Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 137

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 137
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 States or expanding their existing U.S.  
 facilities which is resulting in increased spending on manufacturing facilities. According to Dodge Construction Network, investment in manufacturing facilities in the United States grew at a compound annual growth rate of 50% from 2021 to 2024 and 
 is forecast to remain at more than twice 2019 levels through 2029.                                                                                                                                                                                       |

| • |     | Growing demand for solutions that can address rising electricity prices and declining power availability.                                                                                                                                              
 The average price of electricity in the U.S. increased 23% from 2020 to 2024, which compares to an increase of only 8% in the prior ten-year period from 2010 to 2020 according to the U.S. Energy                                                     
 Information Administration. We believe that rising power prices have prompted businesses and institutions to seek ways to make their buildings more energy efficient to mitigate the impact of rising energy costs on their operations. According to a 
 survey of 1,282 companies conducted by the Energy Efficiency Movement, 93% of businesses are planning to implement energy efficiency upgrades in the next three years and 64% of those are focused on improving their cooling system specifically.     
 According to the World Economic Forum, businesses can reduce their energy usage by as much as 49% and generate an average return on investment of 24% by making energy efficiency upgrades, according to a working paper by the Real Estate Research   
 Institute in conjunction with Lawrence-Berkeley National Laboratory. At the same time as they are confronting higher power prices, we believe that many companies’ growth plans are being constrained by utility delays in connecting                  |

94

Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83

| their new facilities to the grid as load growth outstrips available transmission capacity. Accelerating load growth has prompted regulators, utilities and businesses to implement energy 
 efficiency programs as a lower cost and faster alternative to address load growth as compared to new generation and transmission and distribution infrastructure.                         |

| • |     | Growing need for outside expertise to help meet expanding corporate sustainability goals. According to the                                                                                                                                                
 Honeywell Environmental Sustainability Index, while more than 80% of companies have established sustainability targets or goals for 2030, fewer than half of all organizations were extremely optimistic about achieving them. We believe that businesses 
 and institutions will increasingly seek outside expertise to ensure they are able to deliver on the sustainability commitments they have made to shareholders, customers and the communities where they operate.