Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 269

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 269
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,387 |

For the three and nine months ended September 30, 2025, one customer of the Installation & Maintenance segment represented 10.0% and 7.5%, respectively, of the Company’s revenue. No single customer accounted for more than 10% of revenue in the three and nine months ended September 30, 2024. Contract Assets and Liabilities Due to the nature of the Company’s performance obligations and the timing of contractual payment terms, the Company has material contract asset and liability balances. Contract assets and contract liabilities on the Condensed Consolidated Balance Sheets consist of the following amounts (in thousands):

|                      |     |   | September 30, 
          2025 |     |   | December 31, 
         2024 |
|:---------------------|:----|:--|--------------:|:----|:--|-------------:|
| Contract assets:     |     |   |               |     |   |              |
| Contract assets, net |     | $ |       234,302 |     | $ |      188,132 |
| Other assets         |     | $ |         2,379 |     | $ |        2,040 |
| Contract liabilities |     | $ |       285,894 |     | $ |      164,130 |

F-21

Legence Corp.

Notes to Condensed Consolidated Financial Statements - (Continued)

(Unaudited)

Contract assets include $84.9 million and $78.3 million of contract retentions as of
September 30, 2025 and December 31, 2024, respectively. Contract retentions included in contract assets are generally subject to substantial project completion and acceptance by the customer.

Contract assets and liabilities fluctuate based on factors that occur in the normal course of business, including the volume of projects in progress at period
end, the timing of negotiated payment terms, billing frequency and other differences in payment terms relative to revenue recognition.

The increase in
contract assets from December 31, 2024 to September 30, 2025 was primarily due to the increase in the Company’s volume of project activity and revenue from both Installation & Maintenance and Engineering &
Consulting segments. The change in contract liabilities from December 31, 2024 to September 30, 2025 was primarily due to the timing and amount of revenue recognized.

During the three and nine months ended September 30, 2025, the Company recognized revenue of