Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 131

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 131
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 capital needs, as well as better identify future operating trends that may not otherwise be apparent. We believe this measure is also useful for investors in forecasting our future results and comparing us to our competitors. We also track our book-to-billratio, based on backlog and awarded contracts, for the same reasons. Our backlog is equivalent to our remaining performance obligations. As a result, there are no adjustments being made that would be reflected in a reconciliation. Our methodology for calculating backlog and awarded contracts or book-to-billratio may not be consistent with methodologies used by other companies. Our backlog and awarded contracts measure has two components: backlog and awarded contracts. Backlog represents, as of any date of determination, the expected revenue values of the remaining performance obligations under our contracted or otherwise secured project commitments. Awarded contracts represents as of any date of determination, the expected revenue values of projects awarded to us following a request for proposals but for which a formal contract has not yet been signed. We only include fixed-price contracts in our backlog and awarded contracts because they have defined revenue values. We do not include cost-plus contracts, including maintenance service contracts, in our backlog and awarded contracts, because their total revenue values are not known. Historically, cost-plus projects have comprised a relatively insignificant portion of our revenue. We calculate our book-to-billratio by taking our additions to backlog and awarded contracts for the period and dividing it by revenue from fixed-price contracts for the same period. Given that backlog and awarded contracts and book-to-billratio are operational measures and that our methodology for calculating backlog and awarded contracts and book-to-billratio does not meet the definition of a non-GAAPmeasure, as that term is defined by the SEC, a quantitative reconciliation for each is not required nor provided. 89

Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83 The following table presents our backlog and awarded contracts and book-to-billratio by reportable segment.

| Engineering & Consulting      |     | As of December 31,     
 2022                   
 (Dollars in thousands) |           |     | 2023 |           |     | 2024 |
|:------------------------------|:----|:-----------------------|----------:|:----|:-----|----------:|:----|:-----|
| Backlog                       |     | $                      |   353,384 |     | $    |   412,874 |     | $    |
| Awarded contracts