Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 295

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 295
---
 30, |   |     | 2024 |       |   |     | 2025 | Nine Months Ended 
     September 30, |    |     | 2024 |          |   |
|:--------------------------|:----|:-----|-------------------:|:--|:----|:-----|------:|:--|:----|:-----|------------------:|:---|:----|:-----|---------:|:--|
| Income tax expense        |     | $    |              4,078 |   |     | $    | 4,564 |   |     | $    |            13,662 |    |     | $    |    9,500 |   |
| Effective income tax rate |     |      |               91.5 | % |     |      | 117.4 | % |     |      |            (152.4 | )% |     |      | 16,666.7 | % |

The Company evaluates its estimated annual effective income tax rate based on current and forecasted business results and enacted tax laws on a quarterly basis, adjusted for discrete events arising in each respective quarter, and applies this tax rate to ordinary income or loss to calculate the estimated tax liability or benefit. Due to the nature of the legal structure, the effective tax rate is impacted by changes in the mix of earnings because some of the pass-through earnings are taxed at the Company level or through other corporations. F-39

Legence Corp.

Notes to Condensed Consolidated Financial Statements - (Continued)

(Unaudited)

For the three months ended September 30, 2025 and 2024, the effective tax rate was higher than the U.S.
federal statutory rate of 21%, primarily due to earnings incurred prior to the IPO and Corporate Reorganization from pass-through business not subject to income taxes at the Company level.

For the nine months ended September 30, 2025, the effective tax rate was lower than the U.S. federal statutory rate of 21%, primarily due to the loss
before income tax from pass-through business not subject to income taxes at the Company level. For the nine months ended September 30, 2024, the effective tax rate was higher than the U.S. federal statutory rate of 21%, primarily due to the
loss before income tax from pass-through business not subject to income taxes at the Company level.

A valuation allowance is provided when it is more