Company: LGN
Filing Date: 2025-08-25
Form Type: S-1/A
Source: 0001193125-25-186788
Chunk: 316

Company: Legence Corp.
Filing Date: 2025-08-25
Form: S-1/A
Chunk 316
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 |      |     |      |
|                         |     |         2024 |     | 2023 |     | 2022 |
| Expected dividend yield |     |          — % |     |  — % |     |  — % |
| Risk-free interest rate |     |         4.3% |     | 3.8% |     | 4.2% |
| Expected volatility     |     |          75% |     |  55% |     |  70% |
| Expected life (years)   |     |          2.7 |     |  5.0 |     |  3.0 |

The hybrid method assumptions above for December 31, 2024 were based on the weighted average assumptions of potential future scenarios as follows:

|                         |     | Net Settle at 
       IPO (1) |     |         Remain as 
 Profits 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 Series A Profits Interests are settled. |

| (2) | The Company completes an IPO, and Series A Profits Interests remain outstanding. |

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

The compensation expense and corresponding income tax benefit for liability-classified Time Interests was as follows (in thousands):

|                                     |     | Year Ended December 31, |  2024 |     |   |   2023 |     |   |  2022 |
|:------------------------------------|:----|:------------------------|------:|:----|:--|-------:|:----|:--|------:|
| Selling, general and administrative |     | $                       | 3,786 |     |