Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 118

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 118
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 |         |     |          |      |   |     |   |         |     |          |      |   |     |                |        |     |          |      |   |
| Engineering & Consulting segment   |     | $                       | 102,168 |     |          | 31.1 | % |     | $ | 147,892 |     |          | 34.7 | % |     | $              | 45,724 |     |          | 44.8 | % |
| Installation & Maintenance segment |     |                         | 131,538 |     |          | 14.3 | % |     |   | 167,254 |     |          | 14.0 | % |     |                | 35,716 |     |          | 27.2 | % |
| Consolidated gross profit          |     | $                       | 233,706 |     |          | 18.7 | % |     | $ | 315,146 |     |          | 19.5 | % |     | $              | 81,440 |     |          | 34.8 | % |

Engineering & Consulting: The gross profit increase was primarily attributable to increased revenue as well as the full year impact of acquisitions completed in late 2022, which contributed approximately $28.4 million to our Engineering & Consulting segment gross profit in 2023. The increase in gross profit margin was primarily attributable to a higher mix of Engineering & Design revenue, which earns a higher margin than our Program & Project Management service lines. Installation & Maintenance: The gross profit increase was primarily attributable to an increase in revenue. Gross profit margin was relatively flat year over year. 80

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

Selling, General & Administrative

The increase in selling, general and administrative is primarily attributable to a $21.4 million increase in compensation costs during the
period as a result of higher headcount. Additionally, there was an increase in professional fees of $10.4 million as compared to the prior year related primarily to IT costs and acquisition-related fees.

Changes in the Fair Value of Contingent Consideration

The increase in changes in the fair value of contingent consideration is primarily attributable to the contingent earnout obligation associated
with the Black Bear Energy acquisition which we completed in 2022. The Black Bear Energy acquisition included a maximum potential