Core Insights - Comfort Systems (FIX) reported quarterly earnings of $4.75 per share, exceeding the Zacks Consensus Estimate of $3.66 per share, and showing a significant increase from $2.69 per share a year ago, resulting in an earnings surprise of 29.78% [1] - The company achieved revenues of $1.83 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.52% and up from $1.54 billion year-over-year [2] - Comfort Systems has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.21 on revenues of $1.92 billion, while for the current fiscal year, the estimate is $17.87 on revenues of $7.55 billion [7] - The estimate revisions trend for Comfort Systems is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Building Products - Air Conditioner and Heating industry, to which Comfort Systems belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Comfort Systems may be influenced by the overall industry outlook, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

[PART I—FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1—Financial Statements](index=4&type=section&id=Item%201%E2%80%94Financial%20Statements) Unaudited consolidated financial statements for Q1 2025, including Balance Sheets, Operations, Equity, Cash Flows, and significant accounting notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) - Cash and cash equivalents decreased significantly from **$549,939 thousand** at December 31, 2024, to **$204,758 thousand** at March 31, 2025[11](index=11&type=chunk) - Goodwill increased from **$875,270 thousand** at December 31, 2024, to **$905,843 thousand** at March 31, 2025, primarily due to acquisitions[11](index=11&type=chunk) | Metric | March 31, 2025 (Unaudited) | December 31, 2024 | | :----------------------------------- | :-------------------------- | :------------------ | | Total current assets | $2,597,499 | $2,790,241 | | Total assets | $4,569,218 | $4,711,088 | | Total current liabilities | $2,411,244 | $2,582,770 | | Total liabilities | $2,792,205 | $3,006,412 | | Total stockholders' equity | $1,777,013 | $1,704,676 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) - Gross profit margin improved from **19.3%** in Q1 2024 to **22.0%** in Q1 2025[13](index=13&type=chunk) - Selling, General and Administrative Expenses increased from **$162,723 thousand** in Q1 2024 to **$194,874 thousand** in Q1 2025[13](index=13&type=chunk) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change (YoY) | | :----------------------------------- | :-------------------------------- | :-------------------------------- | :----------- | | Revenue | $1,831,286 | $1,537,016 | +19.1% | | Gross profit | $403,416 | $297,363 | +35.7% | | Operating income | $209,098 | $135,460 | +54.4% | | Net income | $169,289 | $96,319 | +75.8% | | Basic income per share | $4.77 | $2.70 | +76.7% | | Diluted income per share | $4.75 | $2.69 | +76.6% | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) - The company repurchased **264,054 shares** of treasury stock for **$92,243 thousand** during the three months ended March 31, 2025[16](index=16&type=chunk) - Dividends of **$0.40 per share** were paid, totaling **$14,162 thousand**, in Q1 2025, an increase from **$0.25 per share** (**$8,921 thousand**) in Q1 2024[16](index=16&type=chunk) | Metric | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Total Stockholders' Equity | $1,777,013 | $1,704,676 | | Retained Earnings | $1,782,457 | $1,627,330 | | Treasury Stock (Amount) | $(367,508) | $(273,799) | | Treasury Stock (Shares) | (5,815,389) | (5,562,453) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) - Cash used in operating activities increased significantly by **$234.5 million** YoY, primarily due to a **$431.3 million** decrease in accounts payable and other current liabilities and a federal tax payment[19](index=19&type=chunk)[154](index=154&type=chunk) - Cash used in investing activities decreased by **$124.9 million** YoY, mainly due to lower cash paid for acquisitions[19](index=19&type=chunk)[156](index=156&type=chunk) - Cash used in financing activities increased by **$131.2 million** YoY, driven by a **$91.1 million** increase in share repurchases[19](index=19&type=chunk)[157](index=157&type=chunk) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Operating Activities | $(87,950) | $146,557 | | Investing Activities | $(96,783) | $(221,648) | | Financing Activities | $(160,448) | $(29,267) | | Net Decrease in Cash and Cash Equivalents | $(345,181) | $(104,358) | | Cash and Cash Equivalents, end of period | $204,758 | $100,792 | [Condensed Notes to Consolidated Financial Statements](index=10&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) [1. Business and Organization](index=10&type=section&id=1.%20Business%20and%20Organization) - Comfort Systems USA, Inc. provides comprehensive mechanical and electrical contracting services, including HVAC, plumbing, electrical, piping, controls, off-site construction, monitoring, and fire protection, across the United States[21](index=21&type=chunk) [2. Summary of Significant Accounting Policies and Estimates](index=10&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies%20and%20Estimates) [Basis of Presentation](index=10&type=section&id=Basis%20of%20Presentation) - Interim financial statements are prepared using GAAP for interim financial information and SEC rules, and should be read with the Annual Report on Form 10-K for the year ended December 31, 2024[22](index=22&type=chunk)[23](index=23&type=chunk) [Use of Estimates](index=10&type=section&id=Use%20of%20Estimates) - Significant estimates include revenue and cost recognition for construction contracts, self-insurance accruals, income taxes, fair value accounting for acquisitions, and goodwill impairment testing[24](index=24&type=chunk) [Recent Accounting Pronouncements](index=10&type=section&id=Recent%20Accounting%20Pronouncements) - ASU 2023-09 (Income Taxes) is effective for fiscal years beginning after December 15, 2024, requiring more detailed tax rate reconciliation and income tax disclosures, with no impact on financial position, results, or cash flows[25](index=25&type=chunk) - ASU 2024-03 (Expense Disaggregation) is effective for fiscal years beginning after December 15, 2026, requiring disaggregated income statement expense information, with no impact on financial position, results, or cash flows[26](index=26&type=chunk)[27](index=27&type=chunk) [Revenue Recognition](index=12&type=section&id=Revenue%20Recognition) - Revenue is recognized over time for all services using a cost-to-cost input method, as control continuously transfers to the customer and the company has a right to payment for work performed[28](index=28&type=chunk)[29](index=29&type=chunk) - For service maintenance agreements, revenue is recognized over time based on the proportion of services provided out of the total contracted time[30](index=30&type=chunk) [Accounts Receivable and Allowance for Credit Losses](index=12&type=section&id=Accounts%20Receivable%20and%20Allowance%20for%20Credit%20Losses) - Expected credit losses are estimated using a loss-rate method for construction, service, and other portfolio segments, considering historical data, customer financial strength, aging, macroeconomic trends, and specific high-risk receivables[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) [Unbilled Accounts Receivable](index=14&type=section&id=Unbilled%20Accounts%20Receivable) - Unbilled accounts receivable represent earned amounts where the right to payment is unconditional, expected to be billed and collected in the normal course of business[35](index=35&type=chunk) [Income Taxes](index=14&type=section&id=Income%20Taxes) - The effective tax rate is influenced by profitability in various jurisdictions, discrete items like tax law changes, and the tax treatment of goodwill impairment and acquisition-related assets/liabilities[36](index=36&type=chunk) - In Q1 2025, the provision for income taxes was reduced by **$8.9 million** (net of tax) from interest income on a **$107.1 million** federal tax overpayment refund received in April 2025[37](index=37&type=chunk) [Financial Instruments](index=14&type=section&id=Financial%20Instruments) - Financial instruments include cash, U.S. Treasury bills, receivables, payables, notes to former owners, and a revolving credit facility; carrying values approximate fair values for short-term instruments[38](index=38&type=chunk) [Investments](index=14&type=section&id=Investments) - The company holds a **$6.8 million** investment in a construction-focused technology fund recorded at cost and a **$7.3 million** investment in U.S. Treasury bills (maturities 90 days to one year) recorded at amortized cost[39](index=39&type=chunk) [3. Revenue from Contracts with Customers](index=14&type=section&id=3.%20Revenue%20from%20Contracts%20with%20Customers) [Revenue Recognition Principles](index=14&type=section&id=Revenue%20Recognition%20Principles) - Revenue is recognized when control of goods/services transfers to customers, based on fixed or variable consideration, with variable amounts included if a significant reversal of cumulative revenue is improbable[40](index=40&type=chunk)[41](index=41&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) - Contract modifications are recognized as cumulative adjustments to revenue, and management periodically reviews estimates at completion, recognizing adjustments quarterly[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[50](index=50&type=chunk) - Net revenue from performance obligations partially satisfied in the previous period positively impacted revenue by **5.8%** in Q1 2025 (vs. **4.1%** in Q1 2024) due to changes in estimates[51](index=51&type=chunk) [Disaggregation of Revenue](index=18&type=section&id=Disaggregation%20of%20Revenue) Revenue by Service Provided | Service Provided | Three Months Ended March 31, 2025 | % of Total | Three Months Ended March 31, 2024 | % of Total | | :----------------- | :-------------------------------- | :--------- | :-------------------------------- | :--------- | | Mechanical Segment | $1,402,215 | 76.6% | $1,185,009 | 77.1% | | Electrical Segment | $429,071 | 23.4% | $352,007 | 22.9% | | Total | $1,831,286 | 100.0% | $1,537,016 | 100.0% | Revenue by Type of Customer | Customer Type | Three Months Ended March 31, 2025 | % of Total | Three Months Ended March 31, 2024 | % of Total | | :------------------------------ | :-------------------------------- | :--------- | :-------------------------------- | :--------- | | Technology | $677,553 | 37.0% | $464,814 | 30.2% | | Manufacturing | $452,786 | 24.7% | $461,400 | 30.0% | | Healthcare | $182,542 | 10.0% | $133,729 | 8.7% | | Education | $161,242 | 8.8% | $133,983 | 8.7% | | Office Buildings | $122,526 | 6.7% | $101,892 | 6.6% | | Government | $96,281 | 5.3% | $87,801 | 5.7% | | Retail, Restaurants and Entertainment | $77,009 | 4.2% | $80,585 | 5.2% | | Multi-Family and Residential | $28,353 | 1.5% | $40,851 | 2.7% | | Other | $32,994 | 1.8% | $31,961 | 2.2% | | Total | $1,831,286 | 100.0% | $1,537,016 | 100.0% | Revenue by Activity Type | Activity Type | Three Months Ended March 31, 2025 | % of Total | Three Months Ended March 31, 2024 | % of Total | | :------------------------------ | :-------------------------------- | :--------- | :-------------------------------- | :--------- | | New Construction | $1,065,084 | 58.2% | $898,976 | 58.5% | | Existing Building Construction | $492,603 | 26.9% | $390,369 | 25.4% | | Service Projects | $119,214 | 6.5% | $104,114 | 6.8% | | Service Calls, Maintenance and Monitoring | $154,385 | 8.4% | $143,557 | 9.3% | | Total | $1,831,286 | 100.0% | $1,537,016 | 100.0% | [Contract Assets and Liabilities](index=18&type=section&id=Contract%20Assets%20and%20Liabilities) - Contract assets (costs in excess of billings) increased from **$91,681 thousand** at December 31, 2024, to **$227,678 thousand** at March 31, 2025[55](index=55&type=chunk) - Contract liabilities (billings in excess of costs and deferred revenue) increased from **$1,149,257 thousand** at December 31, 2024, to **$1,267,373 thousand** at March 31, 2025[55](index=55&type=chunk) - Revenue recognized from contract liabilities at January 1, 2025, was **$655.7 million**, up from **$547.5 million** in the prior year[55](index=55&type=chunk) [Remaining Performance Obligations](index=20&type=section&id=Remaining%20Performance%20Obligations) - As of March 31, 2025, remaining performance obligations totaled **$6.89 billion**, with **65-75%** expected to be recognized over the next 12 months[57](index=57&type=chunk) [4. Fair Value Measurements](index=20&type=section&id=4.%20Fair%20Value%20Measurements) [Interest Rate Risk Management and Derivative Instruments](index=20&type=section&id=Interest%20Rate%20Risk%20Management%20and%20Derivative%20Instruments) - The company uses derivative instruments, such as interest rate swaps, to manage interest rate risk, with gains/losses recorded in interest expense; currently, no derivatives are accounted for as hedges[58](index=58&type=chunk) [Fair Value Measurement Hierarchy](index=20&type=section&id=Fair%20Value%20Measurement%20Hierarchy) Fair Value Measurements at March 31, 2025 | Asset/Liability | Level 1 | Level 2 | Level 3 | Total | | :------------------------ | :------ | :------ | :------ | :------ | | Cash and cash equivalents | $204,758 | $— | $— | $204,758 | | U.S. Treasury bills | $— | $7,274 | $— | $7,274 | | Contingent earn-out obligations | $— | $— | $63,768 | $63,768 | Fair Value Measurements at December 31, 2024 | Asset/Liability | Level 1 | Level 2 | Level 3 | Total | | :------------------------ | :------ | :------ | :------ | :------ | | Cash and cash equivalents | $549,939 | $— | $— | $549,939 | | Contingent earn-out obligations | $— | $— | $140,156 | $140,156 | - Contingent earn-out obligations are Level 3 measurements, valued using a probability-weighted discounted cash flow method with a weighted average cost of capital of **19.5%** as of March 31, 2025[62](index=62&type=chunk) [Reconciliation of Level 3 Fair Value Measurements](index=22&type=section&id=Reconciliation%20of%20Level%203%20Fair%20Value%20Measurements) Contingent Earn-out Obligations (Level 3) Reconciliation | Metric | Three Months Ended March 31, 2025 | Year Ended December 31, 2024 | | :------------------------ | :-------------------------------- | :----------------------------- | | Balance at beginning of period | $140,156 | $44,222 | | Issuances | $218 | $51,784 | | Settlements | $(80,364) | $(43,996) | | Adjustments to fair value | $3,758 | $88,146 | | Balance at end of period | $63,768 | $140,156 | [5. Acquisitions](index=22&type=section&id=5.%20Acquisitions) [Summit Industrial Construction, LLC Acquisition](index=22&type=section&id=Summit%20Industrial%20Construction,%20LLC%20Acquisition) - On February 1, 2024, Comfort Systems acquired Summit Industrial Construction, LLC for **$359.8 million**, including **$267.5 million** cash, **$35.0 million** in notes, and **$42.7 million** in contingent earn-out payments[64](index=64&type=chunk)[66](index=66&type=chunk) - The acquisition resulted in **$155.3 million** in goodwill and **$170.1 million** in identifiable intangible assets (backlog, trade name, customer relationships), with fair values estimated using excess earnings and relief-from-royalty methods[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) [J & S Mechanical Contractors, Inc. Acquisition](index=26&type=section&id=J%20%26%20S%20Mechanical%20Contractors,%20Inc.%20Acquisition) - On February 1, 2024, Comfort Systems acquired J & S Mechanical Contractors, Inc. for **$120.6 million**, including **$100.0 million** cash, **$10.0 million** in notes, and **$9.1 million** in contingent earn-out payments[71](index=71&type=chunk)[72](index=72&type=chunk) - The acquisition resulted in **$40.7 million** in goodwill and **$63.3 million** in identifiable intangible assets (backlog, trade name, customer relationships), valued similarly to Summit's acquisition[72](index=72&type=chunk)[73](index=73&type=chunk)[75](index=75&type=chunk) [Other Acquisitions](index=28&type=section&id=Other%20Acquisitions) - On January 1, 2025, Century Contractors, LLC was acquired for a preliminary price of **$84.2 million** (**$73.1 million** cash, **$5.5 million** notes, earn-out), specializing in mechanical installation and pipe fabrication[76](index=76&type=chunk) - On May 1, 2024, a North Carolina plumbing service provider was acquired for a preliminary price of **$39.9 million**[77](index=77&type=chunk) [6. Goodwill and Identifiable Intangible Assets, Net](index=28&type=section&id=6.%20Goodwill%20and%20Identifiable%20Intangible%20Assets,%20Net) [Goodwill](index=28&type=section&id=Goodwill) - Goodwill increased by **$30,573 thousand** in Q1 2025 due to acquisitions and purchase price adjustments, primarily in the Mechanical Segment[79](index=79&type=chunk) Goodwill Carrying Amount | Segment | December 31, 2023 | December 31, 2024 | March 31, 2025 | | :----------------- | :------------------ | :------------------ | :------------- | | Mechanical Segment | $393,276 | $601,512 | $632,085 | | Electrical Segment | $273,558 | $273,758 | $273,758 | | Total | $666,834 | $875,270 | $905,843 | [Identifiable Intangible Assets, Net](index=30&type=section&id=Identifiable%20Intangible%20Assets,%20Net) Future Amortization Expense of Identifiable Intangible Assets (as of March 31, 2025) | Year Ending December 31 | Amount (in thousands) | | :------------------------ | :-------------------- | | 2025 (remainder) | $51,221 | | 2026 | $58,766 | | 2027 | $56,282 | | 2028 | $54,735 | | 2029 | $48,468 | | Thereafter | $172,030 | | Total | $441,502 | [7. Debt Obligations](index=30&type=section&id=7.%20Debt%20Obligations) [Revolving Credit Facility](index=30&type=section&id=Revolving%20Credit%20Facility) - The company has an **$850.0 million** senior credit facility expiring in July 2027, with no outstanding borrowings as of March 31, 2025, and **$766.8 million** of credit available[83](index=83&type=chunk)[84](index=84&type=chunk) - As of March 31, 2025, **$83.2 million** in letters of credit were outstanding, primarily for self-funded insurance programs, with **$61.2 million** expiring in 2025 and **$22.0 million** in 2026[83](index=83&type=chunk)[166](index=166&type=chunk)[85](index=85&type=chunk) - The facility includes floating interest rates (Base Rate Loan or SOFR Loan options) with additional margins based on Net Leverage Ratio, and commitment fees on unused capacity[84](index=84&type=chunk)[86](index=86&type=chunk) [Notes to Former Owners](index=32&type=section&id=Notes%20to%20Former%20Owners) Future Principal Payments of Notes to Former Owners (as of March 31, 2025) | Maturity Year | Balance (in thousands) | Range of Stated Interest Rates | | :-------------- | :--------------------- | :----------------------------- | | 2026 | $30,625 | 2.5% - 5.5% | | 2027 | $31,500 | 4.3% - 5.5% | | 2028 | $5,000 | 5.5% | | Total | $67,125 | | [8. Leases](index=32&type=section&id=8.%20Leases) - The company leases facilities, vehicles, and equipment, primarily under noncancelable operating leases, with a weighted average discount rate of **6.1%** for operating leases[88](index=88&type=chunk) - Operating lease expense for Q1 2025 was **$36.9 million**, up from **$28.2 million** in Q1 2024, with variable and short-term lease expenses aggregating to **$25.8 million**[88](index=88&type=chunk) Operating Lease Assets and Liabilities (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Operating lease right-of-use assets | $226,620 | $229,106 | | Total operating lease liabilities | $238,332 | $240,265 | [9. Commitments and Contingencies](index=34&type=section&id=9.%20Commitments%20and%20Contingencies) [Claims and Lawsuits](index=34&type=section&id=Claims%20and%20Lawsuits) - The company is subject to legal and regulatory claims, with accruals for probable losses deemed immaterial to operating results, cash flows, or financial condition[95](index=95&type=chunk)[96](index=96&type=chunk) [Surety](index=35&type=section&id=Surety) - Performance and payment bonds are required by many customers, with the company reimbursing sureties for any outlays; **10-20%** of business historically requires bonds[97](index=97&type=chunk)[98](index=98&type=chunk) [Self-Insurance](index=35&type=section&id=Self-Insurance) - The company is substantially self-insured for workers' compensation, employer's liability, auto liability, general liability, and employee group health claims, with losses estimated and accrued based on facts, trends, and actuarial reviews[99](index=99&type=chunk) [10. Stockholders' Equity](index=35&type=section&id=10.%20Stockholders'%20Equity) [Earnings Per Share](index=35&type=section&id=Earnings%20Per%20Share) - Basic EPS is calculated by dividing net income by weighted average common shares outstanding; diluted EPS considers the dilutive effect of stock options, restricted stock, and performance stock units[100](index=100&type=chunk)[101](index=101&type=chunk) Shares Used in Computing Income Per Share (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Shares used in computing earnings per share—basic | 35,524 | 35,739 | | Shares used in computing earnings per share—diluted | 35,605 | 35,828 | [Share Repurchase Program](index=37&type=section&id=Share%20Repurchase%20Program) - The Board approved a stock repurchase program for **11.4 million shares** since inception; as of March 31, 2025, **10.7 million shares** have been repurchased at an average price of **$39.26 per share**[104](index=104&type=chunk) - During Q1 2025, the company repurchased **0.3 million shares** for approximately **$92.2 million** at an average price of **$349.34 per share**[105](index=105&type=chunk) [11. Segment Information](index=37&type=section&id=11.%20Segment%20Information) - The company operates in two reportable segments: Mechanical Services and Electrical Services, with financial information reviewed by the CODM based on revenue, gross profit, and operating income[106](index=106&type=chunk) Segment Revenue and Operating Income (Three Months Ended March 31, 2025) | Segment | Revenue | Operating Income | | :----------------- | :---------- | :--------------- | | Mechanical Segment | $1,402,215 | $172,601 | | Electrical Segment | $429,071 | $55,055 | | Corporate | $— | $(18,558) | | Consolidated | $1,831,286 | $209,098 | Segment Revenue and Operating Income (Three Months Ended March 31, 2024) | Segment | Revenue | Operating Income | | :----------------- | :---------- | :--------------- | | Mechanical Segment | $1,185,009 | $107,304 | | Electrical Segment | $352,007 | $46,017 | | Corporate | $— | $(17,861) | | Consolidated | $1,537,016 | $135,460 | [Item 2—Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202%E2%80%94Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of Q1 2025 financial condition and results, covering business, operations, economic factors, performance, and future outlook [Introduction and Overview](index=40&type=section&id=Introduction%20and%20Overview) - Comfort Systems USA is a national provider of mechanical and electrical installation, renovation, maintenance, repair, and replacement services, operating in commercial, industrial, and institutional markets[109](index=109&type=chunk) [Nature and Economics of Our Business](index=40&type=section&id=Nature%20and%20Economics%20of%20Our%20Business) - The mechanical segment focuses on HVAC, plumbing, piping, and controls, while the electrical segment handles electrical construction, engineering, logistics, and service work[110](index=110&type=chunk)[111](index=111&type=chunk) - Approximately **91.6%** of revenue comes from project-based installation services, typically fixed-price contracts, with labor, materials, and overhead as major cost components[113](index=113&type=chunk)[116](index=116&type=chunk) Stratification of Projects in Progress by Contract Price (as of March 31, 2025) | Contract Price of Project | No. of Projects | Aggregate Contract Price Value (millions) | | :------------------------ | :-------------- | :---------------------------------------- | | Under $2 million | 7,567 | $1,690.4 | | $2 million - $10 million | 831 | $3,588.6 | | $10 million - $20 million | 136 | $1,922.7 | | $20 million - $40 million | 130 | $3,679.6 | | Greater than $40 million | 86 | $5,547.5 | | Total | 8,750 | $16,428.8 | [Profile and Management of Our Operations](index=44&type=section&id=Profile%20and%20Management%20of%20Our%20Operations) - Operations are managed across **48 units**, emphasizing profitability, cash flow, working capital, SG&A, backlog, workforce, and growth, alongside operational factors like project selection, safety, and labor utilization[123](index=123&type=chunk)[134](index=134&type=chunk) - Attracting and retaining effective operating unit managers is crucial due to local market uniqueness, customer relationships, and high competition[124](index=124&type=chunk) [Economic and Industry Factors](index=44&type=section&id=Economic%20and%20Industry%20Factors) - The company operates in the nonresidential construction services industry, influenced by macroeconomic factors like GDP, interest rates, business investment, and government fiscal conditions[125](index=125&type=chunk) - Spending decisions for construction and renovation projects are significantly affected by economic uncertainty[126](index=126&type=chunk) [Operating Environment and Management Emphasis](index=44&type=section&id=Operating%20Environment%20and%20Management%20Emphasis) - Demand increased in 2022-2024, with high demand expected in 2025, especially from manufacturing and technology customers, despite persistent labor cost increases and supply chain delays[127](index=127&type=chunk) - The company maintains a strong balance sheet, favorable credit facility, and surety relationships, which are considered competitive advantages[128](index=128&type=chunk)[129](index=129&type=chunk) - Management emphasizes investing in service business, pursuing active market sectors, and growing regional and national account business amidst ongoing price competition[130](index=130&type=chunk) [Cyclicality and Seasonality](index=46&type=section&id=Cyclicality%20and%20Seasonality) - The construction industry is subject to business cycle fluctuations, with demand for new installations and renovations potentially declining during economic weakness[131](index=131&type=chunk) - Seasonal variations lead to lower revenue and operating results in Q1 due to reduced construction activity and less air conditioning use, with higher demand in Q2 and Q3[132](index=132&type=chunk) [Critical Accounting Estimates](index=46&type=section&id=Critical%20Accounting%20Estimates) - No significant changes to critical accounting estimates were identified during the three months ended March 31, 2025, as disclosed in the 2024 Form 10-K[133](index=133&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) [Revenue](index=48&type=section&id=Revenue) - Same-store revenue growth was driven by strong market conditions and increased backlog, particularly in the technology sector (data centers)[135](index=135&type=chunk) Revenue Performance (Three Months Ended March 31) | Metric | 2025 | 2024 | Change (YoY) | | :----------------- | :---------- | :---------- | :----------- | | Total Revenue | $1,831,286 | $1,537,016 | +19.1% | | Same-store revenue increase | | | +15.4% | | Acquisition-related revenue increase | | | +3.7% | Segment Revenue Growth (Three Months Ended March 31) | Segment | 2025 Revenue | 2024 Revenue | Change (YoY) | | :----------------- | :----------- | :----------- | :----------- | | Mechanical Segment | $1,402,215 | $1,185,009 | +18.3% | | Electrical Segment | $429,071 | $352,007 | +21.9% | Backlog Performance (in thousands) | Backlog | March 31, 2025 | December 31, 2024 | March 31, 2024 | Change (QoQ) | Change (YoY) | | :----------------- | :------------- | :---------------- | :------------- | :----------- | :----------- | | Mechanical Segment | $5,205,745 | $4,687,619 | $4,627,294 | +11.1% | +12.5% | | Electrical Segment | $1,683,073 | $1,306,347 | $1,284,354 | +28.8% | +31.0% | | Total Backlog | $6,888,818 | $5,993,966 | $5,911,648 | +14.9% | +16.5% | [Gross Profit](index=50&type=section&id=Gross%20Profit) - Gross profit increased by **$106.1 million** (**35.7%**) to **$403.4 million** in Q1 2025, with a gross profit margin of **22.0%** (up from **19.3%** in Q1 2024)[142](index=142&type=chunk) - The increase was driven by higher revenues, improved operational execution in Texas and South Carolina operations, and increased volumes at the Texas electrical operation[142](index=142&type=chunk) [Selling, General and Administrative Expenses ("SG&A")](index=50&type=section&id=Selling,%20General%20and%20Administrative%20Expenses%20(%22SG%26A%22)) - SG&A increased by **$32.2 million** (**19.8%**) to **$194.9 million** in Q1 2025, remaining steady at **10.6%** of revenue[143](index=143&type=chunk) - Same-store SG&A, excluding amortization, increased by **$26.9 million** (**17.9%**) due to higher revenue and increased compensation costs from headcount growth[143](index=143&type=chunk) SG&A Reconciliation (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | SG&A | $194,874 | $162,723 | | Less: SG&A from acquired companies | $(3,295) | $— | | Less: Amortization expense | $(14,562) | $(12,609) | | Same-store SG&A, excluding amortization expense | $177,017 | $150,114 | [Interest Income](index=50&type=section&id=Interest%20Income) - Interest income increased by **$2.7 million** (**166.2%**) to **$4.3 million** in Q1 2025, driven by an increase in the average cash balance[145](index=145&type=chunk) [Changes in the Fair Value of Contingent Earn-out Obligations](index=50&type=section&id=Changes%20in%20the%20Fair%20Value%20of%20Contingent%20Earn-out%20Obligations) - Expense from changes in fair value of contingent earn-out obligations decreased by **$8.7 million** (**69.9%**) in Q1 2025, primarily due to lower expenses at J&S and a South Carolina operation, and smaller changes in Summit's forecasted results[146](index=146&type=chunk) [Provision for Income Taxes](index=50&type=section&id=Provision%20for%20Income%20Taxes) - The provision for income taxes was **$38.7 million** in Q1 2025, with an effective tax rate of **18.6%**, down from **21.7%** in Q1 2024[147](index=147&type=chunk) - The lower effective tax rate in 2025 was primarily due to **$8.9 million** net interest income on a federal tax overpayment and a **$6.3 million** R&D tax credit, partially offset by state income taxes and non-deductible items[147](index=147&type=chunk)[148](index=148&type=chunk) [Outlook](index=52&type=section&id=Outlook) - The company anticipates solid earnings for 2025, driven by strong demand and substantial advance bookings, despite ongoing labor cost increases and supply chain challenges[149](index=149&type=chunk)[150](index=150&type=chunk) - Management is proactively addressing challenges through job planning, earlier material ordering, and customer collaboration to mitigate supply risks[149](index=149&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) [Cash Flow](index=52&type=section&id=Cash%20Flow) - Cash used in operating activities increased by **$234.5 million** YoY, primarily due to a **$431.3 million** decrease in accounts payable and other current liabilities and an **$80.0 million** federal tax payment[154](index=154&type=chunk)[155](index=155&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Operating activities | $(87,950) | $146,557 | | Investing activities | $(96,783) | $(221,648) | | Financing activities | $(160,448) | $(29,267) | | Net increase (decrease) in cash and cash equivalents | $(345,181) | $(104,358) | Free Cash Flow (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Cash provided by operating activities | $(87,950) | $146,557 | | Purchases of property and equipment | $(22,208) | $(24,952) | | Proceeds from sales of property and equipment | $1,095 | $1,014 | | Free cash flow | $(109,063) | $122,619 | [Share Repurchase Program](index=54&type=section&id=Share%20Repurchase%20Program) - The company repurchased **0.3 million shares** for approximately **$92.2 million** in Q1 2025, contributing to a cumulative total of **10.7 million shares** repurchased since the program's inception[159](index=159&type=chunk)[160](index=160&type=chunk) [Debt](index=54&type=section&id=Debt) - As of March 31, 2025, the company had no outstanding borrowings on its **$850.0 million** revolving credit facility, with **$766.8 million** of credit available[161](index=161&type=chunk)[163](index=163&type=chunk) - Outstanding notes to former owners totaled **$67.1 million** as of March 31, 2025, with principal payments scheduled through 2028[168](index=168&type=chunk) [Outlook (Liquidity)](index=56&type=section&id=Outlook%20(Liquidity)) - The company expects sufficient liquidity to fund operations for the foreseeable future, supported by a history of positive net free cash flow, significant borrowing capacity, and reasonable cash balances[169](index=169&type=chunk)[170](index=170&type=chunk) [Other Commitments](index=58&type=section&id=Other%20Commitments) - The company is required to post performance and payment bonds for many projects, with strong surety relationships currently supporting bonding needs[171](index=171&type=chunk)[172](index=172&type=chunk) [Item 3—Quantitative and Qualitative Disclosures about Market Risk](index=58&type=section&id=Item%203%E2%80%94Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section outlines the company's exposure to market risks, primarily related to interest rates, and its approach to managing these risks, also discussing the valuation of assets measured at fair value on a nonrecurring basis and contingent earn-out payments - The company's primary market risk exposure is to potential adverse changes in interest rates, particularly under its revolving credit facility, which had no outstanding borrowings as of March 31, 2025[173](index=173&type=chunk)[174](index=174&type=chunk) - Contingent earn-out payments are valued using a probability-weighted discounted cash flow method, reflecting contractual terms, future cash flows, probabilities, and a discount rate[176](index=176&type=chunk) [Item 4—Controls and Procedures](index=58&type=section&id=Item%204%E2%80%94Controls%20and%20Procedures) [Evaluation of Disclosure Controls and Procedures](index=58&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, following an evaluation[177](index=177&type=chunk)[178](index=178&type=chunk) [Changes in Internal Control over Financial Reporting](index=60&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - There were no material changes in internal control over financial reporting during the three months ended March 31, 2025[179](index=179&type=chunk) [PART II—OTHER INFORMATION](index=61&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Item 1—Legal Proceedings](index=61&type=section&id=Item%201%E2%80%94Legal%20Proceedings) This section addresses legal and regulatory claims against the company, stating that any liabilities arising from these matters are not expected to materially affect its financial condition or results of operations - The company is subject to legal and regulatory claims in the normal course of business, with accruals for probable losses deemed immaterial to financial statements[182](index=182&type=chunk)[183](index=183&type=chunk) [Item 1A—Risk Factors](index=61&type=section&id=Item%201A%E2%80%94Risk%20Factors) This section refers readers to the comprehensive discussion of risk factors in the company's Annual Report on Form 10-K for the year ended December 31, 2024, which could materially affect its business, financial condition, or future results - Readers should consider risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2024, as they could materially affect the business[184](index=184&type=chunk) [Item 2—Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202%E2%80%94Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on the company's equity security transactions, specifically detailing the absence of unregistered sales and providing an update on the ongoing share repurchase program [Recent Sales of Unregistered Securities](index=61&type=section&id=Recent%20Sales%20of%20Unregistered%20Securities) - There were no recent sales of unregistered equity securities[185](index=185&type=chunk) [Issuer Purchases of Equity Securities](index=61&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) - The Board has approved repurchases of **11.4 million shares** since the program's inception; as of March 31, 2025, **10.7 million shares** have been repurchased at an average price of **$39.26 per share**[186](index=186&type=chunk) Common Share Purchases During Q1 2025 | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :---------------------- | :------------------------------- | :--------------------------- | | January 1 - January 31 | 3,000 | $426.13 | | February 1 - February 28 | 63,450 | $378.18 | | March 1 - March 31 | 197,604 | $338.91 | | Total (Q1 2025) | 264,054 | $349.34 | [Item 5—Other Information](index=62&type=section&id=Item%205%E2%80%94Other%20Information) This section confirms that no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the first three months of 2025 - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended March 31, 2025[191](index=191&type=chunk) [Item 6—Exhibits](index=63&type=section&id=Item%206%E2%80%94Exhibits) This section lists all exhibits filed with the Form 10-Q, including organizational documents, certifications (CEO, CFO), and Inline XBRL documents - Exhibits include the Second Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, CEO and CFO certifications (Sections 302 and 906 of Sarbanes-Oxley Act), and Inline XBRL documents[193](index=193&type=chunk) [Signatures](index=64&type=section&id=Signatures) This section contains the required signatures from the company's President, Chief Executive Officer and Director, Executive Vice President and Chief Financial Officer, and Senior Vice President and Chief Accounting Officer, certifying the report's submission - The report is signed by Brian E. Lane (President, CEO, and Director), William George (EVP and CFO), and Julie S. Shaeff (SVP and Chief Accounting Officer) on April 24, 2025[196](index=196&type=chunk)[197](index=197&type=chunk)

[First Quarter 2025 Earnings Release](index=1&type=section&id=First%20Quarter%202025%20Earnings%20Release) Q1 2025 results show strong revenue and net income growth, strategic cash flow shifts, and robust backlog expansion [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Q1 2025 highlights include strong revenue and net income growth, with a notable shift in operating cash flow Q1 2025 vs Q1 2024 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $1.83 billion | $1.54 billion | +19.1% | | Net Income | $169.3 million | $96.3 million | +75.8% | | Diluted EPS | $4.75 | $2.69 | +76.6% | Backlog Growth | Date | Total Backlog (in billions) | Same-Store Backlog (in billions) | | :--- | :--- | :--- | | Mar 31, 2025 | $6.89 | $6.84 | | Dec 31, 2024 | $5.99 | N/A | | Mar 31, 2024 | $5.91 | $5.91 | - Operating cash flow saw a significant reversal, with an **outflow of $88.0 million** in Q1 2025 compared to an **inflow of $146.6 million** in Q1 2024[2](index=2&type=chunk) - The Q1 2025 income tax provision included a **benefit of $0.25 per diluted share** related to interest income on a prior year tax refund[2](index=2&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Brian Lane highlighted record Q1 performance and strong backlog growth, attributing negative operating cash flow to planned working capital normalization - Q1 2025 earnings per share of **$4.75** were more than **75% higher** than Q1 2024 and exceeded every past quarter, a notable achievement for a historically weak season[4](index=4&type=chunk) - Backlog grew significantly, with **over $800 million** in sequential same-store growth, indicating strong execution and customer relationships[4](index=4&type=chunk) - The **negative operating cash flow** was attributed to a long-expected normalization of working capital following substantial payments to a key customer[4](index=4&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents detailed unaudited Q1 2025 financial results, including statements of operations, balance sheets, and cash flow data [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 revenue grew 19.1% YoY, with improved margins driving a 75.8% rise in net income and increased dividends per share Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $1,831,286 | $1,537,016 | | Gross Profit | $403,416 | $297,363 | | Operating Income | $209,098 | $135,460 | | Net Income | $169,289 | $96,319 | | Diluted EPS | $4.75 | $2.69 | | Dividends per share | $0.400 | $0.250 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased due to reduced cash, while total liabilities also declined, leading to increased stockholders' equity Balance Sheet Comparison (in thousands) | Metric | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $204,758 | $549,939 | | Total current assets | $2,597,499 | $2,790,241 | | Total assets | $4,569,218 | $4,711,088 | | Total current liabilities | $2,411,244 | $2,582,770 | | Total liabilities | $2,792,205 | $3,006,412 | | Total stockholders' equity | $1,777,013 | $1,704,676 | [Selected Cash Flow Data](index=7&type=section&id=Selected%20Cash%20Flow%20Data) Q1 2025 saw a significant shift to negative operating cash flow, resulting in a negative free cash flow for the quarter Q1 Cash Flow Comparison (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash from operating activities | $(87,950) | $146,557 | | Cash from investing activities | $(96,783) | $(221,648) | | Cash from financing activities | $(160,448) | $(29,267) | | Free cash flow | $(109,063) | $122,619 | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) The company uses Adjusted EBITDA and Free Cash Flow as key non-GAAP metrics, with Adjusted EBITDA increasing while free cash flow turned negative in Q1 2025 Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $169,289 | $96,319 | | Adjustments | $73,378 | $73,488 | | **Adjusted EBITDA** | **$242,667** | **$169,807** | | Adjusted EBITDA as % of Revenue | 13.3% | 11.0% | - Free cash flow is defined as cash flow from operating activities less capital expenditures, plus proceeds from asset sales; in Q1 2025, it was **$(109.1) million**[14](index=14&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains a standard legal disclaimer on forward-looking statements, noting that actual results may differ due to various risks and uncertainties - The report contains forward-looking statements regarding future business expectations, which are not historical facts and are subject to significant risks and uncertainties[6](index=6&type=chunk) - Readers are directed to the company's SEC filings (Form 10-K, 10-Q, 8-K) for a more detailed discussion of material risk factors that could cause actual results to differ from projections[7](index=7&type=chunk)

Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] - It highlights the positive feedback from users, with 438 testimonials, most of which are rated 5 stars, indicating high satisfaction [1] Group 2 - The article includes a disclosure from the analyst stating a beneficial long position in shares of specific companies, indicating a vested interest in the performance of ODFL, FIX, REXR, and DHR [2] - It clarifies that the opinions expressed are personal and not influenced by compensation from any company mentioned [2] Group 3 - The article emphasizes that past performance does not guarantee future results, indicating a cautionary note regarding investment outcomes [3] - It states that Seeking Alpha does not provide personalized investment advice and that the views expressed may not represent the platform as a whole [3]

Company Performance - Comfort Systems (FIX) ended the latest trading session at $356.21, reflecting a +1.31% adjustment from the previous day's close, outperforming the S&P 500's daily loss of 0.17% [1] - The company has gained 1.52% in share price over the past month, while the Construction sector lost 5.56% and the S&P 500 lost 3.94% during the same period [1] Upcoming Earnings - The upcoming EPS for Comfort Systems is projected at $3.66, indicating a 36.06% increase compared to the same quarter of the previous year [2] - Revenue is estimated to be $1.7 billion, reflecting a 10.81% rise from the equivalent quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $17.87 per share and revenue at $7.55 billion, representing changes of +22.4% and +7.42% respectively from the prior year [3] - Recent changes in analyst estimates are important as they reflect near-term business trends, with positive revisions indicating a favorable business outlook [3] Valuation Metrics - Comfort Systems is currently trading with a Forward P/E ratio of 19.67, which is lower than the industry average Forward P/E of 27.43, suggesting that the company is trading at a discount [6] - The Building Products - Air Conditioner and Heating industry, to which Comfort Systems belongs, has a Zacks Industry Rank of 167, placing it in the bottom 33% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a proven track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [5] - Currently, Comfort Systems holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining stagnant over the past month [5]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Comfort Systems (FIX), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank. Group 1: Brokerage Recommendations - Comfort Systems has an average brokerage recommendation (ABR) of 1.33, indicating a consensus between Strong Buy and Buy based on six brokerage firms' recommendations [2] - Out of the six recommendations, five are Strong Buy, accounting for 83.3% of all recommendations [2] - Despite the positive ABR, relying solely on this information for investment decisions may not be wise, as studies show limited success of brokerage recommendations in predicting stock price increases [5][10] Group 2: Analyst Bias and Zacks Rank - Brokerage analysts often exhibit a strong positive bias due to their firms' vested interests, leading to a higher number of favorable ratings than warranted by research [6][10] - The Zacks Rank, which classifies stocks based on earnings estimate revisions, is presented as a more reliable indicator of near-term price performance compared to ABR [8][11] - The Zacks Rank is timely and reflects current earnings estimates, while ABR may not be up-to-date, making Zacks Rank a better tool for predicting future stock prices [12] Group 3: Current Earnings Estimates for Comfort Systems - The Zacks Consensus Estimate for Comfort Systems remains unchanged at $17.87 for the current year, indicating steady analyst views on the company's earnings prospects [13] - The Zacks Rank for Comfort Systems is currently 3 (Hold), suggesting caution despite the Buy-equivalent ABR [14]

Group 1 - The article highlights the significant market-moving political headlines that have emerged recently, indicating a highly dynamic environment for investors [1] - It mentions the importance of in-depth research on various investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, suggesting a focus on income alternatives [1] Group 2 - The article emphasizes the need for investors to be cautious, as past performance does not guarantee future results, and no specific investment recommendations are provided [2] - It notes that the views expressed may not reflect those of the broader platform, indicating a diversity of opinions among analysts [2]

Core Viewpoint - Comfort Systems (FIX) is showing resilience in its stock performance compared to broader market indices, with upcoming earnings expected to demonstrate significant growth in both EPS and revenue [1][3][4]. Company Performance - The stock price of Comfort Systems ended at $312.21, reflecting a slight increase of +0.03% from the previous day, contrasting with the S&P 500's decline of 1.57% [1]. - Over the past month, shares of Comfort Systems have decreased by 0.36%, which is significantly better than the Construction sector's loss of 11.78% and the S&P 500's loss of 12.16% [2]. Earnings Forecast - Analysts forecast Comfort Systems to report an EPS of $3.66, representing a 36.06% increase from the same quarter last year, with expected revenue of $1.7 billion, indicating a 10.81% increase [3]. - For the full year, the Zacks Consensus Estimates predict earnings of $17.87 per share and revenue of $7.55 billion, marking increases of +22.4% and +7.42% respectively from the previous year [4]. Analyst Sentiment - Recent revisions to analyst forecasts for Comfort Systems are crucial, as upward revisions indicate positive sentiment regarding the company's business operations and profit generation capabilities [5]. - The Zacks Rank system, which incorporates these estimate changes, currently rates Comfort Systems at 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [6][7]. Valuation Metrics - Comfort Systems is trading at a Forward P/E ratio of 17.47, which is lower than the industry average Forward P/E of 24.7, suggesting a valuation discount [8]. - The Building Products - Air Conditioner and Heating industry, to which Comfort Systems belongs, ranks in the bottom 37% of all industries, according to the Zacks Industry Rank [8][9].

Core Insights - Tomas Riba is an economist and former CFO who focuses on investing in high-quality companies capable of compounding cash flow over the long term [1] - His investment strategy emphasizes companies with strong competitive advantages, operating in growing industries, expanding margins, low debt, and aligned management [1] Background and Experience - Tomas Riba began his journey in financial markets at a young age and has been investing since 2007 [1] - He has a background in accounting and has served as CFO for a holding company involved in various sectors including pharma, medical devices, textiles, food, and real estate [1] - Currently, he teaches courses on "Derivatives for risk management" and "Investment analysis" at a Master's Degree program in Financial Management [1]

Comfort Systems (FIX) closed the most recent trading day at $322.33, moving -0.55% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow gained 1.01%, while the tech-heavy Nasdaq lost 0.14%. The the stock of heating, ventilation and air conditioning company has fallen by 10.8% in the past month, lagging the Construction sector's loss of 5.58% and the S&P 500's loss of 6.22%. From a valuation perspective, Comfort Systems is currently exch ...