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• Johnson Controls, but exclusively focused on integrated decarbonization and smart energy solutions for buildings.
• Like the building energy solutions division of Siemens or Schneider Electric, but as a dedicated, end-to-end decarbonization partner.

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• Strategic Advisory & Sustainability Consulting: Provides strategic planning, net-zero roadmapping, and ESG reporting guidance to help clients achieve their decarbonization goals.
• Engineering & Design Services: Offers comprehensive mechanical, electrical, and plumbing (MEP) engineering, as well as design for renewable energy systems and high-performance buildings.
• Project Implementation & Delivery: Manages and executes complex energy efficiency retrofits, renewable energy installations, and other decarbonization projects from start to finish.
• Ongoing Building Optimization & Maintenance: Delivers continuous performance monitoring, data analytics, and maintenance services to ensure long-term energy efficiency and operational excellence.

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Jeffrey Sprau, Chief Executive Officer

Jeffrey Sprau has served as the CEO of Legence since 2019, overseeing the company's strategic and operational aspects. Under his leadership, Legence, a Blackstone portfolio company, focuses on energy efficiency and sustainability solutions, accelerating the implementation of Net Zero energy solutions. Legence was formerly Therma Holdings and rebranded under his guidance when it joined the Blackstone portfolio in 2020. Since 2021, Legence has completed over 60 strategic acquisitions. Prior to Legence, he was President of BrandSafway Commercial & Industrial from 2017 to 2018, responsible for a $1.8 billion group of businesses. From 2014 to 2017, he was President of Safway Group's US Division, managing a division with $1.2 billion in revenue, 90 branch locations, and 4,000 employees. He also held other leadership positions within Safway Group and earlier management roles at Johnson Controls and Trane.

Stephen Butz, Chief Financial Officer

Stephen Butz is the Chief Financial Officer of Legence, joining the company in 2021. He has extensive experience in the financial sector, including serving as CFO for two other publicly traded offshore drilling companies prior to Legence. He also held positions as Executive Vice President and CFO at Noble Drilling, Rowan Companies, and Hercules Offshore, and served as a Board Member at ARO Drilling and Discovery Offshore, S.A. Earlier in his career, he worked in corporate credit and spent eight years in Investment Banking as an equity research analyst covering the global energy industry at firms like Jefferies, RBC Capital Markets, and Deutsche Bank. He was involved in taking a private company public within the offshore drilling industry, where he was responsible for M&A, Treasury, Investor Relations, Corporate Communications, and FP&A before being appointed CFO.

Steve Hansen, Chief Operating Officer

Steve Hansen serves as the Chief Operating Officer of Legence.

Deb Cloutier, Chief Sustainability Officer

Deb Cloutier holds the title of Chief Sustainability Officer at Legence.

Greg Barnes, Chief People & Technology Officer

Greg Barnes is the Chief People & Technology Officer at Legence. He is also listed as Chief Human Resources Officer.

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1. High Leverage and Financial Performance Concerns: Legence carries significant debt, which was a primary target for reduction with its IPO proceeds. The company has demonstrated lower EBITDA margins and weaker free cash flow conversion compared to its peers. Furthermore, Legence has a history of ongoing net losses, which widened in the first half of 2025, raising questions about its consistent profitability. An increase in interest rates could also substantially elevate its annual interest expenses.
2. Weaknesses in Internal Controls and Governance: Legence has disclosed material weaknesses in its internal control over financial reporting. This is a significant concern that can undermine the reliability of its financial statements. Additionally, Blackstone retains a controlling stake of over 70% of the voting power, classifying Legence as a "controlled company." This status exempts it from certain NASDAQ governance rules, potentially leading to less oversight and a reduced voice for minority shareholders.
3. Valuation and Potential Share Overhang: The company's valuation is considered ambitious by some analysts, trading at a premium compared to more traditional engineering and construction firms, leaving little room for error in execution. There is also a potential share overhang risk if Blackstone decides to further sell down its substantial controlling stake, which could impact the stock's performance.

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Legence (symbol: LGN) operates within two primary addressable markets: building management systems and the broader engineering services sector.

The worldwide market for building management systems was estimated at $19.8 billion in 2024 and is projected to exceed $82 billion by 2034, demonstrating a compound annual growth rate (CAGR) of 15.4% from 2025 to 2034. Legence's offerings, which include engineering, installation, and maintenance services for mission-critical building systems, directly address this global market.

For the engineering services sector, the global market is projected to grow from $3.66 trillion in 2025 to $5.51 trillion by 2034, with a CAGR of 4.64%. Specifically within the United States, Legence's primary operational region, the engineering services market is valued at $367.4 billion in 2025, with an anticipated annual growth rate of 1.9%. Legence provides engineering, consulting, installation, and maintenance services for technically demanding buildings in high-growth sectors such as technology, life sciences, healthcare, and education across the United States.

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• Exposure to High-Growth End Markets: Legence is strategically focused on providing mechanical, electrical, and plumbing (MEP) systems for mission-critical facilities in rapidly expanding sectors. These include data centers, technology, healthcare, life sciences, and advanced manufacturing (driven by US onshoring/reshoring initiatives). Data centers, in particular, are highlighted as a significant growth area, with forecasts anticipating a 26% compound annual growth rate from 2024–2028.
• Increasing Demand for Energy-Efficient and Sustainable Infrastructure: The company is well-positioned to capitalize on the growing need for energy-efficient buildings and decarbonization efforts. This involves designing and implementing solutions that enhance energy efficiency and sustainability in both new and existing facilities, such as upgrading HVAC, lighting, and building controls, and leveraging energy-efficient infrastructure.
• Growth in Recurring Maintenance and Service Revenues: A core component of Legence's growth strategy is to expand its higher-margin recurring revenues derived from maintenance and service contracts. This focuses on increasing wallet share with existing, high-value clients.
• Strategic Bolt-On Acquisitions: Legence plans to accelerate growth through bolt-on acquisitions. This strategy involves acquiring complementary businesses to broaden its geographical reach, enhance its presence in high-demand markets, and expand its service capabilities.

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Share Issuance

• Legence completed its initial public offering (IPO) on September 15, 2025, offering 26,000,000 shares of its Class A common stock at a price of $28.00 per share.
• The IPO aimed to raise up to $754 million.
• Blackstone, which acquired Legence in 2020, retained approximately 74% of the combined voting power following the IPO.

Inbound Investments

• Blackstone acquired Legence, then known as Therma Holdings, from Gemspring Capital in 2020.

Outbound Investments

• Legence has made a total of 11 acquisitions, with peak activity in 2023 (5 acquisitions) and 2024 (4 acquisitions).
• Notable acquisitions include AMA Group in August 2024 and Corporate Sustainability Strategies (CSS) in April 2024.
• These acquisitions have expanded Legence's service offerings, geographic footprint, and technical capabilities in sustainable building solutions.

Capital Expenditures

• Legence's cash flow for capital expenditures for the trailing twelve months (TTM) ended June 2025 was -$14.16 million.
• For the three months ended June 2025, capital expenditures amounted to -$9 million.
• The primary focus of capital expenditures includes designing and installing heating, ventilation, and energy-efficiency systems, particularly for technically demanding buildings like data centers, which represented nearly 40% of its 2024 project pipeline for new builds.