Legence Reports Fourth Quarter and Year End 2025 Financial Results

Core Insights - Legence Corp. reported record quarterly revenues of $737.6 million for Q4 2025, marking a 34.6% increase from $548.2 million in Q4 2024, primarily driven by organic growth [1][4][3] - The company achieved a record total backlog and awarded contracts of $3.7 billion, a 49% increase year-over-year, with a robust book-to-bill ratio of 1.9x for Q4 [1][24][25] - Non-GAAP Adjusted EBITDA for Q4 2025 was $87.0 million, reflecting a 53.2% increase from $56.8 million in Q4 2024 [4][3] Financial Performance - Q4 2025 revenues totaled $737.6 million, up 34.6% from $548.2 million in Q4 2024 [4][5] - Gross profit for Q4 2025 was $147.5 million, with a gross margin of 20.0%, compared to $112.9 million and 20.6% in Q4 2024 [4][5] - For the full year 2025, total revenues reached $2.6 billion, a 21.5% increase from $2.1 billion in 2024 [5][8] Segment Performance - The Engineering & Consulting segment generated $172.6 million in revenue for Q4 2025, a 10.0% increase from $156.9 million in Q4 2024, driven by demand for Program & Project Management services [9][12] - The Installation & Maintenance segment reported revenues of $565.1 million for Q4 2025, a 44.4% increase from $391.3 million in Q4 2024, primarily due to strong demand from data centers and life sciences clients [16][18] - For the full year 2025, the Installation & Maintenance segment revenues totaled $1.8 billion, up 21.9% from $1.5 billion in 2024 [22][23] Backlog and Contracts - Total backlog and awarded contracts reached $3.7 billion as of December 31, 2025, a 48.6% increase from $2.5 billion a year earlier [24][26] - The Engineering & Consulting segment backlog increased by 16.2% year-over-year, while the Installation & Maintenance segment backlog surged by 65.8% [24][25] Acquisitions - On March 1, 2026, Legence completed the acquisition of Metrix Engineers LLC for approximately $30 million, enhancing its engineering capabilities in the Pacific Northwest [27][28] - The company also acquired Bowers on January 2, 2026, for an upfront cash payment of $325 million, funded through a combination of cash and debt [29] Guidance - For Q1 2026, Legence expects revenues between $925 million and $950 million, with Non-GAAP Adjusted EBITDA projected at $90 million to $100 million [30][31] - The full-year 2026 guidance has been raised to revenues of $3.7 billion to $3.9 billion and Non-GAAP Adjusted EBITDA of $400 million to $430 million [34]