Comfort Systems Posts $489 Million Quarterly Profit As Backlog Reaches $17.81 Billion
The HVAC and electrical contractor also raised its quarterly dividend by $0.10 to $1.00 a share.
Comfort Systems USA, which does mechanical and electrical contracting for commercial, industrial and institutional buildings, earned $489.0 million, or $13.91 a diluted share, in the third quarter, up from $291.6 million a year earlier. The company reported the results in an 8-K filed Thursday, alongside a dividend increase.
Revenue up 50%, cash flow past $1 billion
Revenue for the quarter ended September 30 was $3.77 billion, against $2.45 billion in the year-earlier quarter. Per-share earnings were $8.25 a year ago. CEO Brian Lane said revenue rose 50% and per-share earnings jumped 70% from the same quarter last year.
Operating cash flow was $1.01 billion, compared with $553.3 million a year earlier. Free cash flow, which the company defines as operating cash flow less customary capital spending plus asset-sale proceeds, was $805.6 million, against $519.0 million.
For the first nine months, net income was $1.30 billion, or $36.94 a diluted share, compared with $691.8 million, or $19.52. Nine-month revenue was $9.90 billion, against $6.46 billion, and operating cash flow was $2.54 billion, against $717.8 million.
Operating income in the quarter was $624.6 million, or 16.6% of revenue, compared with 15.5% a year earlier. Cash stood at $2.16 billion on September 30, against $981.9 million at the end of 2025.
Backlog grows $3.8 billion in a quarter
Backlog, the work contracted but not yet performed, was $17.81 billion on September 30. That compares with $14.06 billion on June 30 and $9.38 billion a year earlier. Excluding acquisitions, same-store backlog was $17.39 billion.
Lane credited "relentless demand" for sequential backlog growth of $3.8 billion and a year-over-year increase exceeding $8.0 billion. He said the company believes it is "well-positioned to grow organically, and to maintain high levels of profitability and solid ongoing cash flow" through year end and for 2027.
Technology facilities were the largest end market in 2025, at 45.0% of revenue, according to the company's annual report. Mechanical work made up 73.3% of that year's revenue and electrical work 26.7%.
A $1.00 dividend, and Friday's call
The board declared a quarterly dividend of $1.00 a share, up $0.10 from the latest payout. It is payable November 23 to holders of record on November 12. The company paid $0.900 a share in the third quarter, against $0.500 a year earlier.
Shares closed at $1279.37 on Thursday, down 8.70% for the session.
Management hosts a webcast and conference call on Friday at 10:00 a.m. Central Time to discuss the results.
Management hosts its results call Friday at 10:00 a.m. Central Time, with a replay posted on the company's website the next business day.
Sources
- 8-K Filing — COMFORT SYSTEMS USA INC (FIX) — SEC EDGAR
- Exhibit fix-ex99d1.htm — COMFORT SYSTEMS USA INC 8-K exhibit — SEC EDGAR
- Exhibit fix-ex99d2.htm — COMFORT SYSTEMS USA INC 8-K exhibit — SEC EDGAR
