Comfort Systems USA, Inc. (FIX)

Comfort Systems USA reported third-quarter 2026 revenue of $3.77 billion on 22 October, up from $2.45 billion a year earlier, with net income of $489.0 million 2. Backlog, the work contracted but not yet billed, reached $17.81 billion at 30 September, against $14.06 billion at 30 June 2.

The company says the growth came from strong market conditions, especially in the technology sector, particularly for data centers 1. Same-store activity, meaning work at companies owned a full year, rose 46.3 percent, and acquisitions added another 7.4 percent 1.

Technology work was 59 percent of revenue, up from 42 percent a year before, the company said on its earnings call 7. The same call put a weight on customers' ability to pay, because the company spends heavily on factory space built for a few buyers 7.

The company also said that chief financial officer William George will retire after the 2026 annual report is filed, and Julie Shaeff, now chief accounting officer, will take the job 36. The open question is how the company keeps pace with demand: the call put modular factory space at about 6 million square feet by the end of 2027 7.

Comfort Systems USA was established in 1997 as a Delaware corporation, and it contracts for mechanical and electrical work in commercial, industrial and institutional buildings 4. Mechanical work means heating, ventilation and air conditioning, plumbing and piping 4. Electrical work means installing and servicing electrical systems 4.

The company is built from operating units, local contractors that joined it 4. The latest annual report counts 50 operating units across 190 locations 4.

The company says its strategy is to improve profitability, grow, and acquire complementary businesses 4. It names seven core competencies, among them safety, customer service and design and build expertise 4.

Revenue was $5.21 billion in 2023, $7.03 billion in 2024 and $9.10 billion in 2025 4. Net income rose from $323.4 million to $522.4 million to $1,022.6 million over the same three years 4.

In 2025 revenue rose 29.5 percent, with 3.4 points from acquisitions and 26.1 points from same-store activity, which the company ties to its growing backlog 4. Demand was especially strong in technology, particularly data centers 4.

The jump came largely from a few large operations 4. Mechanical revenue rose $1.15 billion, led by technology work at a North Carolina operation, a Texas modular operation and operations in Indiana and Virginia 4. Electrical revenue rose $928.0 million, or 61.9 percent 4.

Backlog nearly doubled in 2025, from $5.99 billion at the end of 2024 to $11.94 billion at the end of 2025 4. Acquisitions of Feyen Zylstra and Meisner on 1 October 2025 were part of the increase 14.

Acquisitions kept adding local firms 4. The annual report names Feyen Zylstra, Meisner, Right Way, Century, Summit and J&S as the purchases behind the acquired part of 2025 growth 4.

What it sells

The company reports two segments 4. Mechanical was 73.3 percent of revenue and electrical 26.7 percent in the latest annual report 4. By type of work, 63.2 percent of revenue came from new buildings and 36.8 percent from renovation, expansion, maintenance and repair of existing ones 4.

Customers are in manufacturing, healthcare, education, offices, technology, retail and government facilities 4. The top customer was 12.8 percent of 2025 revenue 4.

Data centers and modular building

A growing share of the work is for data centers 7. Technology was 59 percent of revenue in the nine months to September, and modular was 17 percent 7. Modular means building parts of a project in a factory, then shipping them to the site 7.

The chief financial officer said modular margins have closed the gap with the rest of the business, and the gross profit percentage was 24.8 percent in the third quarter 7. Gross profit, revenue minus the direct cost of the work, was $934 million 7.

Service work

Service means maintaining, repairing and monitoring systems already installed, and the company says owners often outsource it 4. The call said service revenue rose 13 percent in the quarter 7.

People and places

The 2025 annual report counted about 22,700 employees 4. The president said on the October call the company has over 25,000 7.

The company owned 25 properties and leased the rest, in 27 states, and its Houston offices are leased 4. Brian Lane has been chief executive since December 2011 4.

Risks the company names

The president said new data center customers are arriving, but the company is selective 7. The chief financial officer said the company has not yet agreed terms with some prospective customers, and puts weight on their ability to pay 7.

The umbrella, in words

The brands are the company's local contractors, which report as separate operating locations 1. The company had 52 operating locations at 30 September 2026 1.

Exhibit 21.1 to the annual report lists its subsidiaries, from ACI Mechanical to Amteck, with the state each was formed in 5. The 2026 purchases it names are Hunt Electric in Utah, bought on 1 May, and Boys Electrical and a Texas modular company, both bought on 1 August 1.

Hunt cost a total preliminary price of $206.0 million, including $167.2 million in cash at closing 1.

The company said in its release that it believes it is well positioned to grow organically through year end and for 2027 2. The chief financial officer said on the call the company estimates same-store 2027 revenue growth in the mid 20 percent range 7.

The company said it remains on track for over 4 million square feet of modular space by the end of 2026 7. It expects about 6 million square feet by the end of 2027 7.

Mr. George will retire after the annual report for the year ending 31 December 2026 is filed, and Ms. Shaeff then becomes chief financial officer 3. The company said it will amend that filing within four business days after the Compensation Committee sets her pay 3.

The company posted an investor presentation to its website on 28 October 2026 8.

The company also says it expects to keep pursuing selective acquisitions, though it cannot guarantee it will find or close them 4.