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Comfort Systems' Data Center Exposure: A New Growth Engine?
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Key Takeaways
Comfort Systems said data center and tech projects made up 42% of revenues in the first nine months of 2025.
FIX ended the third quarter with a record $9.4 billion backlog, fueled by strong technology-sector bookings.
Comfort Systems sees a robust data center pipeline with no near-term slowdown in bidding or demand.
Comfort Systems USA, Inc. (FIX - Free Report) is steadily expanding its exposure to data center construction, which is emerging as a meaningful driver of its accelerating growth profile. While the company continues to see healthy demand across manufacturing end markets, management indicated that, in many cases, data center opportunities are proving more compelling. This shift reflects the growing strength of demand in the technology sector, where large-scale data center projects are increasingly underpinning bookings and revenue growth.
Technology-related projects, including data center construction, accounted for approximately 42% of total revenues in the first nine months of 2025, up sharply from 32% in the prior year. This mix shift aligns with broader global trends, as demand for data centers continues to surge, driven by the rapid adoption of artificial intelligence, cloud computing, big data and digital services. The resulting investment cycle has triggered a construction boom across major markets, with hyperscale cloud providers leading capacity expansion and, in some regions, straining power and skilled labor availability.
The durability of this demand is further reflected in Comfort Systems’ backlog, which reached a record $9.4 billion at the end of the third quarter. Management highlighted that bookings during the quarter were particularly strong in the technology sector, spanning both traditional construction and modular offerings. Notably, executives emphasized that the data center pipeline remains robust, with no evidence of near-term moderation in bidding activity or customer demand.
Taken together, Comfort Systems’ growing exposure to data center construction appears well-positioned to serve as a sustainable growth engine, supporting elevated backlog visibility and reinforcing the company’s long-term earnings trajectory.
Competitors Expanding in Technology-Driven Markets
Several peers are also increasing their focus on technology-related construction, like data centers and services, creating a more competitive landscape for Comfort Systems. Sterling Infrastructure, Inc. (STRL - Free Report) and Quanta Services, Inc. (PWR - Free Report) are two major competitors operating in similar markets.
Sterling continues to strengthen its presence in large-scale, mission-critical site development. In the third quarter of 2025, data center revenues surged 125% year over year, underscoring strong demand for complex, high-capacity facilities. Sterling's E-Infrastructure Solutions segment remains the primary growth driver, supported by solid execution, robust project flow and a healthy pipeline.
Quanta is a relevant peer with significant exposure to electrical infrastructure and high-demand end markets. Similar to Comfort Systems, Quanta is benefiting from secular tailwinds tied to AI, data centers, electrification, grid modernization and power generation investment. Management has highlighted accelerating demand in its Electric segment and broad-based activity across key end markets, reinforcing project momentum and the durability of technology- and power-driven infrastructure spending.
FIX Stock’s Price Performance & Valuation Trend
Shares of this leading building and service provider for mechanical, electrical and plumbing building systems have soared 105.6% in the past six months, outperforming the Zacks Building Products - Air Conditioner and Heating industry, the broader Construction sector and the S&P 500 Index. The detailed share price performance is shown in the chart below.
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 36.63, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Trend for FIX
FIX’s earnings estimate for 2026 has remained unchanged over the past 60 days at $30.61 per share. The estimated figures for 2026 imply year-over-year growth of 16.4%.
Image: Bigstock
Comfort Systems' Data Center Exposure: A New Growth Engine?
Key Takeaways
Comfort Systems USA, Inc. (FIX - Free Report) is steadily expanding its exposure to data center construction, which is emerging as a meaningful driver of its accelerating growth profile. While the company continues to see healthy demand across manufacturing end markets, management indicated that, in many cases, data center opportunities are proving more compelling. This shift reflects the growing strength of demand in the technology sector, where large-scale data center projects are increasingly underpinning bookings and revenue growth.
Technology-related projects, including data center construction, accounted for approximately 42% of total revenues in the first nine months of 2025, up sharply from 32% in the prior year. This mix shift aligns with broader global trends, as demand for data centers continues to surge, driven by the rapid adoption of artificial intelligence, cloud computing, big data and digital services. The resulting investment cycle has triggered a construction boom across major markets, with hyperscale cloud providers leading capacity expansion and, in some regions, straining power and skilled labor availability.
The durability of this demand is further reflected in Comfort Systems’ backlog, which reached a record $9.4 billion at the end of the third quarter. Management highlighted that bookings during the quarter were particularly strong in the technology sector, spanning both traditional construction and modular offerings. Notably, executives emphasized that the data center pipeline remains robust, with no evidence of near-term moderation in bidding activity or customer demand.
Taken together, Comfort Systems’ growing exposure to data center construction appears well-positioned to serve as a sustainable growth engine, supporting elevated backlog visibility and reinforcing the company’s long-term earnings trajectory.
Competitors Expanding in Technology-Driven Markets
Several peers are also increasing their focus on technology-related construction, like data centers and services, creating a more competitive landscape for Comfort Systems. Sterling Infrastructure, Inc. (STRL - Free Report) and Quanta Services, Inc. (PWR - Free Report) are two major competitors operating in similar markets.
Sterling continues to strengthen its presence in large-scale, mission-critical site development. In the third quarter of 2025, data center revenues surged 125% year over year, underscoring strong demand for complex, high-capacity facilities. Sterling's E-Infrastructure Solutions segment remains the primary growth driver, supported by solid execution, robust project flow and a healthy pipeline.
Quanta is a relevant peer with significant exposure to electrical infrastructure and high-demand end markets. Similar to Comfort Systems, Quanta is benefiting from secular tailwinds tied to AI, data centers, electrification, grid modernization and power generation investment. Management has highlighted accelerating demand in its Electric segment and broad-based activity across key end markets, reinforcing project momentum and the durability of technology- and power-driven infrastructure spending.
FIX Stock’s Price Performance & Valuation Trend
Shares of this leading building and service provider for mechanical, electrical and plumbing building systems have soared 105.6% in the past six months, outperforming the Zacks Building Products - Air Conditioner and Heating industry, the broader Construction sector and the S&P 500 Index. The detailed share price performance is shown in the chart below.
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 36.63, as evidenced by the chart below.
Image Source: Zacks Investment Research
Earnings Estimate Trend for FIX
FIX’s earnings estimate for 2026 has remained unchanged over the past 60 days at $30.61 per share. The estimated figures for 2026 imply year-over-year growth of 16.4%.
Image Source: Zacks Investment Research
Comfort Systems currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.