Legence Q2 revenue doubles on Bowers acquisition; raises 2026 outlook
Legence Q2 revenue doubles on Bowers acquisition; raises 2026 outlook
Overview
US building systems services firm's Q2 revenue more than doubled yr/yr, driven by Bowers acquisition
Adjusted EBITDA for Q2 more than doubled from prior year
Company raised full-year 2026 revenue and adjusted EBITDA guidance
Outlook
Legence sees Q3 2026 revenue of $1.225 bln to $1.275 bln
Company expects Q3 2026 non-GAAP adjusted EBITDA of $150 mln to $160 mln
Legence raises 2026 revenue guidance to $4.7 bln-$4.8 bln and adjusted EBITDA to $565 mln-$585 mln
Result Drivers
DATA CENTERS & TECH DEMAND - Co said strong demand from data centers & technology clients drove revenue growth
INSTALLATION & MAINTENANCE GROWTH - Installation & Maintenance segment revenue surged, led by installation & fabrication services for data centers & tech clients
REVENUE MIX SHIFT - Gross margin declined due to shift toward Installation & Maintenance and higher indirect fulfillment costs
Company press release: ID:nGNX2zmGwK
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $1.26 bln |
|
Q2 Loss Per Share |
| $0.37 |
|
Q2 Net Loss |
| $27.80 mln |
|
Q2 Adjusted EBITDA |
| $154.60 mln |
|
Q2 Gross Profit |
| $220.20 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 $105.50, about 53.6% above its August 12 closing price of $68.68
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(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.)