Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 123

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 123
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, equity-linked arrangements and debt. If we are unable to raise additional capital when desired and on reasonable terms, our business, results of operations, and financial condition would be adversely affected. See the section titled “Risk Factors” for additional information. Cash Flows The information presented below was derived from our Consolidated Statements of Cash Flows within the Consolidated Financial Statements and summarizes cash flow activity.

|                                                           |     | Year Ended December 31, |     2022 |   |     |   |     2023 |   |
|:----------------------------------------------------------|:----|:------------------------|---------:|:--|:----|:--|---------:|:--|
|                                                           |     | -Dollars in thousands   |          |   |     |   |          |   |
| Cash provided by (used in):                               |     |                         |          |   |     |   |          |   |
| Operating activities                                      |     | $                       |   26,996 |   |     | $ |   33,917 |   |
| Investing activities                                      |     |                         | (160,375 | ) |     |   | (133,902 | ) |
| Financing activities                                      |     |                         |  173,807 |   |     |   |  128,471 |   |
| Increase in cash and cash equivalents and restricted cash |     | $                       |   40,428 |   |     | $ |   28,486 |   |

Operating Activities Cash flow from operating activities is primarily influenced by the level of revenue we generate and the operating margin we earn on that revenue. It is also influenced by the timing of working capital investment associated with the services that we provide. Our working capital needs may increase when we commence large volumes of work under circumstances where project costs are required to be paid before the associated receivables are billed and collected. Our management strives to negotiate payment terms that minimize the working capital investment that we are required to make in connection with large projects. Additionally, changes in project timing due to delays or accelerations and other economic, regulatory, market and political factors may affect customer spending and, thus, impact cash flows from operating activities. We typically require the most working capital 84

Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83 during the second half of the year as activity levels increase in the spring and summer months and less working capital in the first