Comfort Systems USA reported a strong third quarter with record financial results, driven by excellent execution and favorable developments in late-stage projects, leading to a significant increase in EPS and operating cash flow. The company also saw substantial backlog growth and completed two strategic acquisitions, positioning it optimistically for the remainder of the year and into 2026.
Net income doubled year-over-year to $291.6 million, or $8.25 per diluted share, compared to $146.2 million, or $4.09 per diluted share, in the prior year.
positiveRevenue increased by 35.2% to $2.45 billion from $1.81 billion in the prior year.
positiveOperating cash flow reached a remarkable $553.3 million, a significant increase from $302.2 million in the prior year.
positiveBacklog grew to a record $9.38 billion as of September 30, 2025, up from $5.68 billion in the prior year.
positiveThe provision for income taxes increased significantly to $78.8 million from $41.6 million in the prior year, impacting net income.
attentionChanges in the fair value of contingent earn-out obligations resulted in a charge of $12.1 million in the current quarter, compared to a charge of $17.3 million in the prior year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.