Legence Announces Secondary Underwritten Public Offering of Class A Common Stock

Rhea-AI Summary

Legence (Nasdaq: LGN) announced that selling stockholders affiliated with Blackstone intend to offer 7,000,000 shares of Class A common stock in a secondary underwritten public offering on December 9, 2025.

The underwriters have a 30-day option to purchase up to an additional 1,050,000 shares. Legence is not selling shares and will not receive proceeds; the company will pay offering costs except underwriting discounts and commissions. Goldman Sachs and Jefferies are joint lead book-runners; Blackstone Capital Markets is co-manager. The offering is being made under a Form S-1 filed with the SEC and is not yet effective.

Positive

• Selling block of 7,000,000 shares announced
• Underwriters led by Goldman Sachs and Jefferies
• Underwriters granted 30-day option for 1,050,000 additional shares

Negative

• Legence will not receive proceeds from the sale
• Company will bear offering costs (excluding underwriting fees)
• Registration Statement on Form S-1 not yet effective

Key Figures

Secondary shares offered 7,000,000 shares Class A common stock offered by selling stockholders

Underwriters’ option 1,050,000 shares 30-day option to purchase additional shares

Option period 30 days Underwriters’ option to buy additional shares

Par value $0.01 Par value per share of Class A common stock

Market Reality Check

$48.48 Last Close

Volume Volume 825,951 is in line with 20-day average 825,598 (relative volume 1.0x). normal

Technical Price $47.50 is trading above the 200-day MA at $36.68, and about 5.4% below the 52-week high of $50.20.

Peers on Argus

Peers show mixed moves, suggesting stock-specific drivers: FGL -3.56%, MAGH +9.03%, MSW -1.25%, OFAL +1.31%, ZDAI +5.03%.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 02	Acquisition update	Positive	-1.4%	Acquisition of Innovative Mechanical & Design to expand installation and service reach.
Nov 14	Earnings results	Positive	+20.9%	Record Q3 revenue, higher EBITDA, reduced net debt, and raised 2026 guidance.
Nov 14	Major acquisition	Positive	+20.9%	Agreement to acquire Bowers, adding scale, capacity, and projected 2026 revenue and EBITDA.
Oct 31	Earnings scheduling	Neutral	+0.1%	Announcement of Q3 2025 earnings release date and webcast details.
Oct 30	Debt refinancing	Positive	-4.1%	Extension and repricing of term loan and increase of revolving credit facility.

Pattern Detected

Recent fundamentally positive events (strong earnings, large acquisition) saw sharp gains, while balance sheet and acquisition-related updates sometimes faced modest pullbacks, indicating mixed reactions to growth and financing news.

Recent Company History

Over the last few months, Legence has focused on growth and balance sheet optimization. On Oct 30, it extended and repriced its term loan and expanded its revolver. An earnings call setup on Oct 31 preceded strong Q3 2025 results on Nov 14, with record revenue and higher guidance, coinciding with a Bowers acquisition announcement and a +20.86% move. Additional tuck-in acquisitions, including Innovative Mechanical & Design on Dec 02, have expanded capabilities. Today’s secondary sale by Blackstone affiliates follows this sequence of leverage reduction and sponsor-related activity.

Market Pulse Summary

The stock is down -5.2% following this news. A negative reaction despite the company not issuing new shares would fit a pattern where financing-related headlines have sometimes led to weakness, as seen after the credit facility amendment, which coincided with a -4.07% move. The sale of 7,000,000 shares by Blackstone affiliates, plus a 1,050,000-share option, may be interpreted as supply overhang. Investors have previously reacted sensitively to capital structure actions even when core operations, including Q3 revenue of $708.0M, were strong.

Key Terms

underwriters financial

"grant the underwriters a 30-day option to purchase up to an additional 1,050,000"

Underwriters are financial professionals or institutions that help companies raise money by selling new securities, such as stocks or bonds, to investors. They assess the risk and determine the price at which these securities should be sold, acting like a bridge between the company and the investors. Their role helps ensure that the company raises the needed funds while providing investors with options that reflect the level of risk involved.

prospectus regulatory

"The proposed offering will be made only by means of a prospectus."

A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.

registration statement regulatory

"offered pursuant to a Registration Statement on Form S-1 filed with the"

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

form s-1 regulatory

"offered pursuant to a Registration Statement on Form S-1 filed with the"

A Form S-1 is the registration filing a company submits to the U.S. Securities and Exchange Commission when it plans to offer stock to the public, most commonly for an initial public offering. Think of it as the company’s full disclosure packet or blueprint: it contains audited financials, business description, management background, risk factors and details of the offering, giving investors the information needed to judge the company’s financial health and potential risks before buying shares.

AI-generated analysis. Not financial advice.

SAN JOSE, Calif., Dec. 09, 2025 (GLOBE NEWSWIRE) -- Legence Corp. (Nasdaq: LGN) (“Legence” or the “Company”) today announced that selling stockholders affiliated with Blackstone Inc. (the “Selling Stockholders”) intend to offer and sell 7,000,000 shares of Legence’s Class A common stock, par value $0.01 (“Common Stock”) in a secondary underwritten public offering. In connection with the offering, the Selling Stockholders are expected to grant the underwriters a 30-day option to purchase up to an additional 1,050,000 shares of Common Stock on the same terms and conditions.

Legence is not selling any shares of Common Stock in the offering and will not receive any proceeds from the sale of shares by the Selling Stockholders. Legence will bear the costs associated with the sale of such shares, other than the underwriting discounts and commissions.

Goldman Sachs & Co. LLC and Jefferies are acting as joint lead book-running managers and Blackstone Capital Markets is acting as a co-manager for the proposed offering.

The proposed offering will be made only by means of a prospectus. Copies of the preliminary prospectus, when available, may be obtained from: Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at 1-866-471-2526, or by email at prospectus-ny@ny.email.gs.com; and Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at 1-877-821-7388, or by email at prospectus_department@jefferies.com.

The shares of Common Stock are being offered pursuant to a Registration Statement on Form S-1 filed with the Securities and Exchange Commission (the “SEC”) on December 9, 2025 (the “Registration Statement”), which has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the Registration Statement becomes effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About Legence
Legence is a leading provider of engineering, consulting, installation, and maintenance services for mission-critical systems in buildings. The Company specializes in designing, fabricating, and installing complex HVAC, process piping, and other mechanical, electrical and plumbing (MEP) systems—enhancing energy efficiency, reliability, and sustainability in new and existing facilities. Legence also delivers long-term performance through strategic upgrades and holistic solutions. Serving some of the world’s most technically demanding sectors, Legence counts over 60% of the Nasdaq-100 Index among its clients.

Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking statements.” All statements, other than statements of historical fact, included in this press release, including, without limitation, those relating to the size, timing or other terms of the offering, are forward-looking statements. When used in this press release, words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable,” the negative version of these words and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These statements are not historical facts but rather are based on management’s current belief, based on currently available information, as to the outcome and timing of future events, and it is possible that the results described in this press release will not be achieved. Such statements are subject to risks, uncertainties and other factors, many of which are outside of Legence’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, those described under the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Registration Statement. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Legence does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Legence to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the Registration Statement and in Legence’s subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements.

Contact
Media: media@wearelegence.com
Investor Relations: ir@wearelegence.com

FAQ

How many Legence (LGN) shares are being offered in the December 9, 2025 secondary?

7,000,000 shares, with a 30-day underwriter option for up to 1,050,000 additional shares.

Will Legence (LGN) receive proceeds from the Blackstone selling shareholders' offering?

No. Legence is not selling shares in the offering and will not receive proceeds.

Who are the lead underwriters for the Legence (LGN) secondary offering?

Goldman Sachs & Co. LLC and Jefferies are joint lead book-running managers; Blackstone Capital Markets is co-manager.

Has the Legence (LGN) registration statement for the offering become effective?

No. The Form S-1 filed on December 9, 2025 has not yet become effective.

Will offers to buy Legence (LGN) shares be accepted before the registration becomes effective?

No. Securities may not be sold or offers accepted prior to the time the Registration Statement becomes effective.