Company: LGN
Filing Date: 2025-09-02
Form Type: S-1/A
Source: 0001193125-25-193346
Chunk: 132

Company: Legence Corp.
Filing Date: 2025-09-02
Form: S-1/A
Chunk 132
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 shift towards the Engineering & Design service line which also contributed to the growth in gross profit. Installation & Maintenance: The $7.0 million, or 6.3%, increase in gross profit for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily attributable to higher revenue and 92

margins from our Installation & Fabrication service line, which more than compensated for a lower percentage weighting in our revenue mix from our higher margin Maintenance & Service business. Gross profit margin increased slightly during the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Selling, General & Administrative Selling, general and administrative expenses increased by $29.3 million during the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Selling, general and administrative expenses for the six months ended June 30, 2025 includes $12.5 million related to acquisitions completed in 2024. The remaining increase in selling, general and administrative expenses of $16.8 million is primarily attributable to an increase in compensation costs and professional fees. There was a $4.4 million increase in compensation costs during the period largely resulting from higher headcount. Professional fees during the period increased by $6.8 million as compared to the prior year related primarily to strategic initiative-related costs. Depreciation and Amortization The increase in depreciation and amortization is attributable to a $4.2 million increase in the amortization of intangible assets and a $2.0 million increase in the depreciation of property and equipment, primarily from the impact of acquisitions completed during 2024. Interest Expense The increase in interest expense is primarily attributable to additional borrowings. This includes $440.0 million of borrowings under the Term Loan Credit Facility made subsequent to the six months ended June 30, 2024. Income Tax Expense Income tax expense was $9.6 million for the six months ended June 30, 2025, and resulted in an effective tax rate of negative 71.4%, as compared to an income tax expense of $4.9 million for the six months ended June 30, 2024 and an effective tax rate of negative 128.8%. For the six months ended June 30, 2025 and 2024, the effective tax rate was lower than the U.S. federal statutory rate of 21%, primarily due to