Overview

• US engineering and building systems provider's Q1 revenue more than doubled yr/yr, driven by acquisitions

• Company posted positive net income after a loss in the prior-year quarter

• Legence raised full-year 2026 revenue and adjusted EBITDA guidance

Outlook

• Legence sees Q2 2026 revenue of $1.05 bln to $1.1 bln

• Company expects Q2 2026 non-GAAP adjusted EBITDA of $115 mln to $125 mln

• Legence raises 2026 revenue guidance to $4.1 bln to $4.3 bln, up from $3.7 bln to $3.9 bln

Result Drivers

• ACQUISITIONS - Co said revenue growth was driven in part by recent acquisitions, particularly The Bowers Group

• DATA CENTER DEMAND - Installation & Maintenance segment growth was fueled by demand from data centers and technology clients

• MARGIN PRESSURE - Engineering & Consulting segment gross margin declined due to higher subcontractor expenses and a shift in revenue mix

Company press release: ID:nGNX7rjmVL

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue		$1.04 bln
Q1 EPS		$0.13
Q1 Net Income		$16.10 mln
Q1 Adjusted EBITDA		$118.10 mln
Q1 Gross Profit		$186.20 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "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 $77.00, about 23% below its May 13 closing price of $100.00

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