Legence Future Growth
Future criteria checks 5/6
Legence is forecast to grow earnings and revenue by 39.9% and 16% per annum respectively. EPS is expected to grow by 65.2% per annum. Return on equity is forecast to be 22.6% in 3 years.
Key information
39.9%
Earnings growth rate
65.20%
EPS growth rate
| Construction earnings growth | 24.5% |
| Revenue growth rate | 16.0% |
| Future return on equity | 22.63% |
| Analyst coverage | Good |
| Last updated | 22 May 2026 |
Recent future growth updates
Recent updates
LGN: Future Guidance And Equity Offering Will Shape Balanced Risk Outlook
Analysts have lifted their price target for Legence to $87.25 from $78.70, citing updated assumptions that include slightly refined discount rates, expectations for modestly higher revenue growth, a small improvement in forecast profit margins, and a higher future P/E multiple. What’s in the News for Legence Legence issued earnings guidance for the second quarter of 2026, with total revenues expected in a range of US$1.05b to US$1.1b.Legence: Growth Has More Visibility, Still Not Enough Margin Of Safety
Summary Legence Corp. remains a hold as growth visibility strengthens, but valuation at ~50x NTM P/E leaves little margin for error. Revenue surged ~105% y/y, with data centers now 62% of revenue and backlog visibility extending into Q4 2028, supporting upgraded FY26 guidance. Adjusted EBITDA margin expanded to 11.4%, but gross margin fell 320bps y/y to 18.7%, highlighting mix risks from lower-margin new build and subcontractor work. Despite operational improvements, LGN's premium valuation demands sustained profitable growth and margin stability to justify multiple expansion. Read the full article on Seeking Alpha
Legence Stock Will Ride Data Center Demand And Modular Fabrication Tailwinds
Catalysts About Legence Legence provides engineering, installation, fabrication and maintenance services for mission critical building systems across data centers, technology, healthcare, education, life sciences and public sector clients. What are the underlying business or industry changes driving this perspective?Modular Fabrication And Data Center Demand Will Drive Balanced But Limited Upside Potential
Catalysts About Legence Legence provides engineering, installation, maintenance and fabrication services for mission critical building systems across sectors such as data centers, technology, healthcare, education and government. What are the underlying business or industry changes driving this perspective?We Think Legence's (NASDAQ:LGN) Profit Is Only A Baseline For What They Can Achieve
Even though Legence Corp. ( NASDAQ:LGN ) posted strong earnings, investors appeared to be underwhelmed. We did some...
Data Center Backlog And Modular Capacity Will Support Durable Multi Sector Demand
Catalysts About Legence Legence provides engineering, installation, fabrication, and maintenance services for mission critical building systems across sectors such as data centers, technology, healthcare, life sciences, education, and government. What are the underlying business or industry changes driving this perspective?Earnings and Revenue Growth Forecasts
| Date | Revenue | Earnings | Free Cash Flow | Cash from Op | Avg. No. Analysts |
|---|---|---|---|---|---|
| 12/31/2028 | 5,489 | 309 | 430 | 468 | 7 |
| 12/31/2027 | 4,848 | 171 | 356 | 409 | 16 |
| 12/31/2026 | 4,267 | 127 | 292 | 347 | 16 |
| 3/31/2026 | 3,082 | 4 | 297 | 348 | N/A |
| 12/31/2025 | 2,550 | -34 | 219 | 257 | N/A |
| 9/30/2025 | 2,361 | -20 | 137 | 168 | N/A |
| 6/30/2025 | 2,214 | -20 | 85 | 110 | N/A |
| 3/31/2025 | 2,136 | -35 | 5 | 26 | N/A |
| 12/31/2024 | 2,099 | -29 | 10 | 29 | N/A |
| 12/31/2023 | 1,615 | -46 | 17 | 34 | N/A |
| 12/31/2022 | 1,247 | -82 | 1 | 27 | N/A |
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LGN's forecast earnings growth (39.9% per year) is above the savings rate (3.5%).
Earnings vs Market: LGN's earnings (39.9% per year) are forecast to grow faster than the US market (18.4% per year).
High Growth Earnings: LGN's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LGN's revenue (16% per year) is forecast to grow faster than the US market (12.7% per year).
High Growth Revenue: LGN's revenue (16% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LGN's Return on Equity is forecast to be high in 3 years time (22.6%)
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/06/26 14:20 |
| End of Day Share Price | 2026/06/26 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
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Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Legence Corp. is covered by 17 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Adam Seiden | Barclays |
| Charles Albert Dillard | Bernstein |
| Devin Dodge | BMO Capital Markets Equity Research |