# Legence Corp. (LGN)

> Source: Nexqual · https://nexqual.com/LGN · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Legence Corp. (LGN), nexqual.com/LGN" · informational, not investment advice.

**Price:** USD 36.86 (-11.29% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 41.55 · day 36.12–39.87 · 52w 31.26–107.24 · market cap $6.06B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $3.75B, net income -$45.0M (-1.2% margin), free cash flow $323M (SEC filings).
- Insider open-market sales, last ~7 months: 4 Form 4 filings, $1.66B; 2 not under a Rule 10b5-1 plan ($1.66B); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 1.94 on a 1–5 scale) (17 analysts), mean target USD 95.82 (range 60–130).
- Total return with dividends: 1Y +13.1% vs S&P 500 +14.9%; 5Y +20.9% vs S&P 500 +80.3%.
- Next earnings: 2026-11-13, EPS estimate USD 0.59, revenue estimate $1.26B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|
| Revenue | $1.62B | $2.10B | $2.55B | $3.75B |
| Gross profit | $315M | $431M | $536M | — |
| Operating income | $10.3M | $70.4M | $61.6M | $29.4M |
| Net income | -$46.0M | -$28.6M | -$59.8M | -$45.0M |
| Free cash flow | $16.8M | $10.3M | $219M | $323M |
| Gross margin | 19.5% | 20.5% | 21.0% | — |
| Operating margin | 0.6% | 3.4% | 2.4% | 0.8% |
| Net margin | -2.8% | -1.4% | -2.3% | -1.2% |
| Revenue growth | — | +29.9% | +21.5% | — |
| Cash + short-term investments | — | $81.2M | $230M | — |
| Total debt | — | $1.62B | $836M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/S 1.6x · EV/EBITDA 44.4x · EV/Sales 1.8x · P/FCF 18.7x · P/B 10.1x · FCF yield 5.34% · Earnings yield -0.74% · Net debt $749M · EV $6.80B

## Insider sales (SEC Form 4, open-market, last ~7 months)
2 of 4 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-09-18 | Le Bris Philippe | Chief Accounting Officer | 1,058 | $58K | 18.2% | Yes (adopted June 16, 2026) | Too little history (no open-market trades in 2023–2025) |
| 2026-09-15 | Le Bris Philippe | Chief Accounting Officer | 4,196 | $227K | 41.9% | Yes | Too little history (no open-market trades in 2023–2025) |
| 2026-04-09 | Blackstone Ema Iii L.L.C. |  | 15,394,112 | $831M | 44.1% | No | Too little history (no open-market trades in 2023 or 2024) |
| 2026-04-09 | Legence Parent Ml Llc |  | 15,394,112 | $831M | 44.1% | No | Too little history (no open-market trades in 2023 or 2024) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 1.94 on a 1–5 scale), 17 analysts; mean target USD 95.82 (low 60, high 130).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-19 | Barclays | Target lowered | Equal-Weight | $80 → $60 |
| 2026-10-15 | RBC Capital | Target lowered | Outperform | $101 → $90 |
| 2026-10-08 | Stifel | Target lowered | Buy | $101 → $82 |
| 2026-08-19 | Tigress Financial | Target raised | Buy | $125 → $130 |
| 2026-08-18 | Guggenheim | Reiterated | Buy | $115 |
| 2026-08-14 | B of A Securities | Target raised | Buy | $105 → $116 |
| 2026-08-14 | BMO Capital | Target raised | Outperform | $100 → $105 |
| 2026-08-14 | BTIG | Target lowered | Buy | $120 → $100 |
| 2026-08-12 | Roth Capital | Reiterated | Buy | $120 |
| 2026-07-22 | RBC Capital | Target lowered | Outperform | $106 → $101 |
| 2026-07-10 | Guggenheim | Target raised | Buy | $106 → $115 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2025-09-08) |
|---|---|---|
| Total return | +13.1% | +20.9% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +13.1% | +18.4% |
| Volatility (annualized) | 73.5% | 59.0% |
| Max drawdown | -64.0% (May 2026→Oct 2026) | -63.1% (May 2026→Oct 2026) |

## Peers (Engineering & Construction)
FLR (Fluor Corporation) USD 43.42 -6.44% · DY (Dycom Industries, Inc.) USD 225.16 -5.18% · ACA (Arcosa, Inc.) USD 149.15 +0.08% · KBR (KBR, Inc.) USD 39.53 +5.95% · ECG (Everus Construction Group, Inc.) USD 97.05 -8.44% · GVA (Granite Construction Incorporat) USD 107.45 -2.08%

## More
Full page: https://nexqual.com/LGN · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in LGN's own 10-K filed 2026-03-30 (https://www.sec.gov/Archives/edgar/data/2052568/000205256826000008/lgn-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Partner | Legence Parent | "In connection with the closing of the IPO, we entered into a registration rights agreement with Legence Parent and Legence Parent II (such parties, and including any permitted transferees thereof, the "Registration Right…" |
| Partner | Legence Parent ML | "(5)Based on information provided to us, as of the date of this filing, each of Legence Parent ML and Legence Parent II ML has pledged, hypothecated or granted security interests in all of the shares of Class A Common Sto…" |
| Partner | Legence Parent II ML | "(5)Based on information provided to us, as of the date of this filing, each of Legence Parent ML and Legence Parent II ML has pledged, hypothecated or granted security interests in all of the shares of Class A Common Sto…" |
| Partner | Legence Parent II | "In connection with the closing of the IPO, we entered into a registration rights agreement with Legence Parent and Legence Parent II (such parties, and including any permitted transferees thereof, the "Registration Right…" |

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Installation & Maintenance | $1.06B | 83.6% | +162.0% |
| Engineering & Consulting | $206.9M | 16.4% | +5.5% |
| Total revenue | $1.26B | 100% | — |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Installation & Fabrication | $924.9M | 73.3% | +189.0% |
| Maintenance & Service | $130.3M | 10.3% | +57.5% |
| Program & Project Management | $104.5M | 8.3% | +16.9% |
| Engineering & Design | $102.3M | 8.1% | -4.1% |
| Total revenue | $1.26B | 100% | — |

## Customer concentration

Period ended 2026-06-30: 17.2% of revenue from unnamed direct customers (10-Q, filed 2026-08-13).

## Company outlook (8-K filed 2026-08-13)

- "Guidance for Revenue of $1.225 Billion - $1.275 Billion and Non-GAAP Adjusted EBITDA of $150 Million - $160 Million Raise Full Year 2026 Guidance for Revenue to $4.7 Billion - $4.8 Billion and Non-GAAP Adjusted EBITDA of $565 Million - $585 Million SAN JOSE, California - August 13, 2026 - Legence Corp."
- "As we enter the second half of 2026, healthy industry conditions, combined with our backlog-supported visibility, gives us confidence to raise our revenue and profit outlook for the year." 1 Excludes impact of approximately $303.8 million of second quarter 2026 revenues from Bowers."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.59 | $0.38 | +52.8% | $1.26B | 8 |
| Next quarter (ends 2026-12-31) | $0.54 | $0.38 | +43.3% | $1.23B | 8 |
| Current fiscal year (ends 2026-12-31) | $1.49 | $1.46 | +2.1% | $4.79B | 9 |
| Next fiscal year (ends 2027-12-31) | $2.48 | $1.81 | +37.0% | $5.45B | 11 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-11-13): ±21.7%; last 4 reports averaged ±10.3%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 96.8% | ±21.7% |
| 2026-12-18 | 56 | 85.3% | ±26.6% |
| 2027-02-19 | 119 | 78.0% | ±35.4% |
| 2027-05-21 | 210 | 77.1% | ±45.4% |