Comfort Systems USA (FIX) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 56.5% year-over-year to $2.87 billion, driven by strong demand in technology and industrial sectors, as well as recent acquisitions.

• Net income increased 118.8% to $370.4 million, with diluted EPS rising to $10.51 from $4.75 year-over-year.

• Backlog reached a record $12.45 billion, up from $6.89 billion a year earlier and $11.94 billion at year-end 2025, reflecting robust project bookings.

• Operating cash inflows reached $388.8 million, reversing outflows of $88.0 million in the prior year period.

• Dividend per share increased to $0.80, reflecting ongoing commitment to shareholder returns.

Financial highlights

• Gross profit margin improved to 26.3% from 22.0% year-over-year.

• Operating income grew 132% to $485.7 million (17.0% margin), up from $209.1 million (11.4% margin) in Q1 2025.

• Adjusted EBITDA was $524.4 million (18.3% margin), up 116% from $242.7 million (13.3% margin) year-over-year.

• Free cash flow for the quarter was $242.2 million, compared to negative $109.1 million in Q1 2025.

• Cash and cash equivalents stood at $1.05 billion at quarter-end.

Outlook and guidance

• Management anticipates continued high demand and solid earnings for the remainder of 2026, especially from manufacturing and technology customers.

• Full-year 2026 same-store revenue expected to grow in the mid- to high-20% range over 2025.

• Gross profit margins anticipated to remain strong, consistent with recent quarters.

• Full-year effective tax rate projected at approximately 23%.

• CapEx for the year estimated at 5% of revenue, with continued investment in modular capacity.