Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 114

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 114
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 revenue mix shift towards the Engineering & Design service line and greater efficiency in customer fulfillment support costs.

Installation& Maintenance: The $33.1 million, or 20.1%, increase in gross profit for the nine months
ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily attributable to higher revenue and margins from our Installation & Fabrication service line, driven by strong project execution, partially
offset by higher customer fulfillment support costs and a revenue mix shift towards our lower margin Installation & Fabrication service line.

Selling, General & Administrative

Selling, general and administrative expenses increased by $48.0 million during the nine months ended September 30, 2025 compared to
the nine months ended September 30, 2024. Selling, general and administrative expenses for the nine months ended September 30, 2025 includes approximately $12.5 million related to acquisitions completed in 2024. Compensation expense
increased $16.5 million compared to the prior period largely due to an increase in fair value of profits interest awards as well as higher headcount. The remaining increase in selling, general and administrative expenses of $19.0 million
is primarily attributable to professional fees related to the preparation of our IPO as well as increases in IT software and subscriptions.

Depreciation and Amortization

The
increase in depreciation and amortization is attributable to a $2.5 million increase in the depreciation of property and equipment and a $2.4 million increase in the amortization of intangible assets, primarily from the impact of
acquisitions completed during 2024.

Interest Expense

The increase in interest expense is primarily attributable to higher average borrowings during the nine months ended September 30, 2025 as
compared to the nine months ended September 30, 2024.

Loss on debt extinguishment

The loss on debt extinguishment is due to accelerated amortization of debt issuance costs related to the early debt payment of
$780.3 million during the nine months ended September 30, 2025.

Income Tax Expense

Income tax expense was $13.7 million for the nine months ended September 30, 2025, and resulted in an effective tax rate of negative
152.4%, as compared to an income tax expense of $9.5 million for the nine months ended September 30, 2024 and an effective tax rate of 16,666.7%. For the nine months ended September