Company: LGN
Filing Date: 2025-08-15
Form Type: S-1
Source: 0001193125-25-181698
Chunk: 319

Company: Legence Corp.
Filing Date: 2025-08-15
Form: S-1
Chunk 319
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 by management.

The Company is self-insured for its medical coverage. The Company is responsible for the first
$0.3 million of claims for each participant enrolled in the medical coverage plan. Any claims exceeding $0.3 million are covered through a stop-loss insurance plan. A liability for expected but not yet reported claims in the amount of
$1.3 million and $1.5 million is reflected in Accrued compensation and benefits in the Consolidated Balance Sheets as of December 31, 2024 and 2023, respectively.

F-61

Legence Holdings LLC and Subsidiaries Notes to Consolidated Financial Statements Surety As a requirement under certain contracts, various Legence subsidiaries procure performance and payment bonds through surety underwriters. As a condition for having surety companies write bonds on Legence subsidiary’s behalf, Legence enters into indemnification agreements with the surety companies. Total outstanding bonds were approximately $384.2 million and $269.3 million as of December 31, 2024 and 2023, respectively. Customer Guarantees As part of its normal course of business, the Company offers guaranteed energy savings to customers under certain contracts. As of December 31, 2024 and 2023, total guarantees were $308.2 million and $322.0 million, respectively. Historically, the Company has not incurred material losses in connection with these guarantees. Further, management is not aware of any changes in the ability of the Company to meet these guarantees and does not expect to incur significant losses related to these guarantees in the foreseeable future. Letters of Credit As discussed in “ Note 9—Debt,” the standby letters of credit are secured through the revolving line of credit. As of both December 31, 2024 and 2023, the Company had $5.2 million in standby letters of credit primarily related to the deductibles of insurance policies. Note 19—Other Financial Information Cash and cash equivalents and restricted cash consists of the following (in thousands):

|                                               |     | December 31, |   2024 |     |   |   2023 |     |   |   2022 |
|:----------------------------------------------|:----|:-------------|-------:|:----|:--|-------:|:----|:--|-------:|
| Cash and cash equivalents                     |     | $            | 81,167 |     | $ | 88,920 |     | $ | 13,902