusted EBITDA: $299 million (+30% YoY), margin 11.7% (+80 bps YoY).

• Net leverage ratio declined to 2x at year-end 2025; cash balance at year-end: $230 million.

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.

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

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