Comfort Systems Usa Stock Earnings Reports

Comfort Systems USA reported an exceptional Q3 2025: revenue of $2.5 billion (up 35% YoY), same-store revenue +33% for the quarter and +23% year-to-date, and EPS of $8.25 (vs. $4.09 prior year). Gross profit margin expanded to 24.8% (vs. 21.1% prior year) driven by both electrical (26.2%) and mechanical (24.3%) margin improvement and favorable late-stage project closeouts. Quarterly EBITDA was a record ~$414 million (trailing-12mo EBITDA $1.25 billion) and free cash flow was very strong at $519 million for the quarter (net cash position $725 million at 9/30). Backlog reached a record $9.4 billion (up $3.7 billion YoY, +65%), with technology/data center work a major driver (technology = 42% of revenue YTD). Construction remains ~86% of revenue; modular was 17% YTD and the company expects ~3 million sq ft of modular capacity by early 2026 (current capacity effectively sold out). Management completed two acquisitions (FZ Electrical/Feyen Zylstra and Meisner Electric) on Oct 1 funded with ~$170 million of consideration and expects these to add >$200 million revenue and $15–$20 million EBITDA annually. Capital allocation: quarterly dividend increased 20% to $0.60, ongoing share repurchases ($125 million YTD, ~345k shares), and buy-and-build M&A remains a priority. Balance sheet: senior credit facility increased to $1.1 billion capacity with maturity Oct 2030. Outlook: management expects Q4 same-store revenue growth in the high teens vs. prior year and full-year 2026 same-store revenue growth likely low- to mid-teens (weighted to H1); tax rate ~23% going forward and margins expected to remain in the strong ranges recently achieved. Key risks remain typical construction/project closeout, labor availability, and the lumpy nature of large bookings.