Legence Delivers Record-Breaking Q4 2025 Performance, Sets Stage for Continued Growth
Legence, a leading provider of engineering and construction services, has reported an impressive fourth-quarter (Q4) 2025 performance, exceeding expectations with record-breaking revenue growth and adjusted EBITDA expansion. The company's strong financial results were driven by organic growth across both segments, as well as the integration of recently acquired businesses.
In a conference call on March 27, 2026, Son Vann, Vice President, Finance and Investor Relations, welcomed investors and analysts to discuss the company's Q4 2025 earnings. Jeff Sprau, Chief Executive Officer, highlighted the significance of the quarter's results, noting that Legence delivered an "incredibly strong" fourth quarter that was well ahead of prior guidance.
The company's total revenue grew by 35% to a quarterly record of $738 million, with adjusted EBITDA increasing by 53%. This represented a significant expansion in EBITDA margins, approximately 140 basis points. For the year, revenues rose by 22%, and adjusted EBITDA increased by 30%. The strong performance was driven primarily by organic growth, with contributions from both segments.
A notable highlight of the quarter was the substantial growth in total backlog and awards, which expanded by 49% year-over-year and 20% from just the end of Q3 2025. This translated to a book-to-bill ratio for the three months ended December 2025 of 1.9 times, an acceleration from what was already a robust third quarter book-to-bill of 1.5.
The company's engineering and consulting segment saw a year-over-year increase in backlog by 16%, driven by state and local governments, as well as contributions from hospitals and data center clients. In contrast, the installation and maintenance segment experienced remarkable growth of 66% year-over-year, fueled primarily by data center and technology clients seeking fabrication demand for Legence's Direct-to-chip liquid cooling systems.
Jeff Sprau emphasized that outside of what is already in the backlog, strong installation and fabrication demand is expected to continue well beyond 2026. Notably, discussions with certain data center clients are underway for deliveries extending into 2029, further underscoring the company's planning horizon.
The integration process with Bowers, one of the premier mechanical contractors in the Northern Virginia D.C. metro area, is progressing smoothly. This acquisition has expanded Legence's mechanical capabilities, broadened its customer base, and added approximately 50% to its fabrication footprint. The cross-selling opportunities available with existing engineering and electrical contracting presence in the region are also expected to contribute positively.
Legence's strong performance in Q4 2025 sets a solid foundation for continued growth and expansion in the future. With a robust backlog, expanding customer base, and increasing demand for its services, the company is well-positioned to capitalize on emerging trends and maintain its leadership position in the engineering and construction services sector.
