Legence Reports Third Quarter 2025 Financial Results
Globenewswire·2025-11-14 12:01

Core Insights - Legence Corp. reported a 39% increase in quarterly adjusted EBITDA and a record total backlog of $3.1 billion, reflecting a 29% year-over-year growth with a robust book-to-bill ratio of 1.5x [1][2][13] - The company signed a definitive agreement to acquire Bowers for $475 million, enhancing its capabilities in the Northern Virginia/DC Metro area [1][17] - Total debt decreased to $836 million and net debt to $650 million, supported by IPO proceeds and strong cash generation [1][18] Financial Performance - Revenues for Q3 2025 reached $708 million, a 26.2% increase from $560.8 million in Q3 2024 [3][5] - Gross profit for Q3 2025 was $148.1 million with a gross margin of 20.9%, compared to $118.5 million and 21.1% in Q3 2024 [3][5] - Non-GAAP adjusted EBITDA for Q3 2025 was $88.8 million, up 38.9% from $64 million in Q3 2024 [3][5] Segment Performance - Engineering & Consulting segment revenue was $212.2 million, a 9.5% increase year-over-year, driven by demand from state & local government and life sciences clients [6][8] - Installation & Maintenance segment revenue totaled $495.8 million, a 35.1% increase, primarily due to demand from data centers and life sciences clients [10][12] - Gross profit for the Engineering & Consulting segment was $67.3 million, while the Installation & Maintenance segment gross profit was $80.7 million, reflecting increases of 5.3% and 47.9% respectively [7][11] Backlog and Contracts - Total backlog and awarded contracts increased to $3.1 billion, a 29.4% rise from $2.4 billion a year ago [13][14] - The Engineering & Consulting segment backlog grew by 1.5%, while the Installation & Maintenance segment backlog surged by 45.9% [13][14] Guidance - The company provided Q4 2025 guidance for revenue between $600 million and $630 million and adjusted EBITDA between $60 million and $65 million [19][20] - For the full year 2026, revenue guidance is set between $2.65 billion and $2.85 billion, with adjusted EBITDA between $295 million and $315 million [19][20]