Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 26

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 26
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 Cost of                                                                                                                                           
 Revenue. We typically incur Subcontractor Expense in connection with the provision of construction management services. On jobs where we use subcontractors, we may pass those costs directly through to our customers or include them in our overall 
 price for the job.                                                                                                                                                                                                                                    |

| (3) | Self-Perform Contribution is not calculated in accordance with GAAP. See                                                                         
 “—Non-GAAP Financial Measures” for a description of Self-Perform Contribution and a reconciliation to the most directly comparable GAAP measure. |

| (4) | Adjusted EBITDA is not calculated in accordance with GAAP. See                                                                         
 “—Non-GAAP Financial Measures” for a description of Adjusted EBITDA and a reconciliation to the most directly comparable GAAP measure. |

| (5) | Adjusted EBITDA Margin is not calculated in accordance with GAAP. See                                                                         
 “—Non-GAAP Financial Measures” for a description of Adjusted EBITDA Margin and a reconciliation to the most directly comparable GAAP measure. |

| (6) | Self-Perform Margin is not calculated in accordance with GAAP. See                                                                         
 “—Non-GAAP Financial Measures” for a description of Self-Perform Margin and a reconciliation to the most directly comparable GAAP measure. |

17

Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83

Non-GAAPFinancial Measures Self-Perform Contribution, Adjusted EBITDA, Adjusted EBITDA Margin and Self-Perform Margin are financial measures not presented in accordance with GAAP but are intended to provide useful and supplemental information to investors and analysts as they evaluate our performance. Self-Perform Contribution is a financial measure that management historically has used and continues to use to evaluate our financial performance by analyzing the fees for services that are performed or managed by our workforce separately from the work that is performed by our subcontractors. Self-Perform Contribution is defined as revenue less Subcontractor Expense. Management believes this is a helpful measure to evaluate the efficiency and profitability of the service teams we employ and manage directly. EBITDA is defined as earnings before interest and other financing expenses, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude goodwill impairment, net loss on sale and disposition of property and equipment, changes in fair value of contingent consideration, acquisition and integration costs, system deployment costs, strategic initiative costs, stock-based compensation expense, profits from an accelerated project