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Comfort Systems Stock Up 14% on Q2 Earnings & Revenue Beat
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Key Takeaways
FIX reported Q2 EPS of $6.53, up 75% year over year and 39.5% above the consensus estimate.
Revenue rose 20% to $2.17B, exceeding expectations and reflecting strong market demand and execution.
Backlog reached a record $8.12B, while gross margin expanded 340 bps to 23.5%.
Comfort Systems USA (FIX - Free Report) delivered another stellar second-quarter 2025, with earnings and revenues exceeding the Zacks Consensus Estimate, posting record profits and robust growth across key metrics. The mechanical and electrical contracting firm’s second-quarter 2025 earnings showcased strong momentum in both revenue generation and operational efficiency.
Shares of Comfort Systems have gained 14.2% in the after-hours trading session yesterday following the earnings release.
Comfort Systems’ EPS and Revenue in Detail
Net income in the quarter surged to $230.8 million, or $6.53 per diluted share, beating the Zacks Consensus Estimate of $4.68 by 39.5% and increasing 75% from $3.74 per share in the year-ago quarter. Revenue climbed 20% year over year to $2.17 billion, surpassing the consensus mark of $1.95 billion by 11.3%. The strong topline and bottom-line growth reflect continued demand across the company’s end markets.
Backlog reached a record $8.12 billion, up from $5.77 billion a year ago and $6.89 billion sequentially. On a same-store basis, backlog rose 37% year over year. CEO Brian Lane expressed strong confidence heading into 2026, citing robust pipelines and execution strength. “For the first time, our backlog has exceeded $8 billion,” Lane said, underscoring long-term demand visibility.
Comfort Systems USA, Inc. Price, Consensus and EPS Surprise
Gross margin expanded to 23.5% from 20.1% a year ago, while operating income rose to $299.9 million, representing 13.8% of revenue—up from 10.2% last year.
Adjusted EBITDA for the quarter grew 50% year over year to $334.1 million, or 15.4% of revenue (up 310 basis points or bps from a year ago), driven by effective cost control and operational leverage. Both SG&A and earn-out obligation expenses declined, further boosting profitability.
Balance Sheet and Cash Flow: Strengthening Liquidity of FIX
Operating cash flow rose to $252.5 million in the quarter from $189.9 million in the year-ago quarter. Free cash flow stood at $222.2 million for the quarter, up from $167.3 million a year ago. Although year-to-date operating cash flow was lower at $164.5 million due to timing effects, FIX maintained a solid liquidity position with $331.7 million in cash and equivalents.
Long-term debt declined modestly to $61.3 million from $62.3 million at 2024-end, while stockholders’ equity improved to $1.97 billion from $1.70 billion, showcasing continued strengthening of the company’s capital structure.
Comfort Systems’ Zacks Rank & Few Constructions Releases
Otis Worldwide Corporation (OTIS - Free Report) reported mixed results in the second quarter of 2025, wherein adjusted earnings surpassed the Zacks Consensus Estimate while net sales missed the same. On a year-over-year basis, Otis’ top line and the bottom line tumbled.
Otis now expects net sales to be between $14.5 billion and $14.6 billion, down from the prior expectation of $14.6-$14.8 billion. The new projection indicates approximately 1-2% year-over-year growth. Organic sales growth is now projected to be approximately 1%, down from the prior expected range of 2-4%.
United Rentals, Inc. (URI - Free Report) reported second-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. On a year-over-year basis, the top line increased, but the bottom line declined.
United Rentals now expects total revenues to be in the range of $15.8-$16.1 billion compared with $15.6-$16.1 billion expected earlier. The new expectation indicates quite an improvement from $15.345 billion reported in 2024. Adjusted EBITDA is now projected to be between $7.3 billion and $7.45 billion compared with $7.2 billion to $7.45 billion projected earlier. The guidance indicates an increase from $7.160 billion reported in 2024.
Weyerhaeuser Company (WY - Free Report) reported second-quarter 2025 results, wherein its earnings met the Zacks Consensus Estimate and net sales topped the same.
On a year-over-year basis, the top and bottom lines of Weyerhaeuser declined due to lower domestic sales realizations with seasonally elevated per-unit log and haul costs, and forestry and road costs across its Timberlands segment. For oriented strand board, unit manufacturing costs were on the high side due to an increase in downtime for planned annual maintenance. Moreover, for engineered wood products, sales realizations were lower for most products, which was partially offset by higher sales volumes, mainly because of higher production of medium-density fiberboard (“MDF”).
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Comfort Systems Stock Up 14% on Q2 Earnings & Revenue Beat
Key Takeaways
Comfort Systems USA (FIX - Free Report) delivered another stellar second-quarter 2025, with earnings and revenues exceeding the Zacks Consensus Estimate, posting record profits and robust growth across key metrics. The mechanical and electrical contracting firm’s second-quarter 2025 earnings showcased strong momentum in both revenue generation and operational efficiency.
Shares of Comfort Systems have gained 14.2% in the after-hours trading session yesterday following the earnings release.
Comfort Systems’ EPS and Revenue in Detail
Net income in the quarter surged to $230.8 million, or $6.53 per diluted share, beating the Zacks Consensus Estimate of $4.68 by 39.5% and increasing 75% from $3.74 per share in the year-ago quarter. Revenue climbed 20% year over year to $2.17 billion, surpassing the consensus mark of $1.95 billion by 11.3%. The strong topline and bottom-line growth reflect continued demand across the company’s end markets.
Backlog reached a record $8.12 billion, up from $5.77 billion a year ago and $6.89 billion sequentially. On a same-store basis, backlog rose 37% year over year. CEO Brian Lane expressed strong confidence heading into 2026, citing robust pipelines and execution strength. “For the first time, our backlog has exceeded $8 billion,” Lane said, underscoring long-term demand visibility.
Comfort Systems USA, Inc. Price, Consensus and EPS Surprise
Comfort Systems USA, Inc. price-consensus-eps-surprise-chart | Comfort Systems USA, Inc. Quote
Margins and Profitability of FIX
Gross margin expanded to 23.5% from 20.1% a year ago, while operating income rose to $299.9 million, representing 13.8% of revenue—up from 10.2% last year.
Adjusted EBITDA for the quarter grew 50% year over year to $334.1 million, or 15.4% of revenue (up 310 basis points or bps from a year ago), driven by effective cost control and operational leverage. Both SG&A and earn-out obligation expenses declined, further boosting profitability.
Balance Sheet and Cash Flow: Strengthening Liquidity of FIX
Operating cash flow rose to $252.5 million in the quarter from $189.9 million in the year-ago quarter. Free cash flow stood at $222.2 million for the quarter, up from $167.3 million a year ago. Although year-to-date operating cash flow was lower at $164.5 million due to timing effects, FIX maintained a solid liquidity position with $331.7 million in cash and equivalents.
Long-term debt declined modestly to $61.3 million from $62.3 million at 2024-end, while stockholders’ equity improved to $1.97 billion from $1.70 billion, showcasing continued strengthening of the company’s capital structure.
Comfort Systems’ Zacks Rank & Few Constructions Releases
FIX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Otis Worldwide Corporation (OTIS - Free Report) reported mixed results in the second quarter of 2025, wherein adjusted earnings surpassed the Zacks Consensus Estimate while net sales missed the same. On a year-over-year basis, Otis’ top line and the bottom line tumbled.
Otis now expects net sales to be between $14.5 billion and $14.6 billion, down from the prior expectation of $14.6-$14.8 billion. The new projection indicates approximately 1-2% year-over-year growth. Organic sales growth is now projected to be approximately 1%, down from the prior expected range of 2-4%.
United Rentals, Inc. (URI - Free Report) reported second-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. On a year-over-year basis, the top line increased, but the bottom line declined.
United Rentals now expects total revenues to be in the range of $15.8-$16.1 billion compared with $15.6-$16.1 billion expected earlier. The new expectation indicates quite an improvement from $15.345 billion reported in 2024. Adjusted EBITDA is now projected to be between $7.3 billion and $7.45 billion compared with $7.2 billion to $7.45 billion projected earlier. The guidance indicates an increase from $7.160 billion reported in 2024.
Weyerhaeuser Company (WY - Free Report) reported second-quarter 2025 results, wherein its earnings met the Zacks Consensus Estimate and net sales topped the same.
On a year-over-year basis, the top and bottom lines of Weyerhaeuser declined due to lower domestic sales realizations with seasonally elevated per-unit log and haul costs, and forestry and road costs across its Timberlands segment. For oriented strand board, unit manufacturing costs were on the high side due to an increase in downtime for planned annual maintenance. Moreover, for engineered wood products, sales realizations were lower for most products, which was partially offset by higher sales volumes, mainly because of higher production of medium-density fiberboard (“MDF”).