LGN (NASDAQ:LGN) Releases Earnings Results, Misses Estimates By $0.06 EPS

LGN (NASDAQ:LGN) announced its quarterly earnings data on Thursday. The company reported $0.13 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.19 by ($0.06), FiscalAI reports. The firm had revenue of $1.04 billion during the quarter. The business’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 Price Performance

LGN traded down $11.00 on Thursday, hitting $89.00. The company had a trading volume of 3,106,457 shares, compared to its average volume of 1,746,893. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.57 and a quick ratio of 1.57. LGN has a 52-week low of $26.96 and a 52-week high of $107.24. The business has a fifty day simple moving average of $67.37. The firm has a market cap of $9.62 billion and a price-to-earnings ratio of -8,900.00.

Institutional Trading of LGN

Several institutional investors and hedge funds have recently bought and sold shares of LGN. Janus Henderson Group PLC lifted its holdings in LGN by 128.4% in the fourth quarter. Janus Henderson Group PLC now owns 4,401,402 shares of the company’s stock worth $189,442,000 after buying an additional 2,474,220 shares during the period. Westfield Capital Management Co. LP purchased a new stake in LGN in the fourth quarter worth about $69,438,000. Vanguard Group Inc. lifted its holdings in LGN by 78.1% in the fourth quarter. Vanguard Group Inc. now owns 3,227,670 shares of the company’s stock worth $138,919,000 after buying an additional 1,415,282 shares during the period. Munro Partners lifted its holdings in LGN by 1,875.9% in the fourth quarter. Munro Partners now owns 1,396,642 shares of the company’s stock worth $60,111,000 after buying an additional 1,325,957 shares during the period. Finally, CI Investments Inc. lifted its holdings in LGN by 2,209.7% in the fourth quarter. CI Investments Inc. now owns 788,287 shares of the company’s stock worth $33,928,000 after buying an additional 754,157 shares during the period.

Analysts Set New Price Targets

LGN has been the topic of a number of recent research reports. BTIG Research raised their price objective on LGN from $75.00 to $120.00 and gave the company a “buy” rating in a research note on Thursday. BMO Capital Markets raised their price objective on LGN from $46.00 to $63.00 and gave the company an “outperform” rating in a research note on Monday, March 30th. Barclays increased their target price on shares of LGN from $37.00 to $45.00 and gave the stock an “equal weight” rating in a report on Friday, January 23rd. Tigress Financial increased their target price on shares of LGN from $60.00 to $85.00 and gave the stock a “buy” rating in a report on Thursday, April 16th. Finally, Royal Bank Of Canada increased their target price on shares of LGN from $48.00 to $64.00 and gave the stock an “outperform” rating in a report on Monday, March 30th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $77.20.

LGN News Roundup

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, and adjusted EBITDA rose 132%, showing strong underlying business momentum.
• Positive Sentiment: The company also raised full-year 2026 guidance to $4.1 billion-$4.3 billion in revenue and $470 million-$490 million in adjusted EBITDA, which supports a constructive longer-term outlook.
• Positive Sentiment: BTIG Research raised its price target on LGN from $75 to $120 and kept a buy rating, signaling optimism from analysts after the quarter.
• Neutral Sentiment: Backlog and awards reached a record $5.38 billion, with book-to-bill at 1.2x, indicating healthy demand and future revenue visibility. Article: Legence Reports First Quarter 2026 Financial Results
• Negative Sentiment: Despite the growth, Q1 EPS came in at $0.13 versus the $0.19 consensus estimate, and gross margin fell to 17.9% from 22.1% a year ago, raising concerns about mix and profitability.
• Negative Sentiment: Investors appear to be selling the news after a strong pre-earnings run, with sentiment turning cautious on whether Legence can sustain margins quarter to quarter.

About LGN

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.