Comfort Systems USA (FIX) Q1 2026 Financial Results Summary

For Immediate Release: Comfort Systems USA, Inc. (NYSE: FIX) reported its financial results for the quarter ended March 31, 2026, on April 23, 2026.

Key Financial Highlights

• Net Income:
  • $370.4 million, up 118.0% from $169.3 million in Q1 2025.
  • Earnings per diluted share of $10.51, compared to $4.75 in the same quarter last year, more than 120.0% increase.
• Revenue:
  • Total revenue reached $2.87 billion, marking a 56.9% rise from $1.83 billion in Q1 2025.
• Operating Cash Flows:
  • Reported cash inflows of $388.8 million, a significant turnaround from cash outflows of $88.0 million in Q1 2025.
• Backlog:
  • Total backlog as of March 31, 2026, was $12.45 billion, up 4.3% from $11.94 billion as of December 31, 2025, and a notable 80.6% increase from $6.89 billion in Q1 2025.
  • On a same-store basis, backlog rose from $6.89 billion in Q1 2025 to $12.21 billion in Q1 2026.

Operating Performance

• Gross Profit:
  • Increased to $2.11 billion, representing a gross margin of 73.7%, down from 78.0% in Q1 2025.
• Operating Income:
  • Operating income came in at $485.7 million, translating to 17.0% of revenue, compared to 11.4% in the previous year.
• Adjusted EBITDA:
  • Recorded at $524.4 million, growing 18.3% from $242.7 million in Q1 2025.

Cash Flow and Balances

• Free Cash Flow:
  • Achieved free cash flow of $242.2 million, compared to a negative free cash flow of $109.1 million in Q1 2025.
• Cash and Cash Equivalents:
  • Amounted to $1.05 billion, increasing from $981.9 million at the end of 2025.
• Total Assets:
  • Grew to $6.94 billion, up from $6.44 billion at the end of 2025.
• Total Stockholders' Equity:
  • Increased to $2.82 billion from $2.45 billion at the end of 2025.

Dividends and Share Repurchase

• Dividend Declaration:
  • The company declared a quarterly dividend of $0.70 per share, an increase from $0.40 in Q1 2025, representing a 75.0% increase year-over-year.

Summary

Comfort Systems USA demonstrated strong financial performance in Q1 2026 with significant growth in both net income and revenue. The company benefitted from operational improvements leading to a remarkable turnaround in cash flow situation. With a solid increase in backlog and strong liquidity position, Comfort Systems USA appears well-positioned for continued growth in the upcoming quarters.

For more in-depth commentary and analysis, Comfort Systems USA plans to hold a webcast and conference call on April 24, 2026, at 10:00 a.m. Central Time.

(Note: Figures are in thousands, except for per-share amounts and percentages.)

Comfort Systems USA, Inc. Consolidated Statements of Operations (In Thousands, Except per Share Amounts)

Revenue	2026	%	2025	%
Cost of services	2,865,332	100.0 %	1,831,286	100.0 %
Gross profit	2,110,920	73.7 %	1,427,870	78.0 %
	754,412	26.3 %	403,416	22.0 %
SG&A
Gain on sale of assets	268,996	9.4 %	194,874	10.6 %
Operating income	(302)	—	(556)	—
	485,718	17.0 %	209,098	11.4 %
Interest income, net
Changes in the fair value of contingent	6,334	0.2 %	2,648	0.1 %
earn-out obligations	(10,370)	(0.4) %	(3,758)	(0.2) %
Other income, net	464	—	24	—
Income before income taxes	482,146	16.8 %	208,012	11.4 %
Provision for income taxes	111,768		38,723
Net income	370,378	12.9 %	169,289	9.2 %
Income per share
──────────────────────────────────────────	─────────────	───────	─────────────	───────
Basic	$ 10.52		$ 4.77
Diluted	$ 10.51		$ 4.75
Shares used in computing income per
share:
Basic	35,207		35,524
Diluted	35,251		35,605
Dividends per share	$ 0.700		$ 0.400

Comfort Systems USA, Inc. Condensed Consolidated Balance Sheets (In Thousands)

	March 31, 2026		December 31, 2025
Cash and cash equivalents	$ 1,050,164		$ 981,898
Billed accounts receivable, net	2,805,270		2,577,858
Unbilled accounts receivable, net	137,070		123,197
Costs and estimated earnings in excess	128,007		88,817
of billings, net
Other current assets, net	380,420		338,783
Total current assets	4,500,931		4,110,553
Property and equipment, net	515,796		387,952
Goodwill	1,025,515		1,025,515
Identifiable intangible assets, net	464,774		485,168
Other noncurrent assets	431,330		431,981
Total assets	$ 6,938,346		$ 6,441,169
Current maturities of long-term debt	$ 25		$ 6,163
Accounts payable	719,590		696,348
Billings in excess of costs and	2,345,279		2,120,262
estimated earnings and deferred revenue
Other current liabilities	565,899		571,077
Total current liabilities	3,630,793		3,393,850
Long-term debt	39,054		139,063
Other long-term liabilities	453,451		459,482
Total liabilities	4,123,298		3,992,395
Total stockholders’ equity	2,815,048		2,448,774
Total liabilities and stockholders’	$ 6,938,346		$ 6,441,169
equity