Company: LGN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0002052568-25-000018
Chunk: 176

Company: Legence Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 176
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 %$3,381 5.3 %(1.3)%Installation & Maintenance segment80,733 16.3 %54,601 14.9 %26,132 47.9 %1.4 %Gross profit$148,059 20.9 %$118,546 21.1 %$29,513 24.9 %(0.2)%

47

Engineering & Consulting: The $3.4 million, or 5.3%, increase in gross profit for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was driven by organic revenue growth, partially offset by a slightly lower gross margin. The modest decrease in gross margin was driven by a higher percentage of subcontractor expenses and lower margin in our Engineering & Design service line, primarily from life sciences & healthcare and education clients, partially offset by a modest revenue mix shift towards the Engineering & Design service line. 

Installation & Maintenance: The $26.1 million, or 47.9%, increase in gross profit for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily driven by strong revenue growth in both the Installation & Fabrication and Maintenance & Service service lines as well as higher margins in the Installation & Fabrication service line, driven by strong project execution, partially offset by a revenue mix shift towards the lower margin Installation & Fabrication service line.

Selling, General & Administrative 

Selling, general and administrative expenses increased $18.7 million during the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by $12.0 million in compensation expense largely due to an increase in fair value of profits interest awards as well as higher headcount. The remaining increase in selling, general and administrative expenses of $6.7 million is primarily attributable to professional fees related to the preparation of our IPO as well as increases in IT software and subscriptions. 

Depreciation and Amortization 

The decrease in depreciation and amortization is primarily attributable to the runoff of contract backlog intangible assets from recent acquisitions. 

Interest Expense 

The increase in interest expense is primarily attributable to higher average borrowings during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. 

Loss on debt extinguishment 

The loss