Legence, a leading U.S.-based provider of technical and sustainable infrastructure solutions, saw its shares climb 5.7% following the release of strong fourth-quarter and full-year results. Headquartered in San Jose, California, Legence delivers engineering, installation, and maintenance services, focusing on critical sectors like data centers, healthcare, life sciences, and public infrastructure. The company’s financials reflected a sharp rise in demand, prompting management to raise revenue guidance for 2026 and underline confidence in ongoing growth opportunities.
Robust growth across segments supports earnings momentum
Legence reported quarterly revenue of $737.6 million for the fourth quarter of 2025, marking a 34.6% increase compared to the same period in 2024. For the full year, revenue reached $2.55 billion, up 21.5% over the prior year. Adjusted EBITDA expanded to $87 million in the quarter and totaled $298.8 million for the year, reflecting improved operational execution.
The firm’s installation and maintenance operations fueled much of this growth, posting $565.1 million in quarterly revenue—a 44.4% year-over-year rise. Activity was particularly strong in the data center and technology sectors, with additional gains seen in life sciences and healthcare projects. Engineering and consulting services also showed improvement, with revenues advancing 10% to $172.6 million, although the division’s profit margins narrowed due to shifts in service mix and cost pressures.
Legence’s total backlog and awarded contracts closed the year at $3.67 billion, representing a significant 48.6% growth from the previous year-end. The fourth-quarter book-to-bill ratio reached 1.9x, demonstrating consistent order inflow across the company’s core markets.
Strategic acquisitions and market expansion drive forward outlook
Strategic moves played a central role in Legence’s raised expectations. In early 2026, the company completed the acquisition of Bowers, a step that is expected to add about $1.5 billion in new contracted work once fully integrated. Legence also finalized the Metrix acquisition in March, which increases engineering capacity in the Pacific Northwest and opens access to the education facilities market.
Management responded to these developments by updating 2026 revenue projections, now aiming for a range between $3.7 billion and $3.9 billion. The leadership also anticipates adjusted EBITDA will reach between $400 million and $430 million next year, reflecting sustained demand across both public and private sector customers.
At the close of 2025, Legence reported cash reserves of $230.2 million against debt obligations of about $825.1 million, supporting ongoing growth investments and acquisition activity. The installation and maintenance backlog surged by 65.8% over the year, signaling robust project pipelines, especially in technology-related infrastructure. Meanwhile, the engineering and consulting backlog expanded by 16.2%, reinforced by government and healthcare contracts.
Chief Executive Officer Jeff Sprau commented on the company’s trajectory, attributing the improvements to strong execution and favorable market trends, particularly in the rapidly growing data center sector.
Sprau emphasized, “We continue to benefit from increasing demand for resilient infrastructure, and our expanded capabilities position us well to capture emerging opportunities in our target markets.”
With strategic acquisitions now integrated and a record-high backlog in place, Legence appears positioned to sustain its upward momentum into 2026, supported by solid demand in infrastructure, technology, and healthcare segments.
