Company: LGN
Filing Date: 2025-08-15
Form Type: S-1
Source: 0001193125-25-181698
Chunk: 326

Company: Legence Corp.
Filing Date: 2025-08-15
Form: S-1
Chunk 326
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 2,040 |
| Contract liabilities |     | $ |  185,907 |     | $ |      164,130 |

Contract assets include $77.4 million and $78.3 million of contract retentions as of June 30, 2025 and December 31, 2024, 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 increase in contract assets from December 31, 2024 to June 30, 2025 was primarily due to the increase in the Company’s volume of project activity and revenue from both Installation & Maintenance and Engineering & Consulting segments. The change in contract liabilities from December 31, 2024 to June 30, 2025 was primarily due to the timing and amount of revenue recognized. F-72

Legence Holdings LLC and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

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