Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 35

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 35
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 failures and/or we
may be required to purchase the supplies or services from another source at a higher price. This may reduce the profit to be realized or result in a loss on a project for which the supplies or services are needed, which could have a material adverse
impact on our business, financial condition and results of operations.

We also rely on relationships with other contractors when we act
as their subcontractor or partner with them on the same project. Our future revenue and growth prospects could be adversely affected if other contractors eliminate or reduce their subcontracts or relationships with us, including due to expansion of
their internal HVAC or MEP capabilities, or if a client terminates or reduces these other contractors’ programs, does not award them new contracts or refuses to pay under a contract. In addition, due to “pay when paid” provisions that
are common in subcontracts, we could experience delays in receiving payment if the prime contractor experiences payment delays.

Our clients typically rely on third party financing to pay for their projects, and this capital might not be available on acceptable terms or at all.

Our clients typically obtain third-party financing for their projects. If our clients are unable to raise funds on acceptable terms when
needed, the size of contracts we do obtain may be smaller or our clients could be required to delay the development and construction of projects, reduce the scope of those projects or take other actions that may limit the amount of work available to
us. Any inability by our clients to raise the funds necessary to finance their projects could have a material adverse impact on our business, financial condition and results of operations.

We may not recognize all revenues from our backlog or receive all payments anticipated under awarded projects and customer contracts.

As of December 31, 2024 and 2023, we had a backlog of approximately $ million and $1.3 billion, and we
also had awarded contracts of approximately $ million and $395.5 million, respectively.

Our customers
have the right under some circumstances to terminate contracts or defer the timing of our services and their payments to us. In addition, our government contracts are subject to the risks described below under “—Certain contracts may give
clients the right to modify, delay, curtail, renegotiate or terminate existing contracts at their convenience at any time prior to their completion, which may result in a decline in our profits and revenue.” The payment estimates for projects
that have been awarded to us but for which we have not yet signed contracts have been prepared by management and are based upon a number of assumptions,