FIXHIGH SIGNALFINANCIAL10-K

Comfort Systems USA delivered substantially higher profitability with net income roughly doubling year-over-year alongside meaningful expansion in operating performance.

The dramatic improvement in profitability metrics suggests either significant operational leverage from revenue growth, major efficiency gains, or potential one-time benefits that warrant closer examination. The company's expansion from 47 to 50 operating units and 178 to 190 locations indicates continued geographic growth supporting the strong financial performance.

Comparing 2026-02-19 vs 2025-02-20View on EDGAR →
FINANCIAL ANALYSIS

The company demonstrated robust financial expansion with gross profit approaching $2.2B and operating income reaching $1.3B, both substantially higher than the prior year. Cash position grew notably to nearly $1B while total assets expanded to $6.4B, reflecting a strengthened balance sheet. Operating cash flow reached $1.2B with proportionally higher capital expenditures of $155M, suggesting the company is reinvesting meaningfully in growth while generating strong cash returns.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+95.7%
$522.4M$1.0B

Net income grew 95.7% — bottom-line growth signals improving overall business health.

Cash & Equivalents
Balance Sheet
+78.5%
$549.9M$981.9M

Cash position surged 78.5% — strong cash generation or capital raise providing significant financial cushion.

Operating Income
P&L
+75.4%
$749.4M$1.3B

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Gross Profit
P&L
+48.7%
$1.5B$2.2B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Current Assets
Balance Sheet
+47.3%
$2.8B$4.1B

Current assets grew 47.3% — improving short-term liquidity or inventory/receivables build.

Stockholders Equity
Balance Sheet
+43.7%
$1.7B$2.4B

Equity base grew 43.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Inventory
Balance Sheet
+41.9%
$59.2M$84.1M

Inventory surged 41.9% — growing faster than typical sales pace; potential demand softening or supply chain overcorrection.

Operating Cash Flow
Cash Flow
+39.7%
$849.1M$1.2B

Operating cash flow surged 39.7% — exceptional cash generation, highest quality earnings signal.

Capital Expenditure
Cash Flow
+39.5%
$111.1M$154.9M

Capital expenditure jumped 39.5% — major investment cycle underway; assess returns on deployment.

Total Assets
Balance Sheet
+36.7%
$4.7B$6.4B

Asset base grew 36.7% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-20
ADDED
As of February 13, 2026, 35,174,967 shares of the registrant s common stock were outstanding (excluding treasury shares of 5,948,398).
These forward-looking statements are based on the current expectations and beliefs of the Company concerning future developments and their effect on the Company.
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 Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
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, except as otherwise required by law.
We build, install, maintain, repair and replace mechanical, electrical and plumbing ( MEP ) systems through our 50 operating units with 190 locations in 142 cities throughout the United States.
Approximately 63.2% of our revenue was attributable to installation services in newly constructed facilities and 36.8% was attributable to renovation, expansion, maintenance, repair and replacement services in existing buildings.
Our consolidated 2025 revenue was derived from the following service industries: Percentage of Service Activity Revenue Mechanical Services 73.3 % Electrical Services 26.7 % Total 100.0 % Industry Overview We believe that commercial, industrial, and institutional mechanical and electrical contracting generate annual revenue in the United States of approximately $700 billion.
Our industry can be broadly divided into two categories: construction of and installation in new buildings, which provided approximately 63.2% of our revenue in 2025, and renovation, expansion, maintenance, repair and replacement in existing buildings, which provided the remaining 36.8% of our 2025 revenue.
Costs and other project terms are normally negotiated between the building owner or its representative and the contracting company.
Our distribution of revenue in 2025 by end-use sector was as follows: Technology 45.0 % Manufacturing 22.1 % Healthcare 8.9 % Education 7.3 % Government 5.0 % Office Buildings 5.0 % Retail, Restaurants and Entertainment 3.7 % Multi-Family and Residential 1.4 % Other 1.6 % Total 100.0 % Approximately 92.7% of our revenue is earned on a project basis for installation of systems in newly constructed or existing facilities.
REMOVED
As of February 14, 2025, 35,553,062 shares of the registrant s common stock were outstanding (excluding treasury shares of 5,570,303).
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.
Known material factors that could cause the Company s actual results to differ from those in the forward-looking statements are those described in Part I, Item 1A.
The Company undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise.
We build, install, maintain, repair and replace mechanical, electrical and plumbing ( MEP ) systems throughout our 47 operating units with 178 locations in 136 cities throughout the United States.
Approximately 56.7% of our revenue was attributable to installation services in newly constructed facilities and 43.3% was attributable to renovation, expansion, maintenance, repair and replacement services in existing buildings.
Our consolidated 2024 revenue was derived from the following service industries: Percentage of Service Activity Revenue Mechanical Services 78.7 % Electrical Services 21.3 % Total 100.0 % Industry Overview We believe that commercial, industrial, and institutional mechanical and electrical contracting generate annual revenue in the United States of approximately $550 billion.
Our industry can be broadly divided into two categories: construction of and installation in new buildings, which provided approximately 56.7% of our revenue in 2024, and renovation, expansion, maintenance, repair and replacement in existing buildings, which provided the remaining 43.3% of our 2024 revenue.
In design and build projects, the commercial MEP company is responsible for designing, engineering and installing a cost-effective, energy-efficient system customized to the specific needs of the building owner.
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