10-KPeriod: FY2025

COMFORT SYSTEMS USA INC Annual Report, Year Ended Dec 31, 2025

Filed February 19, 2026For Securities:FIX

Summary

Comfort Systems USA, Inc. (FIX) reported a robust fiscal year 2025, characterized by significant revenue growth driven by strong market demand, particularly in the technology sector, and strategic acquisitions. Revenue increased by 29.5% year-over-year, with same-store activity showing a 26.1% increase. The company's backlog also nearly doubled year-over-year, reaching $11.94 billion by year-end 2025, indicating strong future revenue potential. Profitability improved substantially, with gross profit increasing by 48.7% and operating income more than doubling, reflecting improved execution and operational efficiencies. Financially, Comfort Systems USA demonstrated strong cash flow generation, with operating cash flow and free cash flow both showing substantial increases. The company also strengthened its balance sheet by amending and increasing its credit facility to $1.10 billion, providing ample liquidity. The company continued its commitment to shareholder returns through share repurchases and dividends. Management anticipates continued strong demand in 2026, supported by a robust backlog and favorable market conditions, particularly in industrial and technology sectors, although it remains mindful of potential economic headwinds.

Financial Highlights

52 data points
Beta

Revenue

$1.83B

22.0% Gross Margin

Net Income

$1.02B

55.8% Net Margin

EPS (Diluted)

$28.88

Total Assets

$6.44B

Cash & Equivalents

$981.90M

Free Cash Flow

$1.03B

Financial Statements
Beta
Revenue$1.83B
Cost of Revenue$1.43B
Gross Profit$403.42M
SG&A Expenses$194.87M
Operating Income$209.10M
Interest Expense$9.01M
Net Income$1.02B
EPS (Basic)$28.93
EPS (Diluted)$28.88
Shares Outstanding (Basic)35.35M
Shares Outstanding (Diluted)35.41M

Key Highlights

  • 1Revenue increased by 29.5% to $9.10 billion in 2025, driven by strong demand, especially in the technology sector.
  • 2Backlog nearly doubled year-over-year, reaching $11.94 billion, signaling robust future revenue.
  • 3Gross profit surged by 48.7% to $2.20 billion, with gross profit margin improving to 24.1% from 21.0% in 2024.
  • 4Operating income significantly increased by 75.4% to $1.31 billion, reflecting improved execution and efficiency.
  • 5Net income grew by 95.7% to $1.02 billion.
  • 6Free cash flow increased by 39.2% to $1.04 billion, demonstrating strong operational cash generation.
  • 7The company amended and increased its revolving credit facility to $1.10 billion, enhancing liquidity and financial flexibility.

Frequently Asked Questions

Comfort Systems USA reported a significant revenue increase of 29.5% in 2025, reaching $9.10 billion, up from $7.03 billion in 2024. This growth was attributed to strong market conditions, particularly in the technology sector, and the positive impact of recent acquisitions.

The company's backlog saw substantial growth, increasing by 99.3% year-over-year to $11.94 billion as of December 31, 2025. This increase was driven by strong project bookings, especially in the technology and manufacturing sectors, indicating strong future business prospects.

Management anticipates continued high demand in 2026, driven by strong advance bookings and favorable market conditions, particularly for industrial and technology customers. While the company is prepared for potential economic challenges, it expects solid earnings supported by its substantial backlog.

Comfort Systems USA demonstrated strong financial management, with operating cash flow increasing to $1.19 billion and free cash flow rising to $1.04 billion in 2025. The company also amended its senior credit facility to increase borrowing capacity to $1.10 billion, ensuring ample liquidity and financial flexibility to support operations and strategic initiatives.