Key Takeaways Comfort Systems crushed the fourth-quarter results with the EPS surging 129% and revenues growing 42% YoY.Comfort Systems' backlog nearly doubled as it rides on the robust data center demand trends.FIX's margins expanded year over year, with lifted cash flow and shareholders' returns spreading optimism.Comfort Systems USA, Inc. (FIX) delivered stellar fourth-quarter 2025 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate and increasing year over year.FIX stock ...

Core Viewpoint - Comfort Systems (FIX) reported strong quarterly earnings, significantly exceeding expectations and showing substantial year-over-year growth in both earnings and revenues [1][3]. Financial Performance - The company achieved earnings of $9.37 per share, surpassing the Zacks Consensus Estimate of $6.77 per share, and up from $4.09 per share a year ago, representing an earnings surprise of +38.34% [1][2]. - Revenues for the quarter reached $2.65 billion, exceeding the Zacks Consensus Estimate by 15.84%, compared to $1.87 billion in the same quarter last year [3]. Market Performance - Comfort Systems' shares have increased by approximately 41.4% since the beginning of the year, significantly outperforming the S&P 500, which gained only 0.5% [4]. - The stock currently holds a Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [7]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $5.88, with projected revenues of $2.27 billion, and for the current fiscal year, the EPS estimate is $30.61 on revenues of $10.02 billion [8]. - The outlook for the industry, particularly the Building Products - Air Conditioner and Heating sector, is currently in the bottom 17% of Zacks industries, which may impact stock performance [9].

Core Viewpoint - Comfort Systems USA, Inc. has announced a quarterly dividend increase, reflecting the company's strong financial performance and commitment to returning value to shareholders [1] Dividend Announcement - The board of directors declared a quarterly dividend of $0.70 per share, which is a $0.10 increase from the previous dividend [1] - The dividend is scheduled to be payable on March 17, 2026, to stockholders of record at the close of business [1]

Financial Performance and Risks - The company's backlog as of December 31, 2025, was $11.94 billion, indicating potential revenue yet to be recognized[74] - Approximately 5.0% of the company's revenue for the year ended December 31, 2025, was attributable to projects in the government sector, highlighting dependency on government spending[72] - One customer represented approximately 12.8% of the company's consolidated revenue in 2025, indicating a risk of revenue concentration[75] - Rising inflation has increased costs for labor, materials, and services, which may adversely affect profitability and cash flows[76] - The company is exposed to cost overruns in contracts, which could lead to reduced profits or losses if costs exceed estimates[73] - Delays and defaults in customer payments could materially affect the company's financial condition and cash flows[90] - The company operates in a highly competitive market, which may pressure profit margins and market share[77] - The company has experienced significant fluctuations in its common stock price, which may continue and could result in losses for shareholders[131] - The company’s financial results are subject to review by taxing authorities, and outcomes differing from recorded liabilities could adversely affect financial condition[128] - Warranty claims, while historically not material, could require the company to incur costs for repairs or replacements, adversely affecting financial results[117] - The company faces potential legal claims that could reduce profitability and liquidity, impacting financial condition and cash flows[116] - Tax matters, including changes in corporate tax laws, could materially impact the company's financial results and condition[127] Operational Challenges - The company may face challenges in integrating future acquisitions, which could impact financial performance and operational efficiency[78] - Labor shortages and increased labor costs from third parties could adversely impact the company's results of operations[83] - The company faces challenges in attracting and retaining qualified personnel, which could increase labor costs and affect operational efficiency[97] - Growth may impose additional responsibilities on senior management, and failure to manage growth effectively could hinder operational expansion[98] - The decentralized decision-making structure may slow the company's response to operational issues and compliance risks[99][100] - Ineffective management of backlog and operational costs could strain resources and hinder revenue growth[101] - The company’s workforce utilization directly impacts profitability; underutilization could lead to lower gross margins[114] Regulatory and Compliance Risks - The company is subject to various environmental regulations, including the federal Clean Air Act, which could impose significant additional costs and reduce profits[122] - The company may face challenges in obtaining necessary insurance coverage, which could increase overall risk exposure and limit project opportunities[110][112] - Non-compliance with credit agreement covenants could lead to default, impacting the company's ability to operate and service debt obligations[113] - The company has 190 locations across 27 states, exposing it to various state and local regulations, which could increase costs and negatively impact financial condition[120] - The company may face increased regulatory scrutiny and compliance costs related to data privacy and cybersecurity threats[109] Market and Economic Conditions - Political and economic uncertainties, including inflation and supply chain disruptions, may constrain customer spending and impact the company's financial condition[95] - Changes in U.S. foreign trade policies could lead to additional trade barriers, negatively impacting the company's ability to purchase materials and supplies[126] - The company is susceptible to adverse weather conditions, which may lead to service curtailment, operational suspension, and potential liability for liquidated damages[92] - Future climate change poses physical and financial risks, including increased extreme weather events that could delay or cancel projects[93] - Ongoing political and economic uncertainties, including inflation and supply chain disruptions, may hinder the company's ability to forecast and plan business activities[95] Internal Controls and Reporting - The company plans to maintain and strengthen internal controls to enhance the effectiveness of financial reporting[141] - The company’s internal control over financial reporting is assessed annually, and findings of inadequacy could reduce investor confidence in financial information[139] - Changes in accounting rules could adversely affect reported financial results and require significant changes to systems and processes[142] - Any deficiencies in internal control could lead to a material weakness, potentially resulting in misstatements of financial statements and loss of investor confidence[140] Cybersecurity and IT Risks - Cybersecurity risks threaten the integrity of IT systems, potentially leading to financial losses and operational disruptions[102][103] - IT system failures and cybersecurity breaches could disrupt operations and lead to significant financial losses[102][107]

Exhibit 99.1 CONTACT:Julie Shaeff, Chief Accounting Officer 9753 Katy Freeway, ir@comfortsystemsusa.com; 713-830-9687 Houston, Texas 77024 Suite 700 713-830-9600 FOR IMMEDIATE RELEASE COMFORT SYSTEMS USA REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS Houston, TX — February 19, 2026 — Comfort Systems USA, Inc. (NYSE: FIX) (the "Company") today reported results for the quarter and annual period ended December 31, 2025. For the quarter ended December 31, 2025, net income was $330.8 million, or $9.37 per dil ...

Core Viewpoint - Comfort Systems USA, Inc. is experiencing a positive trend in analyst price targets, indicating growing optimism about its performance and growth potential in the mechanical and electrical services industry [1] Group 1: Analyst Sentiment - The average price target for Comfort Systems increased to $1,253 last month, reflecting positive sentiment from analysts [2] - Three months ago, the average price target was $1,235.33, showing a steady increase in expectations over the quarter [3] - A year ago, the average price target was $1,120.83, indicating a significant increase in analysts' bullish outlook [4] Group 2: Financial Performance - The company's previous quarter earnings surpassed the Zacks Consensus Estimate by 33.1% and revenues by 13.7%, contributing to analyst confidence [2] - Comfort Systems has effectively converted a strong backlog and sophisticated project mix into sustained earnings growth, as noted in the October earnings report [3] Group 3: Strategic Initiatives and Market Opportunities - Analysts' increased optimism is likely due to the company's strategic initiatives and robust market opportunities [4] - The Harbor Small Cap Growth Fund's confidence in maintaining its position in Comfort Systems further supports the positive outlook [4] Group 4: Upcoming Events - Investors are closely monitoring Comfort Systems as it prepares to announce its fourth-quarter 2025 results on February 19 [4]

Core Viewpoint - Comfort Systems USA, Inc. (FIX) is expected to report strong fourth-quarter results driven by growth in technology and advanced manufacturing sectors, with significant contributions from AI and data center demand [2][6][20] Financial Performance - In the last reported quarter, FIX's earnings and revenues exceeded the Zacks Consensus Estimate by 33.1% and 13.7%, respectively, with year-over-year growth of 35.2% in revenues and 101.7% in earnings [2] - The Zacks Consensus Estimate for fourth-quarter EPS is $6.77, indicating a growth from the year-ago EPS of $4.09, while revenues are expected to reach $2.28 billion, reflecting a 22.3% year-over-year increase [3][4] - For the full year 2025, FIX is projected to achieve a 24.4% increase in revenues and an 80.2% increase in earnings compared to the previous year [4] Market Trends and Drivers - Broad-based strength across technology, industrial, and institutional markets is expected to support FIX's growth, particularly due to high demand for hyperscale data centers and AI facilities [6][8] - The company's disciplined bidding approach and focus on longer-cycle projects are anticipated to enhance growth prospects and visibility heading into 2026 [8][10] Margin Expansion - FIX's margin expansion efforts are expected to positively impact fourth-quarter performance, with a growing share of revenues from technology projects, which accounted for approximately 42% of revenues year-to-date [9] - Management's emphasis on disciplined bidding and avoiding low-return projects is likely to support higher gross profit margins [10] Acquisitions - Comfort Systems has completed five acquisitions as of October 2025, enhancing its geographic reach and technical capabilities, particularly in the industrial and healthcare sectors [11] Competitive Position - FIX has outperformed its peers in the construction sector, with a stock price increase of 92.3% over the past six months, significantly surpassing the performance of competitors like Quanta Services and EMCOR Group [15][17] - The company currently trades at a premium valuation, with a forward 12-month P/E ratio of 43.84, compared to its peers [18][19] Investment Outlook - The company presents a balanced investment case, with strong operating momentum and revenue visibility from key sectors, but faces challenges from elevated costs and competitive pricing [20][21] - With a Zacks Rank of 3 (Hold) and no clear indicators of an earnings beat, existing investors are advised to retain their positions, while new investors may consider waiting for a more favorable entry point [23]

Group 1 - Comfort Systems USA, Inc. has scheduled its quarterly conference call and webcast for February 20, 2026, to discuss the fourth quarter and full year 2025 financial results, which will be released after market close on February 19, 2026 [1] - The conference call will be available in listen-only mode on the company's website, and participants can register to ask questions [1] - Comfort Systems USA operates 190 locations across 142 cities in the United States, providing mechanical and electrical contracting services [1] Group 2 - Trent T. McKenna will be appointed as President and Chief Operating Officer effective January 1, 2026, while Brian E. Lane continues as Chief Executive Officer [1] - The company announced a quarterly dividend of $0.60 per share, reflecting a $0.10 increase from the previous dividend, payable on November 24, 2025 [1] - For the third quarter of 2025, Comfort Systems USA reported a net income of $291.6 million, or $8.25 per diluted share, compared to $146.2 million, or $4.09 per diluted share, for the same quarter in 2024 [1]

Core Insights - Comfort Systems has experienced a remarkable 43% surge in stock price year-to-date in 2026, driven by increased demand for AI data centers, with shares trading at 54 times trailing earnings [1] - The company reported Q3 2025 revenue of $2.45 billion, exceeding estimates by 12%, and earnings per share (EPS) of $8.25, beating consensus by 31% [1] - The record backlog reached $9.38 billion, with $1 billion in same-store growth, indicating strong operational momentum [1] Financial Performance - Comfort Systems' Q3 2025 revenue was $2.45 billion, surpassing Wall Street's estimate of $2.18 billion by 12% [1] - The EPS of $8.25 represented a 31% increase over the consensus estimate of $6.29, doubling year-over-year results [1] - Operating cash flow increased by 83% to $553.3 million, showcasing strong cash generation capabilities [1] Institutional Interest - The inclusion in the S&P 500 has led to significant institutional buying, with firms like WCM Investment Management and New York State Common Retirement Fund increasing their stakes [1] - Institutional ownership stands at 96.51%, indicating that the stock's rise is driven by institutional investors rather than retail speculation [1] - Analysts have raised price targets, with UBS increasing its target from $1,140 to $1,310, citing strong backlog and labor shortages that enhance pricing power [1] Valuation and Future Outlook - The stock trades at 42 times forward earnings and has a PEG ratio of 2.06, reflecting expectations for substantial growth [1] - Insider selling has been notable, with the CFO and CEO selling shares worth approximately $7.3 million and $6.8 million, respectively, with no insider buying in the past three months [1] - Wall Street anticipates a revenue growth rate of 35.2%, but any slowdown in AI infrastructure spending could impact the premium valuation [1]

Core Insights - Comfort Systems USA, Inc. (FIX) has experienced a significant stock surge of 74.6% over the past six months, outperforming the Zacks Building Products - Air Conditioner and Heating industry, the broader Construction sector, and the S&P 500 Index [1] Group 1: Business Performance - The company is benefiting from a favorable infrastructure spending environment, with a disciplined bidding approach and strong execution in both mechanical and electrical segments [2] - FIX's backlog reached $9.38 billion, reflecting a 65% year-over-year increase from $5.68 billion and a 15.5% sequential growth [4] - The gross margin expanded by 340 basis points to 23.6% year-over-year, with a 370 basis point increase in the third quarter, driven by a favorable project mix and strong end-market demand [9] Group 2: Market Position and Strategy - Comfort Systems has a strong focus on margin expansion, particularly in the technology and advanced manufacturing sectors, which now account for 42% of revenues, up from 32% the previous year [6] - The company has seen exceptionally strong bookings across traditional construction and modular operations, with modular demand sold out through early 2026 [5] - FIX's disciplined bidding strategy has allowed it to maintain margins and return on equity (ROE), which stands at 43.6%, significantly higher than the industry average [12] Group 3: Shareholder Value and Financial Health - The company increased its quarterly dividend by 20% to 60 cents per share, indicating management's confidence in cash flows and long-term demand [10] - Operating cash flow for the first nine months of 2025 was $717.8 million, a 12.4% increase year-over-year, with cash and cash equivalents rising to $860.5 million, up 56.5% from the end of 2024 [11] - The company repurchased 0.3 million shares for approximately $125.4 million, reinforcing its commitment to shareholder-friendly capital allocation [10] Group 4: Competitive Landscape - Comfort Systems operates in a competitive environment, primarily against Quanta Services, AECOM, and Carrier Global, each focusing on different aspects of the infrastructure lifecycle [14][16] - The company’s exposure to hyperscale data centers and AI facilities positions it well for growth, although it faces risks related to project delays and labor inflation [18][19] Group 5: Valuation and Future Outlook - FIX is currently trading at a premium with a forward P/E ratio of 39.61, raising concerns about valuation amidst strong operating momentum [20] - The earnings estimate for 2026 remains unchanged at $30.61 per share, implying a year-over-year growth of 16.4% [13] - While the company shows long-term growth potential, near-term upside may be limited due to its premium valuation and exposure to large, complex projects [24][25]