Company: LGN
Filing Date: 2025-08-15
Form Type: S-1
Source: 0001193125-25-181698
Chunk: 153

Company: Legence Corp.
Filing Date: 2025-08-15
Form: S-1
Chunk 153
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 of cash based on contractual obligations as of December 31, 2024; however, the final amount payable or the timing may not be fixed and determinable. Such contingent obligations include the following:

| • |     | Some of our customers require us to secure surety bonds from reputable financial institutions to guarantee                                                                                                                                                
 execution on certain projects. In the event Legence or its subcontractors fail to meet its performance obligations, customers have the option to request the surety bond provider fund the completion of the project using other service providers. Under 
 the terms of these agreements, we are liable for any disbursement made by the bonding company because of our failure to perform. Surety bonds expire at various times ranging from final completion of a project to a period extending beyond contract    
 completion in certain circumstances. Such amounts can also fluctuate from period to period based upon the mix and level of our bonded operating activity. For example, public sector contracts require surety bonds more frequently than private sector   
 contracts, and accordingly, our bonding requirements typically increase as the amount of our public sector work increases. Our estimated maximum exposure as it relates to the value of the surety bonds outstanding is lowered on each bonded project as 
 the cost to complete is reduced, and each commitment under a surety bond generally extinguishes concurrently with the expiration of its related contractual obligation. As of December 31, 2024, $384.2 million of backlog and awarded                    
 contracts, equivalent to 16% of backlog and awarded contracts, was subject to surety bond obligations. In the ten years prior to December 31, 2024, we did not receive a claim for liquidated damages in excess of $100,000.                              |

| • |     | As part of our normal course of business, we offer guaranteed energy savings to customers under certain                                                                                                                                             
 contracts. As of December 31, 2024 and 2023, total guarantees were $308.2 million and $322.0 million, respectively. Should the guaranteed energy savings not be achieved, these guarantees would become due to the customers. Historically, we have 
 not incurred notable losses in connection with these guarantees.                                                                                                                                                                                    |

| • |     | We have standby letters of credit that are secured through the revolving line of credit. Obligations under these                                                                                                                                          
 letters of credit are not normally called, as we typically comply with the underlying requirements. As of December 31, 2024 and 2023, we had $5.2 million in standby letters of credit primarily