Comfort Systems USA Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.33%.
Did FIX Beat Earnings? Q3 2025 Results
Comfort Systems USA delivered a blowout third quarter, posting earnings of $8.25 per diluted share, a 31.26% beat against the $6.29 consensus estimate, while revenue of $2.45 billion topped expectations by 13.58% and climbed 35.2% from the year-ago period. The standout result was fueled by strong execution across the company's HVAC and electrical contracting operations, with gross margins expanding sharply to 24.8% from 21.1% a year earlier and net income nearly doubling to $291.62 million. A record backlog of $9.38 billion, up from $5.68 billion a year prior, underscored the momentum, with same-store backlog rising by more than $1 billion for the second consecutive quarter, reflecting what CEO Brian Lane called unprecedented demand for the company's services. The company's growing investment in volumetric modular construction has been a key enabler of this scale. Management raised the quarterly dividend to $0.60 per share and expressed confidence in Q4 2025 and 2026, backed by two newly closed electrical contractor acquisitions expected to contribute over $200 million in incremental annual revenue.
- Great ongoing execution and favorable developments in certain late-stage projects
- Unprecedented demand for services driving backlog growth
- Gross profit margin expansion to 24.8% from 21.1% year-over-year
- Operating leverage with SG&A declining to 9.4% of revenue from 9.9%
- Record quarterly operating cash flow of $553.3 million
“Our teams across the country continue to set a new standard, delivering excellent results for our customers, and again achieving record financial results. Great ongoing execution and favorable developments in certain late-stage projects delivered third quarter EPS that doubles our same quarter last year. In addition to increased revenue and earnings, we are also reporting remarkable quarterly cash flow of over $550 million.”
Comfort Systems USA CEO, on the earnings call
Forward Guidance & Outlook
Management expressed optimism about prospects for Q4 2025 and 2026, citing strong backlog of $9.38 billion (up $3.4 billion since the start of the year), robust project pipelines, and the addition of two new electrical contracting companies (Feyen Zylstra and Meisner Electric) that together are expected to provide over $200 million of incremental annual revenue and $15 to $20 million of incremental annual EBITDA. Same-store backlog increased by more than $1 billion for the second consecutive quarter, reflecting unprecedented demand for the company's services.
FIX YoY Financials
Figures from SEC filings and company reports. Not investment advice.