Legence Corp posted $737.6 million in Q4 2025 revenue — a 34.6 percent year-over-year increase — making it one of the strongest growth stories in commercial HVAC services. If you have not heard of Legence, you are not alone. It operates primarily in the commercial building performance services space rather than the residential market that generates most HVAC news coverage. But its growth trajectory and business model are worth understanding.

Legence bills itself as a 'decarbonisation company' — which in practice means it provides commercial building owners with a comprehensive suite of HVAC, electrical, controls, commissioning, and energy performance services aimed at reducing both energy consumption and carbon footprint. The 34.6 percent growth rate in a year when residential HVAC was in correction is the most compelling data point about where commercial building services investment is flowing.

What Legence Actually Does

Legence Corp provides integrated building performance services to commercial, institutional, and industrial clients. Its service portfolio spans:

• Mechanical and HVAC services: Installation, commissioning, and maintenance of commercial HVAC systems from rooftop units to complex chilled water plants

• Energy performance contracting: Guaranteed energy savings contracts where Legence assumes performance risk — if the building does not achieve the contracted energy savings, Legence makes up the difference

• Building automation and controls: BAS design, installation, and integration across the major platform ecosystems

• Commissioning services: Verification that building systems — particularly HVAC — perform as designed, a requirement of modern energy codes and ESG reporting frameworks

• Sustainability consulting: Carbon accounting, ESG reporting support, and net-zero pathway development for commercial building owners with sustainability commitments

Legence Corp reported $737.6 million in Q4 2025 revenue — a 34.6% year-over-year increase — driven by commercial building decarbonisation investment, energy performance contracts, and HVAC services integration across its client base of institutional, commercial, and industrial building owners.

What's Driving 34.6% Growth

The combination of factors driving Legence's exceptional growth illustrates why commercial building services is outperforming residential HVAC right now:

• ESG investment: Large commercial building owners — particularly institutional real estate, healthcare systems, universities, and corporations with public sustainability commitments — are investing in building decarbonisation at elevated rates. HVAC is the largest single target for that investment, representing 30 to 50 percent of a typical commercial building's carbon footprint.

• Energy performance contracting growth: The energy performance contract model — where the service provider guarantees savings and is compensated from those savings — has grown significantly as building owners look for ways to fund building upgrades without upfront capital. Legence's EPC portfolio has expanded as this financing model gains acceptance.

• Federal and state incentives: Commercial building energy efficiency incentives — including the expanded Section 179D deduction and state programmes — have improved the financial case for building performance investment, driving more owners to engage service providers like Legence.

What Investors and Commercial Contractors Should Watch

Legence's growth trajectory carries two important signals. For investors, it confirms that commercial building performance services — integrated HVAC, controls, energy management, and sustainability consulting — is a high-growth segment that justifies the premium multiples that service platforms with this profile command.

For commercial HVAC contractors, Legence represents both competition and a model. Competition because it operates in the same commercial client markets, often with more comprehensive service offerings. A model because it demonstrates what the future of commercial HVAC services looks like: integrated, performance-guaranteed, sustainability-oriented, and data-driven.

Frequently Asked Questions

What is Legence Corp?

Legence Corp is a commercial building performance services company providing HVAC, controls, energy performance contracting, commissioning, and sustainability consulting to institutional, commercial, and industrial clients. It reported $737.6 million in Q4 2025 revenue — a 34.6% year-over-year increase.

Why is Legence Corp growing so fast?

Legence's growth is driven by accelerating commercial building decarbonisation investment from institutional and corporate clients with ESG commitments, growth in energy performance contracting as a building upgrade financing mechanism, and federal and state incentives improving the financial case for commercial building efficiency investment.