Comfort Systems USA(US:FIX)2025-10-23 20:07Financial Performance - Revenue for Q3 2025 reached $2,450,969,000, a 35% increase from $1,812,366,000 in Q3 2024[12] - Gross profit for Q3 2025 was $607,871,000, up 59% from $381,714,000 in Q3 2024[12] - Net income for the nine months ended September 30, 2025, was $691,752,000, compared to $376,563,000 for the same period in 2024, representing an increase of 83%[12] - Operating income for Q3 2025 was $378,874,000, a 87% increase from $202,884,000 in Q3 2024[12] - Basic income per share for Q3 2025 was $8.26, compared to $4.10 in Q3 2024, reflecting a 101% increase[12] - Operating income for the nine months ended September 30, 2025, was $887.85 million, compared to $523.01 million for the same period in 2024, representing an increase of approximately 69.8%[111] - Free cash flow for the first nine months of 2025 was $632.2 million, an increase from $571.8 million in the same period of 2024[172] Assets and Liabilities - Total current assets increased to $3,703,528,000 as of September 30, 2025, from $2,790,241,000 at the end of 2024, a growth of 33%[10] - Total assets grew to $5,777,851,000 as of September 30, 2025, compared to $4,711,088,000 at the end of 2024, marking a 23% increase[10] - Total liabilities increased to $3,544,465,000 as of September 30, 2025, from $3,006,412,000 at the end of 2024, an increase of 18%[10] - Cash and cash equivalents rose to $860,523,000 as of September 30, 2025, up from $549,939,000 at the end of 2024, a 56% increase[10] - Retained earnings increased to $2,271,408,000 as of September 30, 2025, from $1,627,330,000 at the end of 2024, a growth of 39%[10] - Total stockholders' equity as of September 30, 2025, was $2,233,386,000, an increase from $1,704,676,000 at the end of 2024, representing a growth of 30.9%[17] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $717,816,000, up from $638,594,000 in 2024, indicating a growth of 12.4%[20] - Total cash and cash equivalents at the end of the period reached $860,523,000, compared to $415,583,000 at the end of September 2024, reflecting a significant increase of 106.5%[20] - Cash paid for acquisitions, net of cash acquired, was $128,594,000 for the nine months ended September 30, 2025, down from $235,466,000 in 2024, indicating a decrease of 45.4%[20] - The company repurchased 0.3 million shares for approximately $125.4 million during the nine months ended September 30, 2025, at an average price of $363.15 per share[109] Revenue Segmentation - The mechanical segment generated $1,810.46 million, accounting for 73.9% of total revenue, while the electrical segment contributed $640.51 million, or 26.1%[56] - Revenue from new construction was $1,597.45 million, representing 65.2% of total revenue for the three months ended September 30, 2025[58] - Revenue from technology customers was $1,122.53 million, representing 45.8% of total revenue for the three months ended September 30, 2025[56] - Revenue recognized from contract liabilities for the first nine months of 2025 was $944.5 million, compared to $767.3 million for the same period in 2024, reflecting a year-over-year increase of approximately 23.1%[61] Acquisitions and Goodwill - The company completed several acquisitions in 2025, including Right Way Plumbing & Mechanical LLC for $65 million and Century Contractors, LLC for $84.2 million, enhancing its mechanical segment[71][72] - Goodwill increased to $928.17 million as of September 30, 2025, up from $875.27 million at the end of 2024, primarily due to acquisitions[78] Debt and Financing - Total debt obligations as of September 30, 2025, were $136.0 million, significantly higher than $68.34 million at the end of 2024, with a revolving credit facility of $100 million[80] - The company amended its senior credit facility on August 27, 2025, increasing borrowing capacity from $850 million to $1.1 billion, with an expiration date of October 1, 2030[81] - The weighted average interest rate applicable to borrowings under the revolving credit facility was approximately 5.4% as of September 30, 2025[91] Compliance and Governance - As of September 30, 2025, the company was in compliance with all financial covenants[86] - The Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report[208] Market Outlook - The company expects high demand levels to continue for manufacturing and technology customers through 2026[136] - The company anticipates ongoing price competition in the industry as local and regional participants vie for customers[139]