There's always a reason why stocks trade near their all-time highs, usually because they are firing on all cylinders. That's certainly the case with Comfort Systems (FIX -0.60%), Watsco (WSO -0.93%), and nVent Electric (NVT -1.35%). All three have excellent tailwinds behind them, making them attractive stocks for investors who like to buy high and sell higher.Comfort SystemsYou can always find pockets of growth in an economy, even in the slowing one we have now. One such pocket is shown in the remarkable ch ...

HOUSTON--(BUSINESS WIRE)--Comfort Systems USA, Inc. (NYSE: FIX), a leading provider of mechanical and electrical contracting services including heating, ventilation, air conditioning, plumbing, electrical, piping and controls, announces that it has scheduled its quarterly conference call and webcast for Friday, February 23, 2024, at 10:00 a.m. Central Time to discuss fourth quarter and full year 2023 financial results. The results will be released after the market closes on Thursday, February 22, 2024. The ...

Comfort Systems USA, Inc. (FIX) strengthened its market standing by acquiring J & S Mechanical Contractors, Inc., based in West Jordan, UT. Founded in 1976, J & S specializes in mechanical construction services across the Mountain West region, undertaking complex projects for commercial and industrial clients.This strategic move is expected to contribute significantly to Comfort Systems' growth, with J & S initially adding annualized revenues ranging from $145 million to $160 million. Moreover, J & S is ant ...

Comfort Systems USA, Inc. (FIX) successfully completed the acquisition of Summit Industrial Construction, LLC. Summit, a specialized industrial mechanical contractor, enhances Comfort Systems' capabilities in engineering, design-assist, and turnkey construction services for modular systems.Shares of Comfort Systems have gained 3.5% during the trading session on Feb 1 and 0.9% in the after-hour trading session on the same day.Serving advanced technology, power, and industrial sectors, Summit brings a stellar ...

LITTLE ROCK, Ark.--(BUSINESS WIRE)--The Stephens Group, LLC (“The Stephens Group”) today announced that it has closed its previously announced sale of Summit Industrial Construction, LLC (“Summit”) headquartered in Houston, Texas, to Comfort Systems USA, Inc. (NYSE: FIX) (“Comfort Systems”). Summit is a specialty industrial mechanical contractor offering engineering, design-assist and turnkey, direct hire construction services of modular systems serving the advanced technology, power, and industrial sect ...

SALT LAKE CITY--(BUSINESS WIRE)--Crewe Capital (Crewe), one of the nation’s leading boutique investment banks, has successfully orchestrated a pivotal transaction for J & S Mechanical Contractors, Inc. (J & S), securing a strategic acquisition by Comfort Systems USA Inc. (NYSE: FIX). Crewe served as the exclusive transactional advisor to J & S, a West Jordan, Utah-headquartered mechanical construction services firm, to deliver on the owners’ desires to source a partner to continue the company’s long hist ...

HOUSTON--(BUSINESS WIRE)--Comfort Systems USA, Inc. (NYSE: FIX) (the “Company”) today announced that it has closed its previously announced transaction to acquire Summit Industrial Construction, LLC (“Summit”) headquartered in Houston, Texas. As previously disclosed, Summit is a specialty industrial mechanical contractor offering engineering, design-assist and turnkey, direct hire construction services of modular systems serving the advanced technology, power, and industrial sectors. Summit’s capabilities ...

Revenue and Profitability - Revenue for Q3 2023 increased by $258.1 million, or 23.0%, to $1.38 billion compared to Q3 2022, driven by a 20.0% increase in same-store activity and a 3.0% contribution from the Eldeco acquisition [160]. - Gross profit for Q3 2023 was $277.5 million, representing a gross margin of 20.1%, compared to $202.2 million and 18.1% in Q3 2022 [159]. - Net income for Q3 2023 was $105.1 million, a 7.6% increase from $61.5 million in Q3 2022 [159]. - Revenue for the third quarter of 2023 reached $1.38 billion, a 23% increase from $1.12 billion in the same quarter of 2022 [204]. - Gross profit for the third quarter of 2023 was $277.5 million, compared to $202.2 million in the third quarter of 2022, reflecting a significant increase [204]. Backlog and Projects - The backlog as of September 30, 2023, was $4.29 billion, up from $4.06 billion at December 31, 2022, with the mechanical segment accounting for 72.7% and the electrical segment for 27.3% [165]. - The company had 10,412 projects in process as of September 30, 2023, with an average contract price of approximately $1.0 million [166]. Segment Performance - The electrical segment revenue for Q3 2023 increased by $85.6 million, or 32.8%, to $346.8 million, primarily due to the Eldeco acquisition and increased activity in the technology sector [162]. - The acquisition of DECCO, Inc. is expected to contribute annualized revenues of approximately $55 to $65 million, enhancing the mechanical segment [204]. Operating Leases and Expenses - The weighted average discount rate for operating leases as of September 30, 2023, was 5.8%, compared to 4.3% at December 31, 2022 [171]. - Operating lease expense for Q3 2023 was $25.7 million, up from $13.1 million in Q3 2022 [174]. - Total lease payments amount to $301.49 million, with a present value of operating lease liabilities at $214.8 million as of September 30, 2023 [179]. - Operating lease right-of-use assets increased to $209.1 million as of September 30, 2023, up from $130.7 million at the end of 2022 [193]. - Rent paid to related parties for the three months ended September 30, 2023, was approximately $1.9 million, compared to $1.7 million in the same period of 2022 [192]. Compliance and Financial Health - The company was in compliance with all financial covenants as of September 30, 2023 [189]. - Future principal payments of notes to former owners total $47.1 million as of September 30, 2023 [190]. Share Repurchase and Gains - The company repurchased 0.1 million shares for approximately $8.6 million at an average price of $134.53 per share during the nine months ended September 30, 2023 [202]. - The company recorded a pre-tax gain of $6.8 million in Q1 2023 from legal settlements, impacting gross profit positively by $6.6 million [196]. Maintenance and Repair Services - Approximately 11.2% of revenue comes from maintenance and repair services on installed systems, which typically take a few hours to a few days to complete [168].

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, 2023 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 Performance - Revenue for the first quarter of 2023 was $1.2 billion, an increase of $289 million or 33% compared to last year [45] - Gross profit was $205 million for the first quarter, a $52 million improvement compared to a year ago [24] - Free cash flow for the first quarter was $111 million, driven by advanced billings and deferred revenue [10] - Net income for the first quarter was $57 million or $1.59 per share, with a quarterly EPS increase of 66% [50][51] Business Line Performance - Mechanical services segment revenue increased by 35% to $236 million, while electrical services segment revenue increased by 26% [45] - Service revenue grew rapidly, increasing by 21% compared to last year, with service projects providing 9% and pure service providing 11% of total revenue [35][57] - Margins in the electrical segment rose to 16.1% from 13.0% in 2022 [25] Market Performance - Industrial customers accounted for 51% of total revenue, marking the first time this sector surpassed 50% of volume [11] - Institutional markets, including education, healthcare, and government, represented 28% of revenue [34] - The backlog at the end of the first quarter was a record $4.4 billion, with a same-store increase of $1.6 billion or 58% from a year ago [22][55] Company Strategy and Industry Competition - The company remains optimistic about continued growth and strong profitability in 2023, driven by strong demand and execution [36] - The company is focusing on expanding its modular construction capacity and investing in new technology [56][53] - The competitive landscape is evolving, with a focus on maintaining a skilled workforce and adapting to market changes [71][102] Management Commentary on Operating Environment and Future Outlook - Management noted that the demand environment is expected to remain strong due to government funding and advanced bookings [5][36] - There is uncertainty regarding the impact of tax changes on cash flow and potential M&A opportunities [73][99] - Management emphasized the importance of backlog as a key indicator of future performance, with no current signs of demand weakness [77] Other Important Information - The company increased its dividend by $0.025 per share to $0.20 per share, reflecting strong cash flow [44] - Capital expenditures for the quarter were $17 million, an 80% increase compared to the prior year [31] - The company is facing a cash flow headwind due to changes in the deductibility of research expenditures [52] Q&A Session Summary Question: How is the company managing cash flow uncertainty? - Management indicated that strong cash flow allows for flexibility in capital expenditures and M&A activities [62] Question: What are the expectations for backlog dynamics? - Management noted that while backlog may decline as inflation moderates, underlying demand remains strong [68] Question: How is the service business continuing to grow? - The company has made significant commitments to training and expanding its service capabilities, contributing to growth [79] Question: What is the outlook for modular construction capacity? - Management confirmed that capacity additions are on schedule and they are evaluating opportunities for further expansion [87] Question: How does the company view the M&A landscape? - The company is taking a patient approach to M&A, focusing on high conviction opportunities [89]