01—Abstract
Summary
Summary of the 10-Q filed April 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Comfort Systems USA, Inc. (FIX) has reported a strong first quarter for 2026, demonstrating significant growth across its mechanical and electrical services segments.
Revenue surged by 56.5% year-over-year to $2.87 billiona, driven by robust demand, particularly in the technology sector, and contributions from recent acquisitions. Gross profit also saw a substantial increase of 87.0%, reaching $754.4 million, with improved margins reflecting better operational execution and favorable project developments. The company’s backlog has expanded significantly, up 80.8% year-over-year to $12.45 billion, signaling continued strong demand and providing visibility for future revenue.
Despite facing persistent labor cost increases and supply chain challenges, Comfort Systems has managed these effectively through proactive planning and pricing strategies. The company maintains a strong liquidity position with significant credit availability and a history of consistent free cash flow generation.
02—Key points
Key Highlights
- Revenue increased by 56.5% to $2.87 billion in Q1 2026 compared to Q1 2025, driven by strong market conditions and acquisitions.
- Gross profit grew by 87.0% to $754.4 million, with gross margin expanding from 22.0% to 26.3% due to improved revenue and operational execution.
- Backlog increased by 80.8% year-over-year to $12.45 billion, indicating strong future demand, especially in the technology sector.
- Selling, General, and Administrative (SG&A) expenses as a percentage of revenue decreased from 10.6% to 9.4%, demonstrating operating leverage.
- Net income more than doubled, rising from $169.3 million in Q1 2025 to $370.4 million in Q1 2026.
- Cash flow from operating activities significantly improved, moving from a net cash used of $88.0 million in Q1 2025 to a net cash provided of $388.8 million in Q1 2026.
- The company reported $1.02 billion in available credit under its amended revolving credit facility, highlighting a strong liquidity position.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Comfort Systems USA kept $0.13.
- Revenue$2.87B100.0%
- Cost of revenue−$2.11B73.7%
- Gross profit$754.4M26.3%
- Operating costs−$268.7M9.4%
- Operating income$485.7M17.0%
- Interest, other & tax−$115.3M4.0%
- Net income$370.4M12.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 23, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.87B$1.83B | +56.5% |
| Cost of Revenue | $2.11B$1.43B | +47.8% |
| Gross Profit | $754.41M$403.42M | +87.0% |
| SG&A Expenses | $269.00M$194.87M | +38.0% |
| Operating Income | $485.72M$209.10M | +132.3% |
| Net Income | $370.38M$169.29M | +118.8% |
| EPS (Basic) | $10.52$4.77 | +120.5% |
| EPS (Diluted) | $10.51$4.75 | +121.3% |
| Shares Outstanding (Basic) | 35.21M35.52M | −0.9% |
| Shares Outstanding (Diluted) | 35.25M35.60M | −1.0% |
05—Questions
Frequently Asked Questions
What are the primary drivers of Comfort Systems USA's revenue growth in the first quarter of 2026?
The primary drivers of Comfort Systems USA's revenue growth in Q1 2026 were strong market conditions, particularly within the technology sector (including data centers), and the positive impact of recent acquisitions, such as Feyen Zylstra, Meisner Electric, and Right Way Plumbing & Mechanical. The company also experienced substantial same-store revenue growth due to increased demand and backlog.
How is Comfort Systems USA managing supply chain disruptions and labor cost increases?
Comfort Systems USA is managing supply chain disruptions and labor cost increases by incorporating these challenges into job planning and pricing. They are also ordering materials earlier and collaborating with customers to share supply risks. The company has generally been successful in maintaining productivity and procuring necessary materials despite ongoing challenges.
What is the company's outlook for the remainder of 2026?
The company anticipates high ongoing demand and solid earnings for the remainder of 2026, expecting supportive conditions, especially for manufacturing and technology customers, to continue. While preparing for various economic circumstances, including a potential recession, the current outlook remains positive based on substantial advance bookings and a strong backlog.
What is the significance of the company's increased backlog?
The significant increase in backlog, up 80.8% year-over-year to $12.45 billion, indicates robust future demand for Comfort Systems USA's services. This provides strong visibility into future revenue and suggests continued growth momentum for the company, particularly with projects in the technology sector.
06—Continue