Comfort Systems Usa Stock Earnings Reports

Comfort Systems USA reported a very strong Q1 2026: revenue of $2.9 billion (up 56% YoY) and same-store revenue up 51%. GAAP EPS was $10.51, more than double Q1 2025. Gross profit was $754 million and gross margin expanded to 26.3% (the company noted $43 million of favorable late-stage project developments that, if excluded, would put margin around 25.2%). Operating income rose to $486 million and EBITDA to $524 million; trailing-12 month EBITDA is $1.74 billion. Backlog reached a record $12.5 billion (up ~$5 billion YoY) driven largely by data-center/technology customers. Management expects full-year same-store revenue growth in the mid- to high-20% range and a full-year effective tax rate near 23%. Free cash flow was positive $242 million; capital expenditures are expected to be roughly 5% of revenue for the year as the company invests in modular assembly capacity (targeting 4 million sq. ft. of modular capacity by year-end) and purchased a large modular facility in Texas. Comfort also announced a pending acquisition of a West-coast electrical contractor expected to initially add ~ $250 million of annualized revenue with 8%–10% EBITDA margins. The board raised the quarterly dividend to $0.80. Key risks/constraints management highlighted: labor remains the primary growth constraint (a supply issue versus a demand shortfall), and the company is maintaining disciplined project selection to protect margins. Management does not currently view proposed state-level data center restrictions as a material near-term risk to their backlog or geography focus.