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- **Record Q3 Results**: $8.25 EPS, 33% same-store revenue growth, 24.8% gross margin.
- **Strategic Acquisitions**: $170M for FZ Electrical & Meisner Electric, adding $200M+ annual revenue.
- **Cash Flow Strength**: $519M free cash flow, $125M share buybacks YTD.
- **Backlog Growth**: $9.4B backlog (+65% YoY), 3M sq ft modular capacity fully booked.
- **Sectors Driving Growth**: Technology (42% of revenue), industrial (65%), service (+11%).

**【CEO Opening Remarks】**
- Q3 2025 EPS of $8.25, doubling the prior year, driven by 33% same-store revenue growth and 24.8% gross margin.
- Acquired FZ Electrical and Meisner Electric, adding $200M+ annual revenue and $15-20M EBITDA.
- Increased quarterly dividend by 20% to $0.60/share and repurchased $125M of shares YTD.
- Backlog reached $9.4B, up $3.7B YoY, with $1.3B sequential growth.

**【CFO Financial Review】**
- Q3 revenue $2.5B (+35% YoY), EBITDA $414M (+74%), free cash flow $519M.
- Gross profit $608M (+58%), with mechanical margins 24.3% vs 20.3% YoY, electrical 26.2% vs 23.9%.
- SG&A $230M (9.4% of rev), up due to hiring to support growth.
- 2026 outlook: same-store revenue growth 10-15%, EBITDA >$1.2B.

**【COO Operational Update】**
- Backlog $9.4B, 65% YoY growth, with 62% same-store increase.
- Technology sector revenue 42% of total, up from 32% YoY.
- Modular capacity to reach 3M sq ft by early 2026, fully booked.
- Service revenue +11%, now 14% of total, with strong margins.

**【Q&A Highlights】**
- **Capital Allocation**: Prioritize acquisitions, share buybacks, and dividend growth. Recent $170M acquisition funding via credit facility.
- **Cash Flow Sustainability**: Free cash flow tracks net income; Q3 surge due to favorable project closeouts.
- **Backlog Visibility**: 86% of backlog in construction, 61% new buildings, 25% existing.
- **Hiring**: +15% headcount YoY, focused on skilled trades; apprenticeship programs expand capacity.
- **Pharma Pipeline**: Mid-Atlantic pharma projects in planning stages, but technology sector remains priority.

Comfort Systems USA, Inc. (FIX) Q3 2025 Earnings Call Transcript

- **Record Q2 Performance**: $2.2B revenue (20% YoY), $6.53 EPS (75% YoY), and $8.1B backlog (41% YoY). 
- **Profitability Surge**: 23.5% gross margin (vs. 20.1% YoY), $334M EBITDA (50% YoY). 
- **Strategic Growth**: Modular revenue at 18%, Right Way Plumbing acquisition, and $111M share buybacks. 
- **Demand Strength**: Technology sector at 40% of revenue, 37% YoY backlog growth, and 2027+ pipeline expansion. 
- **Cash Position**: $250M net cash, $222M free cash flow, and 23% tax rate outlook. 


**【CEO Summary Section】**
- Q2 2025 revenue exceeded $2 billion for the first time, up 20% YoY, with EPS of $6.53 (75% YoY increase). 
- Mechanical segment revenue grew 13%, Electrical segment 49%, and service revenue rose 10%. 
- Backlog reached $8.1 billion, a 41% YoY increase, with 37% same-store growth. 
- Acquired Right Way Plumbing, expected to generate $60-70 million annually. 
- Increased quarterly dividend to $0.50/share and repurchased 326,000 shares year-to-date. 
- Strong demand for large, complex projects despite macroeconomic uncertainty. 

**【CFO Financial Commentary】**
- Q2 GAAP net income: $231 million ($6.53 EPS) vs. $134 million ($3.74 EPS) YoY. 
- EBITDA: $334 million (50% YoY increase), trailing 12-month EBITDA exceeds $1 billion. 
- Gross profit margin: 23.5% (vs. 20.1% YoY), with Mechanical at 22.9% and Electrical at 25.3%. 
- Free cash flow: $222 million, driven by $118 million tax refund and normalized customer payments. 
- Year-to-date tax rate: 20.7%, with 23% expected for the second half. 

**【COO Operational Update】**
- Modular revenue: 18% of total (vs. 12% prior year), with 3 million sq.ft. capacity by early 2026. 
- Technology sector bookings dominate, accounting for 40% of revenue (vs. 31% YoY). 
- Service revenue: $1.2 billion (15% of total), growing 10% Q2. 
- Industrial customers (63% of revenue) and institutional markets (24%) remain strong. 
- New building construction: 58% of projects, with 18% utilizing modular. 

**【Q&A Highlights】**
- **Modular Expansion**: 3 million sq.ft. capacity by early 2026, prioritizing productivity over new locations. 
- **Growth Outlook**: Mid-teens same-store revenue growth expected for 2025, with 37% YoY backlog growth. 
- **Customer Demand**: Technology sector driving bookings, with hyperscale customers prioritized for scarce resources. 
- **Workforce Management**: Internal staffing company and cross-company collaboration support labor needs. 
- **Pricing Power**: Gross margins reflect risk-adjusted pricing and operational excellence. 
- **Long-Term Pipeline**: 2027+ backlog significant, with pharma and semiconductor fabs in pipeline. 


Comfort Systems USA, Inc. (FIX) Q2 2025 Earnings Call Transcript

- **Q1 2025 Record Performance**: EPS of $4.75 (+75% YoY), 15% same-store revenue growth, and $7B backlog highlight strong execution.
- **Margin Expansion**: Gross margin up to 22.0%, with Mechanical segment improving 300+ basis points YoY.
- **Strategic Investments**: $92M share buybacks, dividend hike to $0.45, and Century Contractors acquisition ($90M+ revenue) signal confidence.
- **Cash Management**: Negative free cash flow driven by one-time tax payments, but strong underlying cash flow supports growth.

**【CEO Opening Remarks】**
- **Record Q1 Earnings**: EPS of $4.75, up 75% YoY, exceeding all prior quarters.
- **15% Same-Store Revenue Growth**: Driven by tech sector demand, with $237M increase in core business.
- **Backlog Record High**: $7B at quarter-end, up sequentially and YoY.
- **Strategic Acquisitions**: Added Century Contractors ($90M+ annual revenue) and returned $92M to shareholders via buybacks.
- **Risk Management**: Focused on project execution amid tariff uncertainties, maintaining strong balance sheet.

**【CFO Financial Highlights】**
- **Revenue Growth**: $1.8B (+19% YoY), with 22% Electrical segment growth and 18% Mechanical expansion.
- **Margin Expansion**: Gross margin 22.0% (vs 19.3% YoY), driven by Mechanical segment (21.7% vs 18.4%).
- **Profitability**: Operating income $209M (+54% YoY), net income $169M, benefiting from $11M tax refund interest.
- **Cash Flow**: Negative free cash flow ($109M) due to one-time tax payments and earn-outs, but strong underlying cash generation.
- **Share Repurchases**: Bought 264,000 shares ($92M) and raised dividend to $0.45/share.

**【Key Financial Metrics】**
- **EPS**: $4.75 (vs $2.69 YoY), including $0.25 from tax refund.
- **EBITDA**: $243M (+43% YoY), 12-month trailing $965M.
- **Tax Rate**: 18.6% Q1, expected 23% for remainder of 2025.
- **Net Cash**: $130M+ at quarter-end, supporting growth and shareholder returns.

Comfort Systems USA (FIX)-25 Apr 25-2025 Q1 Earnings call transcript

- **Record Financials**: Q4 2024 revenue $1.9B (+38% YoY), EPS $4.09 (+60% YoY). Full-year EPS $14.60 (+62% YoY), free cash flow $744M.
- **Strong Margins**: Q4 gross margin 23.2%, operating margin 12.1%. Full-year gross margin 21% vs 19% YoY.
- **Backlog Growth**: $6B backlog (+16% YoY), 9% same-store growth. 2026 backlog visibility at record levels.
- **Modular Expansion**: 2024 modular revenue $1.2B (+50%), 200K sq ft expansion underway.
- **Tech Sector Dominance**: 33% of revenue from advanced tech, data center bookings remain robust.
- **Dividend & Buybacks**: Dividend increased to $0.40/share, $58M returned to shareholders via buybacks.


**【CEO Opening Remarks】**
- Q4 2024 revenue reached $1.9B, up 38% YoY, with full-year revenue of $7B (+35% YoY). Q4 EPS of $4.09 (+60% YoY), full-year EPS of $14.60 (+62% YoY). 
- Record backlog of $6B (+16% YoY), with 9% same-store growth. 2024 operating cash flow of $849M and free cash flow of $744M.
- Acquired Century Contractors, adding $90M in annual revenue, and increased quarterly dividend to $0.40/share.

**【CFO Financial Highlights】**
- Q4 gross profit of $434M (+154% YoY), gross margin 23.2% vs 20.6% YoY. Full-year gross margin 21% vs 19% YoY.
- SG&A expense 10.4% of revenue (vs 11.0% YoY), operating income $749M (+58% YoY), EBITDA $892M (+85% YoY).
- 2024 tax rate 21.6%, 2025 expected 22-23%. CapEx $111M (1.5% of revenue), share buybacks returned $58M to shareholders.

**【Q&A Key Themes】**
- **2025 Margin Confidence**: Strong project selection, execution, and workforce quality support 2025 gross margin expectations. Modular business margins expected to remain strong.
- **Modular Growth**: 2024 modular revenue up 50% to $1.2B (17% of total). 200K sq ft expansion underway, focusing on productivity and automation.
- **Tech Sector Demand**: Data center bookings remain robust, with 33% of revenue from advanced tech (vs 21% YoY). 2026 backlog visibility unprecedented.
- **Workforce & M&A**: 18,000+ employees benefit from strong pipeline. M&A pipeline healthy, with disciplined approach to accretive deals.
- **Cash Flow Management**: Q1 2025 impacted by $80M deferred tax payment, but 2025 free cash flow expected to remain strong.


Comfort Systems USA, Inc. (FIX) Q4 2024 Earnings Call Transcript

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