Company: LGN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0002052568-25-000018
Chunk: 12

Company: Legence Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 12
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 centers & technology as well as life sciences & healthcare clients, partially offset by lower revenue from mixed-use clients and hospitality & entertainment clients within Other. Additionally, the revenue increase in our Maintenance & Service business was primarily due to strong demand from data centers & technology as well as life sciences & healthcare clients. 

Gross Profit 

Gross profit increased $29.5 million, or 24.9%, during the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase is attributable to the results of our operating segments, which are discussed below. 

The following table presents our gross profit by reportable segment (dollars in thousands): 

Three Months Ended September 30,Year over Year Change20252024$% Margin$% Margin$%% MarginGross profit:Engineering & Consulting segment$67,326 31.7 %$63,945 33.0 %$3,381 5.3 %(1.3)%Installation & Maintenance segment80,733 16.3 %54,601 14.9 %26,132 47.9 %1.4 %Gross profit$148,059 20.9 %$118,546 21.1 %$29,513 24.9 %(0.2)%

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Engineering & Consulting: The $3.4 million, or 5.3%, increase in gross profit for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was driven by organic revenue growth, partially offset by a slightly lower gross margin. The modest decrease in gross margin was driven by a higher percentage of subcontractor expenses and lower margin in our Engineering & Design service line, primarily from life sciences & healthcare and education clients, partially offset by a modest revenue mix shift towards the Engineering & Design service line. 

Installation & Maintenance: The $26.1 million, or 47.9%, increase in gross profit for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily driven by strong revenue growth in both the Installation & Fabrication and Maintenance & Service service lines as well as higher margins in the Installation & Fabrication service line, driven by strong project execution, partially offset by a revenue mix shift towards the lower margin Installation & Fabrication service line.

Selling, General & Administrative 

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