Comfort Systems USA (FIX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $1.81 billion, up 39.6% year-over-year, with both mechanical and electrical segments delivering record margins and strong execution.

• Diluted EPS for Q2 2024 was $3.74, a 93.8% increase year-over-year, and net income was $134 million, up 92.9%.

• Backlog as of June 30, 2024 reached $5.77 billion, up 37.9% year-over-year, reflecting robust demand and project bookings.

• Service revenue and profit both grew, with service on track to exceed $1 billion in 2024.

• Recent acquisitions expanded the mechanical segment and contributed to revenue and earnings growth.

Financial highlights

• Q2 2024 gross profit was $363.6 million (20.1% margin), up from $227.9 million (17.6%) in Q2 2023.

• Operating income for Q2 2024 was $184.7 million (10.2% margin), up 100.5% year-over-year.

• Adjusted EBITDA for Q2 2024 was $222.7 million, nearly double the prior year.

• Free cash flow for the first six months was $289.9 million, up from $213.3 million in 2023.

• Cash flow from operations for Q2 2024 was $189.9 million, up from $125.4 million in Q2 2023.

Outlook and guidance

• Management expects continued strong results in the second half of 2024 and into 2025, supported by robust demand, high backlog, and a strong pipeline.

• Full-year 2024 same-store revenue growth expected in the low to mid-20% range.

• EBITDA margins anticipated to remain strong for the rest of 2024.

• Company is preparing for a range of economic scenarios, including a potential recession.