Comfort Systems USA Exceeds Q2 Earnings and Revenue Expectations, Shares Rise 14.2%

Comfort Systems USA reported Q2 2025 earnings and revenue that exceeded the Zacks Consensus Estimate, with net income surging to $230.8 million and revenue climbing 20% YoY to $2.17 billion. The company's backlog reached a record $8.12 billion, up from $5.77 billion a year ago. Shares of Comfort Systems gained 14.2% in after-hours trading.

Comfort Systems USA, Inc. (NYSE: CSUSA) reported its second-quarter 2025 earnings on July 25, 2025, exceeding the Zacks Consensus Estimate. The company's net income surged to $230.8 million, a 70% increase from the same period last year. Revenue climbed 20% year-over-year (YoY) to $2.17 billion. Additionally, the company's backlog reached a record $8.12 billion, up from $5.77 billion a year ago. Following the earnings release, Comfort Systems USA's shares gained 14.2% in after-hours trading.

The company's Chief Executive Officer, Brian Lane, highlighted the strong performance of the Mechanical and Electrical segments, as well as the service revenue and profits, which increased by double-digit percentages. The acquisition of Right Way Plumbing, a Florida-based plumbing business, is expected to contribute $60 million to $70 million in annual revenue. Furthermore, the company increased its quarterly dividend by $0.05, to $0.50 per share, and actively purchased shares during the first half of 2025.

William George, Executive Vice President and Chief Financial Officer, presented the financial performance, noting that the company achieved a 19% same-store revenue growth, sharply higher margins, and over $220 million in free cash flow. Gross profit was $510 million, a $146 million increase compared to the same quarter last year. The company's operating income increased by over 60%, and net income was $231 million, or $6.53 per share. The company's EBITDA increased to $334 million, a 50% increase from the same quarter last year. Free cash flow was $222 million, and the company remains in a net cash position of more than $250 million.

Trent McKenna, Executive Vice President and Chief Operating Officer, discussed the company's operational outlook, noting that the backlog at the end of the second quarter was a record $8.1 billion, a 41% increase from last year. The company is entering the second half of 2025 with a same-store backlog 37% higher than at this time last year. Industrial customers accounted for 63% of total revenue in the first half of 2025, and technology was 40% of revenue, a substantial increase from the prior year. Service revenue was up 10%, and service profitability was strong.

The company's strong performance and positive outlook have driven investor confidence, with shares gaining 14.2% in after-hours trading following the earnings release. Comfort Systems USA continues to demonstrate robust growth and profitability, positioning itself for continued success in the coming quarters and years.

Reference List:
[1] https://www.zonebourse.com/cours/action/COMFORT-SYSTEMS-USA-INC-12605/actualite/Transcript-Comfort-Systems-USA-Inc-Q2-2025-Earnings-Call-Jul-25-2025-50614459/