Comfort Systems USA, Inc. (NYSE:FIX) (the "Company") today reported results for the quarter ended June 30, 2025.

For the quarter ended June 30, 2025, net income was $230.8 million, or $6.53 per diluted share, as compared to $134.0 million, or $3.74 per diluted share, for the quarter ended June 30, 2024. Revenue for the second quarter of 2025 was $2.17 billion compared to $1.81 billion in 2024. The Company reported operating cash flow of $252.5 million in the current quarter compared to $189.9 million in 2024.

Brian Lane, Comfort Systems USA's President and Chief Executive Officer, said, "Our businesses and their stellar teams continue to demonstrate world class performance, as we achieved earnings that far surpass all prior quarters. Per share earnings in the second quarter of 2025 was $6.53, more than 70% higher than the spectacular results we achieved in the second quarter of 2024. For the first half of 2025, our per share earnings have grown by over 75% as compared to the record results in the same period of 2024. This quarter, we are also happy to report strong operating cash flow of over $250 million."

Backlog as of June 30, 2025 was $8.12 billion as compared to $6.89 billion as of March 31, 2025 and $5.77 billion as of June 30, 2024. On a same-store basis, backlog increased from $5.77 billion as of June 30, 2024 to $7.93 billion as of June 30, 2025.

Mr. Lane continued, "Our backlog continues to reflect the extraordinary demand that we are experiencing in our most important markets, increasing sequentially by over $1 billion. For the first time, our backlog has exceeded $8 billion, and it is $2.4 billion higher than it was at this time last year. Our strong earnings, backlog surge, and strong pipelines clearly demonstrate continued strength in our execution, customer relationships, and prospects. Overall, we remain optimistic that we will achieve continued success into 2026."

The Company reported net income of $400.1 million, or $11.28 per diluted share, for the six months ended June 30, 2025, compared to $230.3 million, or $6.43 per diluted share, in 2024. The income tax provision for the first six months of 2025 includes a benefit of $0.25 per diluted share related to interest income on a prior year tax refund that was received in April 2025. The Company also reported revenue of $4.00 billion for the six months ended June 30, 2025, as compared to $3.35 billion in 2024. Operating cash flow for the six months ended June 30, 2025 was $164.5 million, as compared to $336.4 million in 2024.

The Company will host a webcast and conference call to discuss its financial results and position on Friday, July 25, 2025 at 10:00 a.m. Central Time. To register for the call, please visit https://register-conf.media-server.com/register/BI7df7054a19084f858658bf83a267b6ec. Upon registering, participants will receive dial-in information and a unique PIN to join the call. The call and the slide presentation to accompany the remarks can be accessed on the Company's website at www.comfortsystemsusa.com under the "Investors" tab. A replay of the entire call will be available on the Company's website on the next business day following the call.

Comfort Systems USA® is a leading provider of commercial, industrial and institutional heating, ventilation, air conditioning and electrical contracting services, with 180 locations in 135 cities across the nation. For more information, visit the Company's website at www.comfortsystemsusa.com.

Certain statements and information in this press release may constitute forward-looking statements regarding our future business expectations, which are subject to applicable securities laws and regulations. The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could," or other similar expressions are intended to identify forward-looking statements, which are generally not historic in nature. These forward-looking statements are based on the current expectations and beliefs of Comfort Systems USA, Inc. and its subsidiaries (collectively, the "Company") concerning future developments and their effect on the Company. While the Company's management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Company will be those that it anticipates, and the Company's actual results of operations, financial condition and liquidity, and the development of the industry in which the Company operates, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of our results or developments in subsequent periods. All comments concerning the Company's expectations for future revenue and operating results are based on the Company's forecasts for its existing operations and do not include the potential impact of any future acquisitions. The Company's forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company's control) and assumptions that could cause actual future results to differ materially from the Company's historical experience and its present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the use of incorrect estimates for bidding a fixed-price contract; undertaking contractual commitments that exceed the Company's labor resources; failing to perform contractual obligations efficiently enough to maintain profitability; national or regional weakness in construction activity and economic conditions; rising inflation and fluctuations in interest rates; shortages of labor and specialty building materials or material increases to the cost thereof; the Company's business being negatively affected by health crises or outbreaks of disease, such as epidemics or pandemics (and related impacts, such as supply chain disruptions); financial difficulties affecting projects, vendors, customers, or subcontractors; the Company's backlog failing to translate into actual revenue or profits; failure of third party subcontractors and suppliers to complete work as anticipated; difficulty in obtaining, or increased costs associated with, bonding and insurance; impairment to goodwill; errors in the Company's cost-to-cost input method of accounting; the result of competition in the Company's markets; the Company's decentralized management structure; material failure to comply with varying state and local laws, regulations or requirements; debarment from bidding on or performing government contracts; retention of key management; seasonal fluctuations in the demand for mechanical and electrical systems; the imposition of past and future liability from environmental, safety, and health regulations including the inherent risk associated with self-insurance; adverse litigation results; an increase in our effective tax rate; a material information technology failure or a material cyber security breach; risks associated with acquisitions, such as challenges to our ability to integrate those companies into our internal control environment; our ability to manage growth and geographically-dispersed operations; our ability to obtain financing on acceptable terms; extreme weather conditions (such as storms, droughts, extreme heat or cold, wildfires and floods), including as a result of climate change, and any resulting regulations or restrictions related thereto; and other risks detailed in our reports filed with the Securities and Exchange Commission (the "SEC").

For additional information regarding known material factors that could cause the Company's results to differ from its projected results, please see its filings with the SEC, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether because of new information, future events, or otherwise.

— Financial tables follow —

Comfort Systems USA, Inc.
Consolidated Statements of Operations
(In Thousands, Except per Share Amounts)

	Three Months Ended												Six Months Ended
	June 30,												June 30,
	(Unaudited)												(Unaudited)
	2025			%			2024			%			2025			%			2024			%
Revenue	$	2,173,319		100.0		%	$	1,810,290		100.0		%	$	4,004,605		100.0		%	$	3,347,306		100.0		%
Cost of services		1,663,422		76.5		%		1,446,694		79.9		%		3,091,292		77.2		%		2,686,347		80.3		%
Gross profit		509,897		23.5		%		363,596		20.1		%		913,313		22.8		%		660,959		19.7		%

SG&A		210,466		9.7		%		179,537		9.9		%		405,340		10.1		%		342,260		10.2		%
Gain on sale of assets		(442	)	—				(611	)	—				(998	)	—				(1,431	)	—
Operating income		299,873		13.8		%		184,670		10.2		%		508,971		12.7		%		320,130		9.6		%

Interest income (expense), net		1,214		0.1		%		(445	)	—				3,862		0.1		%		(475	)	—
Changes in the fair value of contingent earn-out obligations		(4,073	)	(0.2	)	%		(14,689	)	(0.8	)	%		(7,831	)	(0.2	)	%		(27,180	)	(0.8	)	%
Other income (expense), net		(530	)	—				119		—				(506	)	—				236		—
Income before income taxes		296,484		13.6		%		169,655		9.4		%		504,496		12.6		%		292,711		8.7		%

Provision for income taxes		65,636						35,646						104,359						62,383
Net income	$	230,848		10.6		%	$	134,009		7.4		%	$	400,137		10.0		%	$	230,328		6.9		%

Income per share
Basic	$	6.54					$	3.75					$	11.30					$	6.44
Diluted	$	6.53					$	3.74					$	11.28					$	6.43

Shares used in computing income per share:
Basic		35,307						35,746						35,415						35,742
Diluted		35,369						35,828						35,486						35,828
Dividends per share	$	0.450					$	0.300					$	0.850					$	0.550

Supplemental Non-GAAP Information — Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") — (Unaudited) (In Thousands)

	Three Months Ended										Six Months Ended
	June 30,										June 30,
	2025			%		2024			%		2025			%		2024			%

Net income	$	230,848				$	134,009				$	400,137				$	230,328
Provision for income taxes		65,636					35,646					104,359					62,383
Other expense (income), net		530					(119	)				506					(236	)
Changes in the fair value of contingent earn-out obligations		4,073					14,689					7,831					27,180
Interest expense (income), net		(1,214	)				445					(3,862	)				475
Gain on sale of assets		(442	)				(611	)				(998	)				(1,431	)
Amortization		19,791					26,890					39,906					50,803
Depreciation		14,856					11,790					28,866					23,044
Adjusted EBITDA	$	334,078		15.4	%	$	222,739		12.3	%	$	576,745		14.4	%	$	392,546		11.7	%

Note: The Company defines adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") as net income, provision for income taxes, other expense (income), net, changes in the fair value of contingent earn-out obligations, interest expense (income), net, gain on sale of assets, goodwill impairment, other one-time expenses or gains and depreciation and amortization. Other companies may define Adjusted EBITDA differently. Adjusted EBITDA is presented because it is a financial measure that is frequently requested by third parties. However, Adjusted EBITDA is not considered under generally accepted accounting principles as a primary measure of an entity's financial results, and accordingly, Adjusted EBITDA should not be considered an alternative to operating income, net income, or cash flows as determined under generally accepted accounting principles and as reported by the Company.

Comfort Systems USA, Inc.
Condensed Consolidated Balance Sheets
(In Thousands)

	June 30,		December 31,
	2025		2024
	(Unaudited)

Cash and cash equivalents	$	331,710	$	549,939
Billed accounts receivable, net		2,162,345		1,861,212
Unbilled accounts receivable, net		149,721		95,786
Costs and estimated earnings in excess of billings, net		203,404		91,681
Other current assets, net		196,099		191,623
Total current assets		3,043,279		2,790,241
Property and equipment, net		311,249		277,180
Goodwill		927,780		875,270
Identifiable intangible assets, net		451,446		434,417
Other noncurrent assets		329,975		333,980
Total assets	$	5,063,729	$	4,711,088

Current maturities of long-term debt	$	11,689	$	6,042
Accounts payable		573,267		654,943
Billings in excess of costs and estimated earnings and deferred revenue		1,546,306		1,149,257
Other current liabilities		568,337		772,528
Total current liabilities		2,699,599		2,582,770
Long-term debt		61,331		62,293
Other long-term liabilities		331,590		361,349
Total liabilities		3,092,520		3,006,412
Total stockholders' equity		1,971,209		1,704,676
Total liabilities and stockholders' equity	$	5,063,729	$	4,711,088

Selected Cash Flow Data (Unaudited) (In Thousands)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2025			2024			2025			2024

Cash provided by (used in):
Operating activities	$	252,495		$	189,858		$	164,545		$	336,415
Investing activities	$	(86,205	)	$	(60,786	)	$	(182,988	)	$	(282,434	)
Financing activities	$	(39,338	)	$	(30,445	)	$	(199,786	)	$	(59,712	)

Free cash flow:
Cash from operating activities	$	252,495		$	189,858		$	164,545		$	336,415
Purchases of property and equipment		(31,273	)		(23,384	)		(53,481	)		(48,336	)
Proceeds from sales of property and equipment		969			815			2,064			1,829
Free cash flow	$	222,191		$	167,289		$	113,128		$	289,908

Note: Free cash flow is defined as cash flow from operating activities less customary capital expenditures, plus the proceeds from asset sales. Other companies may define free cash flow differently. Free cash flow is presented because it is a financial measure that is frequently requested by third parties. However, free cash flow is not considered under generally accepted accounting principles as a primary measure of an entity's financial results, and accordingly, free cash flow should not be considered an alternative to operating income, net income, or cash flows as determined under generally accepted accounting principles and as reported by the Company.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250724226534/en/

Julie Shaeff, Chief Accounting Officer

ir@comfortsystemsusa.com; 713-830-9687

675 Bering Drive, Suite 400

Houston, Texas 77057

713-830-9600

Comfort Systems USA Reports Second Quarter 2025 Results