Company: LGN
Filing Date: 2025-09-02
Form Type: S-1/A
Source: 0001193125-25-193346
Chunk: 138

Company: Legence Corp.
Filing Date: 2025-09-02
Form: S-1/A
Chunk 138
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.0 million of borrowings under the Term Loan Credit Facility during 2023, as well as the full year impact of $146.7 million of borrowings under the Term Loan Credit Facility during 2022.

Income Tax Expense (Benefit)

Income tax benefit was $7.9 million in the year ended December 31, 2023, and the effective tax rate was 14.5%, as compared to income tax
expense of $7.6 million in the year ended December 31, 2022 and an effective tax rate of negative 10.3%. These rates are lower than the federal statutory rate of 21%. The effective tax rate in the year ended December 31, 2023 was primarily due
to a significant portion of the pre-tax loss being generated by pass-through entities that are not subject to income taxes at the Company level, partially offset by favorable return-to-provision adjustments in the tax paying C corporations. The effective tax rate in the year ended December 31, 2022 was primarily due to a significant portion of the pre-tax loss being generated by pass-through entities that are not subject to income taxes at the Company level and to taxable income in the tax paying C corporations.

Selected Quarterly Financial Data (unaudited)

The following table sets forth a summary of selected quarterly financial data. The information for each quarter has been prepared on a basis
consistent with our audited Consolidated Financial Statements included in this prospectus and reflects, in the opinion of management, all adjustments of a normal, recurring nature that are necessary for a fair depiction of the financial information
contained in those statements. Our historical results are not necessarily indicative

99

of the results that may be expected for the full year or any other period in the future. The following quarterly financial information should be read in conjunction with our audited Consolidated Financial Statements and our Condensed Consolidated Financial Statements and related notes included elsewhere in this prospectus.

|                                                     |     | For the Three Months Ended | March 31, 
      2024 |   |     |   | June 30, 
     2024 |   |     |   | September 30, 
          2024 |   |     |   | December 31, 
         2024 |   |     |   | March 31, 
      2025 |   |     |   | June 30, 
     2025 |   |
|:----------------------------------------------------|:----|:---------------------------|----------