Legence - CL | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 1.262 B

Revenue: As of FY2026 Q2, the actual value is USD 1.262 B, beating the estimate of USD 1.074 B.

EPS: As of FY2026 Q2, the actual value is USD -0.37, missing the estimate of USD 0.3158.

EBIT: As of FY2026 Q2, the actual value is USD 8.379 M.

Consolidated Financial Highlights

Legence Corp. reported a gross profit of $220.2 million with a 17.4% gross margin for Q2 2026, compared to $128.7 million and a 21.5% gross margin in Q2 2025. Non-GAAP Adjusted Gross Profit for Q2 2026 was $234.0 million with an 18.5% margin, an increase from $130.3 million and a 21.8% margin in Q2 2025. The net loss attributable to Legence Corp. for Q2 2026 was -$27.8 million, compared to -$5.3 million in Q2 2025. Non-GAAP Adjusted EBITDA increased by 114.1% to $154.6 million in Q2 2026 from $72.2 million in Q2 2025, resulting in an Adjusted EBITDA margin of 12.2% compared to 12.1%.

Segment Revenues

• Engineering & Consulting: Revenues for Q2 2026 were $206.9 million, a 5.5% increase from $196.1 million in Q2 2025. Engineering & Design revenue decreased by -4.1% to $102.3 million in Q2 2026 from $106.7 million in Q2 2025. Program & Project Management revenue increased by 16.9% to $104.5 million in Q2 2026 from $89.4 million in Q2 2025.
• Installation & Maintenance: Revenues for Q2 2026 reached $1.06 billion, a 162.0% increase from $402.8 million in Q2 2025. Excluding the Bowers acquisition, non-GAAP segment revenues grew by 86.6%. Installation & Fabrication revenue increased by 189.0% to $924.9 million in Q2 2026 from $320.0 million in Q2 2025. Maintenance & Service revenue increased by 57.5% to $130.4 million in Q2 2026 from $82.8 million in Q2 2025.

Segment Gross Profit

• Engineering & Consulting: Gross profit for Q2 2026 was $56.1 million, a -12.4% decrease from $64.1 million in Q2 2025, with gross margins of 27.1% and 32.7% respectively. Non-GAAP Adjusted Gross Profit was $64.3 million (31.1% margin) in Q2 2026, down from $65.1 million (33.2% margin) in Q2 2025.
• Installation & Maintenance: Gross profit for Q2 2026 was $164.1 million, a 154.1% increase from $64.6 million in Q2 2025, with gross margins of 15.5% and 16.0% respectively. Non-GAAP Adjusted Gross Profit was $169.6 million (16.1% margin) in Q2 2026, up from $65.2 million (16.2% margin) in Q2 2025.

Backlog and Awarded Contracts

Total backlog and awarded contracts were $5.67 billion as of June 30, 2026, representing a 104.6% increase from $2.77 billion at June 30, 2025. The consolidated book-to-bill ratio for the three months ended June 30, 2026, was 1.2x. Engineering & Consulting backlog increased by 26.6% year-over-year to $1.12 billion, while Installation & Maintenance backlog increased by 141.2% year-over-year to $4.55 billion.

Balance Sheet

As of June 30, 2026, Legence Corp. had cash and equivalents of approximately $292.0 million and total debt of approximately $1.03 billion. Net leverage was 1.6 times, and adjusted net leverage was 1.5 times.

Cash Flow

For the six months ended June 30, 2026, cash provided by operating activities was $194.5 million, an increase from $62.5 million in the same period of 2025. Cash used in investing activities was -$322.9 million, compared to -$14.5 million in the prior year period, primarily due to consideration paid for acquisitions. Cash provided by financing activities was $190.3 million, a change from -$31.4 million used in the prior year period.

Outlook / Guidance

Legence Corp. set third-quarter 2026 guidance for total revenues between $1.225 billion and $1.275 billion, and non-GAAP Adjusted EBITDA between $150 million and $160 million. The company raised its full-year 2026 guidance for total revenues to a range of $4.7 billion to $4.8 billion, from the previous guidance of $4.1 billion to $4.3 billion. Full-year 2026 non-GAAP Adjusted EBITDA guidance was also raised to $565 million to $585 million, from the prior range of $470 million to $490 million.