Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 30

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 30
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 that is performed by our subcontractors. Self-Perform Contribution is defined as revenue less Subcontractor Expense. Self-Perform Margin is defined as Adjusted EBITDA divided by Self-Perform Contribution. Management believes this is a helpful measure to evaluate the efficiency and profitability of the service teams we employ and manage directly. EBITDA is defined as earnings before interest and other financing expenses, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude goodwill impairment, net loss on sale and disposition of property and equipment, changes in the fair value of contingent consideration liabilities, acquisition and integration costs, system deployment costs, strategic initiative costs, stock-based compensation expense, profits from an accelerated project sale, credit agreement amendment fees and litigation settlements. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. Self-Perform Contribution should not be considered an alternative to gross profit that is derived in accordance with GAAP. Adjusted EBITDA should not be considered an alternative to net loss that is derived in accordance with GAAP. Management believes that the exclusion of the above-described items from gross profit and net loss in the presentation of the non-GAAP measures identified above enables us and our investors to more effectively evaluate our operations period over period and to identify operating trends that might not be apparent due to, among other reasons, the variable nature of these items, both in value and frequency, period over period. In addition, management believes these measures may be useful for investors in comparing our operating results with those of other companies. Our non-GAAPfinancial measures may not be comparable to similarly titled measures used by other companies, have limitations as analytical tools and should not be considered in isolation, or substitutes for analysis of our operating results as reported under GAAP. Additionally, we do not consider our non-GAAPfinancial measures superior to, or a substitute for, the equivalent measures calculated and presented in accordance with GAAP. Some of the limitations are that such measures:

| • |     | may exclude recurring expenses of Subcontractor Expense in our jobs; |

| • |     | may exclude the recurring expenses of depreciation and amortization of property and equipment and definite-lived 
 intangible assets and the assets being depreciated and amortized may have to be replaced in the future;          |

| • |     | do not reflect changes in our working capital needs; |

| • |     | do not reflect the interest (income) expense on our indebtedness; or |

| • |     | do