LGN (Legence) Debt-to-EBITDA : 7.94 (As of Jun. 2026) — 16% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

LGN Legence Corp LGN
14 GF Score
Price $55.96
! 2 Warning Signs
View Full Analysis

What is Legence Debt-to-EBITDA?

Legence LGN -1.90% 14 Debt-to-EBITDA is 7.94 as of Jun. 2026, which is 16% below its 10-year median of 9.50. GuruFocus rates LGN with a GF Score™ of 14/100. The stock has 2 warning signs investors should review. Among 1,403 Construction companies, Legence ranks worse than 85.25% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Legence's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $57 Mil. Legence's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $1,138 Mil. Legence's annualized EBITDA for the quarter that ended in Jun. 2026 was $151 Mil. Legence's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 was 7.94.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Legence's Debt-to-EBITDA or its related term are showing as below:

LGN' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 7.22   Med: 9.5   Max: 10.45
Current: 7.61

During the past 4 years, the highest Debt-to-EBITDA Ratio of Legence was 10.45. The lowest was 7.22. And the median was 9.50.

LGN's Debt-to-EBITDA is ranked worse than
85.25% of 1403 companies
in the Construction industry
Industry Median: 2.09 vs LGN: 7.61

Legence  (NAS:LGN) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Legence Debt-to-EBITDA Related Terms


Legence Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Legence's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Legence Debt-to-EBITDA Chart

Legence Annual Data
Trend Dec22 Dec23 Dec24 Dec25
Debt-to-EBITDA
0.00 10.45 9.50 7.22

Legence Quarterly Data
Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 4.27 3.92 -73.56 4.65 7.94

LGN vs PRIM, MYRG, TPC: Debt-to-EBITDA Comparison

For the Engineering & Construction subindustry, Legence's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Legence Debt-to-EBITDA vs Construction Industry

For the Construction industry and Industrials sector, Legence's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Legence's Debt-to-EBITDA falls into.


LGN
14GF Score
Legence Corp LGN
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Legence Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Legence's Debt-to-EBITDA for the fiscal year that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(37.994 + 1123.608) / 160.924
=7.22

Legence's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(57.209 + 1138.359) / 150.512
=7.94

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 7.94 mean?
Legence (LGN) has a Debt-to-EBITDA of 7.94 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Legence. This is 16% below median its historical median of 9.50. Over the past decade, Legence's Debt-to-EBITDA has ranged from 7.22 to 10.45. According to the industry distribution chart, Legence ranks #1196 out of 1403 companies in the Construction industry, placing it in the top 85.2%.
Is Legence's Debt-to-EBITDA too high?
Legence's current Debt-to-EBITDA of 7.94 is 16% below median its 10-year median of 9.50. Over the past 10 years, this metric has ranged from a low of 7.22 to a high of 10.45. The Construction industry median Debt-to-EBITDA is 2.09. Legence's value of 7.94 is 279.9% above this industry median. Based on the distribution chart, Legence ranks #1196 out of 1403 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Legence has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Legence's Debt-to-EBITDA compare to PRIM and MYRG?
According to the Construction industry distribution chart, Legence ranks #1196 out of 1403 companies for Debt-to-EBITDA. This places Legence in the lower half of its industry. The industry median Debt-to-EBITDA is 2.09. Legence's value of 7.94 is 279.9% above this benchmark. Historically, Legence's own Debt-to-EBITDA has ranged from 7.22 to 10.45 over the past decade. While the company's 10-year median is 9.50 vs. the industry median of 2.09, Legence has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Construction company?
The median Debt-to-EBITDA among Construction companies is 2.09, based on 1,403 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Legence's current Debt-to-EBITDA of 7.94 is 279.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Legence. For the Construction industry, the median Debt-to-EBITDA is 2.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Legence's current Debt-to-EBITDA is 7.94, which is 16% below median its own 10-year median of 9.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Legence stock overvalued right now?
Legence (LGN) has a current Debt-to-EBITDA of 7.94. The current Debt-to-EBITDA is 7.94, which is 16% below median its 10-year median of 9.50 and 279.9% above the Construction industry median of 2.09. Legence's overall GF Score™ is 14/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Legence (LGN), the current Debt-to-EBITDA is 7.94 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Legence Business Description

Other Exchanges OO6:Germany
Address 1601 Las Plumas Avenue, San Jose, CA, USA, 95133
Legence Corp is a provider of engineering, installation, and maintenance services for critical systems in buildings. It focuses on sectors that have technically demanding buildings, including technology, life sciences, healthcare, and education. Legence specializes in designing, fabricating, and installing complex heating, ventilation, and air conditioning (HVAC), process piping, and other mechanical, electrical, and plumbing (MEP) systems for new facilities and upgrading HVAC, lighting, and building controls in existing facilities to enhance building performance, reliability, and efficiency. The services are mainly provided on a fixed price basis. The company has two reportable segments: Installation and Maintenance, which generates the maximum revenue, and Engineering and Consulting.
14GF Score

Get the complete analysis for LGN

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$55.96
Price