Comfort Systems USA Inc 10-Q for FY2026 Q2

Comfort Systems USA Inc (FIX)

10-Q 2026-07-23 For: 2026-06-30

Added on July 23, 2026

About this 10-Q

Comfort Systems USA Inc filed this 10-Q on July 23, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $3.27B; up 50.3% from $2.17B a year earlier
Net income: $441.6M; up 91.3% from net income of $230.85M a year earlier
Diluted EPS: $12.53; up 91.9% from $6.53 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	FIX	New York Stock Exchange

Large accelerated filer ⌧	Accelerated filer ◻	Non-accelerated filer ◻	Smaller reporting company ☐	Emerging growth company ☐


		Page
Part I—Financial Information		2
Item 1—Financial Statements		2
Consolidated Balance Sheets		2
Consolidated Statements of Operations		3
Consolidated Statements of Stockholders’ Equity		4
Consolidated Statements of Cash Flows		5
Condensed Notes to Consolidated Financial Statements		6
Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations		21
Item 3—Quantitative and Qualitative Disclosures about Market Risk		33
Item 4—Controls and Procedures		33
Part II—Other Information		34
Item 1—Legal Proceedings		34
Item 1A—Risk Factors		34
Item 2—Unregistered Sales of Equity Securities and Use of Proceeds		34
Item 5—Other Information		35
Item 6—Exhibits		36
Signatures		37


		June 30,			December 31,
		2026			2025
		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	1,854,794		$	981,898
Billed accounts receivable, less allowance for credit losses of $23,491 and $19,708, respectively			3,278,811			2,577,858
Unbilled accounts receivable, less allowance for credit losses of $1,636 and $1,508, respectively			136,617			123,197
Other receivables, less allowance for credit losses of $270 and $325, respectively			122,100			116,157
Inventories			104,804			84,066
Prepaid expenses and other			146,723			138,560
Costs and estimated earnings in excess of billings, less allowance for credit losses of $416 and $255, respectively			144,553			88,817
Total current assets			5,788,402			4,110,553
PROPERTY AND EQUIPMENT, NET			653,873			387,952
LEASE RIGHT-OF-USE ASSETS			299,638			322,922
GOODWILL			1,101,475			1,025,515
IDENTIFIABLE INTANGIBLE ASSETS, NET			534,580			485,168
DEFERRED TAX ASSETS			80,920			84,139
OTHER NONCURRENT ASSETS			28,918			24,920
Total assets		$	8,487,806		$	6,441,169
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt		$	215		$	6,163
Accounts payable			771,906			696,348
Accrued compensation and benefits			403,471			291,722
Billings in excess of costs and estimated earnings and deferred revenue			3,231,104			2,120,262
Accrued self-insurance			40,141			42,973
Other current liabilities			321,927			236,382
Total current liabilities			4,768,764			3,393,850
LONG-TERM DEBT			53,849			139,063
LEASE LIABILITIES			273,969			302,590
DEFERRED TAX LIABILITIES			3,892			3,892
OTHER LONG-TERM LIABILITIES			170,063			153,000
Total liabilities			5,270,537			3,992,395
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Preferred stock, $.01 par, 5,000,000 shares authorized, none issued and outstanding			—			—
Common stock, $.01 par, 102,969,912 shares authorized, 41,123,365 and 41,123,365 shares issued, respectively			411			411
Treasury stock, at cost, 5,923,156 and 5,946,145 shares, respectively			(517,499)			(496,006)
Additional paid-in capital			394,107			363,314
Retained earnings			3,340,250			2,581,055
Total stockholders’ equity			3,217,269			2,448,774
Total liabilities and stockholders’ equity		$	8,487,806		$	6,441,169


		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2026			2025			2026			2025
REVENUE		$	3,265,656		$	2,173,319		$	6,130,988		$	4,004,605
COST OF SERVICES			2,421,428			1,663,422			4,532,348			3,091,292
Gross profit			844,228			509,897			1,598,640			913,313
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			287,047			210,466			556,043			405,340
GAIN ON SALE OF ASSETS			(785)			(442)			(1,087)			(998)
Operating income			557,966			299,873			1,043,684			508,971
OTHER INCOME (EXPENSE):
Interest income			11,051			2,819			19,563			7,086
Interest expense			(1,437)			(1,605)			(3,615)			(3,224)
Changes in the fair value of contingent earn-out obligations			(2,045)			(4,073)			(12,415)			(7,831)
Other			708			(530)			1,172			(506)
Other income (expense)			8,277			(3,389)			4,705			(4,475)
INCOME BEFORE INCOME TAXES			566,243			296,484			1,048,389			504,496
PROVISION FOR INCOME TAXES			124,641			65,636			236,409			104,359
NET INCOME		$	441,602		$	230,848		$	811,980		$	400,137

INCOME PER SHARE:
Basic		$	12.54		$	6.54		$	23.06		$	11.30
Diluted		$	12.53		$	6.53		$	23.03		$	11.28

SHARES USED IN COMPUTING INCOME PER SHARE:
Basic			35,221			35,307			35,216			35,415
Diluted			35,254			35,369			35,255			35,486


(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Delaware (State or other jurisdiction of Incorporation or Organization)	76-0526487 (I.R.S. Employer Identification No.)
9753 Katy Freeway Suite 700 Houston, Texas 77024 (Address of Principal Executive Offices) (Zip Code)


		Six Months Ended
		June 30, 2025
												Additional						Total
		Common Stock					Treasury Stock					Paid-In			Retained			Stockholders’
		Shares		Amount			Shares		Amount			Capital			Earnings			Equity
BALANCE AT DECEMBER 31, 2024		41,123,365		$	411		(5,562,453)		$	(273,799)		$	350,734		$	1,627,330		$	1,704,676
Net income		—			—		—			—			—			169,289			169,289
Issuance of Stock:
Issuance of shares for options exercised		—			—		—			—			—			—			—
Issuance of restricted stock & performance stock		—			—		18,448			1,156			5,445			—			6,601
Shares received in lieu of tax withholding on vested stock		—			—		(7,330)			(2,622)			—			—			(2,622)
Stock-based compensation		—			—		—			—			5,474			—			5,474
Dividends ($0.40 per share)		—			—		—			—			—			(14,162)			(14,162)
Share repurchases		—			—		(264,054)			(92,243)			—			—			(92,243)
BALANCE AT MARCH 31, 2025		41,123,365			411		(5,815,389)			(367,508)			361,653			1,782,457			1,777,013
Net income		—			—		—			—			—			230,848			230,848
Issuance of Stock:
Issuance of shares for options exercised		—			—		12,500			830			(377)			—			453
Issuance of restricted stock & performance stock		—			—		35,609			2,337			(2,337)			—			—
Shares received in lieu of tax withholding on vested stock		—			—		(12,255)			(3,977)			—			—			(3,977)
Stock-based compensation		—			—		—			—			2,723			—			2,723
Dividends ($0.45 per share)		—			—		—			—			—			(15,871)			(15,871)
Share repurchases		—			—		(62,378)			(19,980)			—			—			(19,980)
BALANCE AT JUNE 30, 2025		41,123,365		$	411		(5,841,913)		$	(388,298)		$	361,662		$	1,997,434		$	1,971,209


		Six Months Ended
		June 30, 2026
												Additional						Total
		Common Stock					Treasury Stock					Paid-In			Retained			Stockholders’
		Shares		Amount			Shares		Amount			Capital			Earnings			Equity
BALANCE AT DECEMBER 31, 2025		41,123,365		$	411		(5,946,145)		$	(496,006)		$	363,314		$	2,581,055		$	2,448,774
Net income		—			—		—			—			—			370,378			370,378
Issuance of Stock:
Issuance of shares for options exercised		—			—		9,000			754			(371)			—			383
Issuance of restricted stock & performance stock		—			—		5,674			476			7,535			—			8,011
Shares received in lieu of tax withholding on vested stock		—			—		(2,218)			(3,125)			—			—			(3,125)
Stock-based compensation		—			—		—			—			17,798			—			17,798
Dividends ($0.70 per share)		—			—		—			—			—			(24,623)			(24,623)
Share repurchases		—			—		(2,553)			(2,548)			—			—			(2,548)
BALANCE AT MARCH 31, 2026		41,123,365			411		(5,936,242)			(500,449)			388,276			2,926,810			2,815,048
Net income		—			—		—			—			—			441,602			441,602
Issuance of Stock:
Issuance of shares for options exercised		—			—		—			—			—			—			—
Issuance of restricted stock & performance stock		—			—		25,729			2,171			(2,171)			—			—
Shares received in lieu of tax withholding on vested stock		—			—		(9,472)			(13,537)			—			—			(13,537)
Stock-based compensation		—			—		—			—			8,002			—			8,002
Dividends ($0.80 per share)		—			—		—			—			—			(28,162)			(28,162)
Share repurchases		—			—		(3,171)			(5,684)			—			—			(5,684)
BALANCE AT JUNE 30, 2026		41,123,365		$	411		(5,923,156)		$	(517,499)		$	394,107		$	3,340,250		$	3,217,269


		Three Months Ended June 30,										Six Months Ended June 30,
Revenue by Service Provided		2026					2025					2026					2025
Mechanical Segment		$	2,296,667	70.3	%		$	1,638,672	75.4	%		$	4,357,289	71.1	%		$	3,040,887	75.9	%
Electrical Segment			968,989	29.7	%			534,647	24.6	%			1,773,699	28.9	%			963,718	24.1	%
Total		$	3,265,656	100.0	%		$	2,173,319	100.0	%		$	6,130,988	100.0	%		$	4,004,605	100.0	%

		Three Months Ended June 30,										Six Months Ended June 30,
Revenue by Type of Customer		2026					2025					2026					2025
Technology		$	1,917,354	58.7	%		$	934,199	43.0	%		$	3,533,869	57.6	%		$	1,611,752	40.2	%
Manufacturing			535,357	16.4	%			473,040	21.8	%			1,071,799	17.5	%			925,826	23.1	%
Healthcare			230,783	7.1	%			200,341	9.2	%			451,317	7.4	%			382,883	9.6	%
Education			168,252	5.1	%			194,845	8.9	%			301,669	4.9	%			356,087	8.9	%
Government			145,507	4.4	%			107,753	5.0	%			275,820	4.5	%			204,034	5.1	%
Office Buildings			92,468	2.8	%			110,461	5.1	%			172,808	2.8	%			232,987	5.9	%
Retail, Restaurants, and Entertainment			89,893	2.8	%			85,107	3.9	%			171,179	2.8	%			162,116	4.0	%
Multi-Family and Residential			44,678	1.4	%			33,214	1.5	%			79,713	1.3	%			61,567	1.5	%
Other			41,364	1.3	%			34,359	1.6	%			72,814	1.2	%			67,353	1.7	%
Total		$	3,265,656	100.0	%		$	2,173,319	100.0	%		$	6,130,988	100.0	%		$	4,004,605	100.0	%

		Three Months Ended June 30,										Six Months Ended June 30,
Revenue by Activity Type		2026					2025					2026					2025
New Construction		$	2,454,064	75.1	%		$	1,256,866	57.9	%		$	4,587,558	74.8	%		$	2,321,950	58.0	%
Existing Building Construction			483,469	14.8	%			607,236	27.9	%			920,070	15.0	%			1,099,839	27.5	%
Service Projects			144,742	4.4	%			146,271	6.7	%			282,830	4.6	%			265,485	6.6	%
Service Calls, Maintenance, and Monitoring			183,381	5.7	%			162,946	7.5	%			340,530	5.6	%			317,331	7.9	%
Total		$	3,265,656	100.0	%		$	2,173,319	100.0	%		$	6,130,988	100.0	%		$	4,004,605	100.0	%


	June 30, 2026		December 31, 2025
Contract assets:
Costs and estimated earnings in excess of billings, less allowance for credit losses	$	144,553	$	88,817
Contract liabilities:
Billings in excess of costs and estimated earnings and deferred revenue	$	3,231,104	$	2,120,262


		Fair Value Measurements at June 30, 2026
		Level 1			Level 2			Level 3			Total
Cash and cash equivalents		$	1,854,794		$	—		$	—		$	1,854,794
U.S. Treasury bills		$	—		$	51,604		$	—		$	51,604
Contingent earn-out obligations		$	—		$	—		$	44,727		$	44,727

		Fair Value Measurements at December 31, 2025
		Level 1			Level 2			Level 3			Total
Cash and cash equivalents		$	981,898		$	—		$	—		$	981,898
U.S. Treasury bills		$	—		$	34,357		$	—		$	34,357
Contingent earn-out obligations		$	—		$	—		$	34,842		$	34,842


		Six Months Ended		Year Ended
		June 30, 2026		December 31, 2025
Balance at beginning of period		$	34,842	$	140,156
Issuances			17,618		4,059
Settlements			(20,148)		(142,846)
Adjustments to fair value			12,415		33,473
Balance at end of period		$	44,727	$	34,842


		Mechanical Segment			Electrical Segment			Total
Balance at December 31, 2024		$	601,512		$	273,758		$	875,270
Acquisitions and purchase price adjustments (See Note 5)			52,897			97,348			150,245
Balance at December 31, 2025			654,409			371,106			1,025,515
Acquisitions and purchase price adjustments (See Note 5)			—			75,960			75,960
Balance at June 30, 2026		$	654,409		$	447,066		$	1,101,475


Year ending December 31—
2026 (remainder of the year)	$	47,332
2027		81,587
2028		70,629
2029		64,362
2030		51,827
Thereafter		218,843
Total	$	534,580


		Six Months Ended
		June 30,
		2026			2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	811,980		$	400,137
Adjustments to reconcile net income to net cash provided by operating activities—
Amortization of identifiable intangible assets			43,668			39,906
Depreciation expense			38,602			28,866
Change in right-of-use assets			23,719			14,968
Bad debt expense			4,328			3,688
Deferred tax provision			3,219			1,097
Amortization of debt financing costs			464			340
Gain on sale of assets			(1,087)			(998)
Changes in the fair value of contingent earn-out obligations			12,415			7,831
Stock-based compensation			28,612			12,193
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures—
(Increase) decrease in—
Receivables, net			(633,131)			(239,680)
Inventories			(20,738)			(11,420)
Prepaid expenses and other current assets			(3)			3,817
Costs and estimated earnings in excess of billings and unbilled accounts receivable			(49,629)			(163,567)
Other noncurrent assets			(3,129)			135
Increase (decrease) in—
Accounts payable and other current liabilities			215,497			(320,130)
Billings in excess of costs and estimated earnings and deferred revenue			1,061,506			376,780
Other long-term liabilities			(8,039)			10,582
Net cash provided by operating activities			1,528,254			164,545
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment			(288,837)			(53,481)
Proceeds from sales of property and equipment			2,132			2,064
Cash paid for acquisitions, net of cash acquired			(162,845)			(124,093)
Payments for investments			(66,123)			(7,478)
Proceeds from investments			48,209			—
Net cash used in investing activities			(467,464)			(182,988)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on revolving credit facility			(100,000)			—
Payments on other debt			(10,097)			(6,015)
Payments of dividends to stockholders			(52,785)			(30,033)
Share repurchases			(8,232)			(111,290)


		Net Leverage Ratio
		Less than 1.00		1.00 to less than 1.75		1.75 to less than 2.50		2.50 to less than 3.00		3.00 or greater
Additional Per Annum Interest Margin Added Under:
Base Rate Loan Option		0.00	%	0.25	%	0.50	%	0.75	%	1.00	%
SOFR Loan Option		1.00	%	1.25	%	1.50	%	1.75	%	2.00	%


		Balance at		Range of Stated
		June 30, 2026		Interest Rates
2027		$	24,200	4.0 - 5.5	%
2028			14,250	4.3 - 5.5	%
2029			15,000	4.5	%
Total		$	53,450


		Three Months Ended June 30, 2026
		Mechanical Segment			Electrical Segment			Corporate			Consolidated
Revenue		$	2,296,667		$	968,989		$	—		$	3,265,656
Cost of services			1,708,157			713,271			—			2,421,428
Gross profit			588,510			255,718			—			844,228
Selling, general and administrative expenses			162,398			101,825			22,824			287,047
Gain on sale of assets			(626)			(159)			—			(785)
Operating income (loss)		$	426,738		$	154,052		$	(22,824)		$	557,966
Reconciliation to income before income taxes:
Other income (expense)												8,277
Income before income taxes											$	566,243

Amortization of identifiable intangible assets		$	10,429		$	12,845		$	—		$	23,274
Depreciation expense		$	16,408		$	3,243		$	385		$	20,036
Capital expenditures		$	131,818		$	9,185		$	361		$	141,364

		Three Months Ended June 30, 2025
		Mechanical Segment			Electrical Segment			Corporate			Consolidated
Revenue		$	1,638,672		$	534,647		$	—		$	2,173,319
Cost of services			1,264,066			399,356			—			1,663,422
Gross profit			374,606			135,291			—			509,897
Selling, general and administrative expenses			137,074			55,235			18,157			210,466
Gain on sale of assets			(371)			(71)			—			(442)
Operating income (loss)		$	237,903		$	80,127		$	(18,157)		$	299,873
Reconciliation to income before income taxes:
Other income (expense)												(3,389)
Income before income taxes											$	296,484

Amortization of identifiable intangible assets		$	14,266		$	5,525		$	—		$	19,791
Depreciation expense		$	12,093		$	2,458		$	305		$	14,856
Capital expenditures		$	24,879		$	6,093		$	301		$	31,273


	June 30, 2026		December 31, 2025
Operating lease right-of-use assets	$	299,638	$	322,922
Operating lease liabilities:
Other current liabilities	$	41,876	$	35,542
Long-term operating lease liabilities		273,969		302,590
Total operating lease liabilities	$	315,845	$	338,132


Year ending December 31—
2026 (remainder of the year)	$	29,186
2027		56,437
2028		49,582
2029		43,275
2030		37,521
Thereafter		201,067
Total lease payments		417,068
Less—present value discount		(101,223)
Present value of operating lease liabilities	$	315,845


		Six Months Ended June 30, 2026
		Mechanical Segment			Electrical Segment			Corporate			Consolidated
Revenue		$	4,357,289		$	1,773,699		$	—		$	6,130,988
Cost of services			3,214,502			1,317,846			—			4,532,348
Gross profit			1,142,787			455,853			—			1,598,640
Selling, general and administrative expenses			318,912			181,679			55,452			556,043
Gain on sale of assets			(973)			(114)			—			(1,087)
Operating income (loss)		$	824,848		$	274,288		$	(55,452)		$	1,043,684
Reconciliation to income before income taxes:
Other income (expense)												4,705
Income before income taxes											$	1,048,389

Amortization of identifiable intangible assets		$	21,206		$	22,462		$	—		$	43,668
Depreciation expense		$	31,644		$	6,201		$	757		$	38,602
Capital expenditures		$	272,032		$	15,814		$	991		$	288,837

		Six Months Ended June 30, 2025
		Mechanical Segment			Electrical Segment			Corporate			Consolidated
Revenue		$	3,040,887		$	963,718		$	—		$	4,004,605
Cost of services			2,361,762			729,530			—			3,091,292
Gross profit			679,125			234,188			—			913,313
Selling, general and administrative expenses			269,344			99,281			36,715			405,340
Gain on sale of assets			(723)			(275)			—			(998)
Operating income (loss)		$	410,504		$	135,182		$	(36,715)		$	508,971
Reconciliation to income before income taxes:
Other income (expense)												(4,475)
Income before income taxes											$	504,496

Amortization of identifiable intangible assets		$	28,856		$	11,050		$	—		$	39,906
Depreciation expense		$	23,497		$	4,761		$	608		$	28,866
Capital expenditures		$	43,298		$	9,632		$	551		$	53,481


		Aggregate
	No. of	Contract Price
Contract Price of Project	Projects	(in millions)
Under $2 million	7,659	$	1,819.1
$2 million - $10 million	756		3,326.5
$10 million - $25 million	242		3,887.5
$25 million - $50 million	159		5,513.5
Greater than $50 million	125		15,335.5
Total	8,941	$	29,882.1


				Incorporated by Reference to the Exhibit Indicated Below and to the Filing with the Commission Indicated Below
Exhibit Number		Description of Exhibits		Exhibit Number		Filing or File Number
3.1		Second Amended and Restated Certificate of Incorporation of the Registrant		3.1		333-24021
3.2		Certificate of Amendment dated May 21, 1998		3.2		1998 Form 10-K
3.3		Certificate of Amendment dated July 9, 2003		3.3		2003 Form 10-K
3.4		Certificate of Amendment dated May 20, 2016		3.1		May 20, 2016 Form 8-K
3.5		Amended and Restated Bylaws of Comfort Systems USA, Inc.		3.1		March 25, 2016 Form 8-K
31.1*		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*		Inline XBRL Instance Document
101.SCH*		Inline XBRL Taxonomy Extension Schema Document
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase
104		Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document)


	Comfort Systems USA, Inc.

July 23, 2026	By:	/s/ Brian E. Lane
		Brian E. Lane
		Chief Executive Officer and Director

July 23, 2026	By:	/s/ William George
		William George
		Executive Vice President and Chief Financial Officer

July 23, 2026	By:	/s/ Julie S. Shaeff
		Julie S. Shaeff
		Senior Vice President and Chief Accounting Officer


Date: July 23, 2026	/s/ Brian E. Lane
	Brian E. Lane Chief Executive Officer


	/s/ William George
Date: July 23, 2026	William George Executive Vice President and Chief Financial Officer