Company: LGN
Filing Date: 2025-11-03
Form Type: DRS
Source: 0001193125-25-262782
Chunk: 268

Company: Legence Corp.
Filing Date: 2025-11-03
Form: DRS
Chunk 268
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2 |        |
|:---------------------|:----|:-------------|--------:|:----|:-----|--------:|:----|:-----|-------:|
| Contract assets, net |     | $            | 188,132 |     | $    | 125,373 |     | $    | 91,481 |
| Other assets         |     | $            |   2,040 |     | $    |   1,772 |     | $    |  1,007 |
| Contract liabilities |     | $            | 164,130 |     | $    | 164,598 |     | $    | 94,711 |

Contract assets include $78.3 million, $83.1 million and $49.4 million of contract retentions as of December 31, 2024, 2023 and 2022, respectively. Contract retentions included in contract assets are generally subject to substantial project completion and acceptance by the customer. Contract assets and liabilities fluctuate based on factors that occur in the normal course of business, including the volume of projects in progress at period end, the timing of negotiated payment terms, billing frequency and other differences in payment terms relative to revenue recognition. The Company recognized $11.8 million of contract assets and $14.0 million of contract liabilities related to acquisitions completed during the year ended December 31, 2024. The remaining increase in contract assets from December 31, 2023 to December 31, 2024 is primarily due to the increase in the Company’s volume of project activity from both Installation & Maintenance and Engineering & Consulting segments, as reflected in increased revenue for the year ended December 31, 2024. The remaining change in contract liabilities from December 31, 2023 to December 31, 2024 is primarily due to the timing and amount of revenue recognized. The Company recognized $10.3 million of contract assets and $22.2 million of contract liabilities related to acquisitions completed during the year ended December 31, 2023. The remaining increase in contract assets from December 31, 2022 to December 31, 2023 is primarily due to the increase in the Company’s volume of project activity, reflected in increased revenue for the year ended December 31, 2023, particularly in the Installation & Maintenance segment. The remaining increase in contract liabilities from December 31, 2022 to December 31, 2023 is due