Company: LGN
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0002052568-25-000018
Chunk: 16

Company: Legence Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 16
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 30,Year over Year Change20252024$% Margin$% Margin$%% MarginGross profit:Engineering & Consulting segment$191,090 34.5 %$153,567 34.5 %$37,523 24.4 %— %Installation & Maintenance segment197,347 15.7 %164,259 14.9 %33,088 20.1 %0.8 %Consolidated gross profit$388,437 21.4 %$317,826 20.5 %$70,611 22.2 %0.9 %

Engineering & Consulting: The $37.5 million, or 24.4%, increase in gross profit for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily attributable to higher revenue from the impact 

50

of acquisitions completed in 2024, a revenue mix shift towards the  Engineering & Design service line, and greater efficiency in customer fulfillment support costs. 

Installation & Maintenance: The $33.1 million, or 20.1%, increase in gross profit for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily attributable to higher revenue and margins from our Installation & Fabrication service line, driven by strong project execution, partially offset by higher customer fulfillment support costs and a revenue mix shift towards our lower margin Installation & Fabrication service line.

Selling, General & Administrative 

Selling, general and administrative expenses increased by $48.0 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Selling, general and administrative expenses for the nine months ended September 30, 2025 includes approximately $12.5 million related to acquisitions completed in 2024. Compensation expense increased $16.5 million compared to the prior period largely due to an increase in fair value of profits interest awards as well as higher headcount. The remaining increase in selling, general and administrative expenses of $19.0 million is primarily attributable to professional fees related to the preparation of our IPO as well as increases in IT software and subscriptions. 

Depreciation and Amortization 

The increase in depreciation and amortization is attributable to a $2.5 million increase in the depreciation of property and equipment and a $2.4 million increase in