Legence (LGN) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 results with $708 million revenue (up 26% year-over-year), 39% Adjusted EBITDA growth, and backlog reaching $3.1 billion, all organic.

• Completed a successful IPO in September 2025, raising $780.2 million in net proceeds, used primarily to repay debt and reduce net leverage to 2.4x.

• Announced the pending $475 million acquisition of Bowers Group and completed two tuck-in acquisitions (AZPE and IMD) for $22 million to expand capabilities.

• Net loss attributable to the company for Q3 2025 was $0.6 million, an improvement from a $1.1 million loss in Q3 2024.

• Backlog and awarded contracts reached $3.1 billion as of September 30, 2025, up 29% year-over-year, with a book-to-bill ratio of 1.5x.

Financial highlights

• Q3 2025 revenue was $708 million, up $147 million (26%) from Q3 2024, entirely organic.

• Adjusted EBITDA for Q3 was $88.8 million (12.5% margin), up 39% year-over-year.

• Gross profit increased 25% to $148.1 million; consolidated gross margin was 20.9%.

• Installation & Maintenance segment revenue grew 35% to $495.8 million; Engineering & Consulting up 9.5% to $212.2 million.

• Book-to-bill ratio was 1.5x; backlog at quarter-end was $3.1 billion, up 29% year-over-year.

Outlook and guidance

• Q4 2025 standalone revenue guidance: $600–$630 million; Adjusted EBITDA: $60–$65 million.

• Full-year 2026 standalone revenue guidance: $2.65–$2.85 billion; Adjusted EBITDA: $295–$315 million.

• Bowers expected to add $825–$875 million revenue and $75–$85 million EBITDA in 2026 (full year); partial year impact expected due to Q1 closing.

• Data center and technology end market expected to continue 30% CAGR growth.

• Backlog and awarded contracts support continued revenue growth; book-to-bill ratio above 1.0 in both segments.