Comfort Systems Q4 Earnings & Revenues Beat, Backlog Up Y/Y, Stock Up

Core Insights - Comfort Systems USA, Inc. (FIX) reported exceptional fourth-quarter 2025 results, with adjusted earnings and revenues exceeding expectations and showing significant year-over-year growth [1][3][6] - The stock price increased by 4.8% in after-market trading following the announcement of these results [1] Financial Performance - Adjusted earnings per share (EPS) for Q4 were $9.37, surpassing the Zacks Consensus Estimate of $6.77 by 38.4% and increasing 129.1% from $4.09 in the same quarter last year [3] - Revenues reached $2.65 billion, exceeding the consensus estimate of $2.28 billion by 15.8% and growing 41.7% year-over-year [3] - For the full year 2025, revenues increased by 29.4% to $9.1 billion, with adjusted EPS rising 97.8% to $28.88 from $14.60 in 2024 [6] Backlog and Demand Trends - As of December 31, 2025, the backlog was $11.94 billion, a 99.3% increase from $5.99 billion the previous year, with the Mechanical segment contributing 75.6% and the Electrical segment 24.4% [4] - The growth in backlog was supported by acquisitions and a same-store increase of 93.2% [4][7] Operational Highlights - Gross profit increased to $674.7 million from $433.7 million, with gross margin expanding by 230 basis points to 25.5% [5] - Selling, general and administrative (SG&A) expenses as a percentage of revenues decreased by 170 basis points to 9.4% [5] Cash Flow and Shareholder Returns - Cash and cash equivalents rose to $981.9 million from $549.9 million at the end of 2024 [7] - Free cash flow was $1.04 billion, up 39.2% from $743.5 million a year ago [8] - The company returned $217.9 million to shareholders through share repurchases and $68.8 million through dividends, with a quarterly dividend of 70 cents per share reflecting a 16.7% increase [8]