Company: LGN
Filing Date: 2025-07-15
Form Type: DRS/A
Source: 0000950123-25-006399
Chunk: 282

Company: Legence Corp.
Filing Date: 2025-07-15
Form: DRS/A
Chunk 282
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, and has discretion in establishing pricing for the integrated performance obligation. Accordingly, the Company
recognizes revenue from customers in Revenue with the associated third party costs included in Cost of revenue on the Consolidated Statements of Operations.

Performance obligations related to sales of custom-fabricated, construction-related products are satisfied at a point in time and revenue is recognized upon
delivery of the products to the customer and are not material to the financial statement periods presented.

Performance obligations related to energy
procurement and infrastructure services are satisfied at a point in time, and revenue is recognized upon the Company securing energy supply or infrastructure service contracts on behalf of customers and are not material to the financial statement
periods presented.

The Company invoices its customers in accordance with contractual payment terms. It is common for construction contracts to specify
that an architect or a general contractor is not required to make payments to a subcontractor until it has received those funds from the owner or funding source. In most instances, the Company receives payment of its invoices between 30 to 90 days
of the invoice issuance.

Changes in Estimates

For contracts where the Company applies the Cost-to-Cost Input Method, the
accuracy of the Company’s revenue and profit recognition in each year depends on the accuracy of management’s estimates of the cost to complete each project. Contract costs include labor, material, subcontractors and various overhead costs
such as maintenance, depreciation, consumables, or equipment rentals, which are either directly related to the fulfillment of specific contract performance obligations or indirectly contribute to the overall customer service delivery fulfillment of
multiple contracts and obligations. Costs associated with change orders, unresolved contract modifications, claims to or from owners and back-charge recoveries are recorded as incurred. Revisions to estimated total costs are reflected in the
Company’s measure of progress.

F-27

Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83 Legence Holdings LLC and Subsidiaries Notes to Consolidated Financial Statements There are several factors that can contribute to changes in estimates of contract cost and profitability. Potential factors include:

| • |     | The completeness and accuracy of the original bid; |

| • |     | Costs associated with scope and schedule changes as well as changes from the original design; |

| • |     | Changes in costs of labor and/or materials, owner changes, weather, site conditions and other delays; |

| • |     | Subcontractor performance; |

| • |     | Changes in productivity expectations; |

|