Company: LGN
Filing Date: 2025-08-25
Form Type: S-1/A
Source: 0001193125-25-186788
Chunk: 349

Company: Legence Corp.
Filing Date: 2025-08-25
Form: S-1/A
Chunk 349
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2.6 million, respectively, was reflected in Accrued and
other current liabilities on the Condensed Consolidated Balance Sheets. The determination of such claims and expenses and the appropriateness of the related liability is continually reviewed and updated by management.

The Company is self-insured for its medical coverage. The Company is responsible for the first $0.3 million of claims for each participant enrolled in
the medical coverage plan. Any claims exceeding $0.3 million are covered through a stop-loss insurance plan. A liability for expected but not yet reported claims in the amount of $1.5 million and $1.3 million was reflected in Accrued
compensation and benefits on the Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, respectively.

Surety

As a requirement under certain contracts, various Legence subsidiaries procure performance and payment bonds through surety underwriters. As a
condition for having surety companies write bonds on Legence subsidiary’s behalf, Legence enters into indemnification agreements with the surety companies. Total outstanding bonds were approximately $466.8 million and $384.2 million
as of June 30, 2025, and December 31, 2024, respectively.

Customer Guarantees

As part of its normal course of business, the Company offers guaranteed energy savings to customers under certain contracts. As of June 30, 2025 and
December 31, 2024, total guarantees were $308.0 million and $308.2 million, respectively. Historically, the Company has not incurred material losses in connection with these guarantees. Further, management is not aware of any changes
in the ability of the Company to meet these guarantees and does not expect to incur significant losses related to these guarantees in the foreseeable future.

F-86

Legence Holdings LLC and Subsidiaries Notes to Condensed Consolidated Financial Statements—(Continued) (Unaudited) Letters of Credit As discussed in “ Note 7—Debt,” the standby letters of credit are secured through the revolving line of credit. As of both June 30, 2025 and December 31, 2024, the Company had $5.2 million in standby letters of credit primarily related to the deductibles of insurance policies. Note 15—Other Financial Information Accounts receivable, net consists of the following (in thousands):

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