Legence Corp. reported record fourth‑quarter 2025 revenue of $737.6 million, up 34.6% year‑over‑year, and a gross profit of $147.5 million, giving a 20.0% gross margin. Non‑GAAP adjusted EBITDA reached $87.0 million, a 53.2% increase from $56.8 million a year earlier, and a 12% EBITDA margin. The company posted a net loss of $59.8 million for the quarter, and an actual earnings per share of $‑0.55, falling short of the consensus estimate of $0.10.
The revenue surge was driven largely by the Installation & Maintenance segment, which benefited from strong demand in data‑center and life‑sciences markets, and by the Engineering & Consulting segment, which saw a 15% rise in contract work. The acquisition of The Bowers Group on January 2, 2026, added $325 million in upfront cash and expanded Legence’s fabrication capacity, contributing to the quarter’s top‑line growth.
Gross and EBITDA margins expanded because the company achieved pricing power in its high‑margin data‑center contracts and because the mix shifted toward more profitable services. Cost controls in procurement and a disciplined capital‑expenditure program helped offset the higher SG&A spend that drove the net loss.
The net loss widened to $59.8 million from $28.6 million in 2024, largely due to increased SG&A expenses, one‑time integration costs from the Bowers acquisition, and a $12 million charge related to restructuring of legacy facilities.
Management raised its 2026 outlook, now projecting first‑quarter revenue of $925 million to $950 million and non‑GAAP adjusted EBITDA of $90 million to $100 million. Full‑year guidance has been lifted to $3.7 billion to $3.9 billion in revenue and $400 million to $430 million in EBITDA, reflecting the company’s confidence in sustained demand and the contribution of the Bowers Group and other tuck‑in acquisitions.
“Our fourth‑quarter performance punctuates a milestone year for Legence,” said CEO Jeff Sprau. “We achieved record quarterly revenues which increased by 34.6% year over year, driven almost entirely by organic growth.” Analysts responded by raising price targets, with Guggenheim increasing its target to $158.50 from $140.00, citing the company’s strong backlog and expanded geographic reach.
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