Legence: Expecting A Bounce Back In 2027

Andres Veurink 2.22K Followers Follow Summary Legence Corp. is rated a Strong Buy, driven by robust earnings growth and integration benefits from the Bowers Group acquisition. Despite margin pressure from Bowers, LGN raised guidance, now targeting $450 million adjusted EBITDA in 2026 and trading at an attractive 9.39x EV/EBITDA. Private equity selling, notably Blackstone reducing its stake from 72% to 47%, has weighed on sentiment but does not reflect LGN’s growth trajectory. Data center construction tailwinds and improved borrowing conditions position LGN for significant EPS expansion, with sector outperformance likely over the next 3–4 years. Justin Paget/DigitalVision via Getty Images Investment Thesis It’s soon about to be a year that Legence Corp. ( LGN ) has been publicly traded after making its debut on September 12 last year. Shares are up quite a bit from This article was written by Andres Veurink 2.22K Followers Follow With over a decade of institutional investment experience, I specialize in identifying growth opportunities at the intersection of technological disruption and macro-thematic energy shifts. I've spent the majority of that time at a hedge fund here in Rotterdam, working my way up as an analyst. My work reflects rigorous standards as I myself have a very high standard as to what I invest my money in. My primary coverage spans the technology sector—with a focus on SaaS and cloud infrastructure—and the energy and minerals markets. I tend to be very data and trend driven in my work, analyzing unit economics and supply chain gaps among a number of other often overlooked areas in business and industries.I find these offer incredible growth opportunities and are also very fun to research and follow. It's a very active space with plenty of news coming out each week. Work is my own thoughts and research is done only by myself. Analyst’s Disclosure: I/we have a beneficial long position in the shares of LGN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.