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Legence Corp. (NASDAQ:LGN) is one of the best engineering stocks to buy in 2026. On March 27, Legence reported financial results for FQ4 2025, with quarterly revenues reaching $737.6 million, a 34.6% year-over-year increase. This growth was organic and supported by a 53% rise in adjusted EBITDA to $87.0 million. The company’s total backlog and awarded contracts surged by 49% to a record $3.7 billion, driven largely by high demand in data centers, technology, and life sciences.

CEO Jeff Sprau highlighted that the company’s momentum is supported by strategic acquisitions, including the recent purchase of Seattle-based engineering firm Metrix Engineers LLC and the January 2026 acquisition of The Bowers Group, Inc. The company’s performance was led by its Installation & Maintenance segment, which saw a 44.4% revenue increase in the fourth quarter due to robust demand for mission-critical building systems.

While the Engineering & Consulting segment also grew by 10%, the company’s overall adjusted gross margins improved to 21.2% for the quarter. Based on this performance and ongoing industry tailwinds, Legence Corp. (NASDAQ:LGN) established positive guidance for FQ1 2026, projecting revenues between $925 and $950 million. Furthermore, the company has raised its full-year 2026 outlook, now forecasting total revenues of $3.7 billion to $3.9 billion and adjusted EBITDA between $400 and $430 million.

Legence Corp. (NASDAQ:LGN) provides engineering, installation, and maintenance services for mission-critical building systems in the US through its Engineering & Consulting and Installation & Maintenance segments.

While we acknowledge the potential of LGN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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