Comfort Systems USA (FIX) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $2.65 billion, up 41.7% year-over-year, with gross profit margin rising to 25.5% from 23.2%.

• Full-year 2025 revenue was $9.10 billion, a 29.5% increase over 2024, and gross profit margin improved to 24.1% from 21.0%.

• Diluted EPS for Q4 2025 was $9.37, up 129% year-over-year; full-year EPS was $28.88, up 97.8%.

• Backlog at year-end 2025 was $11.94 billion, nearly doubling from $5.99 billion at the end of 2024.

• Operating cash flow for 2025 was $1.19 billion, up from $849.1 million in 2024.

Financial highlights

• Q4 2025 operating income was $426.7 million (16.1% margin), up 88.5% year-over-year; net income was $330.8 million, up 126.8%.

• Adjusted EBITDA for Q4 2025 was $464.0 million (17.5% margin), up 77.8% year-over-year.

• Full-year 2025 net income was $1.02 billion, up 95.7% from 2024; adjusted EBITDA was $1.45 billion, up 63.1%.

• Free cash flow for 2025 was $1.04 billion, up from $743.5 million in 2024.

• Cash and cash equivalents at year-end 2025 were $981.9 million, up from $549.9 million at year-end 2024.

Outlook and guidance

• Management expressed optimism for 2026, citing persistent demand and strong project pipelines.

• Expect same-store revenue growth in the mid- to high-teens percent for 2026, weighted toward the first half.

• Gross profit margins anticipated to remain strong, though seasonally lower in Q1.

• Tax rate expected to rise to around 23% in 2026.

• Backlog duration is extending, with much of the new work scheduled for 2027 and 2028.