Legence Corp. (LGN)

Legence is a provider of engineering, installation and maintenance services for mission-critical systems in buildings. It integrates the engineering, installation and upkeep of mechanical, electrical and plumbing (MEP) systems, which it says lowers total cost and speeds turnaround for clients while improving its win rates, retention and recurring revenue. It focuses on technically demanding buildings in technology, life sciences, healthcare and education. In 2025 it generated more than half of its revenue from data center and technology and life sciences and health care clients. At December 31, 2025, backlog and awarded contracts were $3.7 billion, up 49% from a year earlier.

The company operates two segments. Engineering & Consulting designs HVAC and other MEP systems, develops energy-reduction strategies, and provides program and project management, including facility assessments, construction management and design-build work under Energy Savings Performance Contracts. Engineering & Design made up about 59% of this segment's 2025 revenue and Program & Project Management about 41%. Installation & Maintenance fabricates and installs HVAC, process piping, electrical, plumbing and control systems in new and existing buildings, using design-build and plan-and-specification approaches, and also provides modular construction and custom fabrication. It further provides preventative maintenance, emergency repair and break-fix services, typically under one- to five-year agreements. Installation & Fabrication accounted for about 82% of segment revenue in 2025 and Maintenance & Service about 18%. About 40% of 2025 revenue came from new buildings and 60% from retrofits, upgrades and maintenance.

Clients include large technology and industrial companies and public-sector institutions that contract directly, plus architects and general contractors that subcontract MEP work. The company served about 20,000 clients from 2019 through 2025, and its top 10 clients have averaged a 23-year relationship. Of 2025 revenue of $2.55 billion, data centers and technology were 42.7%, life sciences and healthcare 18.0%, education 16.8%, mixed-use 4.6%, state and local government 4.2%, and other industries 13.7%. The federal government was about 2% of revenue. It sells through a "seller-doer" model in which engineers, project managers and technicians originate business, supported by dedicated sales staff, and it markets through industry events and digital channels.

Legence is headquartered in San Jose, California. It had about 7,000 full-time employees, including about 1,200 MEP engineers and energy consultants and about 6,200 technicians and tradespeople, with 116 locations across 46 states and the District of Columbia. Collective bargaining agreements cover about 4,500 employees. Most revenue comes from fixed-price contracts, and most jobs other than maintenance finish within nine months. Materials such as ductwork, pipe, valves and sheet metal come from many suppliers, and the company is equipment-vendor agnostic. Tariff costs are passed through to clients. Competitors include Affiliated Engineers, Stantec and WSP in engineering, and Comfort Systems USA, ACCO Engineered Systems and Southland Industries in installation and maintenance. Demand is seasonal, stronger in the second and third quarters.