Company: LGN
Filing Date: 2025-08-25
Form Type: S-1/A
Source: 0001193125-25-186788
Chunk: 161

Company: Legence Corp.
Filing Date: 2025-08-25
Form: S-1/A
Chunk 161
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reshoring” of U.S. manufacturing. A combination of increasing tariffs, growing                                                                                                                                                                 
 intellectual property and geopolitical risks, attractive federal incentives for “domestic content” and the narrowing wage gap between U.S. and international workers is prompting many companies to move their offshore manufacturing                     
 operations back to the United States. Investment in manufacturing facilities in the United States grew at a compound annual growth rate of 49% from 2021 to 2024, according to Dodge Construction Network, and 89% of manufacturers surveyed are either   
 moving production back to the United States or expanding their existing U.S. facilities which is resulting in increased spending on manufacturing facilities, according to a survey conducted by Rabin Roberts Research on behalf of BDO in October 2023. |

| • |     | 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 in 2024, 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            
 their new facilities to the grid as load growth outstrips available transmission capacity. Accelerating load growth has prompted                                                                                                                          |

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| regulators, utilities and businesses to implement energy efficiency programs as a lower cost and faster alternative to address load growth as compared to building 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