Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 9

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 9
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 data centers nearly quadrupled 
 from $7 billion in 2021 to $27 billion in 2024 and is forecast to continue to grow at an accelerated rate, according to Dodge Construction Network. Approximately  % 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. According to a survey conducted by Rabin Roberts Research on behalf of BDO in October 2023, 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 Dodge Construction Network, investment in manufacturing facilities in the United States grew at a compound annual growth rate 
 of 50% from 2021 to 2024 and is forecast to remain at more than twice 2019 levels through 2029.                                                                                                                                                           |

| • |     | 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 institutions to seek ways to make their buildings more energy efficient to mitigate the impact of rising energy costs on their operations. According to a 
 survey of 1,282 companies conducted by the Energy Efficiency Movement, 93% of businesses are planning to implement energy efficiency                                                                                                                   |

2

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

| upgrades in the next three years and 64% of those are focused on improving their cooling system specifically. According to the World Economic Forum, businesses can reduce their energy usage by as                                                     
 much as 49% and generate an average return on investment of 24% by making energy efficiency upgrades, according to a working paper by the Real Estate Research Institute in conjunction with Lawrence-Berkeley National Laboratory. At the same