
Legence Corp (LGN) Stock Forecast & Price Target
Legence Corp (LGN) Analyst Ratings
Bulls say
Legence Corp demonstrates a robust financial outlook, highlighted by a steady revenue mix with the Engineering & Design segment increasing its share significantly, while Installation & Maintenance revenues rose from $360.5 million in 1Q25 to $402.8 million, reflecting healthy growth dynamics. The company has achieved impressive revenue growth, with a 39% CAGR from 2021 to 2024, and a notable increase in the Engineering & Consulting segment revenues from $329 million in 2022 to $602 million in 2024, indicating its importance in Legence's overall financial performance. Additionally, Legence's backlog has reached a record $3.1 billion, driven by a high level of demand in critical infrastructure sectors, complemented by a strong book-to-bill ratio of 1.5x, forecasting sustained growth well into 2026.
Bears say
Legence Corp has experienced a decline in free cash flow, dropping to $23.8 million in 2Q25 from $24.1 million in the previous quarter, while still representing a significant recovery from a negative cash flow of ($55.8) million in 2Q24. The company faces multiple challenges, including an inability to expand its US footprint, loss of key customers, and margin pressures stemming from rising raw material and labor costs, alongside increased competition and disruptive technologies. Furthermore, with gross margins decreasing to 21.5% in 2Q25 due to project mix, coupled with substantial pro-forma debt of ~$820 million leading to a net leverage of ~3.0x Debt/EBITDA, Legence's financial outlook appears increasingly precarious amid industry-specific risks and potential construction activity slowdowns.
This aggregate rating is based on analysts' research of Legence Corp and is not a guaranteed prediction by Public.com or investment advice.
Legence Corp (LGN) Analyst Forecast & Price Prediction
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