Company: LGN
Filing Date: 2025-09-02
Form Type: S-1/A
Source: 0001193125-25-193346
Chunk: 129

Company: Legence Corp.
Filing Date: 2025-09-02
Form: S-1/A
Chunk 129
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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 in the depreciation of property and equipment, primarily from the impact of an acquisition completed subsequent to the three months ended June 30, 2024. Interest Expense The increase in interest expense is primarily attributable to additional borrowings. This includes $315.0 million of borrowings under the Term Loan Credit Facility made subsequent to the three months ended June 30, 2024. Income Tax Expense Income tax expense was $5.5 million for the three months ended June 30, 2025, and resulted in an effective tax rate of 330.7%, as compared to income tax expense of $3.7 million for the three months ended June 30, 2024 and an effective tax rate of 37.1%. For the three months ended June 30, 2025 and 2024, the effective tax rate was higher than the U.S. federal statutory rate of 21%, primarily due to the loss before income tax from pass-through business not subject to income taxes at the Company level. 90

Results of Operations For the Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 A summary of our consolidated results of operations, selected data as a percentage of revenues for the periods indicated, as well as the dollar and percentage change from the prior year period is presented as follows (dollars in thousands):

|                                                     |     | Six Months Ended 
 June 30,         |    2024 |   |     |   |      2025 |   |     | Year over Year 
 Change         |         |   |     |   |       |    |
|:----------------------------------------------------|:----|:-----------------|--------:|:--|:----|:--|----------:|:--|:----|:---------------|--------:|:--|:----|:--|------:|:---|
|                                                     |     | $                |         |   |     | $ |           |   |     | $              |         |