How strong was Comfort Systems' growth in Q4 and full-year 2025?

Growth was very strong. Q4 revenue rose about 42% to $2.65 billion, and full-year revenue rose about 29% to $9.10 billion. Net income more than doubled in Q4 and nearly doubled for the full year, to $1.02 billion. Part of the full-year earnings increase reflects a $0.25 per diluted share benefit from tax-refund interest, so the underlying growth is somewhat lower than the reported figure.

What does the backlog increase mean for future revenue?

Backlog of $11.94 billion at year-end 2025 is roughly double the level at the start of the year and about 2.0 times the company's 2025 revenue, which points to multiple years of revenue visibility at current run rates. Backlog is not guaranteed revenue, however. The company's risk factors note that unexpected cancellations or adjustments could prevent backlog from converting into revenue or profit. Management also reported strong pipelines and cited persistent demand.

Did margins improve, or was the profit increase driven only by volume?

Margins improved meaningfully. Full-year gross margin rose to 24.1% from 21.0%, and Q4 gross margin was 25.5% versus 23.2%. Adjusted EBITDA margin expanded to 16.0% from 12.7%. Operating margin rose to 14.4% from 10.7%. The improvement shows the company gained operating leverage on higher volume, not just top-line growth.

Is the dividend increase a sign of confidence in future cash generation?

The board raised the quarterly dividend to $0.70 per share from $0.60, a 17% increase, and full-year 2025 dividends totaled $1.95 per share versus $1.20 in 2024. Free cash flow of $1.04 billion for 2025 covers the dividend comfortably, which supports the view that management is confident in ongoing cash generation. Dividend payments are a board decision and can change in future periods.

FIX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.

Comfort Systems USA (NYSE: FIX) reported a very strong fourth quarter and full year 2025.

Q4 revenue rose to $2.65 billion^a from $1.87 billion, a roughly 42% increase year over year. Q4 net income was $330.8 million, or $9.37 per diluted share, versus $4.09 a year earlier, and operating cash flow was $468.5 million. For the full year, revenue reached $9.10 billion (up from $7.03 billion), net income was $1.02 billion ($28.88 per diluted share vs. $14.60), and operating cash flow was $1.19 billion.

Management noted that full-year results include a $0.25^b per diluted share benefit from interest income on a prior-year tax refund received in April 2025, so underlying earnings growth is somewhat smaller than the headline figures suggest. Backlog is the standout metric. Total backlog reached $11.94 billion at December 31, 2025, up from $9.38 billion at September 30, 2025 and $5.99 billion a year earlier.

On a same-store basis, backlog grew to $11.58 billion^c, and management cited a third consecutive same-store backlog increase exceeding $1 billion. Adjusted EBITDA for the full year was $1.45 billion (16.0% margin), compared with $891.8 million (12.7%) in 2024. Gross margin expanded to 24.1% for the full year from 21.0%, and to 25.5% in the fourth quarter.

The company also announced a quarterly dividend increase to $0.70^d per share from $0.60 in the most recent quarter, payable March 17, 2026 to holders of record on March 6, 2026. The 8-K furnishes the earnings and dividend press releases under Items 2.02 and 8.01, so they are not deemed filed for Exchange Act liability purposes. Investors should weigh the strong growth, margin expansion, and backlog build against the company's concentration in a cyclical construction and project-based business, and against the risks listed in the forward-looking statements, including fixed-price bidding, labor availability, and project execution.

02—Key points

Key Highlights

Q4 2025 revenue of $2.65 billion, up about 42% from $1.87 billion in Q4 2024; Q4 diluted EPS of $9.37 vs. $4.09, more than double.
Full-year 2025 revenue of $9.10 billion (up 29% from $7.03 billion); net income of $1.02 billion, or $28.88 per diluted share vs. $14.60.
Total backlog of $11.94 billion at year-end 2025, up from $5.99 billion a year earlier and $9.38 billion at Q3 2025; same-store backlog of $11.58 billion.
Full-year gross margin expanded to 24.1% from 21.0%; Adjusted EBITDA rose to $1.45 billion (16.0% margin) from $891.8 million (12.7%).
Operating cash flow of $1.19 billion for 2025 (vs. $849.1 million) and free cash flow of $1.04 billion (vs. $743.5 million); Q4 operating cash flow of $468.5 million.
Full-year EPS includes a $0.25 per diluted share one-time benefit from interest income on a prior-year tax refund received in April 2025.
Quarterly dividend increased to $0.70 per share from $0.60, payable March 17, 2026 to holders of record March 6, 2026; full-year 2025 dividends totaled $1.95 per share vs. $1.20 in 2024.

03—Questions

Frequently Asked Questions

How strong was Comfort Systems' growth in Q4 and full-year 2025?
Growth was very strong. Q4 revenue rose about 42% to $2.65 billion, and full-year revenue rose about 29% to $9.10 billion. Net income more than doubled in Q4 and nearly doubled for the full year, to $1.02 billion. Part of the full-year earnings increase reflects a $0.25 per diluted share benefit from tax-refund interest, so the underlying growth is somewhat lower than the reported figure.
What does the backlog increase mean for future revenue?
Backlog of $11.94 billion at year-end 2025 is roughly double the level at the start of the year and about 2.0 times the company's 2025 revenue, which points to multiple years of revenue visibility at current run rates. Backlog is not guaranteed revenue, however. The company's risk factors note that unexpected cancellations or adjustments could prevent backlog from converting into revenue or profit. Management also reported strong pipelines and cited persistent demand.
Did margins improve, or was the profit increase driven only by volume?
Margins improved meaningfully. Full-year gross margin rose to 24.1% from 21.0%, and Q4 gross margin was 25.5% versus 23.2%. Adjusted EBITDA margin expanded to 16.0% from 12.7%. Operating margin rose to 14.4% from 10.7%. The improvement shows the company gained operating leverage on higher volume, not just top-line growth.
Is the dividend increase a sign of confidence in future cash generation?
The board raised the quarterly dividend to $0.70 per share from $0.60, a 17% increase, and full-year 2025 dividends totaled $1.95 per share versus $1.20 in 2024. Free cash flow of $1.04 billion for 2025 covers the dividend comfortably, which supports the view that management is confident in ongoing cash generation. Dividend payments are a board decision and can change in future periods.

04—Continue

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