Legence Corp (NASDAQ:LGN) posted mixed third-quarter results on Friday.
The company posted revenue of $708.01 million, up 26.2% year-over-year and ahead of analyst expectations of $639.78 million. Gross margin eased to 20.9% from 21.1% a year earlier, while earnings missed forecasts, with an EPS loss of 2 cents compared with consensus estimates calling for a profit of 6 cents.
Legence also announced an agreement to acquire The Bowers Group for about $475 million, comprising $325 million in cash, $100 million in stock, and $50 million in deferred consideration payable in cash or stock by the end of 2026.
For the fourth quarter, the company expects revenue between $600 million and $630 million, compared with a consensus estimate of $608.45 million, and adjusted EBITDA of $60 million to $65 million.
For fiscal 2026, Legence projects revenue of $2.65 billion to $2.85 billion, above the consensus estimate of $2.63 billion, and adjusted EBITDA of $295 million to $315 million.
Legence shares gained 3.7% to trade at $41.77 on Monday.
These analysts made changes to their price targets on Legence following earnings announcement.
- BMO Capital analyst Devin Dodge maintained Legence with an Outperform rating and raised the price target from $36 to $46.
- RBC Capital analyst Sabahat Khan maintained the stock with an Outperform rating and raised the price target from $36 to $48.
- Goldman Sachs analyst Adam Bubes maintained Legence with a Buy and raised the price target from $37 to $46.
- Barclays analyst Adam Seiden maintained the stock with an Equal-Weight rating and raised the price target from $34 to $37.
Considering buying LGN stock? Here’s what analysts think:
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