Key Highlights

  • Revenue reached USD 1.31 billion, up 85% from the year-ago quarter.
  • Adjusted EBITDA was USD 177 million, with Margin up about 100 basis points to 13.5%.
  • Backlog and awards ended September at USD 5.9 billion, up 92%.
  • 2027 Revenue guidance is USD 5.3 billion to USD 5.6 billion.

Legence (NASDAQ:LGN) reported third-quarter 2026 revenue of USD 1.31 billion, against an estimate of USD 1.26 billion. Earnings Per Share were USD 1.15, against an estimate of USD 0.57. Revenue was up USD 603 million, or 85%, from the year-ago quarter, and management described it as record quarterly revenue.

The Bowers Group Acquisition contributed approximately USD 323 million of revenue in the quarter. Excluding Bowers, revenue grew 40% year over year. Management said just under half of the growth was organic.

Segment Performance and Margins

Installation and Maintenance segment revenue increased USD 614.9 million, or 124.0%, compared with the third quarter of 2025. The other reporting segment's revenue decreased 6% to USD 200 million. Within it, the Program and Project Management service line declined USD 10.4 million, or 10.3%, and Engineering and Design declined USD 1.8 million, or 1.6%.

Adjusted Gross Profit on a consolidated basis was approximately USD 267 million, with an adjusted gross margin of 20.3%, excluding the impact of the profit interest. Adjusted EBITDA was USD 177 million, an increase of just under 100% year over year. Adjusted EBITDA margin was 13.5%, up approximately 100 basis points, and up approximately 130 basis points sequentially, as the second quarter of 2026 also included Bowers.

Selling, general and administrative expenses as a percentage of revenue declined from 12.1% in the third quarter of 2025 to 5.4% in the third quarter of 2026. Lease and related expenses rose USD 3.7 million and professional services rose USD 3.1 million, which offset lower compensation expense, according to the filing.

Income tax expense was USD 19.8 million, an effective tax rate of 12.9%, against USD 4.1 million and 91.5% in the prior-year quarter.

Backlog, Guidance and Capital Allocation

Consolidated Backlog and awards ended September at USD 5.9 billion, up 92% from a year earlier. Management said growth came from almost all reported end markets except mixed use. It said Bowers' backlog growth has been among the fastest across its businesses since the acquisition at the start of the year.

For the fourth quarter of 2026, the company established guidance for consolidated revenue of USD 1.26 billion to USD 1.3 billion and adjusted EBITDA of USD 160 million to USD 170 million. For full-year 2027, it set revenue guidance of USD 5.3 billion to USD 5.6 billion and introduced adjusted EBITDA guidance of USD 690 million to USD 730 million.

Management announced a stock buyback authorization on the morning of the call. It described the program as another tool for allocating capital alongside acquisitions and internal capital investment. It also said it recently completed a tuck-in acquisition of a mechanical contractor in Austin, Texas, and noted that the company has Tax Receivable Agreement payments, with payment estimates essentially unchanged from prior guidance.

Data Center Demand and Reported Reference Points

On the call, management said conversations with Data Center customers indicate a continuation of demand, and that it ships fabricated products across multiple regions to support clients wherever they build. It added that fabrication is where the market is heading, whether customers are building data centers, semiconductor fabs or large-scale Manufacturing facilities.

The reported items for the quarter are revenue of USD 1.31 billion, adjusted EBITDA of USD 177 million, backlog and awards of USD 5.9 billion, the stock buyback authorization and guidance extended through 2027. The company is listed on the Nasdaq Stock Market, and its quarterly filing covers the period ended September 30, 2026.