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Comfort Systems' $6.9B Backlog: Is It a Sign of Revenue Growth Ahead?
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Key Takeaways
FIX's backlog hit a record $6.89B in Q1 2025, up from $5.99B at the end of Q4 2024.
Q1 revenues rose 19% year over year to $1.83B, led by tech and industrial market strength.
Construction drove 85% of revenues, with 58% from new buildings and 27% from existing ones.
Comfort Systems USA (FIX - Free Report) is gaining solid traction with its growing backlog, which continues to set the stage for sustained revenue growth. The company continues to benefit from broad-based market strength, supported by steady demand across core segments and particularly strong momentum from technology customers. In the first quarter, revenues jumped 19% year over year to $1.83 billion, supported by strong demand across industrial and technology markets.
The company is building a strong backlog, supported by steady growth across its core markets and rising demand for technology and infrastructure projects. As of March 31, 2025, the backlog reached a record $6.89 billion, up from $5.99 billion at the end of December 2024. On a same-store basis, the backlog increased from $5.91 billion to $6.84 billion over the past year. The company’s steadily expanding backlog highlights persistent project momentum and signals confidence in its growth pipeline.
FIX’s revenue mix is increasingly weighted toward the industrial sector, which accounted for 62% of total volume in the first quarter. Institutional markets, including education, health care and government, also remain solid contributors, making up 24% of total revenues. Construction remains the primary revenue driver, representing 85% of the overall revenue, with new building projects contributing 58% and existing building construction accounting for 27%.
Moving ahead, Comfort Systems is well-positioned across its core markets and regions. The company is seeing continued demand for large and complex projects. Comfort Systems expects its record backlog, strong technology pipeline and onshoring trends to support stable performance in 2025 and remain positive about growth prospects moving into 2026.
Industry Peers Leverage Backlog Strength for Growth
EMCOR Group, Inc. (EME - Free Report) EMCOR is benefiting significantly from rising infrastructure demand, particularly within the network and communications sector, driven by data center growth. As of March 31, 2025, EMCOR’s total Remaining Performance Obligations were $11.75 billion, indicating 28.1% year-over-year growth. Strong public infrastructure spending in the United States further supports EMCOR’s growth prospects. Backed by sustained demand, the company has provided a positive 2025 outlook, expecting year-over-year growth across both revenues and earnings.
AECOM (ACM - Free Report) remains well-positioned to capitalize on sustained infrastructure momentum. Ongoing investments in transportation, energy and environmental systems are driving activity across core markets. Currently, it has a good visibility of a strong backlog and pipelines for the upcoming quarters. At the end of the second quarter of fiscal 2025, the total backlog was $24.27 billion, up from $23.74 billion in the prior-year period. AECOM’s ability to consistently secure large, complex projects underpins its competitive advantage.
FIX’s Price Performance, Valuation and Estimates
Comfort Systems stock has gained 42.3% in the past three months, outpacing the industry and the S&P 500’s rise of 9.2% and 5.2%, respectively.
Image Source: Zacks Investment Research
The stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-earnings ratio of 24.89X.
Image Source: Zacks Investment Research
Comfort Systems’ earnings estimates for 2025 and 2026 have trended upward in the past 30 days by 1.1% to $19.28 per share and 0.7% to $20.41, respectively. The estimated figures for 2025 and 2026 indicate 32.1% and 5.8% year-over-year growth, respectively.
Image: Bigstock
Comfort Systems' $6.9B Backlog: Is It a Sign of Revenue Growth Ahead?
Key Takeaways
Comfort Systems USA (FIX - Free Report) is gaining solid traction with its growing backlog, which continues to set the stage for sustained revenue growth. The company continues to benefit from broad-based market strength, supported by steady demand across core segments and particularly strong momentum from technology customers. In the first quarter, revenues jumped 19% year over year to $1.83 billion, supported by strong demand across industrial and technology markets.
The company is building a strong backlog, supported by steady growth across its core markets and rising demand for technology and infrastructure projects. As of March 31, 2025, the backlog reached a record $6.89 billion, up from $5.99 billion at the end of December 2024. On a same-store basis, the backlog increased from $5.91 billion to $6.84 billion over the past year. The company’s steadily expanding backlog highlights persistent project momentum and signals confidence in its growth pipeline.
FIX’s revenue mix is increasingly weighted toward the industrial sector, which accounted for 62% of total volume in the first quarter. Institutional markets, including education, health care and government, also remain solid contributors, making up 24% of total revenues. Construction remains the primary revenue driver, representing 85% of the overall revenue, with new building projects contributing 58% and existing building construction accounting for 27%.
Moving ahead, Comfort Systems is well-positioned across its core markets and regions. The company is seeing continued demand for large and complex projects. Comfort Systems expects its record backlog, strong technology pipeline and onshoring trends to support stable performance in 2025 and remain positive about growth prospects moving into 2026.
Industry Peers Leverage Backlog Strength for Growth
EMCOR Group, Inc. (EME - Free Report) EMCOR is benefiting significantly from rising infrastructure demand, particularly within the network and communications sector, driven by data center growth. As of March 31, 2025, EMCOR’s total Remaining Performance Obligations were $11.75 billion, indicating 28.1% year-over-year growth. Strong public infrastructure spending in the United States further supports EMCOR’s growth prospects. Backed by sustained demand, the company has provided a positive 2025 outlook, expecting year-over-year growth across both revenues and earnings.
AECOM (ACM - Free Report) remains well-positioned to capitalize on sustained infrastructure momentum. Ongoing investments in transportation, energy and environmental systems are driving activity across core markets. Currently, it has a good visibility of a strong backlog and pipelines for the upcoming quarters. At the end of the second quarter of fiscal 2025, the total backlog was $24.27 billion, up from $23.74 billion in the prior-year period. AECOM’s ability to consistently secure large, complex projects underpins its competitive advantage.
FIX’s Price Performance, Valuation and Estimates
Comfort Systems stock has gained 42.3% in the past three months, outpacing the industry and the S&P 500’s rise of 9.2% and 5.2%, respectively.
Image Source: Zacks Investment Research
The stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-earnings ratio of 24.89X.
Image Source: Zacks Investment Research
Comfort Systems’ earnings estimates for 2025 and 2026 have trended upward in the past 30 days by 1.1% to $19.28 per share and 0.7% to $20.41, respectively. The estimated figures for 2025 and 2026 indicate 32.1% and 5.8% year-over-year growth, respectively.
Image Source: Zacks Investment Research
Comfort Systems currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.