Comfort Systems Usa Stock Earnings Reports

Comfort Systems USA delivered a standout Q2 2026: revenue topped $3.3 billion (first quarter above $3B), GAAP EPS of $12.53 (+92% YoY), and record backlog of $14.1 billion (73% YoY increase, +13% sequential). Same-store revenue growth was +44% in the quarter (47% YTD); management expects full-year same-store growth in the mid-to-high 30% range. Gross profit rose to $844 million and gross margin expanded to 25.9%, with Mechanical and Electrical margins both improving. EBITDA increased ~80% YoY to $600 million (trailing 12-month EBITDA ~ $2 billion). Free cash flow for the quarter was ~$999 million, leaving the company with net cash of >$1.8 billion even after closing the Hunt Electric acquisition (closed May 1; expected to add ~$250 million of annualized revenue). Capital allocation priorities: ~5% of revenue expected in CapEx (mainly owned facilities for modular production and automation), opportunistic buybacks, and disciplined M&A. Modular capacity continues to scale (3.5M sq ft now; on track for >4M by year-end and targeting ~5M by late summer 2027) with strong customer commitments from hyperscalers; modular bookings in the quarter were ~$510 million. Service revenue is growing modestly (10% of revenue) and is being viewed as a long-term opportunity tied to the growing installed base. Management reiterated disciplined project underwriting, strong execution, and continued demand despite potential public scrutiny of data-center siting risks. They raised the quarterly dividend by $0.10 to $0.90 per share. Key investor takeaways: very strong topline and margin expansion, exceptional free cash generation and net cash position, aggressive but disciplined modular capacity expansion supported by customer commitments, ongoing M&A and shareholder-friendly capital allocation, and a positive near- to medium-term outlook with usual industry execution and permitting risks.