Legence Corp. Financials

LGN

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Legence Corp. (LGN) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 3 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI LGN FY2025 2026-04-22

Cash generation, not accounting profit, became the key mechanic as deleveraging accelerated and financing costs kept net results negative.

FY2025 operating cash flow reached $256.9M, and after only $37.9M of capex the business converted that into substantial free cash flow despite a net loss. That cash strength mattered more than GAAP earnings: long-term debt fell to $812.4M from $1.59B, so balance-sheet repair outpaced income-statement improvement.

Core operations were not the main source of the bottom-line loss: interest expense of $101.8M exceeded operating income of $61.6M in FY2025. The same pattern existed in FY2024, which makes the losses look more like a financing burden than a collapse in underlying gross profit.

Gross margin reached 21.0% in FY2025 from 19.5% in FY2023, but the benefit did not fully reach operating income because SG&A absorbed much of the added gross profit. The balance sheet is also light on physical working capital: goodwill was $764.3M while inventory was only $11.3M, so asset weight sits more in acquired value than in stock on hand.

Financial Health Signals

Financial Profile 38/100

Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Legence Corp.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability

Legence Corp. has an operating margin of 2.4%, meaning the company retains $2 of operating profit per $100 of revenue. This below-average margin results in a low score of 27/100, suggesting thin profitability after operating expenses. This is down from 3.4% the prior year.

Growth

Legence Corp.'s revenue surged 21.5% year-over-year to $2.6B, reflecting rapid business expansion. This strong growth earns a score of 76/100.

Leverage

Legence Corp. has a moderate D/E ratio of 2.07. This balance of debt and equity financing earns a leverage score of 60/100.

Liquidity

Legence Corp.'s current ratio of 1.57 is below the typical benchmark, resulting in a score of 27/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow

Legence Corp. has a free cash flow margin of 8.6%, earning a moderate score of 37/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns

Legence Corp. generates a -15.3% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is down from -14.0% the prior year.

Altman Z-Score Safe

3.54

Legence Corp. scores 3.54, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($7.9B) relative to total liabilities ($1.9B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral

5/9

Legence Corp. passes 5 of 9 financial strength tests. 2 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.

Earnings Quality Mixed

-4.30x

For every $1 of reported earnings, Legence Corp. generates $-4.30 in operating cash flow ($256.9M OCF vs -$59.8M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.

Interest Coverage At Risk

0.6x

Legence Corp. earns $0.6 in operating income for every $1 of interest expense ($61.6M vs $101.8M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Earnings & Revenue

Revenue

$2.6B

YoY+21.5%

Legence Corp. generated $2.6B in revenue in fiscal year 2025. This represents an increase of 21.5% from the prior year.

EBITDA

$161.9M

YoY-3.3%

Legence Corp.'s EBITDA was $161.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 3.3% from the prior year.

Net Income

-$59.8M

YoY-109.4%

Legence Corp. reported -$59.8M in net income in fiscal year 2025. This represents a decrease of 109.4% from the prior year.

EPS (Diluted)

N/A

Cash & Balance Sheet

Free Cash Flow

$218.9M

YoY+2033.8%

Legence Corp. generated $218.9M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 2033.8% from the prior year.

Cash & Debt

$230.2M

YoY+183.6%

Legence Corp. held $230.2M in cash against $812.4M in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

N/A

Margins & Returns

Gross Margin

21.0%

YoY+0.5pp

Legence Corp.'s gross margin was 21.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.5 percentage points from the prior year.

Operating Margin

2.4%

YoY-0.9pp

Legence Corp.'s operating margin was 2.4% in fiscal year 2025, reflecting core business profitability. This is down 0.9 percentage points from the prior year.

Net Margin

-2.3%

YoY-1.0pp

Legence Corp.'s net profit margin was -2.3% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.0 percentage points from the prior year.

Return on Equity

-15.3%

YoY-1.2pp

Legence Corp.'s ROE was -15.3% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 1.2 percentage points from the prior year.

Capital Allocation

R&D Spending

N/A

Share Buybacks

N/A

Capital Expenditures

$37.9M

YoY+99.6%

Legence Corp. invested $37.9M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 99.6% from the prior year.

LGN Income Statement

Metric	FY25	FY24	FY23
Revenue	$2.6B+21.5%	$2.1B+29.9%	$1.6B
Cost of Revenue	$2.0B+20.8%	$1.7B+28.3%	$1.3B
Gross Profit	$535.9M+24.4%	$430.8M+36.7%	$315.1M
R&D Expenses	N/A	N/A	N/A
SG&A Expenses	$342.6M+41.1%	$242.9M+30.5%	$186.1M
Operating Income	$61.6M-12.5%	$70.4M+585.7%	$10.3M
Interest Expense	$101.8M+11.1%	$91.6M+34.3%	$68.2M
Income Tax	$22.2M+390.2%	$4.5M+157.1%	-$7.9M
Net Income	-$59.8M-109.4%	-$28.6M+38.0%	-$46.0M
EPS (Diluted)	N/A	N/A	N/A

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Revenue	N/A	$708.0M	N/A	N/A	N/A	$560.8M	N/A	N/A
Cost of Revenue	N/A	$559.9M	N/A	N/A	N/A	$442.3M	N/A	N/A
Gross Profit	N/A	$148.1M	N/A	N/A	N/A	$118.5M	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	$85.9M	N/A	N/A	N/A	$67.2M	N/A	N/A
Operating Income	N/A	$37.2M	N/A	N/A	N/A	$27.0M	N/A	N/A
Interest Expense	N/A	$28.2M	N/A	N/A	N/A	$23.7M	N/A	N/A
Income Tax	N/A	$4.1M	N/A	N/A	N/A	$4.6M	N/A	N/A
Net Income	N/A	-$576K+85.1%	-$3.9M+79.8%	-$19.1M	N/A	-$1.1M-117.5%	$6.2M+141.4%	-$15.0M
EPS (Diluted)	$-0.57	N/A	N/A	N/A	N/A	N/A	N/A	N/A

LGN Balance Sheet

Metric	FY25	FY24	FY23
Total Assets	$2.7B+13.9%	$2.4B	N/A
Current Assets	$1.1B+46.8%	$756.4M	N/A
Cash & Equivalents	$230.2M+183.6%	$81.2M	N/A
Inventory	$11.3M+10.3%	$10.2M	N/A
Accounts Receivable	N/A	N/A	N/A
Goodwill	$764.3M-2.2%	$781.2M+15.6%	$676.0M
Total Liabilities	$1.9B-12.0%	$2.1B	N/A
Current Liabilities	$708.2M+72.3%	$411.1M	N/A
Long-Term Debt	$812.4M-48.8%	$1.6B	N/A
Total Equity	$392.2M+92.6%	$203.6M	N/A
Retained Earnings	-$309.9M-23.9%	-$250.2M	N/A

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Total Assets	$2.7B+3.0%	$2.6B	N/A	N/A	$2.4B	N/A	N/A	N/A
Current Assets	$1.1B+7.0%	$1.0B	N/A	N/A	$756.4M	N/A	N/A	N/A
Cash & Equivalents	$230.2M+30.8%	$176.0M	N/A	N/A	$81.2M	N/A	N/A	N/A
Inventory	$11.3M+3.6%	$10.9M	N/A	N/A	$10.2M	N/A	N/A	N/A
Accounts Receivable	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Goodwill	$764.3M-2.4%	$782.9M	N/A	N/A	$781.2M	N/A	N/A	N/A
Total Liabilities	$1.9B+6.6%	$1.8B	N/A	N/A	$2.1B	N/A	N/A	N/A
Current Liabilities	$708.2M+7.3%	$660.0M	N/A	N/A	$411.1M	N/A	N/A	N/A
Long-Term Debt	$812.4M0.0%	$812.6M	N/A	N/A	$1.6B	N/A	N/A	N/A
Total Equity	$392.2M+1.1%	$387.9M	N/A	N/A	$203.6M	N/A	N/A	N/A
Retained Earnings	-$309.9M-11.8%	-$277.2M	N/A	N/A	-$250.2M	N/A	N/A	N/A

LGN Cash Flow Statement

Metric	FY25	FY24	FY23
Operating Cash Flow	$256.9M+777.7%	$29.3M-13.7%	$33.9M
Capital Expenditures	$37.9M+99.6%	$19.0M+11.3%	$17.1M
Free Cash Flow	$218.9M+2033.8%	$10.3M-39.1%	$16.8M
Investing Cash Flow	-$54.0M+77.8%	-$244.0M-82.2%	-$133.9M
Financing Cash Flow	-$53.8M-126.0%	$207.0M+61.1%	$128.5M
Dividends Paid	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Operating Cash Flow	$94.7M	N/A	N/A	N/A	$6.0M	N/A	N/A	N/A
Capital Expenditures	$13.2M	N/A	N/A	N/A	$6.2M	N/A	N/A	N/A
Free Cash Flow	$81.5M	N/A	N/A	N/A	-$193K	N/A	N/A	N/A
Investing Cash Flow	-$29.1M	N/A	N/A	N/A	-$11.3M	N/A	N/A	N/A
Financing Cash Flow	-$11.5M	N/A	N/A	N/A	$7.1M	N/A	N/A	N/A
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

LGN Financial Ratios

Metric	FY25	FY24	FY23
Gross Margin	21.0%+0.5pp	20.5%+1.0pp	19.5%
Operating Margin	2.4%-0.9pp	3.4%+2.7pp	0.6%
Net Margin	-2.3%-1.0pp	-1.4%+1.5pp	-2.9%
Return on Equity	-15.3%-1.2pp	-14.0%	N/A
Return on Assets	-2.2%-1.0pp	-1.2%	N/A
Current Ratio	1.57-0.3	1.84	N/A
Debt-to-Equity	2.07-5.7	7.79	N/A
FCF Margin	8.6%+8.1pp	0.5%-0.5pp	1.0%

Metric	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24	Q1'24
Gross Margin	N/A	20.9%	N/A	N/A	N/A	21.1%	N/A	N/A
Operating Margin	N/A	5.3%	N/A	N/A	N/A	4.8%	N/A	N/A
Net Margin	N/A	-0.1%	N/A	N/A	N/A	-0.2%	N/A	N/A
Return on Equity	N/A	-0.1%	N/A	N/A	N/A	N/A	N/A	N/A
Return on Assets	N/A	-0.0%	N/A	N/A	N/A	N/A	N/A	N/A
Current Ratio	1.570.0	1.57	N/A	N/A	1.84	N/A	N/A	N/A
Debt-to-Equity	2.07-0.0	2.10	N/A	N/A	7.79	N/A	N/A	N/A
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

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Frequently Asked Questions

What is Legence Corp.'s annual revenue?

Legence Corp. (LGN) reported $2.6B in total revenue for fiscal year 2025. This represents a 21.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Legence Corp.'s revenue growing?

Legence Corp. (LGN) revenue grew by 21.5% year-over-year, from $2.1B to $2.6B in fiscal year 2025.

Is Legence Corp. profitable?

No, Legence Corp. (LGN) reported a net income of -$59.8M in fiscal year 2025, with a net profit margin of -2.3%.

What is Legence Corp.'s EBITDA?

Legence Corp. (LGN) had EBITDA of $161.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Legence Corp. have?

As of fiscal year 2025, Legence Corp. (LGN) had $230.2M in cash and equivalents against $812.4M in long-term debt.

What is Legence Corp.'s gross margin?

Legence Corp. (LGN) had a gross margin of 21.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Legence Corp.'s operating margin?

Legence Corp. (LGN) had an operating margin of 2.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Legence Corp.'s net profit margin?

Legence Corp. (LGN) had a net profit margin of -2.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Legence Corp.'s return on equity (ROE)?

Legence Corp. (LGN) has a return on equity of -15.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Legence Corp.'s free cash flow?

Legence Corp. (LGN) generated $218.9M in free cash flow during fiscal year 2025. This represents a 2033.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Legence Corp.'s operating cash flow?

Legence Corp. (LGN) generated $256.9M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Legence Corp.'s total assets?

Legence Corp. (LGN) had $2.7B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Legence Corp.'s capital expenditures?

Legence Corp. (LGN) invested $37.9M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

What is Legence Corp.'s current ratio?

Legence Corp. (LGN) had a current ratio of 1.57 as of fiscal year 2025, which is generally considered healthy.

What is Legence Corp.'s debt-to-equity ratio?

Legence Corp. (LGN) had a debt-to-equity ratio of 2.07 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Legence Corp.'s return on assets (ROA)?

Legence Corp. (LGN) had a return on assets of -2.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Legence Corp.'s Altman Z-Score?

Legence Corp. (LGN) has an Altman Z-Score of 3.54, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Legence Corp.'s Piotroski F-Score?

Legence Corp. (LGN) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Legence Corp.'s earnings high quality?

Legence Corp. (LGN) has an earnings quality ratio of -4.30x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Legence Corp. cover its interest payments?

Legence Corp. (LGN) has an interest coverage ratio of 0.6x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Legence Corp.?

Legence Corp. (LGN) scores 38 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.