Company: LGN
Filing Date: 2025-07-15
Form Type: DRS/A
Source: 0000950123-25-006399
Chunk: 10

Company: Legence Corp.
Filing Date: 2025-07-15
Form: DRS/A
Chunk 10
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 2023, respectively, we paid subcontractors approximately $350.7 million and $234.8
million, respectively, in connection with their work on our projects. We also frequently purchase certain equipment that we install in our clients’ buildings. We may pass the cost of equipment on directly to our customers as a specific line
item or incorporate the cost into our overall contract price for the job. In the years ended December 31, 2024 and 2023, we spent approximately $457.3 million and $385.8 million, respectively, on equipment for our clients’ projects.

We are headquartered in San Jose, California and, as of December 31, 2024, we had approximately 5,700 full-time employees across 70
offices in 20 U.S. states. For the year ended December 31, 2024, we generated $2,098.6 million in revenue, $27.6 million in net loss and $229.6 million in Adjusted EBITDA representing a Net Loss Margin of (1.3)% and Adjusted
EBITDA Margin of 10.9%. For the three months ended March 31, 2025, we generated $506.0 million in revenue, $19.1 million in net loss and $50.8 million in Adjusted EBITDA representing a Net Loss Margin of (3.8)% and Adjusted EBITDA
Margin of 10.0%. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures, for a reconciliation to the nearest generally accepted accounting principles in the United States (“GAAP”)
financial measure, please see “Non-GAAP Financial Measures” below.

Our Market Opportunity

Demand for our services is driven primarily by investment in new and existing industrial, commercial and public sector buildings in
the United States. According to 2024 RSMeans Data, MEP engineering and installation costs represent an average of 26% of the total construction budget for new industrial and commercial buildings, and as much as 35% and 39% for laboratories and
hospitals, respectively. Investments in nonresidential buildings in the United States grew from $279 billion in 2021 to $437 billion in 2024, representing a compound annual

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Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83

growth rate of 16%, according to Dodge Construction Network. Investments