Company: LGN
Filing Date: 2025-11-03
Form Type: DRS
Source: 0001193125-25-262782
Chunk: 314

Company: Legence Corp.
Filing Date: 2025-11-03
Form: DRS
Chunk 314
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 31, 2024 to June 30, 2025 was primarily due to the timing and amount of revenue recognized. During the three and six months ended June 30, 2025, the Company recognized revenue of $24.5 million and $97.3 million, respectively, related to contract liabilities outstanding as of December 31, 2024. During the three and six months ended June 30, 2024, the Company recognized revenue of $41.7 million and $117.3 million, respectively, related to contract liabilities outstanding as of December 31, 2023. Contracts Receivable Included in the contracts receivable balance is retention for which the Company has an unconditional right to payment and is only subject to the passage of time. Retentions included in contracts receivable as of June 30, 2025 and December 31, 2024 were $7.9 million and $9.8 million, respectively. Remaining Performance Obligations The Company had approximately $2,006.5 million in remaining performance obligations as of June 30, 2025, which represent the expected revenue values under contract or otherwise secured fixed-price project commitments. The Company expects to recognize approximately 75% of the remaining performance obligations within the next twelve months and the remaining approximately 25% thereafter. The majority of the remaining performance obligations after the first 12 months is expected to be recognized by June 30, 2027. Although remaining performance obligations reflect expected revenue values that are considered to be firm, cancellations, scope adjustments or project deferrals may occur that impact the volume or the expected timing of revenue recognition. F-68

Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83 Note 4—Acquisitions During the three and six months ended June 30, 2025, the Company did not acquire any businesses, nor did the Company record material measurement period adjustments for the businesses acquired during the year ended December 31, 2024. 2024 Acquisitions: On March 1, 2024, the Company acquired all of the outstanding equity of P2S LP (“P2S”). P2S is a consulting engineering, commissioning and construction management services firm based in California. This acquisition expands the Company’s services to new geographic markets and priority end markets throughout the Western United States. The P2S operations and associated goodwill are included in the Engineering & Consulting segment. On July 1,