Comfort Systems USA (FIX) Q4 2024 earnings summary

Executive summary

• Achieved record annual and Q4 earnings, with Q4 2024 net income of $145.9M ($4.09/share) and full-year net income of $522.4M ($14.60/share), up 61% year-over-year.

• Q4 2024 revenue reached $1.87B, up 38% year-over-year; full-year revenue was $7.03B, up 35%.

• Backlog reached an all-time high of $5.99B at year-end, up from $5.16B a year ago.

• Recent acquisitions, including Century Contractors, are exceeding expectations and contributing to growth.

• Strong cash flow enabled organic investments, acquisitions, and share repurchases.

Financial highlights

• Q4 gross profit was $434M (23.2% margin), up from $280M (20.6%) last year; full-year gross margin was 21.0%.

• Q4 operating income rose 88% to $226.4M (12.1% margin); full-year operating income was $749M (10.7% margin).

• Adjusted EBITDA for Q4 was $261M (14.0% margin), up 85%; full-year EBITDA was $892M (12.7% margin).

• Free cash flow for 2024 was $744M, exceeding net income by $327M.

• Dividends per share increased to $1.20 in 2024 from $0.85 in 2023.

Outlook and guidance

• Management expects continued strong results in 2025, with robust backlog, healthy project pipelines, and persistent demand in technology and industrial sectors.

• Modular business expected to see incremental growth, with productivity and automation supporting margins.

• CapEx expected to remain at similar percentage of revenue in 2025, with continued investment in operations and facilities.