
Legence Corp (LGN) Stock Forecast & Price Target
Legence Corp (LGN) Analyst Ratings
Bulls say
Legence Corp's Installation & Maintenance segment has shown significant revenue growth, increasing from $918 million in 2022 to $1.5 billion in 2024, and it remains the primary revenue driver, accounting for approximately 71% of total revenues in 2024. The Engineering & Consulting segment also contributed positively, with revenues rising from $329 million in 2022 to $602 million in 2024, demonstrating the company's strategic focus on high-growth sectors. Additionally, Legence's robust backlog, which grew 29% to a record $3.1 billion and a strong book-to-bill ratio of 1.5x, reinforces a strong outlook for sustained revenue growth into 2026.
Bears say
Legence Corp reported a slight decline in free cash flow, decreasing to $23.8 million in 2Q25 from $24.1 million in 1Q25, suggesting potential challenges in sustaining cash generation despite an improvement from the prior year. Gross margins also contracted to 21.5% in 2Q25, down from 22.1% in the previous quarter and 21.7% year-over-year, indicating pressures on profitability primarily due to project mix in engineering and construction. Additionally, the company faces significant operational risks, including potential slowdowns in construction activity, skilled labor shortages, and environmental compliance issues, all of which could adversely impact future financial performance.
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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