Company: LGN
Filing Date: 2025-11-03
Form Type: DRS
Source: 0001193125-25-262782
Chunk: 135

Company: Legence Corp.
Filing Date: 2025-11-03
Form: DRS
Chunk 135
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 typically increase as the amount of our public sector work increases. Our estimated maximum exposure as it relates to the value of the surety bonds outstanding is lowered on each bonded project as 
 the cost to complete is reduced, and each commitment under a surety bond generally extinguishes concurrently with the expiration of its related contractual obligation. As of December 31, 2024, $384.2 million of backlog and awarded                    
 contracts, equivalent to 16% of backlog and awarded contracts, was subject to surety bond obligations. In the ten years prior to December 31, 2024, we did not receive a claim for liquidated damages in excess of $100,000.                              |

| • |     | As part of our normal course of business, we offer guaranteed energy savings to customers under certain                                                                                                                       
 contracts. As of December 31, 2024 and 2023, total guarantees were $308.2 million and $322.0 million, respectively. Should the guaranteed energy savings not be achieved, these guarantees would become due to the customers. 
 Historically, we have not incurred notable losses in connection with these guarantees.                                                                                                                                        |

| • |     | We have standby letters of credit that are secured through the revolving line of credit. Obligations under these                                                                                                                         
 letters of credit are not normally called, as we typically comply with the underlying requirements. As of December 31, 2024 and 2023, we had $5.2 million in standby letters of credit primarily related to the deductibles of insurance 
 policies. Please refer to “Note 9—Debt” in the Notes to Consolidated Financial Statements for further information.                                                                                                                       |

| • |     | Payments for collective bargaining agreements, multiemployer pension plan liabilities and liabilities related to                                                                                             
 our deferred compensation and other employee benefit plans, as discussed in “Note 13— Stock-Based Compensation” and “Note 14—Union-Sponsored Pension Plans and Other Employee Benefit Plans” in the Notes to 
 Consolidated Financial Statements.                                                                                                                                                                           |

Critical Accounting Estimates Our management’s discussion and analysis of our financial condition and results of operations is based on our Consolidated Financial Statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. 91

Confidential Treatment Requested