
Legence Corp (LGN) Stock Forecast & Price Target
Legence Corp (LGN) Analyst Ratings
Bulls say
Legence Corp has demonstrated substantial revenue growth across its segments, with Installation & Maintenance (I&M) revenue increasing from $360.5 million in 1Q25 to $402.8 million, while the Engineering & Consulting segment surged from $329 million in 2022 to $602 million in 2024, reflecting strong demand in high-growth sectors. The company's backlog has reached a record $3.1 billion, driven by robust bookings in critical areas such as healthcare and government, alongside a favorable book-to-bill ratio of 1.5x, suggesting continued revenue expansion into 2026. Additionally, the I&M segment, which comprises a significant portion of total revenues, has shown improved gross margins, rising from 31.1% in 2022 to 36.9% year-to-date in 2025, indicating effective management and a shift towards higher-margin projects.
Bears say
Legence Corp reported a slight decline in free cash flow, dropping from $24.1 million in 1Q25 to $23.8 million in 2Q25, despite a significant improvement from a negative cash flow of $55.8 million in 2Q24. Gross margins decreased to 21.5% in 2Q25, down from 22.1% in 1Q25 and 21.7% in 2Q24, primarily due to the engineering and construction project mix, indicating potential challenges in maintaining profitability. Additionally, concerns regarding a potential slowdown in construction activities, skilled labor shortages, and other operational risks, such as project management inefficiencies, raise significant uncertainty about the company's future financial performance.
This aggregate rating is based on analysts' research of Legence Corp and is not a guaranteed prediction by Public.com or investment advice.
Legence Corp (LGN) Analyst Forecast & Price Prediction
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