Legence Corp., a San Jose–based provider of engineering, installation, and maintenance services for mission-critical building systems, is preparing to go public on the Nasdaq under the ticker LGN. The company is offering 26 million shares of Class A common stock at an estimated range of $25.00 to $29.00 per share, implying a deal size of roughly $702 million at the midpoint. After the offering, Legence will own a 54% economic interest in its operating subsidiary, Legence Holdings, while investment funds managed by Blackstone Inc. will retain the rest. Blackstone will control about 74% of the combined voting power, which qualifies Legence as a controlled company under Nasdaq rules. Lead underwriters include Goldman Sachs, Jefferies, BofA Securities, Barclays, Morgan Stanley, and RBC Capital Markets, supported by a large syndicate of co-managers.
The IPO is structured as a traditional offering with an UP-C corporate reorganization. All proceeds are expected to be contributed to Legence Holdings, primarily to repay borrowings under its Term Loan Credit Facility, with any remainder directed to general corporate purposes. Blackstone affiliate Legence Parent II will also sell a small portion of shares if underwriters exercise their overallotment option. For new investors, the dual-class structure means that public Class A shares carry standard voting rights, but the Class B shares—retained by existing owners—ensure Blackstone’s continuing control.
Legence has carved out a significant niche in designing, fabricating, and maintaining complex mechanical, electrical, and plumbing (MEP) systems for highly technical buildings. Its customers include data centers, semiconductor plants, pharmaceutical manufacturers, hospitals, schools, and universities. More than 60% of the Nasdaq-100 companies are already clients, and between 2019 and 2024, the firm served over 19,000 customers. Legence operates through two complementary segments: Engineering & Consulting, which focuses on system design, energy efficiency, and sustainability, and Installation & Maintenance, which delivers execution, retrofits, and long-term service contracts. Its nationwide footprint spans 70 offices across 45 states, with roughly 6,000 employees, including 1,200 engineers and consultants.
The company traces its heritage back more than a century in mission-critical engineering, but its current form took shape after Blackstone consolidated the platform in 2020 and rebranded as Legence. Since then, it has completed 20 acquisitions, adding capabilities in energy consulting and modular fabrication. Early acquisitions such as CMTA and Bel-Aire have demonstrated strong growth, underscoring Legence’s disciplined M&A playbook.
As with any construction-linked business, risks loom. The filing points to exposure to cyclical demand, customer concentration in capital-intensive industries like data centers and life sciences, and execution challenges inherent in fixed-price contracts. Supply chain vulnerabilities, cyber risks, and debt obligations—including a Tax Receivable Agreement with pre-IPO owners—add to the risk profile.
The numbers highlight both growth momentum and challenges.
Revenue climbed from $1.6 billion in 2023 to $2.1 billion in 2024, a jump of nearly 30%. Gross margin improved from 19.5% to 20.5%, reflecting better scale and cost management. Operating income turned upward, rising more than six-fold in 2024 to $70 million, with an operating margin of 3.4%. Most notably, the six months ended June 30, 2025, produced $1.1 billion in revenue and $48 million in operating income, with operating margin edging higher to 4.3%. While consolidated results showed losses in the past, net income attributable to Legence turned positive in the first half of 2025 at $2.7 million, thanks to allocations to noncontrolling interests.
Looking forward, Legence’s strategy is to deepen its presence in high-growth sectors—data centers, life sciences, advanced manufacturing, healthcare, and sustainability upgrades. Management aims to expand recurring revenue from maintenance contracts, which already generate higher margins, and to continue bolt-on acquisitions to increase geographic density and capability breadth. The company’s in-house modular fabrication capabilities and integrated engineering-to-installation model remain important differentiators.
Valuation will be watched closely. Comparable firms in the sector such as EMCOR and Comfort Systems USA trade around 10–12x EBITDA. At the midpoint of its offering range, Legence would be valued at about 11x its 2024 Adjusted EBITDA, putting it in line with peers. Investor sentiment appears constructive, supported by megatrends in AI-driven data center demand, reshoring of U.S. manufacturing, and accelerating energy efficiency mandates.
If successful, the IPO will allow Legence to deleverage, scale its recurring maintenance base, and pursue a steady stream of acquisitions. For public investors, the offering represents exposure to secular growth themes but also requires comfort with Blackstone’s controlling stake and the cyclicality inherent in construction-related industries.
Legence is expected to debut on the Nasdaq Exchange on September 12th.