The revenue beat and raised guidance are strong positives, but the GAAP EPS miss and impairment charges create uncertainty. Monitor the Q3 2026 earnings call for details on the impairments and margin trajectory; the stock may trade on the strong top-line momentum and raised outlook, but the GAAP loss could cap upside.
Price Chart
Executive Summary
Legence Corp. reported Q2 2026 revenue of $1.26B (+110.7% YoY), beating the $1.07B consensus, but GAAP EPS of $0.17 missed the $0.33 estimate by 48.3%. The company raised full-year 2026 revenue guidance to $4.7B-$4.8B and Adjusted EBITDA to $565M-$585M, reflecting strong demand and backlog growth. However, the GAAP net loss widened to $27.8M due to $41M in goodwill and long-lived asset impairment charges, and GAAP gross margin contracted to 17.4% from 21.5% a year ago, creating a mixed picture for traders.
Key Financial Metrics
Key Facts
- Q2 2026 revenue of $1.26B (+110.7% YoY) beat consensus of $1.07B.
- GAAP EPS of $0.17 missed consensus of $0.33 by 48.3%.
- GAAP net loss attributable to Legence was $27.8M vs. a loss of $5.3M a year ago.
- Record backlog of $5.67B (+104.6% YoY) with a book-to-bill ratio of 1.2x.
- Full-year 2026 revenue guidance raised to $4.7B-$4.8B (from $4.1B-$4.3B).
- Full-year 2026 Adjusted EBITDA guidance raised to $565M-$585M (from $470M-$490M).
- Non-GAAP Adjusted EBITDA was $154.6M (+114.1% YoY), with margin expanding to 12.2% from 12.1%.
- GAAP gross margin contracted to 17.4% from 21.5% due to mix shift toward lower-margin Installation & Maintenance.
- Recorded $21.6M goodwill impairment and $19.5M long-lived asset impairment in the quarter.
- Net leverage improved to 1.6x from 2.1x at Q1 2026.
Financial Impact
Revenue beat by $190M (+17.8% vs consensus); EPS miss of $0.16 (-48.3% vs consensus); GAAP net loss of $27.8M vs. prior-year loss of $5.3M
Risk Factors
- GAAP net loss widened significantly due to $41M in impairment charges.
- GAAP gross margin compression from 21.5% to 17.4% signals mix shift risk.
- Heavy reliance on data center & technology end market for growth concentration.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-347873 |
| Document: d175420d8k.htm | 0001193125-26-347873 |
| Document: 0001193125-26-347873-index-headers.html | 0001193125-26-347873 |
| Document: 0001193125-26-347873-index.html | 0001193125-26-347873 |
| Document: 0001193125-26-347873.txt | 0001193125-26-347873 |
| 8-K Data (Synthetic) | 0001193125-26-347873 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 13, 2026 7w ago | 8-K | $63.24 $56.65 | ▼ −10.42% | ▼ −8.67% | $53.71 (−15.07%) |
Aug 9, 2026 7w ago | Institutional Cluster | $64.16 $57.04 | ▼ −11.10% | ▼ −10.18% | $53.71 (−16.29%) |
Jul 27, 2026 9w ago | Press Release | $67.63 $56.38 | ▼ −16.63% | ▼ −19.93% | $53.71 (−20.58%) |
Jun 11, 2026 16w ago | 8-K | $86.00 $73.66 | ▼ −14.35% | ▼ −16.13% | $53.71 (−37.55%) |
Jun 11, 2026 16w ago | Institutional Cluster | $85.12 $73.97 | ▼ −13.10% | ▼ −14.99% | $53.71 (−36.90%) |
May 14, 2026 20w ago | 8-K | $89.00 $86.00 | ▼ −3.37% | ▼ −2.51% | $53.71 (−39.65%) |
May 14, 2026 20w ago | Press Release | $89.00 $86.00 | ▼ −3.37% | ▼ −2.51% | $53.71 (−39.65%) |
May 4, 2026 21w ago | Press Release | $91.41 $86.55 | ▼ −5.32% | ▼ −10.96% | $53.71 (−41.24%) |
Apr 29, 2026 22w ago | DEFA14A | $80.74 $83.26 | ▲ +3.12% | ▼ −2.93% | $53.71 (−33.48%) |
Apr 8, 2026 25w ago | 424B4 | $59.75 $102.27 | ▼ −71.16% | ▼ −63.60% | $53.71 (+10.11%) |
US Market Status
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