Company: LGN
Filing Date: 2025-07-15
Form Type: DRS/A
Source: 0000950123-25-006399
Chunk: 142

Company: Legence Corp.
Filing Date: 2025-07-15
Form: DRS/A
Chunk 142
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 half of the year as activity levels decrease and we receive final payments on completed jobs. Cash flows from operating activities decreased by $3.3 million for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. This decrease mainly reflects fluctuations in the primary components of working capital and other adjustments, as detailed in the Consolidated Statements of Cash Flows. Specifically, net loss increased by $4.2 million. Although adjustments for non-cashitems such as the amortization of intangible assets increased by $3.1 million, these benefits were more than offset by several changes in operating assets and liabilities. The main contributor to the decrease in operating cash flows was a substantial increase in accounts receivable of $36.6 million due to timing of collections from customers. This change was partially offset by a decrease in contract assets of $19.1 million, and an increase of contract liabilities of $19.8 million. Additionally, accrued and other current liabilities increased by $10.3 million. The impact of adjustments for non-cashitems was mostly offsetting in nature and is detailed on the Consolidated Statements of Cash Flows. 101

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

Cash flows from operating activities decreased $4.6 million during 2024 compared to
2023. This decrease is primarily attributable to fluctuations in the main components of working capital, as detailed in the Consolidated Statements of Cash Flows. Specifically, net loss decreased by $18.4 million, while the benefit was
partially offset by a $22.5 million decrease in cash provided by the effects of changes in operating assets and liabilities. The decrease from changes in operating assets and liabilities is primarily attributable to an increase in contract
assets of $27.3 million due to increased revenue and contract retentions and the decrease in accrued and other current liabilities of $37.9 million, approximately half of which related to the payment of contingent earnouts from
acquisitions in excess of the amounts of the acquisition-date fair value of the liability. These changes were partially offset by other operating assets and liabilities, primarily an increase in accounts payable of $15.7 million due to the
volume and timing of payments to vendors, and a $98.9 million benefit from changes in accounts receivable due to the timing of collections from customers. The impact of adjustments for noncash items was mostly offsetting in