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Comfort Systems posted first-quarter EPS of $10.51, up 121.3% year over year, beating estimates by 46.2%.
Revenues of FIX surged 56.8% to $2.87 billion, led by technology customers at 56.4% of sales.
The company's backlog rose to $12.45 billion, up 80.8% YoY, signaling strong technology demand momentum.
Comfort Systems USA, Inc. (FIX - Free Report) delivered a sharp first quarter of fiscal 2026, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year.
The quarter reflected strong market conditions, led by heavier technology-sector activity, particularly for data centers. Management also highlighted that recent bookings and underlying persistent demand supported a higher backlog even with increased project burn rates, an important indicator that volume remains strong across key end markets.
FIX stock gained 6.4% during yesterday’s after-hours trading session, following the earnings release.
FIX’s Q1 Earnings & Revenues
The company ended the first quarter with earnings of $10.51 per share, up 121.3% from $4.75 a year ago. The result also topped the Zacks Consensus Estimate of $7.19 by 46.2%.
Revenues of $2.87 billion rose 56.8% year over year, and exceeded the consensus mark of $2.43 billion by 18.1%.
Comfort Systems USA, Inc. Price, Consensus and EPS Surprise
Comfort Systems generated Mechanical segment revenues of $2.06 billion in the first quarter, up 47% from the prior-year quarter. The Electrical segment’s revenues climbed 87.5% year over year to $804.7 million, reflecting contributions from acquisitions as well as higher same-store activity.
Customer mix data underscored the outsized role of technology end markets. Technology customers represented 56.4% of first-quarter consolidated revenues, followed by manufacturing at 18.7%, healthcare at 7.7% and government at 4.8%.
The activity type also shows where the work is concentrated. New construction represented 74.5% of revenues, while existing building construction contributed 15.2%. Service projects and recurring service calls, maintenance and monitoring made up the remainder, reinforcing the company’s focus on installation and replacement work with a smaller, steadier service base.
FIX Profitability Expands on Execution and Mix
Operating performance strengthened alongside the surge in volume. Gross profit increased to $754.4 million from $403.4 million a year ago, and gross margin expanded to 26.3% from 22%, reflecting improved execution across operating locations and favorable developments on projects nearing completion.
Selling, general and administrative expenses rose to $269 million, but as a percentage of revenues, SG&A improved to 9.4% from 10.6%, indicating operating leverage. Operating income more than doubled to $485.7 million, lifting the operating margin to 17% from 11.4% year over year.
Adjusted EBITDA was $524.4 million compared with $242.7 million a year earlier, with adjusted EBITDA margin expanding 500 basis points to 18.3%.
FIX Backlog Rises as Demand Stays Robust
Backlog as of March 31, 2026, totaled $12.45 billion, increasing 4.3% from $11.94 billion at Dec. 31, 2025, and jumping 80.8% from $6.89 billion reported a year ago. On a same-store basis, backlog climbed to $12.21 billion from $6.89 billion in the year-ago period.
The mix continued to skew toward the Mechanical segment, which represented 77% of total backlog ($9.59 billion), while the Electrical segment contributed 23% ($2.86 billion).
Comfort Systems Cash Flow Strength Supports Returns
Cash and cash equivalents as of the quarter were $1.05 billion (up from $981.9 million at the 2025 end), while total debt was $39.1 million, down from $145.2 million at year-end 2025. Comfort Systems reported no borrowings outstanding on its revolving credit facility at quarter-end and said it had $1.02 billion of credit available, after accounting for letters of credit.
Cash generation was a key highlight. Operating cash flow was $388.8 million in the first quarter again an $88 million outflow in the year-ago quarter, and free cash flow totaled $242.2 million compared with negative free cash flow of $109.1 million a year ago.
The company also stepped up its investments, with capital expenditures totaling $147.5 million in the quarter, including a building purchase intended to support growth in its modular business.
Shareholder returns remained part of the capital allocation mix. Comfort Systems paid a quarterly dividend of 70 cents per share during the quarter and later raised its quarterly dividend to 80 cents per share, payable May 26, 2026, to stockholders of record as of May 15. FIX also repurchased less than 0.1 million shares during the quarter for about $2.5 million, inclusive of the applicable excise tax.
United Rentals, Inc. (URI - Free Report) reported solid first-quarter 2026 results, with adjusted earnings per share (EPS) and total revenues beating the Zacks Consensus Estimate and growing year over year. Solid execution across its general rentals and specialty businesses helped drive record first-quarter results, while fleet productivity increased 2.3% from the year-ago period.
Management raised full-year fiscal 2026 targets, lifting expectations across several major line items compared with the prior outlook. United Rentals now expects revenues between $16.9 billion and $17.4 billion, with adjusted EBITDA expected between $7.625 billion and $7.875 billion.
Masco Corporation (MAS - Free Report) reported exceptional first-quarter 2026 financial performance with earnings and net sales beating the Zacks Consensus Estimate and growing year over year. Masco’s performance benefited from pricing actions and cost-savings initiatives, which helped offset higher tariff and commodity costs.
Masco continues to expect EPS in the range of $3.91-$4.11 and adjusted EPS in the band of $4.10-$4.30. Management framed the decision as a prudent stance, given ongoing macroeconomic and geopolitical volatility.
D.R. Horton (DHI - Free Report) delivered second-quarter fiscal 2026 results with earnings beating the Zacks Consensus Estimate but revenues missing the same. The quarter was marked by an 11% jump in net sales orders and progress in tightening finished inventory, even as affordability constraints kept incentives elevated.
D.R. Horton updated fiscal 2026 consolidated revenue guidance to $33.5-$34.5 billion compared with the prior expectation of $33.5-$35 billion. This compares with $34.25 billion in fiscal 2025. It now expects homebuilding closings of 86,000-87,500 compared with the earlier guidance of 86,000-88,000. This compares with 84,863 in fiscal 2025.
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FIX Beats Q1 Earnings & Revenue Estimates on Technology Demand Growth
Key Takeaways
Comfort Systems USA, Inc. (FIX - Free Report) delivered a sharp first quarter of fiscal 2026, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year.
The quarter reflected strong market conditions, led by heavier technology-sector activity, particularly for data centers. Management also highlighted that recent bookings and underlying persistent demand supported a higher backlog even with increased project burn rates, an important indicator that volume remains strong across key end markets.
FIX stock gained 6.4% during yesterday’s after-hours trading session, following the earnings release.
FIX’s Q1 Earnings & Revenues
The company ended the first quarter with earnings of $10.51 per share, up 121.3% from $4.75 a year ago. The result also topped the Zacks Consensus Estimate of $7.19 by 46.2%.
Revenues of $2.87 billion rose 56.8% year over year, and exceeded the consensus mark of $2.43 billion by 18.1%.
Comfort Systems USA, Inc. Price, Consensus and EPS Surprise
Comfort Systems USA, Inc. price-consensus-eps-surprise-chart | Comfort Systems USA, Inc. Quote
Comfort Systems Sees Broad-Based Segment Growth
Comfort Systems generated Mechanical segment revenues of $2.06 billion in the first quarter, up 47% from the prior-year quarter. The Electrical segment’s revenues climbed 87.5% year over year to $804.7 million, reflecting contributions from acquisitions as well as higher same-store activity.
Customer mix data underscored the outsized role of technology end markets. Technology customers represented 56.4% of first-quarter consolidated revenues, followed by manufacturing at 18.7%, healthcare at 7.7% and government at 4.8%.
The activity type also shows where the work is concentrated. New construction represented 74.5% of revenues, while existing building construction contributed 15.2%. Service projects and recurring service calls, maintenance and monitoring made up the remainder, reinforcing the company’s focus on installation and replacement work with a smaller, steadier service base.
FIX Profitability Expands on Execution and Mix
Operating performance strengthened alongside the surge in volume. Gross profit increased to $754.4 million from $403.4 million a year ago, and gross margin expanded to 26.3% from 22%, reflecting improved execution across operating locations and favorable developments on projects nearing completion.
Selling, general and administrative expenses rose to $269 million, but as a percentage of revenues, SG&A improved to 9.4% from 10.6%, indicating operating leverage. Operating income more than doubled to $485.7 million, lifting the operating margin to 17% from 11.4% year over year.
Adjusted EBITDA was $524.4 million compared with $242.7 million a year earlier, with adjusted EBITDA margin expanding 500 basis points to 18.3%.
FIX Backlog Rises as Demand Stays Robust
Backlog as of March 31, 2026, totaled $12.45 billion, increasing 4.3% from $11.94 billion at Dec. 31, 2025, and jumping 80.8% from $6.89 billion reported a year ago. On a same-store basis, backlog climbed to $12.21 billion from $6.89 billion in the year-ago period.
The mix continued to skew toward the Mechanical segment, which represented 77% of total backlog ($9.59 billion), while the Electrical segment contributed 23% ($2.86 billion).
Comfort Systems Cash Flow Strength Supports Returns
Cash and cash equivalents as of the quarter were $1.05 billion (up from $981.9 million at the 2025 end), while total debt was $39.1 million, down from $145.2 million at year-end 2025. Comfort Systems reported no borrowings outstanding on its revolving credit facility at quarter-end and said it had $1.02 billion of credit available, after accounting for letters of credit.
Cash generation was a key highlight. Operating cash flow was $388.8 million in the first quarter again an $88 million outflow in the year-ago quarter, and free cash flow totaled $242.2 million compared with negative free cash flow of $109.1 million a year ago.
The company also stepped up its investments, with capital expenditures totaling $147.5 million in the quarter, including a building purchase intended to support growth in its modular business.
Shareholder returns remained part of the capital allocation mix. Comfort Systems paid a quarterly dividend of 70 cents per share during the quarter and later raised its quarterly dividend to 80 cents per share, payable May 26, 2026, to stockholders of record as of May 15. FIX also repurchased less than 0.1 million shares during the quarter for about $2.5 million, inclusive of the applicable excise tax.
FIX’s Zacks Rank & Recent Construction Releases
Comfort Systems currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
United Rentals, Inc. (URI - Free Report) reported solid first-quarter 2026 results, with adjusted earnings per share (EPS) and total revenues beating the Zacks Consensus Estimate and growing year over year. Solid execution across its general rentals and specialty businesses helped drive record first-quarter results, while fleet productivity increased 2.3% from the year-ago period.
Management raised full-year fiscal 2026 targets, lifting expectations across several major line items compared with the prior outlook. United Rentals now expects revenues between $16.9 billion and $17.4 billion, with adjusted EBITDA expected between $7.625 billion and $7.875 billion.
Masco Corporation (MAS - Free Report) reported exceptional first-quarter 2026 financial performance with earnings and net sales beating the Zacks Consensus Estimate and growing year over year. Masco’s performance benefited from pricing actions and cost-savings initiatives, which helped offset higher tariff and commodity costs.
Masco continues to expect EPS in the range of $3.91-$4.11 and adjusted EPS in the band of $4.10-$4.30. Management framed the decision as a prudent stance, given ongoing macroeconomic and geopolitical volatility.
D.R. Horton (DHI - Free Report) delivered second-quarter fiscal 2026 results with earnings beating the Zacks Consensus Estimate but revenues missing the same. The quarter was marked by an 11% jump in net sales orders and progress in tightening finished inventory, even as affordability constraints kept incentives elevated.
D.R. Horton updated fiscal 2026 consolidated revenue guidance to $33.5-$34.5 billion compared with the prior expectation of $33.5-$35 billion. This compares with $34.25 billion in fiscal 2025. It now expects homebuilding closings of 86,000-87,500 compared with the earlier guidance of 86,000-88,000. This compares with 84,863 in fiscal 2025.