Comfort Systems USA (FIX) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 53.7% YoY to $3.766B; net income was $489.0M and diluted EPS was $13.91.

• Backlog reached $17.815B at September 30, up 90.0% YoY and 26.7% sequentially, its eighth consecutive sequential increase.

• Management expects solid earnings and continued growth through the rest of 2026 and in 2027, supported by strong demand and execution.

Financial highlights

• Q3 gross profit was $934.5M; operating income increased 64.8% to $624.6M and net income rose to $489.0M from $291.6M.

• Q3 diluted EPS rose to $13.91 from $8.25; Adjusted EBITDA increased 61.4% to $667.9M.

• Nine-month revenue grew 53.3% to $9.897B; operating income was $1.668B and net income was $1.301B.

• Nine-month diluted EPS was $36.94 versus $19.52; Adjusted EBITDA was $1.793B versus $990.6M.

• Q3 operating cash flow was $1.010B; nine-month operating cash flow was $2.538B and free cash flow was $2.047B.

Outlook and guidance

• Same-store revenue growth is expected in the mid-40% range for 2026 and the mid-20% range for 2027.

• 2027 gross profit margins are expected to remain in recent strong ranges; the tax rate is expected near 23% through the rest of 2026 and in 2027.

• Modular capacity is targeted to exceed 4M sq. ft. by year-end 2026 and reach ~6M sq. ft. by year-end 2027, based on existing programmatic customers.

• Full-year CapEx is estimated at 4%-5% of revenue, with elevated investment likely through H1 2027.

• Robust demand and a strong opportunity pipeline support expectations for organic growth, high profitability and solid cash flow through 2027.