Shares of Legence Corp. (NASDAQ:LGN) are trading lower Thursday despite the company reporting better-than-expected third-quarter earnings and revenue. Legence also raised its full-year 2026 revenue outlook and provided initial 2027 guidance.
- Legence shares are sliding. Why is LGN stock dropping?
Legence Reports Record Q3 Revenue, Beats Earnings Estimates
The company delivered record quarterly revenue and adjusted EBITDA, supported by strong customer demand, project execution and an increasing contribution from fabrication work. Legence also announced a $150 million stock repurchase program, reflecting management’s confidence in the company’s business fundamentals.
Legence reported third-quarter earnings of $1.15 per share, beating the analyst consensus estimate of 54 cents. The company had reported a loss of 2 cents per share in the same quarter last year.
Revenue increased 85.03% year-over-year to $1.31 billion from $708 million, exceeding analyst expectations of $1.261 billion.
The record quarterly revenue was supported in part by the acquisition of Bowers Group. Adjusted EBITDA nearly doubled to approximately $177 million, with improved margins attributed to strong project execution and a growing contribution from fabrication services.
CEO Jeff Sprau said strong customer demand helped drive record third-quarter revenue, adjusted EBITDA, backlog and awarded contracts.
“Our team continues to deliver exceptional project execution, which along with an increasing mix of fabrication work, contributed to the delivery of the highest Adjusted EBITDA margin in company history,” Sprau said.
Legence reported strong backlog growth, particularly across data center and technology-related projects. The company also highlighted the contribution of fabrication services to its improved margins during the third quarter.
Legence Raises 2026 Revenue Guidance, Provides 2027 Outlook
Looking ahead, Legence expects fourth-quarter revenue between $1.26 billion and $1.30 billion, above the analyst consensus estimate of $1.225 billion.
The company raised its full-year 2026 revenue guidance to $4.87 billion to $4.91 billion from its previous range of $4.70 billion to $4.80 billion. The updated outlook compares with analyst estimates of $4.787 billion. For 2027, Legence provided initial revenue guidance of $5.3 billion to $5.6 billion.
Legence Authorizes $150 Million Stock Repurchase Program
Alongside its quarterly results, Legence announced that its board authorized a $150 million stock repurchase program.
Sprau said the company’s confidence in its business fundamentals is reflected in its increased 2026 guidance and growth expectations included in its initial 2027 outlook.
“This outlook also underpins the Board’s authorization of our $150 million stock repurchase program, which broadens our capital allocation options,” Sprau said.
LGN Shares Recover From All-Time Low
LGN Price Action: Legence shares were down 3.59% at $36.03 at the time of publication on Thursday, according to Benzinga Pro. Legence shares reached an intraday high of $37.70 on Thursday after recording an all-time low of $23.90 on Nov. 5.
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