How strong was the growth in Q1 2026 compared with the prior year?

Revenue increased about 56% to $2.87 billion, net income rose about 120% to $370.4 million, and diluted EPS went to $10.51 from $4.75. Management says organic revenue growth was 51%, so most of the increase came from the existing business rather than acquisitions. Operating income rose to $485.7 million from $209.1 million.

Is the backlog growing and does it support future revenue?

Backlog was $12.45 billion at March 31, 2026, a 4% increase from year-end 2025 and roughly 81% above a year earlier. Management said backlog grew despite higher burn rates, which indicates strong new bookings. Backlog does not guarantee revenue, since cancellations or adjustments can occur, and the company's forward-looking risk disclosures highlight this.

Did the dividend change, and what is the payout?

The board declared a quarterly dividend of $0.80 per share, up $0.10 from $0.70. It is payable May 26, 2026 to stockholders of record at the close of business on May 15, 2026. On an annualized basis that is $3.20 per share. At the diluted share count of about 35.3 million, the quarterly dividend would total roughly $28 million, which is small relative to the quarter's $370 million of net income.

How healthy is the company's cash position and debt load?

Cash and equivalents rose to $1.05 billion, and total debt fell to about $64 million, including $25 thousand of current maturities and $39.1 million of long-term debt, down from about $145 million at year-end 2025. Operating cash flow of $388.8 million funded capital spending of $147.5 million, which was significantly higher than the prior-year level of $22.2 million, indicating ongoing investment in property and equipment.

FIX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 23, 2026. Cited figures are marked; the original filing is the authoritative source.

Comfort Systems USA (NYSE: FIX) reported a very strong first quarter of 2026.

Revenue rose about 56% year over year to $2.87 billion^a, from $1.83 billion. Management attributes 51% of that growth to organic expansion. Net income more than doubled to $370.4 million, or $10.51 per diluted share, versus $4.75 a year earlier.

Gross margin expanded to 26.3% from 22.0%, operating margin to 17.0% from 11.4%, and Adjusted EBITDA reached $524.4 million^b (18.3% margin) versus $242.7 million (13.3%). Operating cash flow swung to a $388.8 million inflow from an $88.0 million outflow, producing free cash flow of $242.2 million after $147.5 million of capital expenditures. The company ended the quarter with $1.05 billion of cash and only about $64 million of total debt, a sharply lower leverage profile than a year ago.

Backlog reached $12.45 billion^c at March 31, 2026, up about 4% from $11.94 billion at year-end 2025 and up roughly 81% from $6.89 billion a year earlier. Same-store backlog was $12.21 billion, against the same $6.89 billion base. Management noted that backlog grew even though burn rates increased, and said it is optimistic about the next several quarters given recent bookings and pipelines.

Separately, the board raised the quarterly dividend by $0.10 to $0.80^d per share, payable May 26, 2026 to holders of record on May 15, 2026, an annualized payout of $3.20. Investors should note that the results were furnished under Item 2.02 rather than filed, and that the company will discuss them on a webcast on April 24, 2026.

02—Key points

Key Highlights

Revenue grew about 56% year over year to $2.87 billion; management cites 51% organic growth.
Net income rose to $370.4 million ($10.51 diluted EPS) from $169.3 million ($4.75), an increase of roughly 120%.
Margins expanded sharply: gross margin 26.3% (vs. 22.0%), operating margin 17.0% (vs. 11.4%), and Adjusted EBITDA margin 18.3% (vs. 13.3%).
Operating cash flow was $388.8 million versus an outflow of $88.0 million a year earlier; free cash flow was $242.2 million versus negative $109.1 million.
Backlog of $12.45 billion at March 31, 2026, up from $11.94 billion at year-end 2025 and $6.89 billion a year earlier; same-store backlog was $12.21 billion.
Quarterly dividend increased 14% to $0.80 per share (from $0.70), payable May 26, 2026 to holders of record May 15, 2026.
Balance sheet strengthened: cash of $1.05 billion and long-term debt reduced to $39 million from $139 million at year-end 2025.

03—Questions

Frequently Asked Questions

How strong was the growth in Q1 2026 compared with the prior year?
Revenue increased about 56% to $2.87 billion, net income rose about 120% to $370.4 million, and diluted EPS went to $10.51 from $4.75. Management says organic revenue growth was 51%, so most of the increase came from the existing business rather than acquisitions. Operating income rose to $485.7 million from $209.1 million.
Is the backlog growing and does it support future revenue?
Backlog was $12.45 billion at March 31, 2026, a 4% increase from year-end 2025 and roughly 81% above a year earlier. Management said backlog grew despite higher burn rates, which indicates strong new bookings. Backlog does not guarantee revenue, since cancellations or adjustments can occur, and the company's forward-looking risk disclosures highlight this.
Did the dividend change, and what is the payout?
The board declared a quarterly dividend of $0.80 per share, up $0.10 from $0.70. It is payable May 26, 2026 to stockholders of record at the close of business on May 15, 2026. On an annualized basis that is $3.20 per share. At the diluted share count of about 35.3 million, the quarterly dividend would total roughly $28 million, which is small relative to the quarter's $370 million of net income.
How healthy is the company's cash position and debt load?
Cash and equivalents rose to $1.05 billion, and total debt fell to about $64 million, including $25 thousand of current maturities and $39.1 million of long-term debt, down from about $145 million at year-end 2025. Operating cash flow of $388.8 million funded capital spending of $147.5 million, which was significantly higher than the prior-year level of $22.2 million, indicating ongoing investment in property and equipment.

04—Continue

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