LGN (NASDAQ:LGN) Announces Quarterly Earnings Results

LGN (NASDAQ:LGN) announced its earnings results on Thursday. The company reported ($0.37) earnings per share for the quarter, missing the consensus estimate of $0.26 by ($0.63), FiscalAI reports. The business had revenue of $1.26 billion for the quarter.

Here are the key takeaways from LGN’s conference call:

• Revenue and adjusted EBITDA more than doubled year over year in Q2 2026, reaching $1.262 billion and $155 million, respectively, while adjusted EBITDA margin improved sequentially by nearly 90 basis points.
• Demand remains strongest in data centers and technology, with organic revenue growth near 60%, organic backlog and awards growth above 35%, and total backlog reaching a record $5.7 billion with a 1.4x trailing-12-month book-to-bill ratio.
• Management raised full-year 2026 guidance to $4.7 billion-$4.8 billion of revenue and $565 million-$585 million of adjusted EBITDA, citing strong backlog, project acceleration, and continued execution.
• Net leverage fell to 1.5x from approximately 3.0x following the IPO, while debt repricing and credit-rating upgrades reduced borrowing costs and leave the company positioned to pursue additional acquisitions.
• Consolidated adjusted gross margin declined to 18.5% from 21.8% a year earlier due to mix shifting toward installation and fabrication, while weaker sustainability-consulting demand led to goodwill and intangible-asset impairments; higher fabrication-capacity investment also lifted second-half 2026 capital-spending expectations by $15 million-$20 million.

LGN Stock Up 3.1%

LGN traded up $1.95 during trading hours on Friday, hitting $65.19. 982,976 shares of the company’s stock were exchanged, compared to its average volume of 1,475,415. The firm has a market cap of $7.04 billion and a P/E ratio of 283.15. LGN has a 12-month low of $26.96 and a 12-month high of $107.24. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 1.06. The firm has a 50 day moving average of $74.12 and a 200 day moving average of $68.42.

LGN News Roundup

Here are the key news stories impacting LGN this week:

• Positive Sentiment: Legence reported record Q2 revenue of $1.26 billion, up 111% year over year, with organic growth excluding the Bowers acquisition of 60%. Adjusted EBITDA rose 114% to $154.6 million, highlighting strong demand and operating leverage. Legence Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised full-year 2026 revenue guidance to $4.7 billion-$4.8 billion from $4.1 billion-$4.3 billion and increased adjusted EBITDA guidance to $565 million-$585 million. Q3 revenue guidance of $1.225 billion-$1.275 billion also exceeds the roughly $1.1 billion consensus cited in the reports. Legence Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Backlog and awarded contracts reached a record $5.67 billion, up 105% year over year, providing greater visibility into future revenue. Demand was particularly strong in data centers and technology, as well as life sciences, education and government markets.
• Positive Sentiment: BMO Capital Markets raised its LGN price target to $105 from $100 and maintained an “outperform” rating. Roth Capital also reiterated its “buy” rating with a $120 target. Benzinga analyst update
• Neutral Sentiment: LGN’s balance sheet showed approximately $292 million in cash, $1.03 billion in debt and net leverage of 1.6 times adjusted EBITDA. Leverage remains manageable but could limit flexibility as the company integrates acquisitions.
• Negative Sentiment: Legence reported a Q2 adjusted loss of $0.37 per share, versus analyst expectations for earnings of $0.26 per share. The company’s net loss attributable to Legence widened from $5.3 million to $27.8 million year over year.
• Negative Sentiment: Gross margin fell to 17.4% from 21.5%, while adjusted gross margin declined to 18.5% from 21.8%, reflecting an unfavorable revenue mix and higher service-delivery costs.
• Negative Sentiment: BTIG reaffirmed its “buy” rating but lowered its price target to $100 from $120. Reports also indicated that several analysts reduced forecasts following the earnings release, increasing concerns about valuation and profitability execution. Analyst Forecast Revisions Following Q2 Results

Hedge Funds Weigh In On LGN

Several institutional investors have recently modified their holdings of LGN. Janus Henderson Group PLC raised its stake in shares of LGN by 128.4% in the fourth quarter. Janus Henderson Group PLC now owns 4,401,402 shares of the company’s stock valued at $189,442,000 after acquiring an additional 2,474,220 shares in the last quarter. Westfield Capital Management Co. LP acquired a new position in LGN during the 4th quarter worth $69,438,000. Vanguard Group Inc. increased its holdings in LGN by 78.1% during the 4th quarter. Vanguard Group Inc. now owns 3,227,670 shares of the company’s stock worth $138,919,000 after purchasing an additional 1,415,282 shares during the period. Munro Partners increased its holdings in LGN by 1,875.9% during the 4th quarter. Munro Partners now owns 1,396,642 shares of the company’s stock worth $60,111,000 after purchasing an additional 1,325,957 shares during the period. Finally, CI Investments Inc. raised its position in LGN by 2,209.7% in the 4th quarter. CI Investments Inc. now owns 788,287 shares of the company’s stock valued at $33,928,000 after purchasing an additional 754,157 shares in the last quarter.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Barclays boosted their price target on shares of LGN from $60.00 to $80.00 and gave the company an “equal weight” rating in a research note on Monday, June 22nd. Royal Bank Of Canada cut their target price on LGN from $106.00 to $101.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 22nd. The Goldman Sachs Group upped their price target on LGN from $63.00 to $72.00 and gave the stock a “buy” rating in a research note on Thursday, April 16th. BMO Capital Markets lifted their price objective on LGN from $100.00 to $105.00 and gave the company an “outperform” rating in a research note on Friday. Finally, Glj Research initiated coverage on LGN in a report on Tuesday, April 21st. They issued a “buy” rating and a $99.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, LGN currently has an average rating of “Moderate Buy” and an average target price of $99.08.

LGN Company Profile

Legence Corp. is a provider of engineering, consulting, installation and maintenance services for mission-critical systems in buildings. The company specializes in designing, fabricating and installing complex HVAC, process piping and other mechanical, electrical and plumbing systems. Legence Corp. is based in SAN JOSE, Calif.