LGN (NASDAQ:LGN) Issues Earnings Results

LGN (NASDAQ:LGN) posted its earnings results on Thursday. The company reported $1.15 earnings per share for the quarter, topping analysts’ consensus estimates of $0.50 by $0.65, FiscalAI reports. The firm had revenue of $1.31 billion for the quarter. LGN had a negative net margin of 1.20% and a positive return on equity of 4.33%.

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

• Legence reported record third-quarter revenue of $1.31 billion, up 85% year over year, with revenue excluding Bowers up 40%. Adjusted EBITDA nearly doubled to $177 million, and its margin rose about 100 basis points to 13.5%.
• Backlog and awards reached a record $5.9 billion, up 92% year over year, with a quarterly book-to-bill ratio of 1.2x. Management introduced 2027 guidance of $5.3 billion–$5.6 billion in revenue and $690 million–$730 million in Adjusted EBITDA, noting that some larger projects extend into 2028 and 2029.
• Management said data center customers had not changed their plans or schedules despite regulatory concerns, and described demand in data centers and semiconductors as strong. About 40% of Legence’s data center work is in Northern Virginia, but executives said no local projects had been delayed and cited the ability to shift work to nearby markets.
• Engineering and Consulting revenue declined 6%, partly reflecting the completion of large projects and softer education demand; management expects the segment to improve in 2027, citing backlog and awards growth of 19% since the start of the year. The company also acquired Austin-based CTI for about $100 million to expand its Texas presence and authorized a share repurchase program, while maintaining acquisitions and business investment as capital allocation options.

LGN Trading Down 3.7%

Shares of NASDAQ LGN traded down $1.34 during midday trading on Friday, reaching $34.93. The stock had a trading volume of 1,006,219 shares, compared to its average volume of 1,442,192. The firm has a market cap of $3.77 billion, a price-to-earnings ratio of 87.38 and a beta of 3.42. LGN has a twelve month low of $23.90 and a twelve month high of $107.24. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.35 and a current ratio of 1.35. The company’s 50 day moving average price is $46.46 and its 200 day moving average price is $62.30.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on LGN. Guggenheim restated a “buy” rating and set a $90.00 price target on shares of LGN in a report on Monday, October 26th. Stifel Nicolaus dropped their price objective on shares of LGN from $101.00 to $82.00 and set a “buy” rating for the company in a report on Thursday, October 8th. Weiss Ratings lowered shares of LGN from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, October 30th. Royal Bank Of Canada cut their target price on shares of LGN from $101.00 to $90.00 and set an “outperform” rating on the stock in a research report on Thursday, October 15th. Finally, Sanford C. Bernstein reiterated an “outperform” rating on shares of LGN in a report on Friday. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $93.33.

Insider Activity at LGN

In other news, CAO Bris Philippe Le sold 1,058 shares of the stock in a transaction on Friday, September 18th. The shares were sold at an average price of $55.01, for a total transaction of $58,200.58. Following the completion of the sale, the chief accounting officer directly owned 4,749 shares in the company, valued at $261,242.49. This represents a 18.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 0.01% of the company’s stock.

Institutional Trading of LGN

A number of large investors have recently bought and sold shares of LGN. Value Aligned Research Advisors LLC grew its stake in LGN by 22.4% during the first quarter. Value Aligned Research Advisors LLC now owns 308,141 shares of the company’s stock worth $17,398,000 after purchasing an additional 56,460 shares during the period. WINTON GROUP Ltd increased its holdings in LGN by 174.0% in the second quarter. WINTON GROUP Ltd now owns 83,300 shares of the company’s stock worth $7,100,000 after purchasing an additional 52,904 shares in the last quarter. Allianz Asset Management GmbH acquired a new position in LGN in the second quarter valued at approximately $1,568,000. Renaissance Technologies LLC lifted its stake in LGN by 87.6% in the first quarter. Renaissance Technologies LLC now owns 579,700 shares of the company’s stock valued at $32,730,000 after buying an additional 270,615 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. acquired a new position in LGN in the third quarter valued at approximately $3,950,000.

LGN News Summary

These are some of the LGN news items that stood out recently:

• Positive Sentiment: Q3 adjusted earnings were $1.15 per share, well above analysts’ estimates, while revenue reached $1.31 billion and also topped expectations. Adjusted EBITDA nearly doubled year over year. Legence Q3 results
• Positive Sentiment: The board authorized a $150 million share repurchase program, which could provide support for the stock and return capital to shareholders. Legence Q3 results
• Negative Sentiment: Despite the earnings beat and higher outlook, LGN traded lower after the report, suggesting investors may have expected even stronger results or were taking profits. BTIG Research also cut its price target from $100 to $60, though it maintained a Buy rating. Legence shares trade lower despite results BTIG Research recommendations

LGN Company Profile

Legence Corp. provides engineering, installation and maintenance services for building systems. Its work includes heating, ventilation and air conditioning, plumbing, electrical systems, process piping, building automation and energy solutions. The company serves customers with complex building needs, including in the data center, healthcare, life sciences, commercial and industrial sectors. Its services span the building lifecycle, from design and construction to ongoing operations and maintenance.