Company: LGN
Filing Date: 2025-07-15
Form Type: DRS/A
Source: 0000950123-25-006399
Chunk: 126

Company: Legence Corp.
Filing Date: 2025-07-15
Form: DRS/A
Chunk 126
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.4 | % |     | $ | 111,704 |     |          | 22.1 | % |     | $              | 25,218 |   |     |          | 3.7 | % |

Engineering & Consulting: The increase in gross profit was primarily attributable to higher revenue as well as the impact of acquisitions completed in 2024, which contributed approximately $14.4 million to our Engineering & Consulting segment gross profit for the three months ended March 31, 2025. The increase in gross profit margin was driven by an increase in margins in both the Engineering & Design and Program & Project Management service lines, but was primarily attributable to a higher mix of Engineering & Design revenue, which earns a higher margin than our Program & Project Management service line. Installation & Maintenance: The increase in gross profit was primarily attributable to rising margins from our Installation & Fabrication service line, which more than compensated for the declining mix contribution from our higher margin Maintenance & Service service line. Gross profit margin was relatively flat during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Selling, General & Administrative The increase in selling, general and administrative expenses is primarily attributable to an $8.8 million increase in compensation costs during the period resulting from higher headcount. Additionally, professional fees increased $4.0 million compared to the prior year period reflecting the impact of costs related to our strategic initiatives. Depreciation and Amortization The increase in depreciation and amortization is attributable to a $3.1 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 acquisitions completed subsequent to the three months ended March 31, 2024. Interest Expense, Net of Capitalized Interest The increase in interest expense, net of capitalized interest is primarily attributable to additional borrowings. This includes $440.0 million of borrowings under the Term Loan Credit Facility made subsequent to the three months ended March 31, 2024. 87

Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83 Income Tax (Benefit) Expense Income tax expense was $4.0 million for the three months ended March 31, 2025 and resulted in an effective tax rate of negative 26.7%, as compared to income tax expense of $1.3 million for the three months ended March