Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 263

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 263
---
-line basis. The Company has elected to account for forfeitures as they occur for both the RSUs and the stock options. The Company uses the price of its Class A Common Stock on the date of grant as the fair value for RSUs. The Company estimates the fair value of stock options granted under the Omnibus Incentive Plan on the grant date using a Black-Scholes option-pricing model. The assumptions and estimates used as part of the Black-Scholes option-pricing model are as follows:

| • |     | Stock price: The price of the Company’s Class A Common Stock generally at the grant date. |

| • |     | Exercise price: The exercise price as stated per the terms of the option agreements. |

| • |     | Expected Term: The Company uses the simplified method for determining the expected term of stock options, as                                                                                                                                       
 there is insufficient historical exercise data to provide a reasonable basis on which to estimate expected term. Under the simplified method, the expected term is calculated as the midpoint between the vesting period and the contractual term. |

| • |     | Expected Volatility: The expected volatility is based on the historical equity volatility of a group of publicly                                                                                               
 traded guideline companies with similar size and industry characteristics, and is adjusted for differences in leverage, size, and stage of development, as well as volatility studies considering recent IPOs. |

| • |     | Risk-free rate: The risk-free interest rate is based on the United States Treasury yield curve in effect at the 
 grant date, corresponding to the expected term of the stock options.                                            |

| • |     | Dividend yield: The estimated dividend yield is zero as the Company does not currently intend to declare 
 dividends in the foreseeable future.                                                                     |

Earnings Per Share The Company calculates basic and diluted earnings per share (“EPS”) in accordance with ASC Topic 260, Earnings Per Share, for the periods following the IPO and Corporate Reorganization. Basic EPS is calculated using Net income (loss) attributable to Legence divided by the weighted-average number of shares of Class A Common Stock outstanding during the period. Diluted EPS is calculated using Net income (loss) attributable to Legence divided by the weighted-average number of shares of Class A Common Stock outstanding during the period, adjusted to give effect to potentially dilutive securities. The effect of potentially dilutive securities is not F-17

Legence Corp.

Notes to Condensed Consolidated Financial Statements - (Continued)

(Unaudited)

included in the computation of diluted