Comfort Systems Usa EPS Jumps 75 Percent

Core Insights - Comfort Systems USA reported strong Q2 2025 results, exceeding Wall Street estimates with GAAP EPS of $6.53 and revenue of $2.17 billion, reflecting significant year-over-year growth [1][2] Financial Performance - GAAP EPS reached $6.53, surpassing the estimate of $4.84, and increased by 74.6% from Q2 2024's $3.74 [2] - GAAP revenue was $2.17 billion, exceeding the forecast of $1.97 billion, and up 20.1% from $1.81 billion in Q2 2024 [2] - Net income (GAAP) rose to $230.8 million, a 72.2% increase year-over-year [5] - Operating income surged 62.4% to $299.9 million compared to Q2 2024 [5] - Operating cash flow climbed to $252.5 million, representing a 33.0% increase year-over-year [6] - Adjusted EBITDA was $334.1 million, up 50.1% from $222.7 million in Q2 2024 [2] - Backlog reached a record $8.12 billion, increasing by $1.23 billion from the prior quarter and $2.35 billion from a year ago, indicating strong future demand [7] Business Overview - Comfort Systems USA specializes in mechanical, electrical, and plumbing contracting for various facilities, including data centers, hospitals, and schools [3] - The company focuses on operational excellence, workforce development, technological innovation, and market diversification as key growth pillars [4] Operational Highlights - Gross profit margin improved to 23.5%, up from 20.1% in Q2 2024, attributed to superior execution in the field [5] - Service revenue from maintenance and repair constituted 15% of overall sales, while modular construction accounted for 19% [8] Strategic Developments - The acquisition of Century Contractors is expected to contribute approximately $90 million in annual revenue for 2025, reflecting a disciplined approach to acquisitions [9] - The company raised its quarterly dividend by 50% to $0.45 per share, indicating confidence in cash generation and business trends [11] Future Outlook - Management expressed optimism regarding project visibility for fiscal 2026, although no explicit guidance was provided for the next quarter or full year [12]