Company: LGN
Filing Date: 2025-08-15
Form Type: S-1
Source: 0001193125-25-181698
Chunk: 143

Company: Legence Corp.
Filing Date: 2025-08-15
Form: S-1
Chunk 143
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 in project timing due to delays or accelerations and other economic, regulatory, market and political factors may affect customer spending and, thus, impact cash flows from operating activities. We typically require the most working capital during the second half of the year as activity levels increase in the spring and summer months and less working capital in the first half of the year as activity levels decrease and we receive final payments on completed jobs. For the six months ended June 30, 2025 cash used in operating activities was $18.7 million, compared to cash provided by operating activities of $62.5 million for the six months ended June 30, 2024. The $81.2 million increase in cash flows from operating activities mainly reflects fluctuations in the primary components of working capital, as detailed in the Condensed Consolidated Statements of Cash Flows. Operating cash flows from contract liabilities increased by $54.9 million during the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to increased billings. Operating cash flows from accounts payable increased by $41.7 million during the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to increased business activity and timing of payments. Additionally, operating cash flows from accrued and other current liabilities increased by $34.1 million, primarily due to payments of $32.6 million of contingent consideration 105

related to amounts in excess of the acquisition-date fair value during the six months ended June 30, 2024. These increases are partially offset by a $14.2 million increase in net loss
and a $48.4 million net decrease in operating cash flows from accounts receivable and contract assets during the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The change in accounts receivable and contract
assets is primarily driven by higher revenue and the timing of billing and collection. The impact of adjustments for non-cash items was mostly offsetting in nature and is detailed on the Condensed Consolidated Statements of Cash Flows.

Cash flows from operating activities decreased $4.6 million during 2024 compared to 2023. This decrease is primarily attributable to
fluctuations in the main components of working capital, as detailed in the Consolidated Statements of Cash Flows. Specifically, net loss decreased by $18.4 million, while the benefit was partially offset by