Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 102

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 102
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 of accurately estimating our job costs. Subcontractor and Equipment Expenses We subcontract certain scopes of work to third parties, particularly in our Program & Project Management service line within our Engineering & Consulting segment. We record the amounts we pay to subcontractors as subcontractor expense in our cost of revenue. We also purchase certain types of equipment that we install in our clients’ facilities, including chillers, heat pumps, packaged HVAC systems, pumps, valves and switchgear, primarily in our Installation & Fabrication service line within our Installation & Maintenance segment. We record the amounts we pay for equipment in our cost of revenue. We may pass both subcontractor and equipment costs on directly to our customers as a specific line item or incorporate them into our overall price for the job. Variability in the amount of subcontracting that we do, subcontractor pricing, equipment purchases, including equipment that is fabricated in-house,and associated markups can impact our margins. Generally, these markups may not be as large as the markup on our labor and, therefore, the volume of subcontractor and equipment costs can also impact our margins. The following table presents our subcontractor and equipment expenses (dollars in thousands):

|                       |     | 2024 | For the Three Months 
  Ended September 30, |     | 2025 |         |     | 2024 | For the Nine Months 
 Ended September 30, |     | 2025 |         |     | 2022 | For the Year Ended December 31, |     | 2023 |         |     | 2024 |         |
|:----------------------|:----|:-----|---------------------:|:----|:-----|--------:|:----|:-----|--------------------:|:----|:-----|--------:|:----|:-----|--------------------------------:|:----|:-----|--------:|:----|:-----|--------:|
| Subcontractor Expense |     | $    |              117,172 |     | $    | 138,272 |     | $    |             260,445 |     | $    | 325,938 |     | $    |                         199,876 |     | $    | 234,837 |     | $    | 350,719 |
| Equipment Expense     |     | $    |              107,898 |     | $    | 172,722 |     | $    |             334,115 |     | $    |