Q2 2026 Legence Corp Earnings Call Transcript
Key Points
- Record revenue and backlog, with organic revenue growth of nearly 60% and total revenue up 111% year-over-year.
- Strong demand across diverse end markets, including data centers, life sciences, healthcare, education, and state/local government.
- Adjusted EBITDA grew 114% year-over-year, with sequential margin expansion of 90 basis points.
- Pro forma net leverage reduced to 1.5 times, down from 3 times at IPO, strengthening the balance sheet for future M&A.
- Increased full-year 2026 revenue and EBITDA guidance by 13% and 20%, respectively, reflecting strong execution and backlog.
- Adjusted gross margin declined to 18.5% from 21.8% due to revenue mix shift and lower margins in Engineering & Consulting.
- Engineering & Design revenue declined 4% due to soft demand in sustainability consulting for mixed-use clients.
- Goodwill and intangible impairment taken in the sustainability consulting business due to prolonged market softness.
- Reported net loss due to non-cash legacy profit interest expense, which is marked to market and impacted by share price.
- Higher cash tax estimate for 2026, increased to mid-$50 million range, due to revised profit outlook.
Good day, and thank you for standing by. Welcome to the Q2 2026 Legence earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Son Vann, Vice President of Investor Relations. Please go ahead.
Thanks, Daniel. And good morning, everyone. Welcome to Legence's second quarter 2026 earnings call. With me today are Jeff Sprau, Chief Executive Officer; Stephen Butz, Chief Financial Officer; and Steve Hansen, Chief Operating Officer. This morning, we issued a press release that covers our second quarter 2026 financial results and posted a presentation that accompanies the earnings release. All materials can be found on the Investor Relations section of the company's website, www.wearelegence.com.
Before we begin, I want to remind you that comments made during this call contain certain forward-looking
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