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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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FIX

FIX fundamentals

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