Company: LGN
Filing Date: 2025-07-15
Form Type: DRS/A
Source: 0000950123-25-006399
Chunk: 326

Company: Legence Corp.
Filing Date: 2025-07-15
Form: DRS/A
Chunk 326
---
 and contract liabilities on the Condensed Consolidated Balance Sheets consist of the following amounts (in thousands):

|                      |     |   | March 31, 
      2025 |     |   | December 31, 
         2024 |
|:---------------------|:----|:--|----------:|:----|:--|-------------:|
| Contract assets:     |     |   |           |     |   |              |
| Contract assets, net |     | $ |   198,118 |     | $ |      188,132 |
| Other assets         |     | $ |     2,062 |     | $ |        2,040 |
| Contract liabilities |     | $ |   160,936 |     | $ |      164,130 |

Contract assets include $81.6 million and $78.3 million of contract retentions as of March 31, 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 March 31, 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 March 31, 2025 was primarily due to the timing and amount of revenue recognized. F-72

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

Legence Holdings LLC and Subsidiaries

Notes to Condensed Consolidated Financial Statements—(Continued)

(Unaudited)

During the three months ended March 31, 2025 and 2024, the Company recognized revenue of
$72.8 million and $75.6 million, respectively, related to contract liabilities outstanding as of the end of the prior period.

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 March 31, 202