Legence Inc. saw its stock climb after announcing a $475 million deal to acquire Bowers Group and reporting revenue growth in its first quarterly results since its initial public offering. The shares rose 11% to $37, up 21% since its Sept. 12 IPO, where 26 million shares were sold at $28 each.

The San Jose-based engineering company said the acquisition of Maryland-based Bowers will expand its mechanical fabrication capacity and strengthen its presence in the greater Washington, D.C. area, especially in the booming northern Virginia data center market.

"With the addition of Bowers, we are unlocking new opportunities to deliver value for our clients and shareholders in 'Data Center Alley,' where they are one of the leading contractors for data center clients," said Legence CEO Jeff Sprau.

The deal will involve $325 million in cash and $100 million in Class A shares, with an additional $50 million payable in cash or stock by the end of 2026. The acquisition is expected to close in the first quarter of 2026.

Financial Performance Highlights

• Third-quarter loss: $576,000 (2 cents/share), improving from a $1.1 million loss a year earlier. Analysts had expected an 8-cent profit per share.
• Revenue: $708 million, up from $560.8 million a year ago, surpassing analyst expectations of $638.9 million.
• Growth was driven by a 35% increase in installation and maintenance sales, which made up 70% of the business, while engineering and consulting sales rose 9.5%.

The company projects current-quarter revenue of $600 million to $630 million and full-year 2026 revenue between $2.65 billion and $2.85 billion, signaling continued expansion and strong momentum post-IPO.