LGN: Q1 results well ahead; 2026 guide taken higher

研报英文原文证据摘录

LGN: Q1 results well ahead; 2026 guide taken higher

EQUITY RESEARCH QUICK TAKE

RBC Dominion Securities Inc.

Sabahat Khan (Analyst)

Arthur Nagorny, CFA (Analyst)

Bhaven Shah (AVP)

Padraig Murphy (Associate)

May 14, 2026

Legence Corp.

Q1 results well ahead; 2026 guide taken higher

NASDAQ: LGN | USD 100.00 | Outperform | Price Target USD 90.00

Sentiment: Positive

Our thoughts: Legence reported another strong quarter, with Revenue and Adjusted EBITDA coming in well ahead of consensus

estimates while the company revised its 2026 guidance above consensus estimates heading in to the print (Q2 guidance was also

initiated ahead of consensus). Strong data center demand continues to drive results ahead of Street forecasts, and is reflected in

the 57.1% YoY revenue growth (excl. contribution from the recent Bowers platform acquisition), while Adjusted EBITDA margin

was also better-than-expected (+133bps YoY). Overall, Legence delivered another beat and raise quarter, and we believe the

company is well-positioned to sustain this momentum through 2026.

Result details – Q1 Revenue came in at $1,038MM (+105.1% YoY, +57.1% excl. contributions from recently-acquired Bowers), well

ahead of RBCe/consensus of $933MM/$931MM. Installation & Maintenance ("I&M") continued to be robust, with revenue coming

in at $872MM (+141.9% YoY; +74.4% excl. Bowers) vs. our estimates of $769.6MM, reflecting another quarter of strong data center

& technology demand for Legence's Installation & Fabrication services, where revenue came in at $758.6MM (+161.9% YoY),

while Maintenance & Service revenue of $113.5MM was +60.3% YoY and reflected more broad-based demand. In Engineering &

Consulting ("E&C"), revenue was $165.8MM (+14.0% YoY) vs. RBCe of $162.9MM, driven by higher Program & Project Management