01—Abstract
Summary
Summary of the 10-Q filed July 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Comfort Systems USA, Inc. (FIX) reported a substantial increase in revenue and profitability for the six months ended June 30, 2026, compared to the same period in the prior year.
Revenue surged by 53.1% to $6.13 billiona, driven by robust same-store growth of 47.3% and contributions from recent acquisitions. This strong top-line performance, coupled with improved gross profit margins and effective management of selling, general, and administrative (SG&A) expenses, led to a significant increase in operating income, which more than doubled to $1.04 billion. The company also experienced a substantial improvement in cash flow from operations, which increased by over 800% to $1.53 billion, primarily due to higher earnings and favorable working capital movements.
The company's strong financial position is further supported by a healthy backlog of $14.06 billionb, indicating continued demand for its services, particularly within the technology sector. Management expects this positive trend to continue for the remainder of 2026, despite anticipating persistent cost pressures and supply chain challenges.
02—Key points
Key Highlights
- Revenue for the six months ended June 30, 2026, increased by 53.1% to $6.13 billion, compared to $4.00 billion in the prior year period.
- Gross profit increased by 75.0% to $1.60 billion for the first six months of 2026, with gross profit margin improving to 26.1% from 22.8% in the prior year.
- Operating income more than doubled, rising 103.1% to $1.04 billion for the first six months of 2026, reflecting strong revenue growth and improved margins.
- Net income attributable to common shareholders surged by 102.9% to $811.98 million for the first six months of 2026.
- Cash flow from operating activities dramatically increased to $1.53 billion for the first six months of 2026, up from $164.5 million in the comparable period of 2025.
- The company's backlog stood at $14.06 billion as of June 30, 2026, representing a significant increase of 73.1% year-over-year, signaling strong future demand.
- The company made significant investments in property and equipment, totaling $288.8 million in the first six months of 2026, indicating expansion and growth initiatives.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Comfort Systems USA kept $0.14.
- Revenue$3.27B100.0%
- Cost of revenue−$2.42B74.1%
- Gross profit$844.2M25.9%
- Operating costs−$286.3M8.8%
- Operating income$558.0M17.1%
- Interest, other & tax−$116.4M3.6%
- Net income$441.6M13.5%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 23, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $3.27B$2.17B | +50.3% |
| Cost of Revenue | $2.42B$1.66B | +45.6% |
| Gross Profit | $844.23M$509.90M | +65.6% |
| SG&A Expenses | $287.05M$210.47M | +36.4% |
| Operating Income | $557.97M$299.87M | +86.1% |
| Net Income | $441.60M$230.85M | +91.3% |
| EPS (Basic) | $12.54$6.54 | +91.7% |
| EPS (Diluted) | $12.53$6.53 | +91.9% |
| Shares Outstanding (Basic) | 35.22M35.31M | −0.2% |
| Shares Outstanding (Diluted) | 35.25M35.37M | −0.3% |
05—Questions
Frequently Asked Questions
What drove the substantial revenue growth in the first half of 2026?
The significant revenue growth of 53.1% to $6.13 billion in the first six months of 2026 was driven by a combination of strong "same-store" revenue growth of 47.3%, fueled by high demand, particularly in the technology sector, and contributions from recent acquisitions. The company also saw a substantial increase in its backlog, which grew by 73.1% year-over-year to $14.06 billion.
How did the company manage its costs and expenses in light of increased revenue?
Comfort Systems USA, Inc. demonstrated effective cost management. Gross profit increased by 75.0%, outpacing revenue growth, which led to an improved gross profit margin of 26.1% compared to 22.8% in the prior year. Selling, general, and administrative (SG&A) expenses, as a percentage of revenue, decreased from 10.1% to 9.1%, indicating operational leverage. This efficient management of costs and expenses contributed to a more than doubling of operating income.
What is the company's liquidity and cash flow position?
The company's liquidity and cash flow position significantly improved. Cash flow from operating activities increased dramatically to $1.53 billion for the first six months of 2026, compared to $164.5 million in the same period of 2025. This improvement was attributed to higher earnings and favorable working capital movements. The company also has substantial borrowing capacity under its credit facility, with $1.01 billion available as of June 30, 2026, reinforcing its strong liquidity.
What are the key risks and challenges highlighted by the company?
The company anticipates persistent cost pressures and intermittent supply chain shortages, including delays in material and equipment delivery. They are actively managing these by adjusting job planning and pricing, ordering materials earlier, and collaborating with customers. Despite these challenges, management is optimistic about continued high demand for the rest of 2026, particularly from manufacturing and technology customers.
06—Continue