LGN (NASDAQ:LGN) Posts Quarterly Earnings Results, Beats Expectations By $0.65 EPS

LGN (NASDAQ:LGN) released its quarterly earnings data on Thursday. The company reported $1.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.65, FiscalAI reports. LGN had a negative net margin of 1.20% and a positive return on equity of 4.33%. The company had revenue of $1.31 billion during the quarter.

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

• Legence reported record third-quarter revenue of $1.31 billion, up 85% year over year, with revenue excluding Bowers up 40%. Adjusted EBITDA nearly doubled to $177 million, and its margin rose about 100 basis points to 13.5%.
• Backlog and awards reached a record $5.9 billion, up 92% year over year, with a quarterly book-to-bill ratio of 1.2x. Management introduced 2027 guidance of $5.3 billion–$5.6 billion in revenue and $690 million–$730 million in Adjusted EBITDA, noting that some larger projects extend into 2028 and 2029.
• Management said data center customers had not changed their plans or schedules despite regulatory concerns, and described demand in data centers and semiconductors as strong. About 40% of Legence’s data center work is in Northern Virginia, but executives said no local projects had been delayed and cited the ability to shift work to nearby markets.
• Engineering and Consulting revenue declined 6%, partly reflecting the completion of large projects and softer education demand; management expects the segment to improve in 2027, citing backlog and awards growth of 19% since the start of the year. The company also acquired Austin-based CTI for about $100 million to expand its Texas presence and authorized a share repurchase program, while maintaining acquisitions and business investment as capital allocation options.

LGN Stock Down 3.1%

Shares of LGN stock traded down $1.16 on Thursday, hitting $35.94. 1,962,055 shares of the company’s stock traded hands, compared to its average volume of 1,439,384. The stock has a market cap of $3.88 billion, a P/E ratio of 90.04 and a beta of 3.42. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 1.03. The firm’s 50-day moving average is $46.76 and its 200 day moving average is $62.37. LGN has a 52-week low of $23.90 and a 52-week high of $107.24.

Analysts Set New Price Targets

LGN has been the topic of several research reports. Bank of America raised their price objective on LGN from $105.00 to $116.00 and gave the company a “buy” rating in a research report on Friday, August 14th. Royal Bank Of Canada decreased their target price on shares of LGN from $101.00 to $90.00 and set an “outperform” rating for the company in a research note on Thursday, October 15th. BMO Capital Markets raised their price target on shares of LGN from $100.00 to $105.00 and gave the company an “outperform” rating in a report on Friday, August 14th. Tigress Financial upped their price objective on shares of LGN from $125.00 to $130.00 and gave the company a “buy” rating in a research report on Wednesday, August 19th. Finally, Guggenheim restated a “buy” rating and set a $90.00 target price on shares of LGN in a research note on Monday, October 26th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, LGN has a consensus rating of “Moderate Buy” and a consensus target price of $96.67.

Trending Headlines about LGN

Investors following LGN have been watching these headlines:

• Positive Sentiment: Q3 results beat expectations. Legence reported EPS of $1.15, well above analyst estimates of roughly $0.50–$0.57, and revenue of $1.31 billion, ahead of forecasts. The company also reported record quarterly revenue and adjusted EBITDA that nearly doubled year over year. Article: Legence Q3 2026 earnings
• Positive Sentiment: Share repurchase adds a capital-return catalyst. The board authorized a $150 million stock buyback, which could support investor confidence and reduce shares outstanding if utilized. Article: Legence outlook and buyback
• Neutral Sentiment: The strong results and outlook provide clear positive catalysts, but they do not guarantee continued gains; investors may also weigh execution and the company’s ability to sustain rapid growth.

Insider Activity

In related news, CAO Bris Philippe Le sold 1,058 shares of LGN stock in a transaction on Friday, September 18th. The shares were sold at an average price of $55.01, for a total value of $58,200.58. Following the completion of the sale, the chief accounting officer owned 4,749 shares in the company, valued at approximately $261,242.49. The trade was a 18.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.01% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in LGN. Allworth Financial LP lifted its position in shares of LGN by 1,887.5% during the third quarter. Allworth Financial LP now owns 477 shares of the company’s stock worth $26,000 after purchasing an additional 453 shares during the last quarter. Reyes Financial Architecture Inc. bought a new stake in LGN in the third quarter valued at about $45,000. Global Retirement Partners LLC acquired a new stake in LGN during the third quarter valued at approximately $58,000. KBC Group NV acquired a new stake in LGN during the first quarter valued at approximately $66,000. Finally, Nykredit A S acquired a new stake in LGN during the second quarter valued at approximately $128,000.

About LGN

Legence Corp. provides engineering, installation and maintenance services for building systems. Its work includes heating, ventilation and air conditioning, plumbing, electrical systems, process piping, building automation and energy solutions. The company serves customers with complex building needs, including in the data center, healthcare, life sciences, commercial and industrial sectors. Its services span the building lifecycle, from design and construction to ongoing operations and maintenance.