Comfort Systems USA, Inc. (FIX) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Feb 18, 2027 — estimated from last year’s reporting date.

Consensus is $13.68 EPS for Dec 2026 across 5 estimates, ranging $12.32 to $14.65.

FIX Sep 2026

Reported Oct 22, 2026

: 9.44%
: -9.26%

: $12.71
: $13.91
: —
: $3.77B

Reported results

: $3.77B; from $2.45B
: 24.81%; from 24.80%
: $624.57M; from $378.87M
: 16.58%; from 15.46%
: $489.04M; from $291.62M
: $13.91; from $8.25

Highlights

EPS beat: Q3 diluted EPS of $13.91 exceeded the $12.71 consensus by 9.4% and rose 68.6% from $8.25 a year ago and 11.0% from $12.53 in Q2.
Record scale: Revenue increased 53.7% year over year to $3.77 billion, with operating income up 64.8% to $624.6 million; operating margin rose to 16.6% from 15.5%.
Backlog surge: Backlog reached a record $17.81 billion, up 26.7% sequentially and 90.0% year over year; same-store backlog increased 26.1% sequentially and 85.4% year over year.
Technology exposure: Technology was 60.8% of Q3 revenue and 58.8% for the first nine months, versus 45.8% and 42.4%, respectively, a year earlier.
Margins and mix: Consolidated gross margin held at 24.8% year over year. Mechanical segment gross margin improved to 25.1% from 24.3%, while electrical was 24.3% versus 26.2%, partly reflecting prior-year discrete gains.
Cash generation: Q3 operating cash flow was $1.01 billion and free cash flow was $805.6 million; nine-month figures were $2.54 billion and $2.05 billion, respectively.
Growth outlook: Management expects 2026 same-store revenue growth in the mid-40% range and 2027 growth in the mid-20% range, with strong demand and solid earnings expected to continue.
Capacity and investment: Modular capacity is expected to exceed 4 million square feet by year-end 2026 and reach about 6 million by year-end 2027; year-to-date capital expenditures were $499.4 million.

Analysis

Comfort Systems delivered another step-up quarter, with diluted EPS of $13.91 beating the $12.71 consensus by 9.4%. Revenue of $3.77 billion grew 53.7% year over year and 15.2% sequentially; EPS was up 68.6% from Q3 2025 and 11.0% from Q2 2026. Operating income rose 64.8% year over year to $624.6 million, lifting operating margin to 16.6% from 15.5%. Gross margin remained 24.8%, while SG&A leverage helped drive the operating-margin gain.

The defining feature was demand, especially from technology customers: backlog hit $17.81 billion, up $3.8 billion sequentially and 90% year over year, and technology accounted for 58.8% of nine-month revenue. The quarter’s exceptionally strong cash generation—$1.01 billion of operating cash flow and $805.6 million of free cash flow—also reflected favorable collections and payment terms, plus $166 million of income tax payments deferred to Q4. Management expects same-store revenue growth in the mid-40% range for 2026 and mid-20% for 2027, while noting labor availability remains the constraint on taking additional work.

Revenue and margins

Top line: Revenue reached $3.77 billion, up 53.7% from $2.45 billion a year earlier and 15.2% from $3.27 billion in Q2. Management attributed most growth to same-store activity: the filing reports 46.3% same-store growth, with acquisitions contributing 7.4%.
Operating leverage: Operating income rose to $624.6 million from $378.9 million year over year and $558.0 million in Q2. Operating margin improved 1.1 percentage points year over year to 16.6%; SG&A declined to 8.3% of revenue from 9.4%.
Gross margin mix: Consolidated gross margin was unchanged year over year at 24.8%. Mechanical gross margin improved to 25.1% from 24.3%; electrical margin was 24.3% versus 26.2%, with the prior-year comparison benefiting from discrete gains that had added about 1.8 points to electrical margin.
Sequential pressure: Management said the higher share of equipment and materials in the cost mix—about 2 percentage points above the first-half average—supported revenue but diluted margin percentage. Early-stage large jobs and acquisition-related work-in-process purchase adjustments, $12 million higher than in Q2, also weighed on sequential margin.

Backlog and technology demand

New high: Backlog ended September at $17.81 billion, compared with $14.06 billion at June 30 and $9.38 billion a year earlier. Same-store backlog was $17.39 billion, up 26.1% sequentially and 85.4% year over year.
Technology concentration: Technology customers generated $2.29 billion, or 60.8%, of Q3 revenue; for the first nine months they represented $5.82 billion, or 58.8%, versus 42.4% in 2025. Management said strong technology bookings spanned traditional construction and modular work.
Visibility and capacity: Management described the largest project backlog as extending roughly 18–24 months. The filing says 65%–75% of remaining performance obligations are expected to be recognized over the next 12 months. Management emphasized that labor, rather than demand, is the main limit on further work, and said projects are accepted only when labor is planned against them.

Business mix and modular

Segment growth: Mechanical revenue increased 42.7% year over year to $2.58 billion; electrical revenue grew 84.8% to $1.18 billion. Management also reported Q3 service revenue growth of 13%, although faster construction growth reduced service to 10% of total revenue.
Construction mix: Construction represented 90% of Q3 revenue, including 75% from new buildings and 15% from existing-building construction. Modular was 17% of revenue year to date.
Modular expansion: The company expects more than 4 million square feet of modular space by year-end 2026 and approximately 6 million by year-end 2027, with the announced buildout tied to existing programmatic customers. Work for frontier-lab and colocation customers is underway, but management said it has not yet agreed to terms it considers programmatic, citing commitment, payment timing, and counterparty considerations.
Acquisitions: Two businesses acquired on August 1—an electrical contractor in Florida and a Texas modular company—are expected by management to contribute more than $100 million in annual revenue at good margins. The filing reports preliminary combined purchase prices of about $111 million.

Cash and investment

Cash flow: Q3 operating cash flow was $1.01 billion, versus $553.3 million a year earlier; free cash flow, as defined by the company, was $805.6 million versus $519.0 million. Nine-month operating cash flow was $2.54 billion and free cash flow was $2.05 billion, compared with $717.8 million and $632.2 million, respectively, in 2025.
Cash-flow drivers: Management cited advantageous payment terms and collections from large technology customers, as well as $166 million of income-tax payments deferred to Q4. For the nine-month period, the filing also points to higher customer billings in excess of costs and estimated earnings and an increase in accounts payable and other current liabilities.
Reinvestment and returns: Nine-month capital expenditures were $499.4 million, versus $88.8 million a year earlier; management said spending included prefabrication expansion and expects full-year capex at 4%–5% of revenue, with elevated investment into the first half of 2027. The company repurchased $349.1 million of shares year to date and raised its quarterly dividend by $0.10 to $1.00 per share.

Outlook and leadership

Revenue outlook: Management expects 2026 same-store revenue growth in the mid-40% range and estimates mid-20% same-store growth in 2027. The company expects strong demand and solid earnings for the remainder of 2026, with supportive conditions—especially in technology and manufacturing—likely to continue into 2027.
Execution caveats: Management expects gross margins in 2027 to remain within the strong ranges achieved on average in recent quarters, but did not promise further expansion. It said early-stage jobs and material-heavy cost mixes can make quarterly margins uneven; labor costs and intermittent supply-chain delays remain challenges.
CFO transition: CFO William George plans to retire after the 2026 results and will remain for a transition period in other roles. Chief Accounting Officer Julie Shaeff is slated to succeed him.

Comfort Systems USA, Inc.

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