Company: LGN
Filing Date: 2025-08-15
Form Type: S-1
Source: 0001193125-25-181698
Chunk: 125

Company: Legence Corp.
Filing Date: 2025-08-15
Form: S-1
Chunk 125
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     |                       |  7,629 |     |   | 13.4 | % |     |          |  0.5 | %  |
| Consolidated gross profit          |     | $                           | 112,794 |     |          | 21.7 | % |     | $ | 128,674 |     |          | 21.5 | % |     | $                     | 15,880 |     |   | 14.1 | % |     |          | (0.2 | )% |

Engineering & Consulting: The $8.3 million, or 14.8%, increase in gross profit for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was driven by a combination of organic revenue growth and the impact of acquisitions completed in 2024, slightly offset by lower gross margin. The decrease in gross margin was driven by lower margins in our Engineering & Design and Program & Project Management service lines, in part due to a higher percentage of subcontractor expenses, primarily from education and state & local government clients. Installation & Maintenance: The $7.6 million, or 13.4%, increase in gross profit for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily driven by strong revenue growth in both the Installation & Fabrication service line and Maintenance & Service business as well as slightly higher margins. Selling, General & Administrative Selling, general and administrative expenses increased $14.4 million during the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Selling, general and administrative expenses for the three months ended June 30, 2025 include $3.8 million related to an acquisition completed subsequent to the three months ended June 30, 2024. The remaining increase is primarily attributable to an increase in compensation costs and professional fees. There was a $6.7 million increase in compensation costs during the period primarily resulting from the change in fair value for stock compensation and higher headcount. Professional fees during the period increased by $1.3 million as compared to the prior year related primarily to IT costs and other costs related to our strategic initiatives. Depreciation and Amortization The increase in depreciation and amortization is attributable to a $1.1 million increase in the amortization of intangible assets and a $0.8 million increase