Company: LGN
Filing Date: 2025-08-25
Form Type: S-1/A
Source: 0001193125-25-186788
Chunk: 11

Company: Legence Corp.
Filing Date: 2025-08-25
Form: S-1/A
Chunk 11
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 in 2021 to $437 billion in 2024, representing a compound annual growth rate of 16%, according to Dodge Construction Network. Investments in buildings in the market segments where we focus— data centers, technology, semiconductors, life sciences, healthcareand education—grew at a 22% compound annual growth rate over the same period, according to Dodge Construction Network, nearly 40% faster than overall investments in nonresidential buildings in the United States. We believe key drivers supporting continued growth in demand for our services include:

| • |     | Increasing investment in data centers to support more cloud-based applications and AI. Rapidly growing                                                                                                                                                   
 demand for cloud services, as well as the computational resources required to train and run artificial intelligence models, is driving increasing investment in data centers. Over the past three years, facilities investment in data centers more than 
 tripled from $7 billion in 2021 to $23 billion in 2024 and is forecast to grow at a 22% compound annual growth rate from 2024 to 2029, according to Dodge Construction Network. Approximately 40% of our backlog and awarded contracts for               
 projects in new buildings were data centers as of December 31, 2024.                                                                                                                                                                                     |

| • |     | Continued “reshoring” of U.S. manufacturing. A combination of                                                                                                                                                                                             
 increasing tariffs, growing intellectual property and geopolitical risks, attractive federal incentives for “domestic content” and the narrowing wage gap between U.S. and international workers is prompting many companies to move their                
 offshore manufacturing operations back to the United States. Investment in manufacturing facilities in the United States grew at a compound annual growth rate of 49% from 2021 to 2024, according to Dodge Construction Network, and 89% of              
 manufacturers surveyed are either moving production back to the United States or expanding their existing U.S. facilities which is resulting in increased spending on manufacturing facilities, according to a survey conducted by Rabin Roberts Research 
 on behalf of BDO in October 2023.                                                                                                                                                                                                                         |

| • |     | Growing demand for solutions that can address rising electricity prices and declining power availability.                                                                                                                                                 
 The average price of electricity in the U.S. increased 23% from 2020 to 2024, which compares to an increase of only 8% in the prior ten-year period from 2010 to 2020 according to the U.S. Energy                                                        
 Information Administration. We believe that rising power prices have prompted businesses and