Company: LGN
Filing Date: 2025-08-15
Form Type: S-1
Source: 0001193125-25-181698
Chunk: 312

Company: Legence Corp.
Filing Date: 2025-08-15
Form: S-1
Chunk 312
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 Net Settle 
 at IPO (1) |     |      Remain as 
     Restricted 
       Series C 
         Common 
 Interests post 
        IPO (2) |     |  Delayed 
 Exit (3) |
| Expected dividend yield |     |        — % |     |            — % |     |      — % |
| Risk-free interest rate |     |       4.2% |     |           4.3% |     |     4.3% |
| Expected volatility     |     |        80% |     |            70% |     |      70% |
| Expected life (years)   |     |        0.5 |     |            3.5 |     |      5.0 |

| (1) | The Company completes an IPO, and Restricted Series C Common Interests are settled. |

| (2) | The Company completes an IPO, and Restricted Series C Common Interests remain outstanding. |

| (3) | The Company does not undergo a Change of Control in the foreseeable future. |

The compensation expense for liability-classified Restricted Series C Common Interests was as follows (in thousands):

|                                     |     | Year Ended December 31, | 2024 |     |   | 2023 |
|:------------------------------------|:----|:------------------------|-----:|:----|:--|-----:|
| Selling, general and administrative |     | $                       |  273 |     | $ |   15 |
| Cost of revenue                     |     |                         |  326 |     |   |   18 |
| Compensation expense                |     | $                       |  599 |     | $ |   33 |

F-53

Legence Holdings LLC and Subsidiaries Notes to Consolidated Financial Statements The stock-based compensation liability for Restricted Series C Common Interests as of December 31, 2024 and 2023 is $0.5 million and $33 thousand, respectively, and is included in Other long-term liabilities on the Consolidated Balance Sheets. As of December 31, 2024, the unrecognized compensation expense related to Restricted Series C Common Interests is approximately $2.0 million to be recognized over a remaining weighted-average term of 3.9 years. Note 14—Union-Sponsored Pension Plans and Other Employee Benefit Plans Defined Pension Plans:Certain of the Company’s consolidated subsidiaries participate in various