Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 11

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 11
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2024, representing a compound annual growth rate of 16%, according to Dodge Construction Network. Investments in buildings in the market segments where we focus—data centers, technology, semiconductors, life sciences, healthcare and education—grew at a 22% compound annual growth rate over the same period, according to Dodge Construction Network, nearly 40% faster than overall investments in nonresidential buildings in the United States. We believe key drivers supporting continued growth in demand for our services include:

| • |     | Increasing investment in data centers to support more cloud-based applications and artificial intelligence                                                                                                                                    
 (“AI”). Rapidly growing demand for cloud services, as well as the computational resources required to train and run artificial intelligence models, is driving increasing investment in data centers. Over the past three years,              
 facilities investment in data centers more than tripled from $7 billion in 2021 to $23 billion in 2024 and is forecast to grow at a 22% compound annual growth rate from 2024 to 2029, according to Dodge Construction Network. Approximately 
 40% of our backlog and awarded contracts for projects in new buildings were data centers as of December 31, 2024.                                                                                                                             |

| • |     | Continued “reshoring” of U.S. manufacturing. A combination of increasing tariffs, growing                                                                                                                                                                 
 intellectual property and geopolitical risks, attractive federal incentives for “domestic content” and the narrowing wage gap between U.S. and international workers is prompting many companies to move their offshore manufacturing                     
 operations back to the United States. Investment in manufacturing facilities in the United States grew at a compound annual growth rate of 49% from 2021 to 2024, according to Dodge Construction Network, and 89% of manufacturers surveyed are either   
 moving production back to the United States or expanding their existing U.S. facilities which is resulting in increased spending on manufacturing facilities, according to a survey conducted by Rabin Roberts Research on behalf of BDO in October 2023. |

| • |     | Growing demand for solutions that can address rising electricity prices and declining power availability.                                                                                                                                             
 The average price of electricity in the U.S. increased 23% from 2020 to 2024, which compares to an increase of only 8% in the prior ten-year period from 2010 to 2020 according to the U.S. Energy Information                                        
 Administration. We believe that rising power prices have prompted businesses and institutions to seek ways to make their buildings more energy efficient to