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Legence Q3 revenue jumps 85% on acquisitions and demand

By Reuters News


Overview

  • US building systems contractor's Q3 revenue rose 85% yr/yr, driven by acquisitions and demand

  • Adjusted EBITDA for Q3 nearly doubled yr/yr

  • Company announced $150 mln share repurchase program


Outlook

  • Legence sees Q4 2026 revenue of $1.26 bln to $1.30 bln

  • Company raises 2026 revenue forecast to $4.87 bln-$4.91 bln, up from $4.70 bln-$4.80 bln

  • Legence sees 2027 revenue of $5.3 bln to $5.6 bln


Result Drivers

  • ACQUISITION IMPACT - Revenue growth was significantly boosted by the acquisition of Bowers, with revenue growth excluding Bowers at 39.5%

  • STRONG DEMAND IN INSTALLATION & MAINTENANCE - Growth in Installation & Maintenance segment was driven by demand for Installation & Fabrication services, primarily from data centers & technology clients

  • ENGINEERING & CONSULTING WEAKNESS - Engineering & Consulting segment revenue declined due to lower Program & Project Management services and modestly lower Engineering & Design revenue, mainly from education clients


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$1.31 bln

Q3 EPS

$1.15

Q3 Net Income

$89.6 mln

Q3 Adjusted EBITDA

$177 mln

Q3 Gross Profit

$275.5 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the construction & engineering peer group is "buy"

  • Wall Street's median 12-month price target for Legence Corp. is $95.00, about 156.1% above its November 11 closing price of $37.09


Reuters Recommended Reads

  • Nov 9 - Ameresco Q3 profit beats estimates; backlog hits record

  • Nov 12 - Norway's Veidekke beats Q3 revenue estimates on higher activity, utilisation

  • Nov 9 - Aaon Q3 revenue jumps 84%, beats analyst estimates on strong data-center demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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