Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 273

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 273
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 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. 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; |

F-22

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

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

| • |     | Subcontractor performance; |

| • |     | Changes in productivity expectations; |

| • |     | The Company’s ability to fully and promptly recover on contract scope changes; and |

| • |     | The customer’s ability to properly administer the contract. |

The foregoing factors, as well as the stage of completion of contracts in process and the mix of contracts at different margins, may cause fluctuations in gross profit from period to period, which may have a significant impact on the Consolidated Financial Statements. At the time a loss on a contract becomes probable, the entire amount of the estimated loss is accrued. Management monitors for circumstances that may affect the accuracy of its estimates. Disaggregation of Revenue The Company’s revenue was derived from contracts to provide goods or services in the Engineering & Consulting and Installation & Maintenance segments. Refer to “ Note 16—Segment Information” for additional information on reportable segments. The Company disaggregates revenue by service line as management believes this category best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. See details in the following table (in thousands):

|                                          | Revenue by Service Line and Segment | Year Ended December 31, |      2024 |     |   |      2023 |     |   |      2022 |
|:-----------------------------------------|:------------------------------------|:------------------------|----------:|:----|:--|----------:|:----|:--|----------