v3.26.1
Segment Information
3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
Legence reports its results under two reportable segments: (1) Engineering & Consulting, and (2) Installation & Maintenance. Segments are presented according to the nature of the business activities, and reflect the Company’s consideration of financial information provided to the chief executive officer, who is the Chief Operating Decision Maker (“CODM”). The CODM primarily uses gross profit to assess performance and allocate resources, including decisions such as the annual budget review and approval, allocation of resources to hire additional key personnel, entering new markets and development of new technologies, evaluating executive performance, and determining performance-related bonus plans in each segment.
Engineering & Consulting: The Engineering & Consulting segment designs HVAC and other MEP systems for buildings, develops strategies to reduce energy usage and enhance building performance, improve reliability and drive efficiency and provides program and project management services for customers’ installation and retrofit projects. Within this segment, there are two primary service offerings – Engineering & Design and Program & Project Management.
Installation & Maintenance: The Installation & Maintenance segment fabricates and installs HVAC systems, process piping and other MEP systems in new and existing industrial, commercial and institutional buildings and provides ongoing preventive and corrective maintenance services for those systems. Within this segment, there are two primary service offerings – Installation & Fabrication and Maintenance & Service.
All intercompany transactions are eliminated in the Company's Condensed Consolidated Statements of Operations.
The following table presents relevant segment information (in thousands):
Three Months Ended March 31,
20262025
Revenue:
Engineering & Consulting$165,801 $145,447 
Installation & Maintenance872,092 360,506 
Revenue$1,037,893 $505,953 
Cost of revenue:
Engineering & Consulting$115,388 $85,794 
Installation & Maintenance$736,351 $308,455 
Gross profit:
Engineering & Consulting$50,413 $59,653 
Installation & Maintenance135,741 52,051 
Gross profit$186,154 $111,704 
The following table presents the reconciliation from Gross profit to Income (loss) before income tax (in thousands):
Three Months Ended March 31,
20262025
Gross profit$186,154 $111,704 
Selling, general and administrative116,095 69,459 
Depreciation and amortization36,828 26,092 
Acquisition-related costs11,432 157 
Gain on sale of property and equipment(64)(98)
Equity in earnings of joint venture(504)(460)
Interest expense17,000 29,641 
Interest income(1,320)(755)
Credit agreement amendment fees3,243 2,877 
Other income, net(569)(108)
Income (loss) before income tax
$4,013 $(15,101)
Separate measures of Legence’s assets, including capital expenditures, are not produced or utilized by management to evaluate segment performance.