(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, 2025 OR SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q Table of Contents UNITED STATES ☐ 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 ...

Exhibit 99.1 CONTACT:Julie Shaeff, Chief Accounting Officer 675 Bering Drive, ir@comfortsystemsusa.com; 713-830-9687 Houston, Texas 77057 Suite 400 713-830-9600 FOR IMMEDIATE RELEASE COMFORT SYSTEMS USA REPORTS SECOND QUARTER 2025 RESULTS Houston, TX — July 24, 2025 — Comfort Systems USA, Inc. (NYSE: FIX) (the "Company") today reported results for the quarter ended June 30, 2025. For the quarter ended June 30, 2025, net income was $230.8 million, or $6.53 per diluted share, as compared to $134.0 million, or ...

Core Viewpoint - Comfort Systems USA, Inc. (FIX) is expected to report strong second-quarter results on July 24, 2025, following a record-breaking first quarter driven by significant revenue growth and a robust backlog [1][7]. Group 1: Q1 Performance and Expectations - In Q1 2025, Comfort Systems reported earnings per share (EPS) of $4.75, exceeding estimates by 29.8% and showing over 75% year-over-year growth [2]. - Revenue for Q1 reached $1.83 billion, surpassing consensus by 7.5% and reflecting a 19.2% increase year-over-year, with strong contributions from Mechanical (up 18%) and Electrical (up 22%) segments [2]. - The company achieved record earnings and margins during a typically weak seasonal period, with same-store revenue growth of 15% and gross margins expanding to 22% from 19.3% [2]. Group 2: Q2 Estimates and Backlog - The Zacks Consensus Estimate for Q2 EPS is $4.68, indicating a 25.1% growth from the previous year, while revenue is estimated at $1.95 billion, reflecting a 7.9% year-over-year increase [4]. - Comfort Systems has a record backlog of $6.9 billion, up 16% year-over-year, providing significant revenue visibility for Q2 and beyond [6]. - Management anticipates high-single-digit same-store revenue growth for the full year, suggesting a more moderate pace of growth in Q2 compared to Q1 [7]. Group 3: Segment Performance and Strategies - The Mechanical segment is expected to maintain elevated margins, supported by high-quality backlog and demand from industrial and institutional markets, particularly in technology-related projects [10]. - Modular construction techniques now account for about 19% of total revenues, enhancing efficiency and reducing seasonality [11]. - The Electrical segment remains strong, with record levels of backlog and no signs of demand slowdown, although it may face material cost inflation [13]. Group 4: Stock Performance and Valuation - Comfort Systems shares have surged 41.4% in the past three months, outperforming the broader industry and key competitors [16]. - The stock is trading at a forward 12-month P/E ratio of 26.73, lower than the industry average of 29.43, indicating reasonable valuation despite recent gains [19]. - The company is rated as a hold heading into Q2 earnings, supported by strong fundamentals and a disciplined approach to project execution [21].

Core Insights - Comfort Systems USA (FIX) and Carrier Global (CARR) operate in the HVAC sector but serve different market niches, with FIX focusing on commercial HVAC contracting and CARR providing a wide range of HVAC and refrigeration equipment globally [1][2] Comfort Systems Overview - Comfort Systems employs a business model of organic growth complemented by strategic acquisitions, leading to a steady revenue stream and cost synergies [3] - The company has a record-high backlog of $6.9 billion as of Q1 2025, with strong demand in technology sectors, particularly data centers and chip fabrication, which constitute 62% of total volume [4] - The company benefits from shorter-duration contracts and faster cash turnover, providing resilience against tariff and inflation pressures [3][4] - Institutional markets, including healthcare, education, and government, remain robust, with healthcare contributing 10% of revenue [4][5] - Despite macro uncertainties, the company maintains a conservative guidance approach, projecting high-single-digit organic growth for the year [5] Carrier Overview - Carrier anticipates mid-single-digit sales growth in 2025, with nearly 20% EPS growth driven by pricing and productivity initiatives [8][11] - The company is capitalizing on strong demand in commercial HVAC, particularly in data centers, with sales expected to double from $500 million in 2024 to $1 billion in 2025 [10] - Carrier's global scale and digital penetration enhance its aftermarket business, which is a high-margin driver [9][11] - The company faces challenges such as tariff-related cost inflation, which poses a $300 million risk, and macroeconomic uncertainties affecting residential and light commercial HVAC spending [12] Stock Performance Comparison - Comfort Systems shares have surged 57.1% in the past three months, outperforming Carrier's 25.9% gain [13] - FIX trades at a premium valuation of around 27× forward 12-month earnings, supported by a 36.4% return on equity (ROE), while CARR trades at approximately 23.2× forward earnings with an 18.1% ROE [17] - Comfort Systems' earnings estimates for 2025 and 2026 have trended upward to $19.28 and $20.41 per share, indicating year-over-year growth of 32.1% and 5.8% respectively [19] - Carrier's earnings estimates for the same periods have also increased to $3.03 and $3.43 per share, reflecting year-over-year growth of 18.4% and 13.1% respectively [21] Investment Outlook - Comfort Systems is viewed as having stronger upside potential due to faster growth and a robust project pipeline, currently holding a Zacks Rank 1 (Strong Buy) [23] - Carrier, while a solid blue-chip with a good dividend yield of 1.2%, is rated Zacks Rank 3 (Hold) and has a more moderate growth outlook [23][15]

Core Insights - Comfort Systems USA, Inc. (FIX) reported strong Q1 2025 results with a 75% year-over-year increase in earnings per share to $4.75 and a 19.1% rise in revenues to $1.83 billion, surpassing expectations [1][7] - Despite positive momentum, management maintained a cautious full-year revenue growth forecast of high-single-digit percentages due to challenging year-over-year comparisons in the latter half of the year [2][5] - The company's backlog grew 16.5% year-over-year to $6.89 billion, driven by the acquisition of Century Contractors and increased project bookings in technology and healthcare sectors [4][7] Financial Performance - Q1 2025 earnings per share increased by 75% year-over-year to $4.75, while revenues rose by 19.1% to $1.83 billion, exceeding market expectations [1][7] - Operating income saw a significant increase of 54% year-over-year, contributing to historic high margins [1] - The company's earnings estimates for 2025 and 2026 have trended upward, with 2025 estimates rising to $19.28, reflecting a 32.1% year-over-year growth [11] Market Position and Valuation - FIX's stock has outperformed peers, with a 51.4% increase over the past three months, compared to 40.5% and 15% gains for Quanta Services and Jacobs Solutions, respectively [6][8] - The stock is currently trading at a forward P/E ratio of 27.13, which is lower than Quanta Services at 34.66 and Jacobs Solutions at 20.14, indicating a potential attractive entry point for investors [9][10] - The company's strategic initiatives and strong backlog position it favorably in the market, despite maintaining a conservative outlook [5][9] Industry Dynamics - The end-market dynamics are favorable, with strong demand in technology and industrial sectors, which now account for 62% of total volume [2] - Modular construction is emerging as a significant contributor to margin sustainability, further supporting the company's growth prospects [2] - Comfort Systems' ability to manage costs and secure favorable pricing through long-term supplier relationships enhances its resilience against tariff and cost inflation risks [3]

Group 1 - The article discusses a significant shift in the author's dividend portfolio, indicating a strategic change in investment approach [1] - The author has disclosed a beneficial long position in several companies, including TPL, LB, FIX, ODFL, GE, UNP, and CP, through various financial instruments [1] Group 2 - The article emphasizes that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [2] - It clarifies that no specific investment recommendations are provided, and opinions expressed may not represent the views of Seeking Alpha as a whole [2]

Company Overview - Comfort Systems USA, Inc. maintains a disciplined approach to acquisitions in 2025, supported by a strong balance sheet and a focus on long-term growth [1][4] - The company ended Q1 2025 with over $130 million in net cash, despite returning $92 million to shareholders and funding $80 million in acquisition-related earn-outs [3][10] Recent Acquisitions - In Q1 2025, Comfort Systems acquired Century Contractors, a mechanical contractor expected to contribute approximately $90 million in annual revenues [2][10] - The company emphasizes that acquisitions are a key part of its strategy, particularly in strengthening end-market capabilities and regional presence [2][4] Financial Performance - Comfort Systems has a record backlog of $6.9 billion as of March 31, 2025, which supports its long-term growth focus [3][10] - The earnings estimates for 2025 and 2026 have trended upward to $19.28 and $20.41 per share, indicating year-over-year growth of 32.1% and 5.8%, respectively [15] Market Position - Comfort Systems' stock has gained 56.4% in the past three months, outperforming the industry and the S&P 500, which rose by 18% and 18.1%, respectively [11] - The stock is currently trading at a forward 12-month price-to-earnings ratio of 26.55X, which is a discount compared to industry peers [13] Strategic Focus - The company continues to evaluate additional acquisition opportunities, indicating that M&A remains a meaningful priority in its capital allocation framework [2][4] - Management's focus on quality targets over deal volume suggests a measured approach to long-term value creation [4]

I rate Comfort Systems USA, Inc. (NYSE: FIX ) as a hold, as the expected growth in the next years is already priced in, and I do not expect the annual revenue growth of between 20% and 30% forAccording to TipRanks, success rate of 77%: Copying Mario Silva's trades and holding each position for 1 Year would result in 76.92% of your transactions generating a profit, with an average return of 12.20% per rating. Here, you'll find high-quality articles that will offer information that I would like to find in any ...

Group 1 - Comfort Systems (FIX) closed at $527.42, down 2.6% from the previous day, underperforming the S&P 500's daily loss of 0.07% [1] - The company's shares have increased by 8.01% over the last month, outperforming the Construction sector's gain of 3.52% and the S&P 500's gain of 3.94% [1] Group 2 - Comfort Systems is expected to report EPS of $4.68, reflecting a 25.13% increase from the prior-year quarter, with projected net sales of $1.95 billion, up 7.86% from the year-ago period [2] - For the entire fiscal year, earnings are predicted to be $19.28 per share and revenue at $7.72 billion, indicating increases of 32.05% and 9.87% respectively from the previous year [3] Group 3 - Recent changes to analyst estimates for Comfort Systems indicate positive sentiment towards the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which includes estimate changes, currently ranks Comfort Systems at 2 (Buy), with a track record of 1 stocks averaging an annual return of +25% since 1988 [5][6] Group 4 - Comfort Systems is trading with a Forward P/E ratio of 28.08, which is a discount compared to the industry average Forward P/E of 30.15 [7] - The Building Products - Air Conditioner and Heating industry, part of the Construction sector, holds a Zacks Industry Rank of 91, placing it in the top 37% of over 250 industries [7]

Core Insights - Comfort Systems USA (FIX) has experienced a significant stock price increase of over 73.3% in the past three months, outperforming the Zacks Building Products - Air Conditioner and Heating industry, which gained 37.1% [1][5] - The company is currently just 2.2% below its 52-week high of $553.09, raising questions about future growth potential [1] Competitive Position - FIX has outperformed competitors such as AAON (3.1% gain), Watsco (1.2% decline), and EMCOR (54.4% gain) over the past three months, showcasing its competitive edge [2] - The company's national scale, exposure to industrial and tech sectors, and capacity for large-scale projects provide a distinct advantage as demand shifts towards complex mechanical and electrical solutions [2] Financial Performance - FIX reported a record backlog of $6.9 billion, reflecting a 16% year-over-year increase and a 14% sequential increase, indicating strong growth visibility into 2026 [7] - Advanced technology projects, including data centers and semiconductor fabs, now account for 37% of total revenues, up from 30% last year [7] Strategic Initiatives - The modular business segment contributed 19% to total revenues in Q1 2025, supported by over 2.5 million square feet of production and storage space [8] - The acquisition of Century Contractors is expected to generate $90 million in revenues this year, enhancing geographic reach and earnings power [8] Revenue Mix and Market Trends - FIX's revenue is increasingly derived from high-growth sectors, with institutional demand from healthcare, education, and government accounting for 24% of total revenues [9] - Healthcare bookings have risen, now representing about 10% of business, driven by aging demographics [9] Risk Management - FIX appears well-insulated from tariff and inflation concerns, with most pricing locked in early and customers sharing inflation risks [10] - The company's experience in managing supply chain pressures during COVID-19 has instilled confidence in its ability to navigate future volatility [10] Valuation Metrics - Despite a strong stock performance, FIX's valuation remains reasonable, trading at a forward P/E ratio of 27.24, below the industry average of 29.11 [11] - The company's earnings estimates for 2025 and 2026 have trended upward, indicating expected growth of 32.1% and 5.8% year-over-year, respectively [14]