Legence Stock Retreats Despite Triple-Digit Revenue Growth And Raised Outlook

Legence Corp. (NASDAQ:LGN) shares were trading higher Thursday but have since reversed and begun trading lower after the company reported better-than-expected first-quarter revenue results and issued second-quarter revenue guidance above estimates. Also, the company raised its fiscal-year 2026 revenue guidance above estimates. Legence stock is approaching key resistance levels. What’s driving LGN to record levels? Q1 Highlights Legence reported earnings per share of 13 cents, missing the consensus estimate of 21 cents. In addition, it posted revenue of $1.03 billion, beating the consensus estimate of $930.09 million, and representing a 105% year-over-year increase. The company also reported record total backlog and awards of $5.38 billion, representing a 104% increase from the prior-year period. Legence said first-quarter book-to-bill was 1.2x. "Legence delivered a strong start to the year, as our first quarter 2026 results reflect robust demand and exceptional project execution across the platform," said CEO Jeff Sprau. Sprau said revenue growth was driven by healthy organic growth across both the Installation & Maintenance and Engineering & Consulting segments, as well as contributions from recent acquisitions, particularly The Bowers Group. "Our dedicated and skilled craftspeople and engineering professionals continue to deliver complex projects safely, efficiently, and at the highest standards for our customers," Sprau said. The company added that it maintains strong visibility into its business, supported by record backlog and awarded contracts, along with demand trends across its end markets. Guidance Legence expects second-quarter revenue of $1.05 billion to $1.10 billion, versus the consensus estimate of $913.65 million. It also raised its fiscal-year 2026 revenue guidance from between $3.70 billion and $3.90 billion to between $4.10 billion and $4.30 billion, versus the consensus estimate of $3.88 billion. Read Also: Stock Market Today: S&P 500, Dow Jones Futures Gain As Trump Clears NVDA's H200 Sales To China—Cisco Systems, Doximity, Grocery Outlet In Focus Legence Stock Edges Lower LGN Price Action: At the time of publication, Legence shares are trading 5.20% lower at $94.80, according to data from Benzinga Pro. This illustration was generated using artificial intelligence via Midjourney.