Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 139

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 139
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. states. For the year ended December 31, 2024, we generated $ million in revenue, $ million in net loss and $ million in Adjusted EBITDA representing an Adjusted EBITDA Margin of %. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAPfinancial measures, for a reconciliation to the nearest GAAP financial measure, please see “Prospectus Summary—Non-GAAPFinancial Measures.” 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 approximately 26% of the overall construction budget for buildings and average 35% for laboratory buildings and 39% for hospitals. Investments in nonresidential buildings in the United States grew from $279 billion in 2021 to $435 billion in 2024, representing a compound annual growth rate of 16%, according to Dodge Construction Network. Investments in buildings in the market segments where we focus— data centers, technology, semiconductors, life sciences, healthcareand education—grew at a 23% compound annual growth rate over the same period, according to Dodge Construction Network, more than 40% faster than overall investments in nonresidential buildings in the United States. We believe key drivers supporting continued growth in demand for our services include:

| • |     | Increasing investment in data centers to support more cloud-based applications and AI. Rapidly growing                                                                                                                                                    
 demand for cloud services, as well as the computational resources required to train and run artificial intelligence models, is driving increasing investment in data centers. Over the past three years, investment in new data centers nearly quadrupled 
 from $7 billion in 2021 to $27 billion in 2024 and is                                                                                                                                                                                                     |

96

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

| • |     | 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