Company: LGN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0002052568-25-000018
Chunk: 177

Company: Legence Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 177
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 on debt extinguishment is due to accelerated amortization of debt issuance costs related to the early debt payment of $780.3 million during the three months ended September 30, 2025.

Income Tax Expense

Income tax expense was $4.1 million for the three months ended September 30, 2025, and resulted in an effective tax rate of 91.5%, as compared to an income tax expense of $4.6 million for the three months ended September 30, 2024 and an effective tax rate of 117.4%. For the three months ended September 30, 2025 and 2024, the effective tax rate was higher than the U.S. federal statutory rate of 21%, primarily due to earnings incurred prior to the IPO and Corporate Reorganization from pass-through business not subject to income taxes at the Company level. 

48

Results of Operations 

For the Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

A summary of our consolidated results of operations, selected data as a percentage of revenues for the periods indicated, as well as the dollar and percentage change from the prior year period is presented as follows (dollars in thousands): 

Nine Months Ended September 30,Year over YearChange20252024$$$%Revenue$1,812,849 $1,550,387 $262,462 16.9 %Cost of revenue1,424,412 1,232,561 191,851 15.6 %Gross profit388,437 317,826 70,611 22.2 %Selling, general and administrative227,814 179,848 47,966 26.7 %Depreciation and amortization75,619 70,738 4,881 6.9 %Acquisition-related costs971 5,593 (4,622)(82.6)%Gain on sale of property and equipment(199)— (199)*Equity in earnings of joint venture(848)(3,131)2,283 (72.9)%Income from operations85,080 64,778 20,302 31.3 %Interest expense88,228 65,392 22,836 34.9 %Interest income(2,588)(4,356)1,768 (40.6)%Loss on debt extinguishment5,685 — 5,685