Shares of Legence Corp. advanced 5.7% to reach $56.00 following the release of impressive fourth-quarter and complete 2025 fiscal year performance metrics. The company demonstrated accelerating revenue growth alongside a historically high backlog that underpins an enhanced forward outlook. Results highlighted expanding demand throughout mission-critical infrastructure segments, particularly within data center, healthcare, and public sector verticals, prompting management to substantially upgrade its 2026 projections.
Legence Corp. Class A Common stock, LGN
For the fourth quarter of 2025, Legence delivered revenue totaling $737.6 million, representing a 34.6% surge compared to the corresponding prior-year period. Annual revenue climbed to $2.55 billion, reflecting a 21.5% advancement versus 2024 levels. Concurrently, adjusted EBITDA expanded to $87.0 million during the quarter and accumulated to $298.8 million across the full year.
The company’s installation and maintenance operations accounted for the majority of quarterly growth acceleration. This segment generated $565.1 million in revenue, marking a 44.4% increase fueled by heightened installation, fabrication, and service activity. Data center and technology sector customers represented the primary growth drivers, supplemented by continued momentum within life sciences and healthcare infrastructure projects.
The engineering and consulting division also posted gains, though profitability metrics faced pressure throughout the period. Segment revenues increased 10.0% to $172.6 million, supported by growing demand for program and project management capabilities. Despite revenue growth, gross profit declined 7.3% as the revenue composition shifted and margin compression occurred across certain service offerings.
Legence demonstrated improved full-year profitability on an adjusted basis, even as GAAP net losses widened year-over-year. Annual gross profit expanded to $535.9 million, while adjusted gross margin registered at 21.6%. Net loss attributable to shareholders increased to $59.8 million compared with $28.6 million in the previous year.
Total backlog and awarded contracts reached $3.674 billion as of December 31, 2025, marking a 48.6% increase from the prior year-end. The fourth-quarter book-to-bill ratio strengthened to 1.9x, while the trailing twelve-month metric stood at 1.6x. This performance underscored persistent order strength and successful project capture across core vertical markets.
Installation and maintenance backlog surged 65.8%, predominantly driven by expanding data center and technology sector activity. Engineering and consulting backlog advanced 16.2%, bolstered by government infrastructure and healthcare-related initiatives. The year-end backlog figure excludes the Bowers acquisition, which management estimates contributes approximately $1.5 billion in additional contracted work.
Executive leadership increased 2026 financial targets following the solid conclusion to 2025 and completed strategic transactions. Legence currently anticipates 2026 revenue ranging from $3.7 billion to $3.9 billion. Management simultaneously projects adjusted EBITDA will reach between $400 million and $430 million during the upcoming fiscal year.
The company finalized its acquisition of Bowers on January 2, 2026, and subsequently completed the Metrix transaction on March 1. The Metrix addition strengthens engineering capabilities throughout the Pacific Northwest region while providing entry into the education infrastructure market. Legence concluded 2025 with cash holdings of $230.2 million alongside total debt obligations of approximately $825.1 million.
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