Company: LGN
Filing Date: 2025-05-14
Form Type: DRS/A
Source: 0000950123-25-005247
Chunk: 162

Company: Legence Corp.
Filing Date: 2025-05-14
Form: DRS/A
Chunk 162
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 rates for our industry, respectively.

Competition

We compete with national, regional, and local companies, including many small, owner-operated entities that operate their businesses in a
limited geographic area. National competitors of our Engineering & Consulting segment include Affiliated Engineers Inc., Stantec Inc. and WSP Global, Inc. National competitors of our Installation & Maintenance segment include
Comfort Systems USA, Inc., ACCO Engineered Systems, Inc. and Southland Industries, Inc.

We believe our strategy of providing a
comprehensive suite of engineering, consulting, installation and maintenance services gives us a competitive advantage over smaller competitors and competitors with more limited capabilities.

Customer Contracts

Historically, the
vast majority of our revenues have been generated by customer contracts that are fixed-price. Under our fixed-price contracts, we are obligated to deliver a specific scope of services for a fixed-price. When a project requires changes to the scope
of services in a fixed-price contract, we charge amounts over and above the fixed-price to compensate us for the changes. Approximately 70% of our revenues over the period from 2021 to 2024 were from jobs that had values of less than
$10 million, after giving pro forma effect to acquisitions made over that period. Our largest job represented approximately 1% of our revenues over the period from 2021 to 2024, after giving pro forma effect to acquisitions made over that
period.

The materials and components we use in our projects include ductwork, pipe, valves, fittings, electrical wire, conduit and
fixtures, fabricated steel and sheet metal and are generally available from a large number of domestic or foreign suppliers at competitive prices. Import tariffs on any materials and components we procure internationally are passed through to our
clients. We are not overly dependent on any vendor or supplier of technologies or products.

Certain contracts require us to purchase
equipment for projects. When equipment purchase is part of a contract, we typically do not take exposure to increases in the price of equipment. We are equipment vendor agnostic and do not have exclusive relationships with any vendor or supplier of
equipment used in our clients’ buildings. We seek to identify the highest performing equipment for our clients’ requirements.

Some of our contracts require bonding and contain liquidated damages provisions tied to a timeline for completion of the project. We maintain
relationships with multiple surety bonding providers and have not historically had any difficulties obtaining bonding for our projects. In the ten years prior to December 31, 2024, we did not receive a