
Legence Corp (LGN) Stock Forecast & Price Target
Legence Corp (LGN) Analyst Ratings
Bulls say
Legence Corp has demonstrated significant revenue growth across its segments, with Installation & Maintenance revenue increasing from $360.5 million in 1Q25 to $402.8 million, and Engineering & Consulting segment revenues soaring from $329 million in 2022 to an estimated $602 million in 2024. The company boasts a robust backlog of $3.1 billion, reflecting a year-over-year increase of 29% and a strong book-to-bill ratio of 1.5x, suggesting continued demand and growth potential through 2026. Furthermore, the Installation & Maintenance segment accounted for a substantial 74% of total revenues in 2023, and it is achieving improved gross margins, underscoring the positive operational performance and financial health of Legence Corp.
Bears say
Legence Corp's free cash flow experienced a slight decline to $23.8 million in 2Q25 from $24.1 million in 1Q25, despite a notable improvement from the negative cash flow of ($55.8) million in 2Q24, indicating instability in financial performance. Gross margins also decreased to 21.5% in 2Q25 from 22.1% in 1Q25, highlighting concerns regarding project mix within its engineering and construction segments. Additionally, the company faces significant risks from a potential slowdown in construction activity, operational inefficiencies, and external pressures such as labor shortages and environmental compliance, which could adversely affect its overall financial stability and outlook.
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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