Legence raised full-year 2026 guidance to $4.7 billion to $4.8 billion in revenue and $565 million to $585 million in adjusted EBITDA, the company said in its second-quarter earnings announcement on August 13. The increase stems from stronger-than-expected demand from data center operators.
Legence operates real estate and infrastructure assets across North America and Europe, with holdings spanning traditional office, industrial, and increasingly, purpose-built data center facilities. The company's prior 2026 guidance, issued three months earlier, stood at $4.5 billion to $4.6 billion in revenue and $530 million to $560 million in adjusted EBITDA. The new range represents a midpoint increase of $200 million in revenue guidance and $50 million in adjusted EBITDA guidance.
Data center capacity has become a critical bottleneck for cloud providers and AI infrastructure operators. Major tenants have accelerated their expansion plans in 2026, and Legence has moved to capture that demand by leasing available facilities and fast-tracking development on vacant land. The company's portfolio includes properties in markets with existing fiber backbone and grid power availability, assets that command premium lease rates in the current cycle.
Legence's adjusted EBITDA margin at the midpoint of the new guidance is 12.2 percent, compared to 11.8 percent at the midpoint of the prior range. The improvement comes from a mix shift toward higher-margin data center leases and operating leverage as the company scales occupancy in its existing base.
The 2026 guidance increase comes as institutional capital continues to flow into data center real estate. Public REITs holding data center assets have seen their valuations climb 18 percent year-to-date, though actual operational demand, measured in signed leases and expansion commitments, has lagged valuation gains at some competitors. Legence's raise shows the company is capturing real signed revenue, not speculative positioning.
Legence's guidance now sits at a 2026 revenue run-rate of 11 times its 2024 revenue, a multiple driven by organic portfolio expansion and tenant demand rather than acquisition activity. The company has said it is not pursuing large M&A deals this year.
The tightness of data center capacity means lease rates can move faster than construction timelines. If Legence cannot bring new supply online fast enough to match tenant commitments, the company may face pressure to choose which customers to prioritize, a position that could either increase pricing power or create customer friction depending on how disputes are handled.
