Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 270

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 270
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 $27.2 million and $124.5 million, respectively,
related to contract liabilities outstanding as of December 31, 2024. During the three and nine months ended September 30, 2024, the Company recognized revenue of $24.7 million and $142.0 million, respectively, related to contract
liabilities outstanding as of December 31, 2023.

Contracts Receivable

Included in the contracts receivable balance is retention for which the Company has an unconditional right to payment and is only subject to the passage of
time. Retentions included in contracts receivable as of September 30, 2025 and December 31, 2024 were $9.5 million and $9.8 million, respectively.

Remaining Performance Obligations

The Company had
approximately $2,317.8 million in remaining performance obligations as of September 30, 2025, which represent the expected revenue values under contract or otherwise secured fixed-price project commitments. The Company expects to recognize
approximately 75% of the remaining performance obligations within the next twelve months and the remaining approximately 25% thereafter. The majority of the remaining performance obligations after the first 12 months is expected to be recognized by
September 30, 2027.

Although remaining performance obligations reflect expected revenue values that are considered to be firm, cancellations, scope
adjustments or project deferrals may occur that impact the volume or the expected timing of revenue recognition.

Note 4 - Acquisitions

During the three and nine months ended September 30, 2025, the Company did not acquire any businesses, nor did the Company record material measurement
period adjustments for the businesses acquired during the year ended December 31, 2024.

On October 1, 2025, the Company acquired two businesses
for consideration transferred of approximately $17.0 million cash and 145,600 shares of Class A Common Stock at a price of $30.91 per share. One acquisition in the Engineering & Consulting segment expands the Company’s
customer base and provides additional opportunities for cross-selling. The other acquisition, which will operate in the Installation & Maintenance segment, further expands the Company’s geographic footprint in mechanical services.

F-22

Legence Corp. Notes to Condensed Consolidated Financial Statements - (Continued) (Unaudited) On November 13, 2025, the Company entered into an equity purchase agreement to acquire all of the outstanding equity of The Bowers Group, Inc. (“Bowers”)