Company: LGN
Filing Date: 2025-08-15
Form Type: S-1
Source: 0001193125-25-181698
Chunk: 44

Company: Legence Corp.
Filing Date: 2025-08-15
Form: S-1
Chunk 44
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 the unavailability of water or other utility services may delay project completions or cause our clients to defer investments. To the extent commodity, services, equipment
and materials prices and availability decline or fluctuate and our clients defer new investments or cancel or delay existing projects, the demand for our services decreases, which could have a material adverse impact on our business, financial
condition and results of operations.

The availability and pricing of commodities, equipment and materials can also affect the costs of
projects. Rising commodity, equipment and materials prices can negatively impact the potential returns on investments that are planned, as well as those in progress, and result in clients deferring new investments or canceling or delaying existing
projects. Cancellations and delays have affected our past results and may continue to do so in significant and unpredictable ways and could have a material adverse impact on our business, financial condition and results of operations.

The loss of one or a few clients could have an adverse impact on us.

Although we provide services to a diverse portfolio of client end markets and have long-standing relationships with many of our significant
clients, our clients may unilaterally reduce, fail to renew or terminate their contracts with us at any time. While we did not have any single client that accounted for more than 5% of our revenues from 2021 to 2024, after giving pro forma effect to
acquisitions we made over that period, the loss of business from a significant client, or a number of significant clients, could have a material adverse impact on our business, financial condition and results of operations.

The nature of our business exposes us to potential liability for warranty, engineering and other related claims and our insurance policies may not provide adequate coverage.

We typically provide contractual warranties for our services and materials, guaranteeing the work
performed against, among other things, defects in workmanship, and we may agree to indemnify our customers for losses related to our services. While our standard warranty period lasts twelve months, the length of these warranty periods varies, and
certain projects can have longer warranty periods and include facility performance warranties that are broader than the warranties we generally provide. Warranties generally require us to re-perform the
services and/or repair or replace the warranted item and any other facilities impacted thereby, at our sole expense, and we could also be responsible for other damages if we are not able to adequately satisfy our warranty obligations. In addition,
we can be required under contractual arrangements with our customers to warrant any defects or failures in materials we provide. While