Company Overview - Legence is a leading provider of engineering, installation, and maintenance services for mission-critical MEP systems in technically demanding buildings[18] - The company has approximately 1,200 engineers and energy consultants, and around 3,400 technicians and craftspeople[18] - Legence served approximately 19,000 clients since 2019, including over 60% of the Nasdaq-100[18] - Approximately 70% of Legence's revenue comes from existing buildings, with the remaining 30% from new buildings[18] Financial Performance - Legence's Q2 2025 LTM revenues reached $22 billion[18, 20] - The company's Q2 2025 LTM gross profit was $472 million[46, 84] - Adjusted EBITDA for Q2 2025 LTM was $244 million[84] - Legence experienced a 30% CAGR in revenues from 2022 to 2024[84] Growth and Strategy - Approximately 55% of Q2 2025 LTM revenues are from high-growth industries, including data centers & technology and life sciences & healthcare[20] - The company's backlog and awarded contracts as of June 30, 2025, totaled $28 billion[84, 95] - Legence's growth strategy focuses on high-growth end-markets, increasing wallet share with existing clients, bolt-on acquisitions, and increasing recurring revenues from maintenance[39] - The company has a client net revenue retention rate of approximately 121% over the last three years[69]

Core Insights - TECO Electric & Machinery Co Ltd and Hon Hai Technology Group (Foxconn) have announced a strategic alliance through a share exchange to enhance their capabilities in AI data centers [1][2] - The partnership aims to leverage TECO's strengths in electromechanical systems and Foxconn's expertise in ICT to capitalize on the global trend towards AI data center standardization and modularization [1][3] Share Exchange Details - TECO will acquire a 0.519% stake in Foxconn, while Foxconn will take a 10% stake in TECO, involving the issuance of 237,644,068 new shares by TECO and 72,481,441 new shares by Foxconn, with a share exchange ratio of approximately 1 to 0.305 [2] - The transaction is expected to be completed in the fourth quarter of 2025, pending regulatory approvals [2] Strategic Focus - The alliance will explore opportunities in data center business development in Taiwan and the United States, integrating strengths in AI servers, electromechanics, and information and communications [3] - Target markets include Taiwan, Asia, the Middle East, and the US, providing comprehensive data center modular products and cost-competitive solutions [3] Leadership Perspectives - TECO Chairman Morris Li emphasized the partnership's potential to create a one-stop solution for data centers, aligning with the companies' goals to enhance American manufacturing and reshape the global supply chain [4] - Foxconn Chairman Young Liu highlighted the importance of time-to-market in the super-computing race and the need for modular design to meet growing demand in AI data centers [4] Sustainability Commitment - Both companies aim to enhance a low-carbon smart industry chain through this strategic alliance, aligning with international sustainability trends [5] - TECO and Foxconn have been recognized in the S&P Global Sustainability Yearbook 2025, reflecting their commitment to corporate sustainability [5] Company Backgrounds - TECO, founded in 1956, is a leading industrial motor producer and has expanded into ESCO energy services, EV powertrain systems, and data center engineering [6][7] - Foxconn, established in 1974, is the world's largest electronics manufacturer, with a revenue of approximately USD 208 billion in 2024 and a market share exceeding 40% in electronics manufacturing services [9]