01—Abstract
Summary
Summary of the 10-K filed February 22, 2024. Cited figures are marked; the original filing is the authoritative source.
Comfort Systems USA, Inc. (FIX) reported strong financial performance for the fiscal year ending December 31, 2023, with significant revenue growth and improved profitability.
The company's strategic focus on core competencies, operational efficiencies, and employee investment has contributed to its success. Acquisitions also played a role in expanding the company's reach and service offerings. The company is well-positioned for continued growth, with a robust backlog and a positive outlook for 2024, driven by demand in key sectors like technology and manufacturing.
Comfort Systems USA continues to prioritize safety, customer service, and sustainable building practices, reinforcing its commitment to its "Build Legacies" purpose. The company also maintains a strong liquidity position and a healthy balance sheet, underscoring its financial stability and capacity for future investments and shareholder returns.
02—Key points
Key Highlights
- Revenue increased by 25.8% year-over-year to $5.21 billion in 2023.
- Gross profit margin improved to 19.0% in 2023 from 17.9% in 2022.
- Operating income more than doubled year-over-year, reaching $418.4 million.
- Net income grew by 31.4% to $323.4 million.
- Backlog at year-end 2023 increased by 26.9% to $5.16 billion.
- The company repurchased 0.1 million shares for approximately $21.3 million during 2023.
- Acquisitions of Eldeco, Inc. and DECCO, Inc. were completed in 2023, contributing to growth.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Comfort Systems USA kept $0.06.
- Revenue$5.21B100.0%
- Cost of revenue−$4.22B81.0%
- Gross profit$990.5M19.0%
- Operating costs−$572.1M11.0%
- Operating income$418.4M8.0%
- Interest, other & tax−$95.0M1.8%
- Net income$323.4M6.2%
Where FY2023 revenue went
$5.21B- Cost of revenue: $4.22B, 81% of revenue
- Net income: $323.4M, 6.2% of revenue
- SG&A: $574.4M, 11% of revenue
- Interest, other & tax: $95.0M, 1.8% of revenue
Kept 6.2% as net incomeNet income $323.4M · 6.2%Interest, other & tax $95.0M · 1.8%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 22, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $5.21B$4.14B | +25.8% |
| Cost of Revenue | $4.22B$3.40B | +24.1% |
| Gross Profit | $990.51M$741.61M | +33.6% |
| SG&A Expenses | $574.42M$489.34M | +17.4% |
| Operating Income | $418.39M$253.85M | +64.8% |
| Interest Expense | $10.28M$13.35M | −23.0% |
| Net Income | $323.40M$245.95M | +31.5% |
| EPS (Basic) | $9.03$6.84 | +32.0% |
| EPS (Diluted) | $9.01$6.82 | +32.1% |
| Shares Outstanding (Basic) | 35.80M35.93M | −0.4% |
| Shares Outstanding (Diluted) | 35.90M36.05M | −0.4% |
05—Questions
Frequently Asked Questions
What was Comfort Systems USA's revenue and net income for 2023?
Comfort Systems USA reported revenue of $5.21 billion and a net income of $323.4 million for the fiscal year ended December 31, 2023.
How did Comfort Systems USA's financial performance in 2023 compare to 2022?
In 2023, Comfort Systems USA experienced significant growth, with revenue increasing by 25.8% and net income growing by 31.4% compared to 2022. Gross profit margin also improved, and operating income more than doubled.
What is the company's outlook for 2024?
Comfort Systems USA anticipates solid earnings and cash flow for 2024, expecting continued strong demand, particularly from technology and manufacturing sectors, despite ongoing challenges like increased labor costs and supply constraints.
How is the company managing its growth and operations?
The company is focused on strengthening core competencies, achieving operational efficiencies, investing in its employees, and strategically pursuing acquisitions. They also leverage resources across their operating locations to drive efficiency and growth.
06—Continue