Company: LGN
Filing Date: 2025-07-15
Form Type: DRS/A
Source: 0000950123-25-006399
Chunk: 175

Company: Legence Corp.
Filing Date: 2025-07-15
Form: DRS/A
Chunk 175
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 As a provider of engineering, consulting, installation and maintenance services for MEP
and HVAC systems in buildings, our projects and recommendations must conform to all applicable electric reliability, building and safety, zoning and other applicable laws, codes and ordinances. Further, various federal, state, provincial and local
permits may be required to complete a particular project. These process for obtaining such permits may be complex and negatively impacted by regulatory and permitting delays, as well as private legal challenges related to regulatory requirements.

Government Contracting Regulations. A portion of the Company’s sales results from contracts with governmental customers
within the United States. The Company remains subject to a number of risks associated with government contracting including changes in the government’s spending priorities, the availability of appropriated funds, changes in policies and laws
pertaining to government contractors. The Company’s government contracts include terms and conditions otherwise not applicable to commercial arrangements including the government’s ability to terminate these contracts for convenience,
either in whole or in part. In the event of such a termination, the Company generally would be entitled to allowable costs incurred in performance plus reasonable profit realized for the work performed up to the date of termination. Government
customers may also terminate a contract for default in the event of the contractor’s uncured breach in which case the contractor

122

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

will generally be entitled to payment for the portion of the work accepted by the government customer, but the Company may be exposed to loss for the proportion of work yet to be accepted by the
government. In addition, reputational harm may result from the termination of a contract for default that could impact a contractor’s ability to obtain new government contract awards. Violations of specific laws or regulations including ethical
requirements could lead to fines, contract termination and the possibility of being suspended or debarred for purposes of receiving future government contract awards. A small portion of the Company’s work requires one of the Company’s
brands to maintain security clearances, both for itself and for certain employees, which the government has substantial discretion in maintaining in the future.

Anti-Corruption and Trade Regulations. Some of the components and materials used in our business are purchased from foreign parties,
such as steel and aluminum. In connection with such purchases, we may be subject to anti-corruption laws prohibiting bribery of both domestic and foreign government officials, including the U.S. FCPA, as well to the restrictions imposed by economic
sanctions regulations or sourcing