Legence Corp. (LGN) AI Stock Analysis

Legence Corp. provides engineering, installation, and maintenance services for mission-critical systems in buildings across the United States. Operating through two segments, Engineering & Consulting and Installation & Maintenance, the company designs, fabricates, and installs HVAC, process piping, and other MEP systems. It also provides energy usage reduction strategies, sustainability consulting, program management, preventative maintenance, emergency repair, facility energy analysis, automation, and system certification. Legence serves sectors including data centers, technology, life sciences, healthcare, education, mixed-use, and government facilities.

Revenue increased from $1.25B in FY2022 to $2.55B in FY2025, supported by annual growth rates of 29.6% in FY2023, 29.9% in FY2024, and 21.5% in FY2025. Gross margin widened from 18.7% in FY2022 to 21.0% in FY2025, while operating margin improved from -1.9% to 3.6%. Despite this operating expansion, net income was negative in three of the four fiscal years, standing at -$59.8M in FY2025. For the trailing twelve months ended June 30, 2026, revenue stood at $3.75B, driven by a 110.7% year-over-year quarterly revenue increase, while trailing EPS was -$0.80.

As of June 30, 2026, Legence held $292.0M in cash and short-term investments against total debt of $1.20B, yielding net debt of $903.7M. Shareholders' equity was $600.5M, resulting in a debt-to-equity ratio of 1.99, while the current ratio was 1.35. Operating cash flow improved significantly in FY2025 to $256.9M from $29.3M in FY2024. After deducting $37.9M in capital expenditures, free cash flow stood at $218.9M in FY2025.

At the last close of $43.53 on October 16, 2026, Legence had a market capitalization of $7.15B and an enterprise value of $4.97B. The stock trades at a forward P/E of 14.9x, which is below the 17.2x median of its US-listed Industrials peers. Its price-to-sales multiple of 1.9x and EV/EBITDA of 31.7x compare to peer medians of 1.5x and 13.9x, respectively. Over the past year, the stock returned 29.4%, outperforming the 16.8% return of the S&P 500 (SPY).

Wall Street coverage includes 14 Strong Buy, 2 Buy, and 1 Hold ratings, with zero Sell recommendations. The mean price target of $99.59 represents a 128.8% premium over the last close of $43.53. For the fiscal year ending December 31, 2026, analysts anticipate revenue of $4.78B and EPS of $1.49, representing 970.1% EPS growth. Legence has beaten EPS estimates in 3 of the last 4 quarters, with the next earnings release scheduled for November 12, 2026.

This page is an AI-written research summary of Legence Corp. (LGN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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