Company: LGN
Filing Date: 2025-11-03
Form Type: DRS
Source: 0001193125-25-262782
Chunk: 74

Company: Legence Corp.
Filing Date: 2025-11-03
Form: DRS
Chunk 74
---
 may be retained to finance our future expansion and for the
implementation of our business plan.

The payment of dividends is dependent on, among other things, economic conditions, our financial
condition, results of operations, projections, liquidity, earnings, legal requirements and restrictions in the agreements governing our indebtedness. Our ability to pay dividends depends on our receipt of cash dividends from our operating
subsidiaries, which may further restrict our ability to pay dividends as a result of the laws of their jurisdiction of organization, agreements of our subsidiaries or covenants under any existing and future outstanding indebtedness we or our
subsidiaries incur.

Further, our Credit Facilities contain restrictions on the payment of dividends, subject to certain exceptions. Any
financing arrangements or debt arrangements that we enter into in the future may also include restrictive covenants that limit our ability to pay dividends.

44

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

As an investor, you should take note of the fact that a lack of a dividend may affect the
market value of our Class A Common Stock and could affect the value of any investment.

Our sale or issuance of additional Common Stock or other equity-related securities could dilute each stockholder’s ownership interest or adversely affect the market price of our Class A Common Stock.

We often fund a significant portion of the consideration paid in connection with our acquisitions with the issuance of additional equity
securities, including contingent consideration amounts payable if acquired businesses achieve certain performance objectives during specified post-acquisition periods. We also utilize stock-based compensation as a key component of our compensation
program. We expect to issue additional equity securities in the future in connection with these and other practices. Our amended and restated certificate of incorporation provides that we may issue up to 1,000,000,000 shares of Class A Common
Stock, of which shares (or shares, if the underwriters exercise in full their option to purchase additional shares) will be outstanding upon completion of this offering. Any additional issuances
of common stock would have the effect of diluting our earnings per share and our existing stockholders’ individual ownership percentages and lead to volatility in the market price of our Class A Common Stock. We cannot predict the effect
that future issuances of our Common Stock or other equity-related securities would have on the market price of our Class A Common Stock.

We will be required to make payments under the Tax Receivable Agreement for certain tax benefits we may claim, and the