01—Abstract
Summary
Summary of the 10-K filed February 20, 2025. Cited figures are marked; the original filing is the authoritative source.
Comfort Systems USA, Inc. (FIX) reported a strong financial performance for the fiscal year ended December 31, 2024, with significant revenue growth driven by both acquisitions and robust same-store activity.
The company's strategic focus on core competencies, employee investment, and operational efficiencies continues to yield positive results. The mechanical segment experienced substantial revenue increases, particularly from technology sector projects, while the electrical segment also saw growth in manufacturing and technology sectors. The company's backlog has also seen a healthy increase, indicating a strong demand pipeline for future projects.
Management expects continued solid earnings in 2025, despite anticipating ongoing labor cost pressures and supply chain challenges. The company maintained its strong financial position with positive free cash flow generation for the 26th consecutive year and ample liquidity, supported by its credit facility.
02—Key points
Key Highlights
- Revenue increased by 35.0% to $7.03 billion in 2024, driven by acquisitions and strong same-store growth.
- Gross profit increased by 49.1% to $1.48 billion, with gross margin improving to 21.0% from 19.0% in the prior year.
- SG&A as a percentage of revenue decreased to 10.4% from 11.0% due to increased revenue leverage.
- Backlog grew by 16.2% year-over-year to $5.99 billion as of December 31, 2024.
- The company generated $849.1 million in cash flow from operating activities and $743.5 million in free cash flow in 2024.
- Comfort Systems USA maintained a strong balance sheet with no outstanding borrowings on its $850 million credit facility and $770 million available at year-end.
- The company completed several strategic acquisitions in 2024, including Summit Industrial Construction, LLC and J & S Mechanical Contractors, Inc., to enhance its capabilities and market position.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Comfort Systems USA kept $0.07.
- Revenue$7.03B100.0%
- Cost of revenue−$5.55B79.0%
- Gross profit$1.48B21.0%
- Operating costs−$727.0M10.3%
- Operating income$749.4M10.7%
- Interest, other & tax−$226.9M3.2%
- Net income$522.4M7.4%
Where FY2024 revenue went
$7.03B- Cost of revenue: $5.55B, 79% of revenue
- Net income: $522.4M, 7.4% of revenue
- SG&A: $730.1M, 10% of revenue
- Interest, other & tax: $226.9M, 3.2% of revenue
Kept 7.4% as net incomeNet income $522.4M · 7.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 20, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $7.03B$5.21B | +35.0% |
| Cost of Revenue | $5.55B$4.22B | +31.7% |
| Gross Profit | $1.48B$990.51M | +49.1% |
| SG&A Expenses | $730.07M$574.42M | +27.1% |
| Operating Income | $749.37M$418.39M | +79.1% |
| Interest Expense | $6.65M$10.28M | −35.3% |
| Net Income | $522.43M$323.40M | +61.5% |
| EPS (Basic) | $14.64$9.03 | +62.1% |
| EPS (Diluted) | $14.60$9.01 | +62.0% |
| Shares Outstanding (Basic) | 35.69M35.80M | −0.3% |
| Shares Outstanding (Diluted) | 35.77M35.90M | −0.3% |
05—Questions
Frequently Asked Questions
What was the primary driver of Comfort Systems USA's revenue growth in 2024?
The company's revenue increased by 35.0% to $7.03 billion in 2024. This growth was a result of a combination of strategic acquisitions, including Summit Industrial Construction, LLC and J & S Mechanical Contractors, Inc., and strong same-store activity, particularly in the technology sector such as data centers and chip plants.
How did the company's profitability improve in 2024?
Gross profit increased significantly by 49.1% to $1.48 billion in 2024, with the gross margin expanding from 19.0% to 21.0%. This improvement was driven by higher revenues and better operational execution, including improved project execution in key operations and a stronger performance in the electrical segment's gross profit margin.
What is the company's outlook for 2025?
Comfort Systems USA anticipates solid earnings in 2025, expecting continued strong demand, especially from its industrial and technology customers. While acknowledging potential ongoing labor cost pressures and supply chain challenges, management is optimistic about the company's pipeline of opportunities and its ability to navigate these factors.
How is the company managing its liquidity and financial position?
The company demonstrated strong financial health, generating $849.1 million in operating cash flow and $743.5 million in free cash flow in 2024, marking the 26th consecutive year of positive free cash flow. Comfort Systems USA has a robust liquidity position, with no outstanding borrowings on its $850 million credit facility and $770 million in available credit as of December 31, 2024. This strong financial footing provides flexibility for future operations and strategic initiatives.
06—Continue