Legence IPO: how to trade Legence shares

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When was the Legence IPO?

Legence Corp, a US-based engineering and building systems services provider, completed its highly anticipated initial public offering (IPO) on 12 September 2025. The company, formerly known as Therma Holdings, is backed by Blackstone and achieved a valuation of $3.2 billion (Reuters, 12 September 2025).

The company priced 26 million shares at $28.00 each, raising $728 million. The stock began trading on the Nasdaq under the ticker symbol 'LGN', with Goldman Sachs and Jefferies serving as lead bookrunners.

Key factors that influenced the IPO timing included:

• Resurgent IPO market: after a slowdown, US equity markets saw renewed demand for high-quality offerings. Legence capitalised on this stronger backdrop.
• Sector tailwinds: Legence specialises in sustainable building infrastructure, benefiting from the boom in data centres, life sciences, and clean-energy retrofits.
• Backlog strength: as of June 30, 2025, the company reported a $2.8bn project backlog, with nearly 40% tied to data centre contracts.
• Debt management: proceeds were expected to reduce Legence's debt load of approximately $1.6 billion, giving the firm more flexibility for acquisitions.
• Private equity exit: Blackstone acquired Legence (then Therma) in 2020 and pursued an aggressive roll-up strategy; the IPO provided a liquidity event.

The IPO was underwritten by Goldman Sachs, Jefferies, UBS, and Morgan Stanley, with additional banks joining the syndicate.

The IPO priced on 11 September 2025, making it one of the year's largest US engineering services listings.

What is Legence?

Legence is a building systems engineering company with a strong focus on energy efficiency, HVAC systems, and sustainable infrastructure solutions. Based in San Jose, California, the company traces its origins back more than a century through its predecessor, Therma Holdings, which began as a family-run plumbing and HVAC business.

In 2020, Blackstone acquired Therma and rebranded it as Legence, signalling its evolution into a platform company. Since then, Legence has rapidly grown by acquiring regional engineering, consulting, and sustainability firms. Recent acquisitions include AO Reed, OCI Associates, P2S, and Corporate Sustainability Strategies.

Legence positions itself as a ‘decarbonisation partner’, serving mission-critical industries that require highly efficient building systems. Its customers include technology companies, hospitals, pharmaceutical labs, and data centers. The company reports that it works with more than 60% of Nasdaq-100 firms, demonstrating its reach in technology and life sciences.

Key milestones in Legence’s history

• 1906 – origins of Therma as a plumbing and HVAC firm in San Jose, CA.
• 2000s – expands into large-scale data center and hospital infrastructure projects.
• 2020 – Blackstone acquires Therma, rebrands as Legence.
• 2021-2024 – expands via acquisitions into consulting, MEP engineering, and sustainability services.
• 2025 – completed IPO on Nasdaq, achieving around $3.2 billion valuation.

Legence’s key features

• MEP expertise – mechanical, electrical, and plumbing systems for complex facilities.
• Energy efficiency focus – retrofits and upgrades that reduce emissions and costs.
• Consulting arm – advises on ESG strategies and decarbonisation.
• National footprint – offices across the US with projects nationwide.
• High-profile clients – data centres, life sciences, and healthcare providers.

Legence now operates offices across California, the Pacific Northwest, Texas, and the Mid-Atlantic, with projects spanning every major US region. Beyond its stronghold in data centres, Legence has executed projects in hospitals, universities, airports, and government facilities. This diversification reduces reliance on any one vertical and ensures steady demand across economic cycles.

How does Legence make money?

Legence’s revenue streams are diverse, combining project-based contracts with recurring services.

Analysts estimate that 65-70% of revenue comes from project-based engineering and construction, while 30-35% is generated from recurring services such as consulting and maintenance. This blend balances cyclical demand in new construction with steady income from long-term client relationships.

In the first half of 2025, Legence generated $1.1bn in revenue (up 11% YoY) but posted a net loss of $26.5m, reflecting heavy investment in acquisitions and expansion. Adjusted EBITDA margins were positive, and the company has emphasised its path to profitability as scale improves.

What might influence the Legence live stock price?

Now listed, Legence's stock performance will depend on both internal execution and broader market forces.

Macroeconomic and sector trends

Legence’s stock could be shaped in part by broader macroeconomic conditions and sector dynamics. The boom in AI-driven data centres helps drive demand for advanced building systems, particularly in cooling and energy efficiency, which may benefit companies like Legence. If healthcare and life sciences investment remain resilient, there could be steady demand for its mechanical and electrical projects. However, rising interest rates and tighter credit conditions could increase financing costs for new builds and retrofits, potentially slowing contract awards and backlog conversion.

Company fundamentals

Investors and traders will closely examine Legence's ability to convert its $2.8 billion backlog into revenue and margins. Profitability is still constrained, with the firm reporting net losses despite revenue growth, so the trajectory to sustained net income will be an important driver of sentiment. EBITDA margins and cost controls, particularly after years of acquisition-driven expansion, will be scrutinised. Debt reduction through IPO proceeds was also critical; lowering leverage provided more flexibility for reinvestment and signalled financial stability to the market.

Competition and innovation

Legence competes with established global players such as Jacobs Solutions, Fluor, and AECOM, all of which are also pivoting towards sustainability. Its edge lies in integrating sustainability consulting with engineering delivery, giving it an end-to-end offering. Whether Legence can maintain this differentiation will influence valuation. At the same time, execution risks remain: the engineering and construction industry faces shortages of skilled labour, and any failure to deliver on complex projects for data centers or hospitals could undermine investor confidence.

Regulatory and governance landscape

Regulation could be both a risk and a growth driver. The Inflation Reduction Act and state-level emissions standards are providing powerful incentives for energy-efficient retrofits, which directly expand Legence's addressable market. Requirements for LEED certification and other sustainability mandates add to the tailwinds. But with this opportunity comes scrutiny: governance practices as a Blackstone-backed firm moving to public markets were watched closely. Any missteps in disclosure, compliance, or ESG reporting could weigh on the stock.

Climate-driven regulation 

If governments tighten emissions standards for commercial buildings, Legence’s addressable market could expand significantly. On the risk side, labour shortages in skilled trades remain a bottleneck. Wage inflation and competition for technicians could weigh on execution capacity and margins, even with strong demand.

Market sentiment and trading behaviour

Finally, Legence's stock price will be influenced by sentiment in the US IPO market and its inclusion in thematic indices. If investors view Legence as a credible ESG and infrastructure play, it could attract inflows from sustainability-focused funds and infrastructure ETFs, supporting valuation multiples. However, volatility is likely in early trading, as mid-cap IPOs often experience sharp swings. Comparisons to larger listed peers will also matter: if Legence's growth story resonates, multiples may align with infrastructure leaders, but if profitability remains elusive, the stock could be discounted.

You can keep your finger on the pulse of the markets with expert insight from our in-house analysts. Check out our news and analysis section for more.

How to trade Legence shares via CFDs

With Legence now public, traders can use contracts for difference (CFDs) to speculate on price movements without owning the underlying stock.

How to get started

• 1. Choose a platformUse a trusted broker like Capital.com, offering thousands of global stocks and indices.
• 2. Open an account Verify your identity and complete onboarding (subject to suitability assessment).
• 3. Add funds Deposit via card or bank transfer.
• 4. Track Legence’s performanceUse charts, alerts, and news to monitor post-IPO volatility.
• 5. Go long or short If you expect the price to rise, open a long LGN CFD position; if you expect it to fall, go short. Apply stop-loss* or take-profit levels to manage your trades.

Remember, IPOs can be volatile, especially in the early days of trading. CFDs let you act on price swings in either direction, but always apply risk management. CFDs are traded on margin, and leverage magnifies both potential losses and gains. Past performance is not a reliable indicator of future results. 

Learn more about contracts for difference in our CFDs trading guide.

*Standard stop-losses are not guaranteed. Guaranteed stop-losses incur a fee when activated.

Which infrastructure and engineering stocks can I trade?

Legence has now completed its IPO and is trading publicly. In addition to Legence, you can trade other related stocks on Capital.com:

• Legence (LGNC) – sustainability-focused building infrastructure and energy efficiency specialist.

• Fluor Corporation (FLR) – engineering and construction multinational.

• Johnson Controls (JCI) – building products and HVAC solutions.

• AECOM (ACM) – infrastructure design and consulting firm.

You can also access infrastructure ETFs such as iShares Global Infrastructure ETF (IGF).

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