LGN (NASDAQ:LGN) Issues Earnings Results, Misses Expectations By $0.06 EPS

Posted by Brian Himes on May 15th, 2026

LGN (NASDAQ:LGN – Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.19 by ($0.06), FiscalAI reports. The business had revenue of $1.04 billion for the quarter. The firm’s quarterly revenue was up 105.2% compared to the same quarter last year.

Here are the key takeaways from LGN’s conference call:

Legence reported a very strong first quarter, with revenue more than doubling year over year to $1.038 billion and adjusted EBITDA up 132%, both ahead of guidance.
The company raised full-year 2026 guidance to $4.1 billion-$4.3 billion of revenue and $470 million-$490 million of adjusted EBITDA, citing strong execution and better visibility into project timing.
Backlog and awards hit a record $5.4 billion, up 104% year over year, with data centers and technology driving the majority of growth and providing visibility into 2027.
Operationally, Legence said it is benefiting from improving margins and cash flow, including adjusted EBITDA margin expansion, free cash flow above $100 million, and adjusted SG&A leverage on higher revenue.
Management said the Bowers acquisition is integrating well and gives the company more flexibility for future M&A, though they do not expect another deal of that size in the near term.

LGN Stock Down 6.1%

Shares of NASDAQ:LGN traded down $5.39 during midday trading on Friday, hitting $83.61. 1,434,529 shares of the stock traded hands, compared to its average volume of 1,485,131. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.57 and a quick ratio of 1.57. The stock’s 50 day simple moving average is $67.37. The stock has a market cap of $9.03 billion and a PE ratio of -8,360.80. LGN has a one year low of $26.96 and a one year high of $107.24.

LGN News Summary

Here are the key news stories impacting LGN this week:

Positive Sentiment: Legence reported record Q1 revenue of $1.04 billion, up 105% year over year, with adjusted EBITDA up 132% and backlog/awards rising to a record $5.38 billion. Legence Reports First Quarter 2026 Financial Results
Positive Sentiment: The company raised full-year 2026 guidance, signaling confidence in continued growth, and Q2 revenue guidance was also above market expectations. Legence Reports First Quarter 2026 Financial Results
Positive Sentiment: Analysts turned more bullish after the report: BTIG lifted its price target to $120 from $75, and BMO Capital Markets raised its target to $100 from $63, both with positive ratings. Benzinga report on BMO target raise
Neutral Sentiment: Q1 adjusted EPS came in at $0.13, below the $0.19 consensus estimate, which tempers the otherwise strong sales growth story. LGN earnings summary
Negative Sentiment: Investors were concerned that gross margin fell to 17.9% from 22.1% a year ago, suggesting profitability is not keeping pace with revenue growth. Legence shares slide on margin compression
Negative Sentiment: The stock may also be seeing a “sell-the-news” reaction after a strong run-up into earnings, as traders locked in gains despite the upbeat outlook. Legence Stock Retreats Despite Triple-Digit Revenue Growth And Raised Outlook

Analyst Upgrades and Downgrades

A number of brokerages recently commented on LGN. BTIG Research raised their price objective on shares of LGN from $75.00 to $120.00 and gave the stock a “buy” rating in a report on Thursday. Loop Capital started coverage on shares of LGN in a report on Wednesday, April 29th. They issued a “buy” rating and a $96.00 price target on the stock. Barclays upped their price objective on LGN from $37.00 to $45.00 and gave the company an “equal weight” rating in a research note on Friday, January 23rd. Stifel Nicolaus raised their target price on LGN from $58.00 to $60.00 and gave the stock a “buy” rating in a research report on Tuesday, March 31st. Finally, Royal Bank Of Canada boosted their target price on LGN from $48.00 to $64.00 and gave the company an “outperform” rating in a research note on Monday, March 30th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $80.90.

Read Our Latest Research Report on LGN

Institutional Investors Weigh In On LGN

A number of large investors have recently modified their holdings of LGN. Assetmark Inc. purchased a new stake in shares of LGN in the 4th quarter worth about $31,000. Aster Capital Management DIFC Ltd purchased a new position in LGN during the fourth quarter valued at $64,000. KBC Group NV purchased a new position in LGN during the first quarter valued at $66,000. Kestra Advisory Services LLC bought a new stake in LGN in the fourth quarter worth $91,000. Finally, Clearstead Advisors LLC bought a new stake in LGN in the fourth quarter worth $140,000.

About LGN

(Get Free Report)

Legence Corp. is a provider of engineering, consulting, installation and maintenance services for mission-critical systems in buildings. The company specializes in designing, fabricating and installing complex HVAC, process piping and other mechanical, electrical and plumbing systems. Legence Corp. is based in SAN JOSE, Calif.