Company: LGN
Filing Date: 2025-08-25
Form Type: S-1/A
Source: 0001193125-25-186788
Chunk: 301

Company: Legence Corp.
Filing Date: 2025-08-25
Form: S-1/A
Chunk 301
---
 |  (1,820 | ) |
| Impairment                      |     |               | (17,804 | ) |     |                |       — |   |     |       | (17,804 | ) |
| Balance, December 31, 2024      |     | $             | 433,077 |   |     | $              | 348,117 |   |     | $     | 781,194 |   |
| Accumulated goodwill impairment |     |               |         |   |     |                |         |   |     |       |         |   |
| Balance, December 31, 2022      |     | $             |       — |   |     | $              |  47,407 |   |     | $     |  47,407 |   |
| Balance, December 31, 2023      |     | $             |   5,051 |   |     | $              |  47,407 |   |     | $     |  52,458 |   |
| Balance, December 31, 2024      |     | $             |  22,855 |   |     | $              |  47,407 |   |     | $     |  70,262 |   |

During the annual impairment testing conducted on October 1, 2024, 2023 and 2022, the Company bypassed the qualitative assessment and proceeded directly to the quantitative assessment. During the year ended December 31, 2024, it was determined the carrying amount of Goodwill for one reporting unit in the Engineering & Consulting segment exceeded fair value, resulting in Goodwill impairment of $17.8 million. The impairment was primarily driven by a decline in projected cash flows due to lower revenue projections. Lower revenue projections primarily reflected the impact of delayed contract awards and the uncertainty that revenue will be realized for these contracts which are point-in-timerevenue recognition contracts. F-37

Legence Holdings LLC and Subsidiaries Notes to Consolidated Financial Statements During the year ended December 31, 2023, it was determined the carrying amount of Goodwill for a different reporting unit in the Engineering & Consulting segment exceeded fair value, resulting in Goodwill impairment of $5.1 million. The impairment was primarily driven by a decline in projected cash flows due to lower revenue projections and investments in support functions. During the year ended December 31, 2022,