LGN
Legence Corp.

Legence Corp.LGN

Industrials · Engineering & Construction
27.91USD
+9.84%
Nov 08, 2026
LGN overview ready
Engineering and installation services for mission-critical data center infrastructure
Legence is an infrastructure provider and engineering-and-installation enabler for mission-critical facilities.
Primary theme is lagging
Power / Grid is lagging (-16.9pp vs SPY over 21 sessions; 8 of 32 members ahead of SPY).
Price trend is broken
Longer-term context reads new trend, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Demanding valuation
The price embeds expectations that run ahead of what comparable businesses command.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Dependence on capital spending cycles in commercial and data center construction.
Market Nov 6Filing Jun 30Price action Nov 7Research Jul 30

Conviction Level

PriceAction1.4BusinessPerformance5.0BusinessQuality6.6Valuation2.2ThemeMomentum1.0Mixed — Revenue growth has accelerated across 4 consecutive quarters, rising from +26% to +111% year over year. No comparable quarterly EPS is available; the net loss moved to -$27.8M from -$5.3M a year earlier. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
Power / GridLagging
vs SPY
−16.9pp
Theme return
−21.9%
Beating SPY
8 of 32
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads new trend, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryDamaged / breakdown

The technical structure itself is broken across timeframes — the weakest entry profile.

Key Financials

Market Cap
$3.0B
Avg Volume (60D)
1.4M
60 sessions
Revenue Growth YoY
+21.5%
FY2025 vs FY2024
Gross Margin
+18.7%
Trailing twelve months
Operating Margin
+0.8%
Trailing twelve months
Free Cash Flow Yield
+10.7%
Distance from 200DMA
-55.7%
Next Earnings
2026-11-12
P/E
N/M
EV / EBITDA
24.5x
EV / Sales
1.0x
Market metrics as of Nov 6, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Business Performance

Mixed

Revenue growth has accelerated across 4 consecutive quarters, rising from +26% to +111% year over year. No comparable quarterly EPS is available; the net loss moved to -$27.8M from -$5.3M a year earlier.

Latest reported: Q2 FY2026, ended Jun 30
Revenue growthAccelerating
+111%
$1.26B in Q2 FY2026 · YoY
YoY growth, last 4 quarters
  1. +26%
  2. +35%
  3. +105%
  4. +111%
Earnings growthLoss widening
-$27.8M
Net income -$27.8M. No comparable quarterly EPS is available.
Not enough comparable diluted EPS quarters for a YoY sequence.
Operating marginContracting
-0.5%
-5.8 pp YoY · gross margin 17.4% (-4.0 pp)

Business Quality

6.6 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Only one valuation perspective could be built for this company, and it reads expensive.
Legence Corp. has an Expensive valuation stance because the price embeds expectations that run ahead of what comparable businesses command. It trades at a 10.7% free-cash-flow yield and 24.5x EBITDA, which require sustained delivery to be justified.

What changed

  • LGN rose 9.8% in one session
    LGN closed +9.8% while the broad market was close to flat (+0.3%).
    2026-11-06

Company Research

Thesis
Legence is an infrastructure provider and engineering-and-installation enabler for mission-critical facilities.
Opportunity
High opportunity
Hyperscaler and colocation capital spending on high-density AI data-center electrical, mechanical, cooling, commissioning, and mission-critical building infrastructure.
Key risk
Dependence on capital spending cycles in commercial and data center construction.

Economic classification

Loading the economic classification…

Business & Markets

Industrials · Engineering & Construction
What they do

Legence Corp. provides engineering, installation, and maintenance services for mission-critical building systems in the U.S., operating through Engineering & Consulting and Installation & Maintenance segments.

How it earns

Project-based revenue from engineering design, consulting, installation, and maintenance contracts.

Products & services
HVAC and MEP system engineering and design
Installation and maintenance of mechanical and electrical building systems
Customers & end markets
Commercial building owners and operators
Data center operators including hyperscalers and colocation providers
Market position

Niche infrastructure provider specializing in mission-critical building systems engineering and installation.

Demand drivers
Medium cyclicality

Demand tied to capital expenditure cycles in commercial construction and data center buildouts.