v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 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 June 30,Six Months Ended June 30,
2026202520262025
Revenue:
Engineering & Consulting$206,893 $196,094 $372,694 $341,541 
Installation & Maintenance1,055,234 402,796 1,927,326 763,302 
Revenue$1,262,127 $598,890 $2,300,020 $1,104,843 
Cost of revenue:
Engineering & Consulting$150,745 $131,983 $266,133 $217,777 
Installation & Maintenance$891,151 $338,233 $1,627,502 $646,688 
Gross profit:
Engineering & Consulting$56,148 $64,111 $106,561 $123,764 
Installation & Maintenance164,083 64,563 299,824 116,614 
Gross profit$220,231 $128,674 $406,385 $240,378 
The following table presents the reconciliation from Gross profit to Income (loss) before income tax (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Gross profit$220,231 $128,674 $406,385 $240,378 
Selling, general and administrative147,591 72,468 263,686 141,927 
Depreciation and amortization37,972 25,344 74,800 51,436 
Acquisition-related costs415 19 11,847 176 
Gain on sale of property and equipment(118)(122)(182)(220)
Goodwill impairment21,586 — 21,586 — 
Long-lived asset impairment19,491 — 19,491 — 
Equity in earnings of joint venture(88)(364)(592)(824)
Interest expense16,911 30,404 33,911 60,045 
Interest income(1,914)(764)(3,234)(1,519)
Credit agreement amendment fees2,014 49 5,257 2,926 
Loss on debt extinguishment13 — 13 — 
Other income, net(169)(37)(738)(145)
(Loss) income before income tax$(23,473)$1,677 $(19,460)$(13,424)
Separate measures of Legence’s assets, including capital expenditures, are not produced or utilized by management to evaluate segment performance.