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A surge in data centers and electrification demand positions FIX for sustained high-margin growth.
Despite strong momentum and rising EPS, a premium valuation raises the bar for further outperformance.
Comfort Systems USA, Inc. (FIX - Free Report) boasts a strong record when it comes to accretive acquisitions, with an average of $93.9 million spent between 2007 and 2024, reflecting about 75% of capital allocation. Its approach toward expansion through inorganic efforts continued into 2025 as well, with the completion of reportedly five acquisitions.
On Oct. 1, 2025, Comfort Systems acquired Feyen Zylstra Holdings, LLC and Meisner Electric, Inc., expanding its presence in Michigan and Florida. Feyen Zylstra provides electrical design, installation and maintenance services to industrial, technology and healthcare clients, while Meisner Electric offers electrical design, installation, renovation and greenfield construction services across healthcare, commercial, and government markets. Both companies will operate within FIX’s Electrical segment and are expected to add $200-$240 million in annual revenues and $15-$20 million in annual EBITDA.
In addition to its recent electrical acquisitions, Comfort Systems also acquired a mechanical service provider in New York on May 31, Right Way Plumbing & Mechanical LLC on May 1, and Century Contractors, LLC on Jan. 1, all of which were added to its Mechanical segment. During the first nine months of 2025, FIX’s revenues rose 25.1% year over year to $6.46 billion, with the acquisitions of Right Way, Century, Summit and J&S contributing about 2.3% of that growth. Over the same period, gross profit increased 59.2% year over year, including a 1.2% lift from the Right Way and Century acquisitions, alongside other factors.
Notably, technology and industrial customers now account for the bulk of revenues, fueled by data center construction, automation and large-scale electrification. Amid these long-term opportunities, Comfort Systems is booking multi-year work at attractive margins as acquisitions not only widen its capabilities but also increase its capacity to capture more of this unprecedented demand. If demand remains as strong as management suggests, these acquisitions could indeed be the catalyst for a multi-year rally, one built on skill, scale and strategic expansion.
Comfort Systems vs. Other Market Players
Comfort Systems has accelerated growth through targeted add-on acquisitions and a rapidly expanding backlog, winning work across data centers, industrial HVAC and large commercial projects. But the firm does face substantial competition from key market players, including Carrier Global Corporation (CARR - Free Report) and AECOM (ACM - Free Report) .
Carrier Global is reshaping its portfolio through strategic mergers and acquisitions, alongside divestitures, adding climate and intelligent-energy assets while exiting non-core businesses. These moves reflect efforts to stitch together products, controls and services at scale to build electrification and efficiency plays. On the other hand, AECOM competes from a different vantage. Its global engineering and design platform, massive project pipeline and heavy-civil capabilities make it the go-to for the largest, technically complex infrastructure and energy projects that require end-to-end delivery and engineering depth.
Nonetheless, Comfort Systems’ competitive advantage today is pragmatic and focused, as its focus on pairing M&A with deep HVAC/electrical execution enables it to win bundled, time-sensitive builds faster than broader engineering houses compared with AECOM and Carrier Global.
FIX Stock’s Price Performance & Valuation Trend
Shares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have trended upward 37.1% in the past three months, outperforming the Zacks Building Products - Air Conditioner and Heating industry, the broader Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
FIX stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 31.75, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors FIX
FIX’s earnings estimates for 2025 and 2026 have trended upward over the past 60 days to $26.31 and $30.61 per share, respectively. The estimated figures for 2025 and 2026 imply year-over-year growth of 80.2% and 16.4%, respectively.
Image Source: Zacks Investment Research
The robust market fundamentals and FIX’s strategic initiatives to curb the adverse impacts of macro uncertainties are likely to have induced bullish sentiments among analysts.
Image: Bigstock
Could Comfort Systems' Acquisitions Fuel a Multi-Year Rally?
Key Takeaways
Comfort Systems USA, Inc. (FIX - Free Report) boasts a strong record when it comes to accretive acquisitions, with an average of $93.9 million spent between 2007 and 2024, reflecting about 75% of capital allocation. Its approach toward expansion through inorganic efforts continued into 2025 as well, with the completion of reportedly five acquisitions.
On Oct. 1, 2025, Comfort Systems acquired Feyen Zylstra Holdings, LLC and Meisner Electric, Inc., expanding its presence in Michigan and Florida. Feyen Zylstra provides electrical design, installation and maintenance services to industrial, technology and healthcare clients, while Meisner Electric offers electrical design, installation, renovation and greenfield construction services across healthcare, commercial, and government markets. Both companies will operate within FIX’s Electrical segment and are expected to add $200-$240 million in annual revenues and $15-$20 million in annual EBITDA.
In addition to its recent electrical acquisitions, Comfort Systems also acquired a mechanical service provider in New York on May 31, Right Way Plumbing & Mechanical LLC on May 1, and Century Contractors, LLC on Jan. 1, all of which were added to its Mechanical segment. During the first nine months of 2025, FIX’s revenues rose 25.1% year over year to $6.46 billion, with the acquisitions of Right Way, Century, Summit and J&S contributing about 2.3% of that growth. Over the same period, gross profit increased 59.2% year over year, including a 1.2% lift from the Right Way and Century acquisitions, alongside other factors.
Notably, technology and industrial customers now account for the bulk of revenues, fueled by data center construction, automation and large-scale electrification. Amid these long-term opportunities, Comfort Systems is booking multi-year work at attractive margins as acquisitions not only widen its capabilities but also increase its capacity to capture more of this unprecedented demand. If demand remains as strong as management suggests, these acquisitions could indeed be the catalyst for a multi-year rally, one built on skill, scale and strategic expansion.
Comfort Systems vs. Other Market Players
Comfort Systems has accelerated growth through targeted add-on acquisitions and a rapidly expanding backlog, winning work across data centers, industrial HVAC and large commercial projects. But the firm does face substantial competition from key market players, including Carrier Global Corporation (CARR - Free Report) and AECOM (ACM - Free Report) .
Carrier Global is reshaping its portfolio through strategic mergers and acquisitions, alongside divestitures, adding climate and intelligent-energy assets while exiting non-core businesses. These moves reflect efforts to stitch together products, controls and services at scale to build electrification and efficiency plays. On the other hand, AECOM competes from a different vantage. Its global engineering and design platform, massive project pipeline and heavy-civil capabilities make it the go-to for the largest, technically complex infrastructure and energy projects that require end-to-end delivery and engineering depth.
Nonetheless, Comfort Systems’ competitive advantage today is pragmatic and focused, as its focus on pairing M&A with deep HVAC/electrical execution enables it to win bundled, time-sensitive builds faster than broader engineering houses compared with AECOM and Carrier Global.
FIX Stock’s Price Performance & Valuation Trend
Shares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have trended upward 37.1% in the past three months, outperforming the Zacks Building Products - Air Conditioner and Heating industry, the broader Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
FIX stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 31.75, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors FIX
FIX’s earnings estimates for 2025 and 2026 have trended upward over the past 60 days to $26.31 and $30.61 per share, respectively. The estimated figures for 2025 and 2026 imply year-over-year growth of 80.2% and 16.4%, respectively.
Image Source: Zacks Investment Research
The robust market fundamentals and FIX’s strategic initiatives to curb the adverse impacts of macro uncertainties are likely to have induced bullish sentiments among analysts.
Comfort Systems stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.