
Legence Corp (LGN) Stock Forecast & Price Target
Legence Corp (LGN) Analyst Ratings
Bulls say
Legence Corp has demonstrated strong financial performance, particularly with Installation & Maintenance revenue growing to $402.8 million in the recent quarter, reflecting an upward trend compared to previous periods. The company's Engineering & Consulting segment has also seen significant expansion, with revenues increasing from $329 million in 2022 to a projected $602 million in 2024, contributing progressively to overall revenues. Additionally, a substantial backlog of approximately $3.1 billion, with a strong book-to-bill ratio of 1.5x, indicates robust demand in high-growth sectors, positioning the company well for sustained revenue growth through 2026.
Bears say
Legence Corp's negative outlook is primarily driven by stagnation in US market expansion, the loss of key customers, and persistent margin pressures attributed to rising raw material and labor costs. With pro-forma debt levels estimated at approximately $820 million and a net leverage ratio of around 3.0x Debt/EBITDA, the company's financial leverage raises concerns, especially in light of ongoing supply chain constraints and increased competition. Additionally, decreasing gross margins, which fell to 21.5% in 2Q25 from previous quarters, highlight the impact of an unfavorable project mix and overall industry-specific risks, including potential construction slowdowns and disruptive technologies.
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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