Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 106

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 106
---
 rates in effect for the year in
which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to an amount that is more likely than not to be realized.

Factors Affecting the Comparability of Our Financial Results

Our future results of operations may not be comparable to the historical results of operations of our predecessor for the periods presented,
primarily for the reasons described below.

Corporate Reorganization

Our Consolidated Financial Statements included in this prospectus are based on the financial statements of our predecessor, Legence Holdings
LLC. As a result, the historical consolidated financial data may not give you an accurate indication of what our actual results would have been if the Corporate Reorganization had been completed at the beginning of the periods presented or of what
our future results of operations are likely to be.

Acquisitions

We have pursued and plan to continue to pursue acquisitions as part of our growth strategy, including acquisitions that expand our
capabilities, give us access to new clients or extend our geographic reach. As a result of our acquisition strategy, our results include incremental revenues and expenses following the completion date of an acquisition, as well as various
transaction expenses to support the completion of these acquisitions.

Public Company Expenses

We anticipate incurring incremental general and administrative expenses as a result of operating as a publicly traded company, such as expenses
associated with SEC reporting requirements, including annual and quarterly reports, SOX compliance expenses, expenses associated with listing our Class A Common Stock on the Nasdaq, independent auditor fees, legal fees, investor relations
expenses, registrar and transfer agent fees, director and officer insurance expenses and director and officer compensation expenses. These incremental general and administrative expenses are not reflected in the historical financial statements of
our predecessor. Additionally, we have hired additional employees and consultants, including accounting, finance, tax, human resources and legal personnel for the requirements of being a publicly traded company.

Income Taxes

Legence is subject
to U.S. federal and state income taxes as a corporation. Our predecessor was treated as a pass-through entity for U.S. federal income tax purposes, and as such, was generally not subject to federal income tax at the entity level. However, several of
the predecessor’s subsidiaries are corporations for tax reporting purposes and therefore require a U.S. federal and state income tax provision for that portion of such entities’ results.

68

For the Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024 A summary of our consolidated results of