Legence Backlog Doubled; Stock Falls After CAO Sold at $55
Legence's $5.67B backlog doubled and revenue surged 111% in Q2, but the stock fell to $25.41 after the Chief Accounting Officer sold shares at $54 in September. November 12 earnings will determine whe
Legence Backlog Doubles to $5.7B as Stock Hits Low
NEW YORK, November 6 —
Legence Corp. (LGN) sits on a $5.67 billion backlog that more than doubled in a year, yet the stock just hit a 52-week low at $25.41, roughly half the price its Chief Accounting Officer fetched selling shares seven weeks ago. The November 12 report arrives with options pricing a 14% move.
- Q2 2026 revenue $1.26B, up 110.7% year-over-year; backlog $5.67B, more than double $2.77B one year ago.
- Q2 adjusted EBITDA $154.6M, up 114.1%; net loss widened; most recent quarter missed EPS estimates by 32.7%.
- CAO sold shares at $54, $55 in September; current price $25.41; forward P/E 10.2x; consensus target $94.35.
Revenue Has Doubled; Earnings Power Has Not
Legence installs, designs, and maintains HVAC and mechanical, electrical, and plumbing systems for data centers, hospitals, life sciences facilities, and government buildings. The Bowers acquisition drove the headline figure, but stripping it out, the underlying business still grew approximately 60% organically in Q2, per the August 8-K. Adjusted EBITDA of $154.6 million scaled nearly in lockstep with revenue. The GAAP picture is less flattering: net losses were wider year-over-year, trailing gross margin sits at 18.7%, and profitability per dollar of revenue shrank. Total debt stands at $1.20 billion against $0.30 billion in cash.
An Insider's Exit at Double the Current Price
Chief Accounting Officer Philippe Le Bris exercised stock options at $28.00 and sold 4,196 shares at $54.06 on September 15, then sold 1,058 more at $55.01 three days later, per Form 4 filings. Both open-market prices are more than double the current $25.41. The timing coincides with a pattern break: Legence had beaten EPS consensus in each of the three prior quarters by 95.6%, 391.2%, and 68.6%, before missing by 32.7% in the most recent quarter and falling 13% to a 52-week low. November 12 is now a credibility test for the backlog story.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| LGN | $4.2B | 10.2x | -12.1% |
| ECG | $3.7B | 11.5x | -18.9% |
| BRCB | $235M | 38.8x | -54.5% |
| FIGR | $4.7B | 11.1x | -35.5% |
| MWH | $4.8B | 14.1x | -14.8% |
| PTRN | $3.1B | 21.9x | -2.8% |
What November 12 Must Deliver
Options pricing implies a 14% move around the November 12 report, compressing the 10.2x forward P/E in either direction. Trailing free cash flow of $370 million stands well above the GAAP loss line, a gap reflecting non-cash charges worth modeling in a DCF calculator. The specific number to watch: whether profitability per dollar of revenue, which shrank in Q2, starts reversing as integration costs roll off. If November 12 delivers margin improvement alongside backlog growth, the acquisition strategy finds its earnings justification; if losses widen, the insider's exit at $54 carries a different weight. Run the free Legence Corp. deep-dive →
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Frequently Asked Questions
Why did Legence stock fall to a 52-week low?
Legence stock fell to $25.41 despite doubling revenue to $1.26B and backlog to $5.67B. Investors are concerned about profitability: GAAP net losses widened, trailing gross margin is 18.7%, and Q2 missed EPS estimates by 32.7%.
What is Legence's current backlog?
Q2 2026 backlog reached $5.67 billion, more than doubling from $2.77 billion a year earlier. While the Bowers acquisition drove some of this growth, the company also achieved approximately 60% organic backlog expansion.
Did Legence's CAO sell shares before the stock fell?
Yes. Chief Accounting Officer Philippe Le Bris exercised stock options at $28 and sold 4,196 shares at $54.06 on September 15, then another 1,058 shares at $55.01 three days later, both prices more than double the current $25.41.
What's happening on November 12?
Legence reports November 12. Options market is pricing a 14% move around the report. The key metric to watch is whether profitability per dollar of revenue improves as integration costs decline, a test of whether the backlog story has earnings behind it.
Is Legence's growth organic or acquisition-driven?
Both. The Bowers acquisition contributed to headline growth, but Legence also achieved approximately 60% organic growth in Q2. Adjusted EBITDA scaled nearly in lockstep with overall revenue.
Legence Corp. stock hit a 52-week low this week even as the company sits on a $5.67 billion backlog — more than double where it stood a year ago — and prepares to report earnings on November 12; the gap between a business growing at triple-digit rates and a stock in freefall is what investors must now price.