Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 29

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 29
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 our clients with respect to utilizing the IRA and 
 the CHIPS Act of 2022 (the “CHIPs Act”) and (iv) consulting, legal, accounting expenses in connection with non-recurring extraordinary company transactions.                                                                                         |

| (5) | Our Black Bear subsidiary helps businesses and real estate owners procure                                                                                                                                                                                 
 on-site generation and storage systems for their buildings. Black Bear receives compensation for its services from project developers who pay Black Bear a fee if they are selected to provide the system for the                                         
 client. The fee is typically earned and paid when the client enters into a binding contract with the project developer and permits to begin construction have been issued. If a contract is not signed or permits are not issued, Black Bear is typically 
 not owed a fee from the project developer. In the fourth quarter of 2023, a project developer who had been selected for a large number of projects by Black Bear’s clients offered to immediately pay Black Bear all of the fees that Black Bear          
 would earn in the future if all of the projects received permits, provided that Black Bear would agree to discount the fee amounts. Black Bear agreed to discount the fee amounts and recorded significantly higher revenues than would be typical in a   
 quarter. Given the unique nature of the transaction, we consider it to be non-recurring in nature. This adjustment is to eliminate the approximately $7.4 million profit we recorded from the transaction.                                                |

| (6) | Refer to Note 17 in the Notes to the Consolidated Financial Statements, for details on the nature of the 
 settlement.                                                                                              |

20

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

RISK FACTORS

Investing in our Class A Common Stock involves risks. The information in this prospectus should be considered carefully, including the matters addressed under “Cautionary Statement Regarding Forward-Looking Statements,” and the following risks, before making an investment decision. The risks and uncertainties described below are not the only ones we face. Additional risks not presently known to us or that we currently deem immaterial may also materially affect our business. The occurrence of any of the following risks or additional risks and uncertainties that are currently immaterial or unknown could materially and adversely affect our business, financial condition, liquidity, results of operations, cash flows or prospects. The trading price of our Class A Common Stock could decline due to any of these risks, and you may lose all or part of your investment.

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