Comfort Systems USA Reports 19.1% Revenue Growth to $1.83 Billion in Q1 2025

Comfort Systems USA, Inc. reported significant financial growth in its latest quarterly results, with revenue for the first quarter of 2025 reaching $1.83 billion, a 19.1% increase from $1.54 billion in the same period last year. The company's net income also saw a substantial rise, climbing to $169.3 million, compared to $96.3 million in the prior year, resulting in earnings per share of $4.75, up from $2.69. This growth was attributed to strong demand in the technology sector, particularly for data centers, and an increase in backlog, which rose to $6.89 billion, a 14.9% increase from the previous quarter.

The company experienced notable changes in its operational metrics, including a 15.4% increase in same-store revenue, driven by improved project execution and increased activity in key sectors. The mechanical segment generated $1.40 billion in revenue, an 18.3% increase, while the electrical segment reported $429.1 million, up 21.9%. The acquisitions of Century Contractors, Summit Industrial Construction, and J&S Mechanical Contractors contributed an additional $56.7 million to revenue, highlighting the strategic focus on expanding its service capabilities.

Comfort Systems also reported a decrease in cash and cash equivalents, which fell to $204.8 million from $549.9 million at the end of 2024. This decline was primarily due to cash used in operating activities, which amounted to $88 million, compared to a cash inflow of $146.6 million in the same quarter of 2024. The company’s investing activities also saw a reduction in cash outflow, totaling $96.8 million, down from $221.6 million in the previous year, reflecting a decrease in acquisition-related expenditures.

The company’s workforce increased to 8,750 projects in process, with an average project duration of six to nine months and an average contract price of approximately $1.9 million. Comfort Systems continues to focus on maintaining productivity and managing supply chain challenges, including labor costs and material delivery delays. The company anticipates solid earnings for 2025, supported by a strong pipeline of opportunities and favorable market conditions, particularly in the manufacturing and technology sectors.

Looking ahead, Comfort Systems remains cautious about potential economic fluctuations but is optimistic about ongoing demand in its core markets. The company plans to continue investing in its service business and pursuing growth opportunities while managing operational challenges effectively.