Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 39

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 39
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 and growth prospects could be adversely affected if other contractors eliminate or reduce their subcontracts or relationships with us, including due to expansion of
their internal HVAC or MEP capabilities, or if a client terminates or reduces these other contractors’ programs, does not award them new contracts or refuses to pay under a contract. In addition, due to “pay when paid” provisions that
are common in subcontracts, we could experience delays in receiving payment if the prime contractor experiences payment delays.

Our clients typically rely on third party financing to pay for their projects, and this capital might not be available on acceptable terms or at all.

Our clients typically obtain third-party financing for their projects. If our clients are unable to raise funds on acceptable terms when
needed, the size of contracts we do obtain may be smaller or our clients could be required to delay the development and construction of projects, reduce the scope of those projects or take other actions that may limit the amount of work available to
us. Any inability by our clients to raise the funds necessary to finance their projects could have a material adverse impact on our business, financial condition and results of operations.

We may not recognize all revenues from our backlog and awarded contracts or receive all payments anticipated under awarded projects and customer contracts.

As of December 31, 2024 and 2023, we had backlog and awarded contracts of approximately $2.5 billion and
$1.7 billion, respectively.

Our customers have the right under some circumstances to terminate contracts or defer the timing of our
services and their payments to us. In addition, our government contracts are subject to the risks described below under “—Certain contracts may give customers the right to modify, delay, curtail, renegotiate or terminate existing contracts
at their convenience at any time prior to their completion, which may result in a decline in our profits and revenue.” The payment estimates for projects that have been awarded to us but for which we have not yet signed contracts have been
prepared by management and are based upon a number of assumptions, including that the size and scope of the awarded contracts will not change prior to the signing of contracts, that our clients or customers will be able to obtain any necessary
third-party financing for the awarded contracts and that we and our customers will reach agreement on and execute binding definitive documentation for the awarded contracts. We are not always able to enter into binding definitive documentation for
an awarded contract on the terms proposed. As a result, we may not receive all of the revenues that we include in our backlog or that we estimate