Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 130

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 130
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 Further, the amounts assume                                                  
 (i) that interest rates as of December 31, 2023 remain constant until the maturity of the debt and (ii) that we do not refinance or incur additional debt. |

88

Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83 Contingent Obligations We have various contingent obligations that we anticipate could require the use of cash based on contractual obligations as of December 31, 2023; however, the final amount payable or the timing may not be fixed and determinable. Such contingent obligations include the following:

| • |     | Some of our customers require us to secure surety bonds from reputable financial institutions to guarantee                                                                                                                                                
 execution on certain projects. In the event Legence or its subcontractors fail to meet its performance obligations, customers have the option to request the surety bond provider fund the completion of the project using other service providers. Under 
 the terms of these agreements, we are liable for any disbursement made by the bonding company because of our failure to perform. Surety bonds expire at various times ranging from final completion of a project to a period extending beyond contract    
 completion in certain circumstances. Such amounts can also fluctuate from period to period based upon the mix and level of our bonded operating activity. For example, public sector contracts require surety bonds more frequently than private sector   
 contracts, and accordingly, our bonding requirements 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, 2023, $269.6 million of backlog, or 20.6%, 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.                                                                                                 |

| • |     | Payments for collective bargaining agreements, multiemployer pension plan liabilities and liabilities related to                               
 our deferred compensation and other employee benefit plans, as discussed in Notes 12 and 13 of the Notes to Consolidated Financial Statements. |

Backlog and Awarded Contracts and Book-to-BillRatio We track backlog and awarded contracts. We believe that these measures enable us to more effectively forecast our future results and working