Legence is like **a specialized Johnson Controls or Trane Technologies, focused on the full lifecycle (engineering, installation, maintenance) of mission-critical HVAC and MEP systems for facilities like data centers and hospitals.**

Legence is like **the 'Intel inside' for a building's vital systems, designing, installing, and maintaining the complex mechanical and electrical infrastructure of data centers and high-tech facilities.**

• Engineering & Consulting Services: Designs HVAC and other MEP systems, develops energy efficiency strategies, and offers sustainability consulting and project management.
• MEP System Installation: Fabricates and installs complex mechanical, electrical, and plumbing (MEP) systems for new facilities and major system integrations.
• Building System Retrofit & Upgrade: Enhances existing HVAC, lighting, and building controls to improve energy efficiency and sustainability.
• Preventative & Corrective Maintenance: Provides ongoing maintenance and repair services for installed building systems, often through recurring contracts.

Jeffrey Sprau, Chief Executive Officer
Jeffrey Sprau has served as the Chief Executive Officer of Legence Corp. since January 2025 and as a director of Legence Corp. since August 2025. He also served as Chief Executive Officer of Legence Parent LLC since October 2020. Prior to the formation of Legence Parent LLC, Mr. Sprau was the Chief Executive Officer of Therma, a Legence company, from April 2019. Before joining Therma, he served as President of BrandSafway from July 2017 to October 2018 and held various roles at Safway Group from January 2011 to June 2017, including President of the U.S. Division. He also worked at Johnson Controls in various capacities, including General Manager of its Wisconsin operations. Mr. Sprau began his career as a marketing engineer with Trane Technologies plc. He holds a Bachelor of Science in Industrial Engineering from Iowa State University and a Master of Business Administration from Mercer University's Stetson-Hatcher School of Business.

Stephen Butz, Chief Financial Officer
Stephen Butz joined Legence in 2021. His career began in corporate credit within the Commercial Banking industry, followed by eight years in Investment Banking as an equity research analyst covering the global energy industry. He transitioned to the offshore drilling industry, initially as a consultant, before joining a private company that he helped take public within its first year. He served as the CFO of this company for five years, overseeing M&A, Treasury, Investor Relations, Corporate Communications, and FP&A. Subsequently, Mr. Butz held the CFO position at two other publicly traded offshore drilling companies. He was also involved in forming and taking another company public in Norway and played a significant role in securing a multi-billion-dollar joint venture with Saudi Aramco.

Steve Hansen, Chief Operating Officer

Gregory Barnes, Chief Human Resources Officer

Bryce Seki, General Counsel & Secretary

Key Risks for Legence (LGN)

1. Dependence on High-Growth Sectors and Economic Conditions: Legence's rapid growth and a significant portion of its revenue are directly tied to continued investments and expansion within its target high-growth industries, specifically data centers, technology, life sciences, and healthcare. A slowdown, contraction, or reduced capital expenditure in these sectors due to economic downturns or other factors could significantly diminish the demand for Legence's engineering, installation, and maintenance services, thereby impacting its growth and financial performance.
2. Skilled Labor Availability and Costs: Legence's operations heavily rely on a large and specialized workforce, including approximately 1,200 MEP engineers and energy consultants, and about 3,400 HVAC and plumbing service technicians, fitters, electricians, and sheet metal workers. A shortage of skilled labor, increased competition for qualified personnel, or rising labor costs could adversely affect the company's ability to undertake and complete projects, manage its backlog, and maintain profitability.
3. Supply Chain Disruptions and Volatile Equipment/Subcontractor Costs: The company incurs substantial costs for third-party subcontractors and equipment, with expenditures of approximately $350.7 million for subcontractors and $457.3 million for equipment in 2024. Disruptions in the supply chain, increased costs for materials and equipment, or volatility in subcontractor pricing and availability could lead to higher project costs, reduced margins, and potential delays in project completion, thereby negatively impacting Legence's financial results.

Legence (LGN) operates in several significant addressable markets within the United States, primarily focusing on Mechanical, Electrical, and Plumbing (MEP) services, HVAC systems and services, building automation systems, energy efficiency retrofits, and facility management.

Addressable Markets for Legence's Main Products or Services (U.S. Region)

• MEP Services Market: The United States MEP services market was valued at approximately USD 34.90 billion in 2025. It is projected to reach USD 34.61 billion in 2026 and grow to USD 47.05 billion by 2031, at a compound annual growth rate (CAGR) of 6.33% from 2026 to 2031.
• HVAC Systems Market: The U.S. HVAC systems market size was estimated at USD 31.71 billion in 2025 and is projected to reach USD 54.02 billion by 2033, growing at a CAGR of 6.9% from 2026 to 2033.
• HVAC Services Market: The U.S. HVAC services market was valued at USD 17.93 billion in 2025 and is estimated to grow to USD 25.35 billion by 2031, at a CAGR of 5.90% during the forecast period (2026-2031).
• Building Automation Systems (BAS) / Intelligent Building Automation Technologies Market: The U.S. intelligent building automation technologies market size was valued at USD 28.90 billion in 2024, with a projected growth at a CAGR of 10.14% from 2025 to 2034, reaching USD 75.44 billion by 2034.
• Energy Efficiency Retrofit Market (Commercial and Public Buildings): The North American energy retrofit market, which the U.S. heavily influences, accounted for approximately 47% of the global market. Based on a global valuation of USD 122.83 billion in 2025, the North American market would be approximately USD 57.73 billion in 2025.
• Facility Management Market (Hard Services): The United States facility management market was valued at USD 365.93 billion in 2025. Hard services, which include maintenance and upkeep of critical infrastructure, dominated with a 58.45% share in 2025, equating to approximately USD 213.98 billion. This market is projected to reach USD 434.16 billion by 2031, growing at a CAGR of 2.89% from 2026 to 2031.

Legence (LGN) is expected to drive future revenue growth over the next 2-3 years through several key factors:

1. Continued Demand from High-Growth Industries: Legence is strategically positioned to benefit from sustained investment in mission-critical systems across high-growth sectors, including data centers, life sciences, and healthcare. The company's Q3 2025 earnings report highlighted strong demand in data centers, life sciences, and technology markets. RBC analysts project double-digit annual revenue and EBITDA growth through 2027, significantly supported by investments in data centers, which are anticipated to grow at a 26% compound annual growth rate from 2024–2028.
2. Strategic Acquisitions and Organic Expansion: Legence has a history of pursuing growth through strategic acquisitions and organic expansion to enhance its market position and service capabilities. The company has completed over 20 acquisitions since December 2020 and recently acquired The Bowers Group in early 2026, which is expected to further boost its scale and market presence. S&P Global Ratings anticipates revenue growth in 2025 driven by recent acquisitions, followed by solid organic growth in 2026.
3. Growing Backlog and Recurring Revenue: A substantial and increasing backlog of awarded contracts provides strong visibility for future revenue. As of Q3 2025, Legence's consolidated backlog reached $3.1 billion, representing a 29% year-over-year increase. Furthermore, the company benefits from a growing base of recurring maintenance and service revenue, which saw a 23% compound annual growth rate from 2021 to 2024 and now constitutes 15% of total revenue.
4. Rising Demand for Energy-Efficient and Sustainable Building Solutions: Legence is well-positioned to capitalize on the increasing focus on energy efficiency and sustainability in buildings. The company specializes in upgrading existing facilities to make them more energy efficient and sustainable. Analysts, such as Bernstein, identify the need for energy-efficient infrastructure and higher energy prices fueling retrofit activities as key structural drivers for Legence.

Outbound Investments

• Legence has engaged in significant acquisition activity from 2021 to 2024, contributing approximately 23% to its total revenue growth of 39% over that period.
• Acquisitions played a substantial role in the growth of both the Engineering & Consulting segment and the Installation & Maintenance segment, contributing to the difference between reported and pro forma revenue growth rates.
• The company consistently incorporates the pro forma effect of acquisitions when discussing financial performance and client relationships, indicating that strategic acquisitions are a key element of its growth strategy.