The combination of a massive revenue beat, record backlog, and meaningfully raised guidance across both revenue and EBITDA signals accelerating momentum in data center and mission-critical construction. Watch for continued organic growth trajectory in Q2 (guided $1.05B-$1.1B revenue) and margin expansion as Bowers integration scales. The 1.2x book-to-bill suggests sustained demand visibility.
Price Chart
Executive Summary
Legence Corp. reported Q1 2026 revenue of $1.04B (+105% YoY, +57% organic ex-Bowers) and GAAP diluted EPS of $0.13, beating the $0.17 consensus on an adjusted basis. The company raised full-year 2026 revenue guidance to $4.1B-$4.3B and Adjusted EBITDA guidance to $470M-$490M, reflecting strong demand in data center and technology end markets, record backlog of $5.38B, and successful integration of the Bowers acquisition.
Key Financial Metrics
Key Facts
- Record quarterly revenue of $1.04B, up 105.1% YoY (57.1% organic ex-Bowers)
- GAAP net income attributable to Legence of $16.1M ($0.13 diluted) vs net loss of $21.2M in Q1 2025
- Non-GAAP Adjusted EBITDA of $118.1M, up 132.4% YoY
- Record backlog and awarded contracts of $5.38B, up 103.9% YoY
- Full-year 2026 revenue guidance raised to $4.1B-$4.3B (from $3.7B-$3.9B)
- Full-year 2026 Adjusted EBITDA guidance raised to $470M-$490M (from $400M-$430M)
- Installation & Maintenance segment revenue grew 141.9% YoY (74.4% organic ex-Bowers)
- Cash from operations of $120.1M vs $29.5M in prior year quarter
- Net leverage of 2.1x; adjusted net leverage of 1.8x including Bowers EBITDA
Financial Impact
Revenue beat consensus by ~$107M (11.5%); Adjusted EBITDA beat prior guidance midpoint by ~$23M (24%); guidance raised by $400M at the revenue midpoint and $65M at the EBITDA midpoint
Risk Factors
- Engineering & Consulting gross margin compressed to 30.4% from 41.0% YoY due to mix shift and subcontractor costs
- Total debt increased to $1.02B from $825M at year-end 2025, funded Bowers acquisition
- Integration risk from Bowers ($325M upfront) and Metrix ($30M) acquisitions
- GAAP net income margin remains thin at 1.7%; heavy stock-based compensation ($40.4M in Q1) dilutes EPS
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-222792 |
| Document: d151193d8k.htm | 0001193125-26-222792 |
| Document: 0001193125-26-222792-index-headers.html | 0001193125-26-222792 |
| Document: 0001193125-26-222792-index.html | 0001193125-26-222792 |
| Document: 0001193125-26-222792.txt | 0001193125-26-222792 |
| 8-K Data (Synthetic) | 0001193125-26-222792 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 13, 2026 7w ago | 8-K | $63.24 $56.65 | ▼ −10.42% | ▼ −8.67% | $53.61 (−15.23%) |
Aug 9, 2026 7w ago | Institutional Cluster | $64.16 $57.04 | ▼ −11.10% | ▼ −10.18% | $53.61 (−16.44%) |
Jul 27, 2026 9w ago | Press Release | $67.63 $56.38 | ▼ −16.63% | ▼ −19.93% | $53.61 (−20.73%) |
Jun 11, 2026 16w ago | 8-K | $86.00 $73.66 | ▼ −14.35% | ▼ −16.13% | $53.61 (−37.66%) |
Jun 11, 2026 16w ago | Institutional Cluster | $85.12 $73.97 | ▼ −13.10% | ▼ −14.99% | $53.61 (−37.02%) |
May 14, 2026 20w ago | 8-K | $89.00 $86.00 | ▼ −3.37% | ▼ −2.51% | $53.61 (−39.76%) |
May 14, 2026 20w ago | Press Release | $89.00 $86.00 | ▼ −3.37% | ▼ −2.51% | $53.61 (−39.76%) |
May 4, 2026 21w ago | Press Release | $91.41 $86.55 | ▼ −5.32% | ▼ −10.96% | $53.61 (−41.35%) |
Apr 29, 2026 22w ago | DEFA14A | $80.74 $83.26 | ▲ +3.12% | ▼ −2.93% | $53.61 (−33.60%) |
Apr 8, 2026 25w ago | 424B4 | $59.75 $102.27 | ▼ −71.16% | ▼ −63.60% | $53.61 (+10.28%) |
US Market Status
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