| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 68 | — | 17.3x | Top tier | |
Growth | 70 | 76.6% | 7.1% | Top tier | |
Quality | 24 | 1.5% | 4.5% | Bottom tier | |
Safety | 44 | 5.6x | 2.6x | Around median | |
Capital Return | 41 | 0.04% | 0.06% | Around median | |
Momentum | 27 | 55.1% | -1.6% | Bottom tier | |
Sentiment | 46 | 8 | 3 | Around median |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Legence provides engineering, design, consulting, and program and project management services, along with the installation, prefabrication, and maintenance of critical building systems. The company generates most of its revenue from the installation and maintenance segment, with a strong presence in data centers and technology, semiconductors, life sciences, healthcare, education, and local government, while its engineering and consulting segment gives it early access to projects. In Q2 fiscal 2026, the installation and maintenance segment represented approximately 83.6% of revenue, generating $1.055 billion, compared with $207 million for the engineering and consulting segment, or approximately 16.4%.
Legence reported Q2 fiscal 2026 revenue of $1.262 billion, up 111% year over year, including approximately $300 million from the Bowers acquisition, while growth excluding Bowers approached 60%. Reported gross profit was approximately $220 million, equivalent to a gross margin of about 17.4%, while adjusted gross profit was $234 million at an 18.5% margin, compared with 21.8% in Q2 fiscal 2025. Adjusted earnings before interest, taxes, depreciation, and amortization increased 114% to $155 million, at a 12.2% margin, but the GAAP bottom line remained a loss of $27.8 million, with negative earnings per share of $0.37.
Installation and fabrication activities led Q2 fiscal 2026 growth, with revenue rising 189%, while maintenance and service revenue increased 58%, or approximately 20% organically excluding Bowers. The engineering and consulting segment grew 6% to $207 million; program and project management rose 17%, but engineering and design revenue declined 4% because of weakness in sustainability consulting aimed at owners of mixed-use commercial real estate. This mix reflects a rapid shift toward larger-scale, relatively lower-margin installation work, despite an improvement of approximately 90 basis points in the adjusted earnings before interest, taxes, depreciation, and amortization margin compared with Q1 fiscal 2026.
The analyst consensus rates LGN shares a “Buy,” with an average price target of $97.11 and a wide range between $72 and $130; the average is approximately 9.4% below the 52-week range high of $107.238, while the highest target exceeds that high by approximately 21.2%. There is no meaningful price-to-earnings ratio because twelve-month net income is a loss of $45 million and earnings per share are negative by approximately $0.59, so the valuation depends more heavily on the $5.7 billion backlog and adjusted earnings guidance, while the wide target range remains evidence of uncertainty regarding margins and GAAP profitability.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Legence provides engineering, consulting, and project management services, in addition to the installation, prefabrication, and maintenance of critical building systems. In Q2 fiscal 2026, the installation and maintenance segment generated $1.055 billion of the company's $1.262 billion in revenue, while the engineering and consulting segment generated $207 million. Its markets include data centers and technology, semiconductors, life sciences, healthcare, education, and local government, and its Class A shares trade under the ticker LGN on NASDAQ.
Revenue increased 111% year over year to $1.262 billion in Q2 fiscal 2026. The Bowers acquisition contributed approximately $300 million, but revenue excluding it also grew by nearly 60%, showing that the increase did not depend solely on the acquisition. The installation and fabrication segment led the growth with a 189% increase, driven primarily by data centers and technology, alongside growth in life sciences, healthcare, and education.
Automated analysis for informational purposes only — not investment advice.
Legence ended June 2026 with backlog and awarded contracts of $5.7 billion, up 105% year over year and $289 million from the previous quarter. The book-to-bill ratio was 1.2 times during Q2 fiscal 2026 and 1.4 times during the twelve months ended June 2026. Management relied on this backlog, project timing, and execution strength when raising fiscal 2026 revenue guidance to $4.7–$4.8 billion.
Data centers and technology accounted for nearly 60% of the $5.67 billion backlog in Q2 fiscal 2026, and some facility fit-out project bookings were valued between $175 million and $200 million. Legence operates in the field in California, Phoenix, and the DMV area, and ships fabricated products to other regions, including Iowa, Ohio, North Carolina, and Texas. Semiconductor revenue grew by more than 50% during the quarter, with demand from chip and memory manufacturing customers, although the TSMC market in Phoenix was described as highly competitive.
Cash was $292 million and total liquidity was $461 million at the end of Q2 fiscal 2026, compared with $245 million and $414 million, respectively, at the end of the previous quarter. Total debt remained slightly above $1 billion, but pro forma net leverage declined to 1.5 times, approximately half its level following the initial public offering in September 2025. In June 2026, Standard & Poor's upgraded the rating from B+ to BB-, and Moody's upgraded the rating from B1 to Ba3, enabling a reduction in the loan margin to SOFR plus 1.75%.
Legence reported a net loss of $27.8 million in Q2 fiscal 2026 despite adjusted earnings before interest, taxes, depreciation, and amortization reaching $155 million. Expenses included $59 million of non-cash stock-based compensation, of which approximately $54 million was related to legacy profits interest units whose settlement is borne by entities outside Legence Corp. The non-deductibility of some of these items also resulted in an $11 million tax expense despite a pre-tax loss, alongside a decline in adjusted gross margin to 18.5% from 21.8%.