Legence Corp. Class A Common stock

Legence Corp. reported a wider second-quarter loss despite strong revenue growth, driven by goodwill and asset impairment charges. Net loss attributable to Legence widened to $27.84 million, or $0.37 per share, from $5.27 million, or $0.23 per share, a year ago, including $21.59 million of goodwill impairment and $19.49 million of long-lived asset impairment charges. Adjusted EBITDA increased 114.1% to $154.6 million from $72.2 million, while revenue grew 110.7% to $1.26 billion from $598.9 million. The company raised its full-year 2026 revenue outlook to $4.7 billion to $4.8 billion from $4.1 billion to $4.3 billion, and increased its adjusted EBITDA outlook to $565 million to $585 million from $470 million to $490 million. For the third quarter, Legence expects revenue of $1.225 billion to $1.275 billion and adjusted EBITDA of $150 million to $160 million.

Conestoga Capital Advisors highlighted Legence Corp. as a contributor to its second-quarter 2026 performance, citing strong execution and robust project demand. The firm noted that Legence, which provides energy efficiency and specialty engineering services with a large data center presence, reported record awarded contracts of $5.4 billion during the quarter. Legence shares gained 52.30% year-to-date through August 5, 2026, closing at $65.55 with a market capitalization of $10.77 billion. The company's first-quarter 2026 revenues grew 105% to a record $1.038 billion. Conestoga's Small Cap Composite returned 14.32% net-of-fees in the second quarter, compared with a 25.71% gain for the Russell 2000 Growth Index, as narrow index leadership weighed on relative results.

Barclays raised its price target on Legence Corp. to $80 from $60 while maintaining an Equal Weight rating. The firm cited May machinery and construction data that showed strong dollar activity but weak volumes, noting growth remains concentrated in AI while infrastructure is supportive but normalizing. Earlier, Tigress Financial raised its target to $125 from $85 with a Buy rating, and BofA raised its target to $105 from $90 also with a Buy rating after Legence reported a strong first quarter and backlog expanded to $5.4 billion from $3.7 billion.