Core Viewpoint - Comfort Systems (FIX) reported quarterly earnings of $3.74 per share, exceeding the Zacks Consensus Estimate of $3.11 per share, and significantly up from $1.93 per share a year ago [1][6] Earnings Performance - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - The recent quarterly report represents an earnings surprise of 20.26% [6] - Previous quarter's earnings were expected to be $2.26 per share, but the actual earnings were $2.69, resulting in a surprise of 19.03% [6] Revenue Performance - Comfort Systems reported revenues of $1.81 billion for the quarter ended June 2024, which is 9.36% above the Zacks Consensus Estimate and an increase from $1.3 billion year-over-year [7] - The company has topped consensus revenue estimates only once in the last four quarters [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $3.55 on revenues of $1.77 billion, and for the current fiscal year, it is $12.25 on revenues of $6.74 billion [5] - The estimate revisions trend for Comfort Systems is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [4] Industry Context - Comfort Systems operates within the Zacks Building Products - Air Conditioner and Heating industry, which is currently ranked in the top 14% of over 250 Zacks industries [9] - The industry’s performance can significantly impact the stock's performance, with research indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9] Stock Performance - Comfort Systems shares have increased approximately 45.8% since the beginning of the year, compared to a 13.8% gain in the S&P 500 [12]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-13011 COMFORT SYSTEMS USA, INC. (Exact name of registrant as specified in its charter) Delaware (State or other ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Comfort Systems USA reported a record-breaking second quarter for 2024, with revenue increasing to $1.81 billion and net income more than doubling to $134.0 million, or $3.74 per diluted share Q2 2024 vs Q2 2023 Performance | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $1.81 billion | $1.30 billion | +39.2% | | Net Income | $134.0 million | $69.5 million | +92.8% | | Diluted EPS | $3.74 | $1.93 | +93.8% | | Operating Cash Flow | $189.9 million | $125.4 million | +51.4% | Six Months Ended June 30, 2024 vs 2023 Performance | Metric | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $3.35 billion | $2.47 billion | +35.6% | | Net Income | $230.3 million | $126.7 million | +81.8% | | Diluted EPS | $6.43 | $3.53 | +82.2% | | Operating Cash Flow | $336.4 million | $252.3 million | +33.3% | - The quarterly dividend per share was increased from **$0.200** in Q2 2023 to **$0.300** in Q2 2024[25](index=25&type=chunk) [Business Outlook and Backlog](index=1&type=section&id=Business%20Outlook%20and%20Backlog) The company maintains a strong business outlook, supported by an extremely high backlog of $5.77 billion as of June 30, 2024 Backlog Trend (in billions) | Date | Total Backlog | Same-Store Backlog | | :--- | :--- | :--- | | June 30, 2024 | $5.77 | $5.22 | | March 31, 2024 | $5.91 | N/A | | June 30, 2023 | $4.19 | $4.19 | - CEO Brian Lane noted that same-store backlog is **25%** above last year, demand continues at unprecedented levels, and job pipelines are robust, leading to optimism for continued strong results[2](index=2&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The company's statements of operations show significant year-over-year growth for the three and six months ended June 30, 2024, with revenue increasing by 39.2% for the quarter and profitability improving Income Statement Highlights (in thousands) | Metric | Q2 2024 (in thousands) | Q2 2023 (in thousands) | H1 2024 (in thousands) | H1 2023 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,810,290 | $1,296,430 | $3,347,306 | $2,471,070 | | Gross Profit | $363,596 | $227,920 | $660,959 | $433,325 | | Operating Income | $184,670 | $92,082 | $320,130 | $162,967 | | Net Income | $134,009 | $69,476 | $230,328 | $126,692 | - Gross profit margin improved to **20.1%** in Q2 2024 from **17.6%** in Q2 2023, and operating income margin increased to **10.2%** from **7.1%** in the same period[18](index=18&type=chunk) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets grew to $4.21 billion from $3.31 billion at year-end 2023, primarily driven by significant growth in goodwill and identifiable intangible assets Balance Sheet Summary (in thousands) | Account | June 30, 2024 (in thousands) | Dec 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total Current Assets | $2,323,371 | $1,911,100 | | Goodwill | $874,947 | $666,834 | | Total Assets | $4,213,984 | $3,305,579 | | Total Current Liabilities | $2,334,948 | $1,721,205 | | Total Liabilities | $2,731,690 | $2,027,750 | | Total Stockholders' Equity | $1,482,294 | $1,277,829 | [Selected Cash Flow Data](index=9&type=section&id=Selected%20Cash%20Flow%20Data) The company generated strong cash flow from operations, reporting $189.9 million for the second quarter and $336.4 million for the first six months of 2024, both representing significant increases from the prior year Cash Flow Summary (in thousands) | Activity | Q2 2024 (in thousands) | Q2 2023 (in thousands) | H1 2024 (in thousands) | H1 2023 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Operating | $189,858 | $125,410 | $336,415 | $252,319 | | Investing | $(60,786) | $(24,683) | $(282,434) | $(93,628) | | Financing | $(30,445) | $(89,280) | $(59,712) | $(155,898) | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) [Adjusted EBITDA Reconciliation](index=7&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA, a non-GAAP measure, nearly doubled to $222.7 million in Q2 2024 from $111.6 million in Q2 2023, and increased to $392.5 million for the six-month period Adjusted EBITDA (in thousands) | Period | 2024 (in thousands) | 2023 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $222,739 | $111,576 | +99.6% | | Six Months Ended June 30 | $392,546 | $201,888 | +94.4% | - Adjusted EBITDA is calculated by taking net income and adding back items such as provision for income taxes, interest expense, depreciation, amortization, and changes in the fair value of contingent earn-out obligations[6](index=6&type=chunk)[28](index=28&type=chunk) [Free Cash Flow Reconciliation](index=9&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free cash flow, defined as cash from operations less capital expenditures plus proceeds from asset sales, increased significantly to $167.3 million in Q2 2024 and $289.9 million for the first six months Free Cash Flow (in thousands) | Period | 2024 (in thousands) | 2023 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $167,289 | $102,264 | +63.6% | | Six Months Ended June 30 | $289,908 | $213,275 | +35.9% | - The company defines free cash flow as cash flow from operating activities less customary capital expenditures, plus the proceeds from asset sales[10](index=10&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section provides a standard safe harbor statement, cautioning that the press release contains forward-looking statements based on current management expectations, subject to numerous risk factors - The report contains forward-looking statements regarding future business expectations, which are subject to significant risks and uncertainties that could cause actual results to differ materially[24](index=24&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements after they are made[11](index=11&type=chunk)

The Zacks Construction sector is poised to release its second-quarter results amid a challenging environment marked by high interest rates and rising material and labor costs. Although the shortage of existing homes for sale is somewhat driving single-family residential construction, the uncertainty surrounding the Federal Reserve's rate cuts remains a significant obstacle. Nevertheless, the sector is benefiting from a substantial infrastructure drive led by the U.S. government, as well as growth in the tel ...

Comfort Systems has an impressive track record of surpassing earnings expectations, exceeding the consensus mark in each of the last four quarters. The average surprise over this period is 20%, as shown in the chart below. The Zacks Consensus Estimate for the second-quarter EPS has increased to $3.11 from $3.04 over the past seven days. The estimated figure indicates a 61.1% increase from the year-ago EPS of $1.93. Also, the consensus mark for revenues is $1.66 billion, indicating 27.7% year-over-year growt ...

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Comfort Systems (FIX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question. The Zacks Rank is a proven system that emphasizes earnings estimates an ...

Core Viewpoint - Comfort Systems has a strong track record of exceeding earnings estimates, with an average surprise of 18.82% over the last two quarters [1] Earnings Performance - For the last reported quarter, Comfort Systems achieved earnings of $2.69 per share, surpassing the Zacks Consensus Estimate of $2.26 per share, resulting in a surprise of 19.03% [6] - In the previous quarter, the company was expected to report earnings of $2.15 per share but delivered $2.55 per share, yielding a surprise of 18.60% [6] Earnings ESP and Analyst Sentiment - Comfort Systems currently has an Earnings ESP of +2.25%, indicating a bullish outlook from analysts regarding the company's earnings prospects [3] - The positive Earnings ESP, combined with a Zacks Rank of 3 (Hold), suggests a high likelihood of another earnings beat in the upcoming report [3][7] Importance of Earnings ESP - The Earnings ESP is a critical metric to assess before a company's quarterly release, as it can enhance the probability of success in predicting earnings outcomes [4] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions which may provide more accurate predictions [8]

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Comfort Systems (FIX) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question. Comfort Systems is one of 94 companies in the Construction group. The Construction group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank consider ...

Shares of the heating, ventilation and air conditioning company have depreciated by 7.22% over the course of the past month, underperforming the Construction sector's loss of 5% and the S&P 500's gain of 3.38%. The upcoming earnings release of Comfort Systems will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.04, reflecting a 57.51% increase from the same quarter last year. It's also important for investors to be aware of any recent modifications to analyst ...

Comfort Systems USA, Inc.'s (FIX) shares have surged 56.1% in the year-to-date period, outperforming the Zacks Building Products - Air Conditioner and Heating industry's 17.7% growth. The share price trend can be compared with a few similar companies including Watsco, Inc. (WSO) , AAON, Inc. (AAON) , and EMCOR Group, Inc. (EME) , whose shares gained 8.9%, 14.3%, and 75.7%, respectively. Image Source: Zacks Investment Research Despite consistent investment activities and increased expense scenario, FIX focus ...